Brunswick Reports Strong Third Quarter Results (Form 8-K)

Brunswick Reports Strong Third Quarter Results

Fifth Consecutive Quarter of Sales Growth Across All Segments

Third Quarter GAAP Diluted EPS of $1.01 and As Adjusted Diluted EPS of $1.58

Increasing 2026 Full-Year Guidance: As Adjusted Diluted EPS of approximately $4.65

METTAWA, Ill., October 29, 2026 - Brunswick Corporation (NYSE: BC) today reported results for the third quarter of 2026:

Third Quarter 2026 Financial Results:

						Q3 2026
(in millions, except per share data)						GAAP			Change vs Q3'25						As Adjusted			Change vs Q3'25
Net Sales						$	1,453.9		6.9%						$	1,453.9		6.9 %
Operating Earnings						$	104.0		NM						$	146.7		37.9 %
Operating Margin						7.2 %			NM						10.1 %			230		bps
Diluted EPS from Continuing Operations						$	1.01		NM						$	1.58		62.9 %
bps = basis points

"Brunswick delivered another strong quarter characterized by solid execution across the enterprise, with financial performance ahead of expectations and year-over-year sales growth across all reporting segments for the fifth consecutive quarter. Adjusted operating margin increased by 230 basis points and across all segments versus the prior year," said David Foulkes, Brunswick Chairman and Chief Executive Officer.

"Despite an external environment with headwinds from persistent inflation, higher borrowing costs, and geopolitical uncertainty continuing to pressure value categories, our premium- and core-focused brand portfolio continued to demonstrate resilience and perform ahead of the overall market. Boating participation remained healthy throughout the quarter, supporting demand across our recurring-revenue parts and accessories, aftermarket, and subscription boating businesses, while lean pipelines and balanced OEM orders supported continued wholesale growth.

From an inventory perspective, conditions remain healthy across the portfolio. Boat and engine pipelines remain lean and well-aligned with retail demand, positioning Brunswick and its channel partners well as we close out the year.

Our Propulsion business delivered another robust quarter driven by consistent OEM demand and growth in high-horsepower applications. Mercury continues to maintain its market-leading position in the U.S., while gaining share internationally through expanding dealer, OEM, and retail relationships. Mercury's five major new outboard development programs remain on track and further reinforce our confidence in the long-term growth of the business.

Engine Parts and Accessories delivered its strongest quarter in years, benefiting from sustained boating participation buttressed by favorable late-season weather. This recurring-revenue business continues to underpin our earnings stability while delivering high margins, attractive operating leverage, and strong cash flow.

Navico Group delivered another quarter of sales growth and adjusted margin expansion, supported by OEM wins, steady aftermarket performance, exciting new product introductions, and continued successful execution of operational improvement initiatives. Sales increased across all business lines while cost-reduction and portfolio-optimization actions helped offset inflationary pressures.

Our Boat segment grew both sales and earnings, led by strength in premium and core products, together with pricing realization, and continued operational efficiencies. Our premium fiberglass and core U.S. brands continued to outperform broader industry trends, while Freedom Boat Club maintained strong momentum. We estimate Freedom now accounts for close to seventy percent of the North American boat club market as it continues to thrive while its competitors falter.

Finally, we continued to execute our disciplined capital allocation strategy including further debt reduction and share repurchases, buying back $75 million of shares year-to-date, while remaining on track to meet or exceed our debt retirement target and maintain a strong balance sheet.

Our third quarter results again demonstrate the strength of Brunswick's balanced portfolio, recurring-revenue businesses, market-leading brands, and disciplined operational execution in a dynamic external environment," Foulkes concluded.

2026 Third Quarter Results

For the third quarter of 2026, Brunswick reported consolidated net sales of $1,453.9 million, an increase of 7 percent versus the third quarter of 2025. Diluted EPS for the quarter was $1.01 on a GAAP basis and $1.58 on an as adjusted basis, an increase of 63 percent on an as adjusted basis versus the third quarter of 2025.

Sales growth reflected steady OEM demand across the portfolio, along with pricing actions taken in previous periods, continued market share gains, and healthy boating participation supporting parts, accessories, and aftermarket demand. Adjusted operating earnings and adjusted margins increased as the stronger sales, operational strength and efficiency across the enterprise, improved absorption on higher production, favorable mix, and disciplined cost management, together with the lapping of last year's tariff impacts, more than offset material and labor inflation and planned spending on product and technology initiatives.

Additionally, versus the third quarter of 2025:

Propulsion segment reported a 7 percent increase in sales driven by steady OEM demand in a low pipeline environment and growth in high-horsepower outboard applications. Segment adjusted operating earnings increased 51 percent and adjusted operating margin expanded by 350 basis points, reflecting the leverage from higher sales, favorable mix, improved absorption, and reduced year-over-year tariff pressure offsetting continued planned product development investment and ongoing material, freight, and labor inflation.

Engine Parts and Accessories segment reported a 5 percent increase in sales led by sustained boating participation, distribution share gains, and broad-based regional growth. Segment adjusted operating earnings increased 14 percent and adjusted operating margin expanded by 190 basis points due to strong leverage on the higher sales and cost discipline partially offset by higher commodity and other material input costs.

Navico Group segment reported a 6 percent increase in sales with growth across all business lines supported by OEM demand, steady aftermarket sales, product launches, and new customer wins. Segment adjusted operating earnings increased 36 percent and adjusted operating margin expanded by 140 basis points as operational improvement actions and leverage on the higher sales more than offset material cost inflation.

Boat segment reported a 9 percent increase in sales driven by strength in premium and core products, and continued momentum in the Business Acceleration portfolio. Segment adjusted operating earnings increased 100 percent and adjusted operating margin expanded by 160 basis points, reflecting higher sales, favorable mix, and ongoing manufacturing and sourcing cost-reduction initiatives.

Review of Cash Flow and Balance Sheet

Cash and marketable securities totaled $279.4 million at the end of the third quarter, up $3.7 million from 2025 year-end levels.

Net cash provided by operating activities of continuing operations during the first nine months of 2026 was $438.8 million, primarily reflecting operating results and non-cash reconciliation adjustments, including depreciation and amortization.

Investing and financing activities during the first nine months of 2026 resulted in net cash used of $440.1 million primarily due to $148.9 million of capital expenditures, $100.0 million of payments of short-term debt, $85.7 million of dividend payments, $60.0 million of share repurchases and $32.5 million of cash paid for the acquisitions of certain Freedom Boat Club franchise operations.

2026 Outlook

"As we close out 2026, we continue to demonstrate the decoupling of our business and financial performance from overall U.S. new boat market unit sales trends and we are very encouraged by Brunswick's ability to deliver sales growth and margin expansion despite ongoing macroeconomic and geopolitical uncertainty," said David Foulkes.

"While consumer sentiment remains pressured by inflation, borrowing costs, and global uncertainty, our premium-focused portfolio, recurring-revenue businesses, and disciplined operating execution continue to deliver exceptional performance, supported by healthy boating participation trends and low pipeline inventory. We also continue to benefit from actions taken across the enterprise to improve productivity, minimize our tariff impact, optimize our supply chain, and manage costs while maintaining our investments in innovative new products and technology," said Foulkes.

"Using our best estimates related to these items and all other business impacts, the following is our updated full-year guidance:

1.Net sales: $5.7 billion to $5.8 billion;

2.Adjusted operating margin: approximately 8.0 percent;

3.Adjusted diluted EPS: approximately $4.65;

4.Free cash flow: $400 million or more;

5.Debt retirement: $160 million or more; and

6.Share repurchases: $80 million or more

Lastly, as previously announced, Aine Denari will succeed me as Chief Executive Officer effective January 1, 2027. Our strategy, capital allocation priorities, and long-term strategic targets remain unchanged, and I am working closely with Aine and the leadership team through year end to support a smooth transition," Foulkes concluded.

Use of Non-GAAP Financial Information

A reconciliation of GAAP to non-GAAP financial measures used in this release, including adjusted operating earnings, adjusted operating margin, free cash flow, adjusted net earnings from continuing

operations, and adjusted diluted EPS, is provided in the reconciliation sections of the consolidated financial statements accompanying this release.

In order to better align Brunswick's reported results with the internal metrics used by Brunswick's management to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures used in this release exclude the impact of purchase accounting amortization related to acquisitions, among other adjustments reflected in the

reconciliation sections of the consolidated financial statements accompanying this release.

Brunswick does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include restructuring, exit and impairment costs, acquisition-related costs, and certain other unusual adjustments.

Conference Call Scheduled

Brunswick will hold a conference call today at 10 a.m. CDT, hosted by David M. Foulkes, Chairman and Chief Executive Officer, Ryan M. Gwillim, Executive Vice President and Chief Financial and Strategy Officer, Aine Denari, Executive Vice President, President Navico Group, and Brunswick Chief Technology Officer, and Stephen Weiland, Senior Vice President and Deputy CFO. The call will be broadcast over the Internet at www.brunswick.com/investors. To listen to the call, go to the website at least 15 minutes before the call to register, download, and install any needed audio software. A replay of the conference call will be available through 1 p.m. CDT Thursday November 5, 2026, at the same link.