Brunswick Corporation, a leading recreation products manufacturer, has recently released its 10-Q report. The company operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides engines, propulsion-related controls, and propellers for boat builders, while the Engine P&A segment offers engine parts and consumables. The Navico Group provides marine electronics, sensors, and control systems, and the Boat segment offers a variety of boats and related services.
In the Management's Discussion and Analysis of Financial Condition and Results of Operations, Brunswick Corporation reported a decrease of 11% in net sales during the first quarter of 2025 compared to the same period in 2024. The company attributed this decline to lower wholesale ordering by dealers and original equipment manufacturers (OEMs) and prudent pipeline management throughout the channel. Despite this, the Engine P&A segment achieved solid year-over-year operating earnings and operating margin growth.
The company's international net sales decreased by 10% and 6% in the first quarter of 2025 on a GAAP and constant currency basis, respectively. Operating earnings in the first quarter of 2025 were $56.3 million on a GAAP basis, compared to $110.6 million during the same period in 2024. The decrease in operating earnings was attributed to lower sales, lower absorption from decreased production levels, and the negative impact of changes in foreign currency exchange rates.
The Propulsion segment's net sales decreased by 15.8% in the first quarter of 2025, while the Engine P&A segment experienced a 2.7% decrease in net sales during the same period. Despite the decline in net sales, the Engine P&A segment reported a 17.8% increase in GAAP operating earnings.
The market has reacted to these announcements by moving the company's shares -1.7% to a price of $45.57. Check out the company's full 10-Q submission here.
