Brunswick Corporation, headquartered in Mettawa, Illinois, is a global powerhouse in the marine recreation industry. With a history dating back to 1845, when John M. Brunswick founded a carriage workshop in Cincinnati, the company has evolved into a diversified manufacturer of recreational products. Today, Brunswick employs nearly 14,000 people and ...Brunswick Corporation, headquartered in Mettawa, Illinois, is a global powerhouse in the marine recreation industry. With a history dating back to 1845, when John M. Brunswick founded a carriage workshop in Cincinnati, the company has evolved into a diversified manufacturer of recreational products. Today, Brunswick employs nearly 14,000 people and operates in over 26 countries, generating annual revenue of approximately $5.36 billion.
Business Segments: Brunswick's operations are organized into four primary segments. The Propulsion segment is the world's leading provider of outboard, sterndrive, and inboard engines, along with controls and propellers, under iconic brands such as Mercury, Mercury MerCruiser, and Mariner. The Engine P&A segment offers engine parts, lubricants, and accessories through aftermarket channels, catering to both marine and non-marine markets. The Navico Group provides advanced electronics, power systems, and marine accessories under brands like Lowrance, Simrad, and Mastervolt, serving the marine, RV, and specialty vehicle industries. The Boat segment manufactures a diverse range of boats, including Sea Ray sport cruisers, Bayliner runabouts, Boston Whaler offshore boats, and Lund fishing boats.
Products and Services: Brunswick's products are renowned for their quality and innovation, from high-performance outboards and advanced navigation systems to premium fiberglass and aluminum boats. The company also offers services like the Freedom Boat Club, dealer support, and technology solutions for the marine industry.
Financial Overview: As of the latest TTM data, Brunswick has a market cap of approximately $5.3 billion, with an enterprise value of $7.26 billion. The company's stock trades at $81.55, with a price-to-sales ratio of 0.94. Despite challenging market conditions, Brunswick maintains a strong financial position, with a current ratio of 1.24 and an asset turnover of 1.02. The company has faced headwinds, reflected in a negative net profit margin of -1.5% and an ROE of -5.3%, but remains committed to long-term growth through innovation and strategic investments.
Key People: Chairman and CEO David M. Foulkes, who joined Brunswick in 2007 and took the helm in 2019, leads the company with a focus on technological innovation and operational excellence. Under his leadership, Brunswick continues to drive the 'Next Never Rests' philosophy, emphasizing smart, connected boating and sustainability.
Future Outlook: With a legacy of nearly two centuries, Brunswick is dedicated to advancing marine recreation through innovation, delivering exceptional experiences to customers worldwide. The company's strategic focus includes robust product development, digital integration, and expansion into emerging markets, ensuring its position as the industry leader.
Operator: Good morning, and welcome to Brunswick Corporation's Second Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer period. Today's meeting will be recorded. If you have any objections, you may disconnect at this time. I would now like to introduce Stephen Weiland, Senior Vice President and Deputy CFO, Brunswick Corporation.
Stephen Weiland: Good morning, and thank you for joining us. With me on the call this morning are David Foulkes, Brunswick's Chairman and CEO and Ryan Gwillim, Brunswick's CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on the factors to consider, please refer to our recent SEC filings in today's press release. All of these documents are available on our website at brunswick.com. During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation section of the unaudited consolidated financial statements accompanying today's results. I will now turn the call over to David.
David Foulkes: Thank you, Steve. Brunswick delivered a strong second quarter despite the turbulent external backdrop. With financial performance ahead of expectations and year-over-year sales growth across all reporting segments, for the fourth consecutive quarter. Our premium and core bias portfolio remained resilient. And our first half boat retail sales were essentially flat when adjusted for the purposeful value model rationalization actions initiated last year. Marine OEM growth rates moderated somewhat from the exceptional first quarter growth but remained very healthy. Drove gains for Mercury Marine and Navico Group Boating participation also remains very strong and continues to drive our recurring revenue parts and accessories aftermarket and subscription boating businesses. Boat and engine pipelines continue to be lean and fresh, with balanced channel dynamics. With global boat pipelines down approximately 1,800 units for the year, we are well positioned for wholesale growth with any future market improvement. Our overall net sales of $1.6 billion increased 8% year-over-year, with growth across all segments driven by pricing actions taken in recent periods, improved mix, new product traction, continued healthy OEM demand and strong operational execution. Adjusted earnings per share of $1.56 increased 34% versus last year, benefiting from the same underlying business drivers as well as recognized tariff refunds partially offset by cost inflation, higher variable compensation, incremental tariffs and continued product investment. Absent the net IEEPA benefit, including its associated influence on …