Brunswick (BC) Stock Forecast & Price Target

The analysis of Brunswick's financial performance indicates a positive outlook, primarily driven by a 0.2% year-over-year revenue increase to $1.45 billion and an anticipated expansion in the boat segment operating margin from 6.9% to 9.2% by 2026. Furthermore, the propulsion segment showcased robust growth with a 7.1% year-over-year sales increase to $598.2 million, attributed to stronger OEM orders and lean channel inventories. As Brunswick continues to ship boat units ahead of retail pace, projected revenues indicate a notable growth trajectory of 12% in the boat segment, reflecting increased market confidence and demand.

Brunswick has experienced a decline in key operational metrics, evidenced by a 3.4% drop in boat licenses sold in 2024 compared to 2023, alongside a significant 290 basis point decrease in the Boat Segment Adjusted Operating Margin to 3.3%, reflecting reduced sales and higher compensation costs. Additionally, the company reported a 6.6% year-over-year decline in Boat Segment sales, primarily due to cautious ordering patterns from dealers, exacerbated by tariffs and absorption issues related to decreased production levels. The overall financial picture is further strained by a consolidated Adjusted Operating Margin decline of 380 basis points to 8.7%, indicating challenges across multiple segments that could negatively impact Brunswick's stock performance.