METTAWA, Ill., — Brunswick Corporation (NYSE: BC) — parent company to several RV industry companies including RELiON Battery LLC, Progressive Industries, ParkPower by Marinco and Land ‘N’ Sea Distributing — reported results for the second quarter of 2025.
Second Quarter 2025 Financial Results
Brunswick Chairman and Chief Executive Officer David Foulkes
“Brunswick delivered strong second quarter results as the power of our market-leading products and brands, efficient operational execution and cost control, continued prudent pipeline inventory management, and the benefits from the resilient, recurring, aftermarket-focused portions of our portfolio, resulted in second quarter financial performance ahead of expectations. This was despite the challenging macro environment and uncooperative weather in many parts of the U.S. through the first two months of the quarter. Year-to-date, boat unit retail sales in the value category are underperforming our initial expectations for the year, but continued overall resilience in the premium and core categories, combined with improving retail sales trends in July, is expected to provide a floor for wholesale performance in the second-half of the year. Tariffs continue to directly impact our earnings, while adding uncertainty for both our end-consumers and channel partners, but all our businesses are executing strongly on their mitigation plans, resulting in a smaller net tariff impact than originally anticipated.
“We had another quarter of outstanding free cash flow generation, with $288 million of free cash generated in the quarter, a record for any second quarter in company history. This performance also resulted in a record first-half free cash flow of $244 million, a $279 million improvement versus first- half 2024. The free cash generated in the past three quarters represents the largest free cash flow generation in any fourth-through-second quarter period in Brunswick history.
“Our propulsion business delivered strong year-over-year sales growth, with shipments to U.S. OEM customers outpacing expectations. Earnings and margins improved sequentially despite the anticipated tariff and absorption headwinds. Mercury’s outboard engine lineup continues to take market share, gaining over 300 basis points of U.S. retail share in outboard engines over 300 horsepower in the quarter, and 30 basis points of share overall on a rolling twelve-month basis despite heavy wholesale shipments by competitors ahead of tariffs being implemented on Japanese imports. Mercury’s leadership in high horsepower outboard engines will be further reinforced by the new 425 and 350 horsepower engines launched earlier this week with performance, smoothness, quietness, weight, and other attributes far ahead of the competition.
“Our engine parts and accessories business had another strong quarter, with slight year-over-year sales growth and steady earnings despite a weather-affected start to the boating season. This primarily aftermarket-based business continues to derive its success from stable boating participation and the world’s largest marine distribution network, which in the U.S. has gained 180 basis points of market share on a rolling twelve-month basis, resulting from our ability to support same day or next day deliveries to most locations in the world.
“Navico Group had slightly lower sales versus the second quarter of 2024 as aftermarket sales and sales to marine OEMs were modestly lower, however, sales trends continued to improve each month in the quarter. Navico Group earnings remained consistent with first quarter levels and were driven by enthusiastic customer acceptance of new products and steady operational performance. Year-to- date revenue for Navico Group is only down 2.5 percent versus the first-half of 2024, led by steady performance by the group’s aftermarket businesses. Restructuring actions continue to gain traction despite tariff and market headwinds and, in the quarter, we consolidated two production locations, and transferred European distribution to a 3PL while, in July, we implemented a leaner organizational structure that will reduce expenses and increase agility.
“Finally, our boat business had sales and operating earnings below the second quarter of 2024, consistent with lower planned wholesale shipments, but delivered strong sales and earnings growth versus the first quarter of 2025 as anticipated. Our Boat Group remains focused on gaining share in key categories, maintaining balanced field inventory levels, working closely with its channel partners to drive retail activity, and executing multiple structural actions to re-expand margins in the tighter market. Freedom Boat Club signed its first Middle East franchisee in June, based in Dubai. The club will be operational in the coming weeks in time for the boating season in this region, extending the reach of this unique alternative participation model, which now has 433 global locations.
“Our second quarter results again demonstrated the resiliency of our portfolio, with our recurring revenue businesses and channels, including our engine P&A business, propulsion’s repower business, Freedom Boat Club, and Navico Group’s aftermarket sales, contributing nearly 60 percent of our second quarter adjusted operating earnings. In addition, our strong cash flow has enabled us to complete $43 million in share repurchases through the second quarter, maintaining our commitment to return value to shareholders,” Foulkes concluded.
Click here for the full results for Brunswick’s second quarter of 2025.
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