Brunswick Corporation · NYSE:BC

Brunswick — Q1 2025 Earnings Presentation

28 slides from Brunswick's earnings presentation, Apr 24, 2025

  1. Slide 1: Q1 2025 Earnings Conference Call

    Q1 2025 Earnings Conference Call APRIL 24, 2025

  2. Slide 2: Forward-Looking Statements

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Forward-Looking Statements Certain statements in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections abo

  3. Slide 3: Use of Non-GAAP Financial Information and Constant Currency Reporting

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Use of Non-GAAP Financial Information and Constant Currency Reporting In this presentation, Brunswick uses certain non-GAAP financial measures, which are numerical measures of a registrant’s historical or future financial performance, financial position or c

  4. Slide 4: Business Overview – Dave Foulkes, CEO

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 01 Business Overview – Dave Foulkes, CEO ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 4

  5. Slide 5: Q1 2025 highlights: $1.2B net sales

    BRUNSW ICK CORPORATION – EARNINGS RELEASE  Strong sequential sales, $1.2B $0.56 operating margin and EPS improvement vs. Q4 2024 Net Sales Adjusted1 EPS  Exceptional Free Cash (-11% vs. Q1 2024) (-59% vs. Q1 2024) Flow – second best Q1 Q1 2025 performance in over a decade Solid first quarter, abov

  6. Slide 6: Segments continue to execute well despite cautious customer/consumer

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Segments continue to execute well despite cautious customer/consumer Propulsion Engine Parts Navico Group1 Boat2 & Accessories1 • Sequential sales and earnings growth • 140 bps in YoY operating margin • Strong new product acceptance • Q1 wholesale remains in

  7. Slide 7: External, Customer and Consumer Conditions

    BRUNSW ICK CORPORATION – EARNINGS RELEASE External, Customer and Consumer Conditions External Landscape Tariffs Dealer & Customer OEM Environment Sentiment • U.S. Fed signaling caution in 2025 • Total potential FY incremental • Dealer sentiment remains stable • Marine OEM production rates up amidst

  8. Slide 8: U.S. Industry Retail Units and Pipeline

    BRUNSW ICK CORPORATION – EARNINGS RELEASE U.S. Industry Retail Q1 2025 U.S. Industry Retail U.S. Brunswick Q1 Boat Units and Pipeline Change vs. Q1 2024 Retail by Segment YOY Change Ending Q1 2025 >90% of Current Boat  Q1 U.S. boat industry retail Group Gross Margin down 5%, with BC slightly lower

  9. Slide 9: 2025 Adjusted EPS Bridge

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 2025 Adjusted EPS Bridge Updated full year EPS guidance of $2.50 to $4.00 relates entirely to incorporating incremental tariffs and related macro-economic impacts $0.35 $4.25  Incremental tariff impact likely to negatively impact demand $(0.75)  Tariff ass

  10. Slide 10: Financial Overview – Ryan Gwillim, CFO

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 02 Financial Overview – Ryan Gwillim, CFO ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 10

  11. Slide 11: Overview of First Quarter 2025 Adjusted Results

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Overview of First Net Sales ($M) Operating Earnings1 ($M) Quarter 2025 $1,365 Operating Margin1 % $142 Adjusted Results 160 20.0 0% $1,222 18.0 0% 140 16.0 0% 120 14.0 0% (11%) $72 100 12.0 0% 80 10.0 0% 10.4%  Brunswick delivered Q1 results 8.00 % 60 6.00

  12. Slide 12: Propulsion Segment – Q1'25 Performance

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Propulsion Segment – Q1’25 Performance 1 Solid performance exceeding expectations resulting in sequential improvement versus Q4 2024 Adjusted Operating Q1’25 Net Sales Margin of % Change vs. Q1’24 $487.0 $376.5 (16%) 9.5% Down 600 bps vs. Q1’24 (16%) (GAAP O

  13. Slide 13: Engine P&A Segment – Q1'25 Performance

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Engine P&A Segment – Q1’25 Performance 1 Strong performance and operational efficiencies drive operating earnings improvement Q1’25 Net Sales Adjusted Operating % Change vs. Q1’24 Margin of $255.3 15.3% Up 140 bps vs. Q1’24 (3%) (GAAP Operating Margin of 15.

  14. Slide 14: Navico Group Segment – Q1'25 Performance

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Navico Group Segment – Q1’25 Performance 1 Aftermarket business continues to deliver topline growth, while marine and RV OEM ordering remains under pressure Adjusted Operating Margin of 5.4% Q1’25 Navico Group Net Sales Down 180 bps vs. Q1’24 (GAAP Operating

  15. Slide 15: Boat Segment – Q1'25 Performance

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Boat Segment – Q1’25 Performance 1 Steady performance consistent with expectations, pipeline inventory in healthy condition ahead of peak season Q1’25 Net Sales Adjusted Operating Margin of % Change vs. Q1’24 $372.1 (13%) 2.4% Down 500 bps vs. Q1’24 (GAAP Op

  16. Slide 16: 2025 Tariff Update

    2025 Tariff Update 1 ~70% of enterprise COGS are sourced from the United States % of 2025 Estimated 2025 Impact, COGS2 Net of Mitigation 3, 4 China ~5% $75 – 100M Mexico ~10% <$5M Canada <5% <$5M ROW <10% <$15M Section 232 <5% <$10M Net of offsets, we could see an incremental $100 - $125M4 headwind

  17. Slide 17: 2025 Guidance

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 2025 Guidance1 $5.0B to $5.4B 6.5% to 8.0% Revenue Operating Margin Previously: $5.2B to $5.6B Previously: 7.5% to 9.0% $2.50 to $4.00 $350M+ EPS Free Cash Flow Previously: $3.50 to $5.00 No Change $1.1B to $1.3B $0.80 to $1.10 Q2 Revenue Q2 EPS 1EACH ON AN

  18. Slide 18: Wrap-Up – Dave Foulkes, CEO

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 03 Wrap-Up Dave Foulkes, CEO ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 1818

  19. Slide 19: Cutting-Edge Products, Synergies, and Business Innovation

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Cutting-Edge Products, Synergies, and Business Innovation To Update NSS4 MFD New Product Line 2025 Freedom Forum Series 5 w/Flite Jet 2 C21 C30/S30 ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 19

  20. Slide 20: ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED.

    ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 20

  21. Slide 21: ICK

    BRUNSWICK ©2025 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 21

  22. Slide 22: Appendix

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Appendix ©2025 BRUNSW ICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 22

  23. Slide 23: 2025 Outlook Segment Guide

    BRUNSW ICK CORPORATION – EARNINGS RELEASE 2025 Outlook Segment Guide 1 Propulsion Engine P&A Navico Group Boat Net Sales Guide2 $1.9B to $1.1B to ~$0.8B $1.5B to $2.0B $1.2B $1.6B Previously: $2.0 to $2.2B No Change Previously: $0.8 to $0.9B Previously: $1.5 to $1.7B High ~20% Mid to High Mid Operat

  24. Slide 24: 2025 Outlook – Capital Strategy and Other Assumptions

    BRUNSWICK CORPORATION – EARNINGS RELEASE 2025 Outlook – Capital Strategy and Other Assumptions Average Diluted Net Working Capital Debt Retirement Net Interest Expense Shares Outstanding Generation ~$125M ~66.0M ~$110M ~$100M Previously: ~$115M Negative Currency Capital Expenditures Share Repurchase

  25. Slide 25: Net Sales – Q1 2025

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Net Sales – Q1 2025 Net Sales decreased by $143.2 million, or 11 percent Segments Q1 2025 Q1 2024 % Change Propulsion $487.0 $578.2 (16%) Engine Parts & Accessories 255.3 262.4 (3%) NET Navico Group 208.2 210.9 (1%) SALES Boat Segment Eliminations 372.1 (100

  26. Slide 26: GAAP to Non-GAAP Reconciliations – Q1 2025

    BRUNSW ICK CORPORATION – EARNINGS RELEASE GAAP to Non-GAAP Reconciliations – Q1 2025 Operating Earnings and Diluted Earnings per Share Operating Earnings Diluted Earnings per Share (in millions, except per share data) Q1 2025 Q1 2024 Q1 2025 Q1 2024 GAAP $56.3 $110.6 $0.30 $1.00 Restructuring, exit

  27. Slide 27: Tax Rate

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Tax Rate Q1 2025 Q1 2024 Effective Tax Rate - GAAP 28.1% 21.4% 1 Effective Tax Rate - As Adjusted 22.1% 21.6% (1) TAX PROVISION, AS ADJUSTED, EXCLUDES $1.8 MILLION AND $0.1 MILLION OF NET PROVISIONS FOR SPECIAL TAX ITEMS FOR Q1 2025 AND Q1 2024, RESPECTIVELY

  28. Slide 28: Free Cash Flow

    BRUNSW ICK CORPORATION – EARNINGS RELEASE Free Cash Flow (in millions) Q1 2025 Q1 2024 Net cash used for operating activities from continuing operations ($13.4) ($148.1) Net cash (used for) provided by: Capital expenditures (37.7) (54.0) Proceeds from sale of property, plant, equipment 3.4 2.3 Effec

Brunswick — Q1 2025 Earnings Presentation on 6ix