Wed, Apr 30, 3:52 PM (17 days ago)
**Brunswick Corporation (BC) Q1 2025 Financial Health and Performance:** **Revenue and Profit Margins:** - Q1 2025 revenue was $1,221.8 million, down 10.5% from $1,365.0 million in Q1 2024. - Gross margin decreased to 24.9% from 27.4% due to lower absorption from decreased production levels, increased warranty costs, and foreign currency exchange-rate fluctuations. - Operating earnings were $56.3 million, down 49.1% from $110.6 million in Q1 2024. - Net earnings were $20.2 million, down 70.5% from $68.4 million in Q1 2024. **Cash Flow:** - Net cash used for operating activities was $13.4 million, an improvement from $148.1 million in Q1 2024. - Capital expenditures were $37.7 million, down from $54.0 million in Q1 2024. - Free cash flow was negative $44.4 million, an improvement from negative $204.5 million in Q1 2024. **Earnings Changes:** - Diluted earnings per share from continuing operations were $0.30, down 70.0% from $1.00 in Q1 2024. - Adjusted operating earnings were $72.1 million, down from $141.5 million in Q1 2024. **Segment Performance:** - **Propulsion:** Sales decreased 15.8% due to pipeline management and lower wholesale shipments. Operating earnings decreased 44.3%. - **Engine P&A:** Sales decreased 2.7% due to slightly lower shipments. Operating earnings increased 17.8%. - **Navico Group:** Sales decreased 1.3% due to reduced OEM orders. Operating loss slightly increased. - **Boat:** Sales decreased 12.6% due to cautious wholesale ordering. Operating earnings decreased 73.8%. **Trends and Uncertainties:** - Brunswick continues to monitor macroeconomic trends and uncertainties, including tariffs and trade policies, which could impact consumer confidence and demand. - The company is focusing on cost control measures, new product momentum, and annual price increases to offset lower sales and absorption issues. - Brunswick expects to maintain sufficient cushion against existing debt covenants and anticipates approximately $150 million of capital expenditures for the year. **Future Operations Impact:** - Brunswick plans to target share repurchases of approximately $80 million in 2025. - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements. - Brunswick is monitoring geopolitical tensions, sanctions, and other regulations that could impact its international business.