Brunswick Corporation

Brunswick is demonstrating its new Auto Captain autonomous docking technology at the Brooklyn Bridge Marina, which lets boaters press a button and have the vessel dock itself. Chairman and CEO David Foulkes says the system is now running down production lines and is expected to follow the adoption curve of joystick control, which eventually became standard on Boston Whaler and Sea Ray models. He notes docking is one of the most stressful parts of boating, especially for larger boats in tight areas with wind and current, and predicts Auto Captain will become a must-have feature that affects resale value. Brunswick also showcased a Guardian law-enforcement boat and an unmanned surface vessel developed with Textron for the Navy, with about 20 units already sold.

Brunswick reported second-quarter revenue of $1.56 billion, beating analyst estimates of $1.52 billion and growing 7.7% year on year, while adjusted earnings per share of $1.56 surged 31% above consensus. The company raised its full-year revenue guidance to $5.75 billion at the midpoint and its adjusted EPS outlook to $4.55, a 7.1% increase. CEO David Foulkes credited new product traction, improved mix, and healthy aftermarket demand, particularly in premium and core brands, as key growth drivers. CFO Ryan Gwillim noted that about $30 million in IEEPA tariff refunds benefited the quarter, though ongoing tariff and inflation pressures remain a challenge. Brunswick expects continued margin expansion supported by lean inventory, efficiency initiatives, and planned new engine platform launches.

Consumer discretionary leisure products stocks reported strong fourth-quarter results, with aggregate revenues beating analyst consensus estimates by 5.2%. However, next quarter's revenue guidance came in 3.4% below expectations. Polaris reported revenues of $1.94 billion, up 9% year on year and exceeding estimates by 6.8%, but its full-year EPS guidance significantly missed expectations. Smith & Wesson was the best performer with revenues of $178.4 million, up 26.7% year on year and beating estimates by 14.9%. Ruger was the weakest, with revenues of $141.4 million, up 4.1% year on year, but it significantly missed EPS and adjusted operating income estimates. MasterCraft reported revenues of $78.21 million, up 3% year on year and beating estimates by 3.7%, while Brunswick reported revenues of $1.38 billion, up 12.8% year on year and beating estimates by 4.1%. Share prices of the tracked companies have been resilient, up 6.7% on average since the latest earnings results.

Brunswick shares rose 4.2% after the company announced operational updates to improve efficiency and highlighted the continued expansion of its Freedom Boat Club. Navico Group, a division of Brunswick, announced changes at its Lowell, Michigan, facility intended to reduce fixed costs, expected to create a multi-million-dollar savings opportunity while improving manufacturing capabilities. The stock was trading at $85.25, up 4.9% from the previous close.

Freedom Boat Club has opened its 450th global location at Liberty Landing Marina in Jersey City, New Jersey, marking a milestone that more than doubles its footprint since Brunswick Corporation acquired the club in 2019. The new location, owned by franchisees Bev and Tom Rosella, offers views of the Statue of Liberty and the Manhattan skyline. The club now operates across 35 U.S. states, Canada, Europe, Australia, New Zealand, and the United Arab Emirates. Recent expansions include clubs in Sète and Gruissan, France, Cleveland Harbor Marina, Lake Hopatcong in New Jersey, and Hutchinson Island in Savannah, Georgia. Freedom Boat Club president Cecil Cohn said the growth reflects disciplined execution and the increasing demand for flexible boating experiences.

Navico Group, a division of Brunswick Corporation, announced operational updates at its Lowell, Michigan facility aimed at reducing fixed costs, improving efficiency, and supporting long-term U.S. manufacturing. As part of the plan, Land 'N' Sea will use about 50,000 square feet of available space inside the Lowell facility for distribution operations while remaining a separate business with its own leadership and customer focus. The changes are expected to create a multi-million-dollar savings opportunity and build on progress made over the past 18 months in margin, productivity, safety, quality, and on-time delivery. Navico Group will expand insourcing, use select outside partners, and work more closely with other Brunswick divisions as part of the company's ongoing cost transformation work.