Brunswick reports 2024 Q4 and full year results
Brunswick Corporation has shared its full year and fourth quarter results for 2024, including consolidated net sales of $1,154.9 million, down from $1,361.9 million in the fourth quarter of 2023.
“We had a very solid finish to 2024 characterized by significant cash generation in the fourth quarter, further outboard engine market share gains, successful new product launches and optimal operating performance in the circumstances, all of which enabled us to conclude full-year 2024 slightly ahead of our recent expectations,” said David Foulkes, CEO of Brunswick. “Our ongoing diligent management of field inventory and production volumes resulted in well-balanced levels exiting the year, with 36.8 weeks on hand of boats in the U.S. dealer pipeline.”
2024 Fourth Quarter Results
For the fourth quarter of 2024, Brunswick reported consolidated net sales of $1,154.9 million, down from $1,361.9 million in the fourth quarter of 2023. Sales were below the prior year as anticipated as the impact of continued lower wholesale ordering by dealers, OEMs and retailers, coupled with higher discounts in select segments, and unfavorable changes in foreign currency exchange rates, were only partially offset by annual price increases and well received new products.
Operating earnings and margin declined versus the fourth quarter of 2023, resulting from the impact of lower net sales, intangible asset impairment charges related to Navico Group and lower absorption from decreased production levels, partially offset by ongoing cost control efforts.
Propulsion segment reported a 24% decrease in sales due to the enterprise factors listed above, partially offset by continued market share gains in outboard engines. Segment operating earnings were below prior year due to the impact of sales declines, lower absorption, and higher labor and material inflation, partially offset by cost control measures.
Engine Parts and Accessories segment reported a 5% decrease in sales as the impact from slightly lower domestic sales were only partially offset by higher sales in certain International markets versus prior year. Segment operating margins decreased slightly in the quarter versus prior year, but increased 80 and 90 basis points for the full-year on a GAAP and as adjusted basis, respectively, as the impact of annual pricing and lower operating expenses more than offset lower volumes and higher material inflation.
Navico Group segment reported a 1% decrease in sales as the business experienced softer marine OEM orders and the continued weak RV manufacturing environment in the quarter which were mostly offset by the higher net sales in the resilient Aftermarket business. GAAP and adjusted segment operating earnings decreased in the quarter due to the factors stated above, however, adjusted operating earnings increased sequentially versus the third quarter driven by strong performance in the Aftermarket business and ongoing cost control measures.
Boat segment reported an 18% decrease in sales resulting from softer wholesale orders, as we continued to manage healthy pipeline levels ahead of 2025, with higher levels of selective discounting offsetting the impact of pricing actions taken earlier in the year. Freedom Boat Club delivered another strong quarter, contributing approximately 12 percent of sales to the segment. Segment operating earnings declined resulting from the net sales declines and lower absorption due to reduced production levels.
“2025 has the potential to be a year of steadily easing financial conditions, and while we enter the
year with a cautious outlook, particularly for the first quarter, we have already launched many new
products across our businesses and we remain extremely focused on delivering steady free cash
flow and resilient EPS, and driving continued strong shareholder returns,” said Foulkes. “Our disciplined pipeline management, strong operational performance and continued investments in new products and
growth, coupled with prudent cost containment actions, strong cash management and generation,
and a thoughtful capital strategy, provide what we believe to be the necessary controllable levers in
this uncertain consumer and business environment.”
Foulkes complete statement and the company’s entire report is available on the Brunswick website.
