Brunswick Corporation

Q2 net sales were $1.6 billion, up 8% year over year, and adjusted EPS was $1.56, up 34% versus last year. Management said adjusted operating earnings and margins rose, with all segments up year over year except propulsion on the margin line, and gross IEEPA refunds recognized in the quarter were about $30 million. For the first half, sales were up 10%, adjusted operating earnings rose 18%, adjusted EPS was up 32%, and free cash flow was $161 million. Updated full-year guidance calls for revenue of $5.7 billion to $5.8 billion, adjusted operating margins of approximately 8% (up 100 basis points year over year), adjusted EPS of $4.35 to $4.75, and free cash flow of more than $400 million.

David Foulkes described the quarter as strong despite a turbulent backdrop, emphasizing year-over-year sales growth across all segments for the fourth consecutive quarter. He said Brunswick is outperforming the market by leaning into premium and core products, expanding share of wallet, winning new OEM business, and benefiting from healthy boating participation and recurring-revenue businesses. His tone was constructive and confident, with repeated references to product leadership, strong pipelines, and more detail coming at Investor Day.

Ryan Gwillim highlighted that sales were up 8% and adjusted EPS rose $0.34 to $1.56, aided by strong operating performance and a net IEEPA benefit of a little more than $0.20 in the quarter. He said free cash flow was $278 million in Q2 and that full-year free cash flow guidance was raised to more than $400 million due to earnings strength, working capital discipline, and tariff refunds. He also quantified the tariff picture as roughly $40 million of incremental 2026 impact, about $5 million of net negative impact from new Section 301 and Canadian tariffs, and said Phase 2 IEEPA refunds of about $10 million are expected in the second half, while Phase 4 refunds are not in guidance.

Analysts focused heavily on tariffs, with management explaining that 2026 tariff costs and IEEPA refunds should be viewed separately: the new Section 301 and Canadian tariffs add about $5 million of second-half pressure, while the remaining Phase 2 IEEPA refunds add about $0.10 to full-year EPS guidance. Questions on demand trends led management to say premium fiberglass and core products are essentially flat, while the softer value segment is the main drag; management expects retail to end roughly flat to slightly down, depending on the value mix. Analysts also pressed on long-term margin power, and management said operating leverage in the strategic plan is north of 20%, with Navico, P&A, propulsion, and boats all expected to keep improving margins over time.