Boat and marine manufacturer Brunswick (NYSE: BC) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 15.5% year on year to $1.33 billion. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $1.3 billion was less impressive, coming in 0.8% below expectations. Its non-GAAP profit of $0.58 per share was 2% above analysts’ consensus estimates.
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Brunswick (BC) Q4 CY2025 Highlights:
- Revenue: $1.33 billion vs analyst estimates of $1.21 billion (15.5% year-on-year growth, 10.3% beat)
- Adjusted EPS: $0.58 vs analyst estimates of $0.57 (2% beat)
- Revenue Guidance for Q1 CY2026 is $1.3 billion at the midpoint, below analyst estimates of $1.31 billion
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.10 at the midpoint, missing analyst estimates by 2.2%
- Operating Margin: 3.1%, up from -4.8% in the same quarter last year
- Free Cash Flow Margin: 6.6%, down from 23.9% in the same quarter last year
- Market Capitalization: $5.47 billion
Company Overview
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Brunswick’s 4.3% annualized revenue growth over the last five years was weak. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Brunswick’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 8.5% annually. 
This quarter, Brunswick reported year-on-year revenue growth of 15.5%, and its $1.33 billion of revenue exceeded Wall Street’s estimates by 10.3%. Company management is currently guiding for a 6.4% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 3.2% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.
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Operating Margin
Brunswick’s operating margin has been trending down over the last 12 months and averaged 2.6% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, Brunswick generated an operating margin profit margin of 3.1%, up 8 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Brunswick, its EPS declined by 8.4% annually over the last five years while its revenue grew by 4.3%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
In Q4, Brunswick reported adjusted EPS of $0.58, up from $0.24 in the same quarter last year. This print beat analysts’ estimates by 2%. Over the next 12 months, Wall Street expects Brunswick’s full-year EPS of $3.27 to grow 29.7%.
Key Takeaways from Brunswick’s Q4 Results
We were impressed by how significantly Brunswick blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this print was mixed. The stock remained flat at $84.17 immediately after reporting.
Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
