NYSE$BC

Brunswick Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a resolute performance amidst a challenging marine market, with GAAP diluted EPS of $1.55 and as adjusted diluted EPS of $1.80.

Brunswick Corporation reported second-quarter results that were slightly below expectations due to high interest rates impacting consumer spending and wholesale ordering patterns. Despite these challenges, the company saw growth in its engine parts and accessories business, stability in Navico Group's aftermarket sales, and solid performance in its boat business. The company is lowering its full-year guidance to net sales of $5.2 to $5.4 billion and as adjusted diluted EPS in the range of $5.00 to $5.50.

  • Second quarter net sales were $1,443.9 million, a 15.2% decrease compared to Q2 2023.
  • GAAP diluted EPS was $1.55, and as adjusted diluted EPS was $1.80.
  • Despite lower sales and operating earnings versus the second quarter of 2023, year-to-date Brunswick continues to gain share in outboard engines, with more than 48 percent overall share of the U.S. outboard market.
  • Recurring revenue businesses and channels, including engine P&A, Propulsion’s repower business, Freedom Boat Club, and Navico Group's aftermarket sales, contributed more than 50 percent of Q2 adjusted operating earnings.

Headline financials

Total Revenue

$1.44B

Previous: $1.7B-15.2%
EPS

$1.48

Previous: $2.35-37.0%
Capital Expenditures

-$101M

Previous: -$173M+41.7%
Free Cash Flow

-$1.1M

Previous: -$38.7M+97.2%
Net Income

$100M

Previous: $135M-25.8%
Operating Income

$158M

Previous: $194M-18.6%
Gross Profit

$391M

Previous: $472M-17.2%
Cash & Equivalents

$495M

Previous: $478M+3.6%
Total Assets

$6.4B

Previous: $6.29B+1.7%
R&D Expense

$43M

No prior period
Stock-Based Comp

$5.1M

Previous: $7.9M-35.4%

Revenue & EPS history

Brunswick · Revenue · Quarterly

$1.44B

Q2 2024-15.2%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Brunswick · $1.49B total across 3 segments · Q3 2023

  • Propulsion
    $718M+16.7%
  • Boat
    $429M-16.1%
  • Engine P&A
    $345M-3.9%

Forward guidance

Brunswick updated its full year guidance to match market realities.

Tailwinds

  • Brunswick will continue to launch many exciting new products to support future share gains.
  • Focusing on delivering year-end inventory levels in line with historical norms
  • Executing our strategic plan
  • Investing in our long-term growth initiatives
  • Driving resilient EPS and free cash flow

Headwinds

  • Net sales between $5.2 to $5.4 billion
  • Adjusted diluted EPS in the range of $5.00 to $5.50
  • Free Cash Flow in excess of $350 million
  • Annual share repurchases of approximately $200 to $220 million
  • Third quarter 2024 net sales between $1.2 billion and $1.3 billion, and adjusted diluted EPS in the range of $1.15 to $1.25.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+10.8%

Q2 2013

Best reaction

-13.0%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-1.2%+5.6%
Q4 2025-4.4%+1.9%-5.4%
Q3 2025+8.5%+8.5%-1.3%
Q2 2025+6.7%+11.6%+17.6%
Q1 2025+5.7%+2.4%+9.9%
Q4 2024+1.3%-1.5%-10.7%
Q3 2024+4.9%+7.5%+7.0%
Q2 2024+8.8%+12.9%+9.6%
Q1 2024-5.9%-6.4%-7.7%
Q4 2023+6.1%+4.2%+8.9%
Q3 2023-1.0%+1.0%+13.8%
Q2 2023+0.4%+2.4%-2.8%
Q1 2023+2.1%+3.7%-6.7%
Q4 2022+7.2%+3.2%+2.6%
Q3 2022-0.1%+0.0%+1.6%
Q2 2022+4.1%-1.4%+1.3%
Q1 2022+1.4%+7.3%+1.5%
Q4 2021+3.7%+5.6%+7.5%
Q3 2021+3.0%+7.3%+10.3%
Q2 2021+7.2%+7.5%+5.6%
Q1 2021+1.6%+6.4%-3.1%
Q4 2020-5.5%-5.1%-3.4%
Q3 2020-1.1%+5.7%+18.3%
Q2 2020-7.4%-5.5%-14.2%
Q1 2020-9.4%-6.4%+12.9%
Q4 2019-0.1%-2.7%-15.5%
Q3 2019+2.3%+3.4%+0.2%
Q2 2019+2.2%+3.3%-5.7%
Q1 2019-7.4%-6.0%-20.6%
Q4 2018-4.8%-1.8%+5.7%
Q3 2018-9.6%-8.6%-5.1%
Q2 2018-5.3%-2.4%-0.7%
Q1 2018+2.3%+4.0%+8.0%
Q4 2017-4.7%-6.1%-2.5%
Q3 2017-13.0%-11.9%-8.6%
Q2 2017-5.7%-7.0%-11.7%
Q1 2017-6.2%-7.3%-9.6%
Q4 2016+3.6%+5.4%+7.0%
Q3 2016-7.1%-8.0%+6.0%
Q2 2016-1.4%-3.8%-8.7%
Q1 2016-6.4%
Q4 2015-5.5%
Q3 2015+8.1%
Q2 2015+0.0%
Q1 2015-9.2%
Q4 2014+5.2%
Q3 2014+3.7%
Q2 2014+1.1%
Q1 2014-4.2%
Q4 2013+2.6%
Q3 2013+2.7%
Q2 2013+10.8%
Q1 2013+2.8%
Q4 2012+9.6%
Q3 2012+8.5%
Q2 2012-1.6%
Q1 2012+2.4%
Q4 2009+3.9%
Q4 2011+3.9%
Q3 2010-0.8%
Q3 2011-0.8%
Q2 2011-1.1%
Q4 2010-1.1%
Q2 2010-1.4%
Q1 2011-1.4%
Q1 2010-1.4%

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