Brunswick (BC) Stock Forecast & Price Target

Brunswick is poised for a positive financial outlook, evidenced by a modest revenue increase of 0.2% year-over-year, reaching $1.45 billion, alongside a projected expansion in the boat segment operating margin from 6.9% to 9.2% by 2026. The propulsion segment reports a significant year-over-year sales increase of 7.1% to $598.2 million, driven by stronger U.S. OEM orders and lean channel inventories, which underscores Brunswick's growth potential. Furthermore, the company anticipates a continued upward trend, predicting boat revenue growth of 12% as shipping boat units are expected to outpace retail sales by 10%.

Brunswick is experiencing a downturn in key financial metrics, with boat segment sales declining by 6.6% year-over-year in 2Q25 to $405.6 million, reflecting cautious ordering patterns among dealers. Additionally, the company's adjusted operating margin fell by 380 basis points to 8.7% year-over-year, primarily due to the reinstatement of variable compensation, lower cost absorption from reduced production levels, and tariffs affecting input costs. The marine products segment also indicated ongoing inventory challenges and lower sales to original equipment manufacturers, further signaling potential pressure on future revenue growth.