Brunswick Corporation (NYSE: BC) delivered stronger-than-expected second-quarter results, driven by broad-based sales growth, improved operating performance, and the recognition of tariff refunds.
Net sales climbed 8% year over year to $1.6 billion, while adjusted earnings per share surged 34% to $1.56 for the quarter.
Chairman and CEO David Foulkes noted that the results marked the company’s fourth consecutive quarter of year-over-year sales growth, a milestone that underscores the sustained recovery in marine demand.
Brunswick operates across two primary segments, Marine and Bowling and Billiards, with its Marine business encompassing recreational boats, outboard engines, and aftermarket parts under brands including Sea Ray, Bayliner, and Mercury Marine.
The company now expects gross IEEPA tariff refunds of approximately $60 million to $70 million for the full year, reflecting the scale of relief flowing back through the business.
CFO Ryan Gwillim said potential phase-four refunds, not included in 2026 guidance, could add more than $0.20 per share to earnings once approved by regulators.
Brunswick also anticipates roughly $40 million in incremental tariff costs in 2026, tied to Section 301 tariffs replacing Section 232 and possible Canadian tariffs, with Gwillim noting the impact is weighted toward the first half of the year.
The shift from Section 232 to Section 301 tariffs, combined with new Canadian tariff exposure, is estimated to generate a $5 million net negative impact in the second half of 2026.
Variable compensation expenses rose in direct proportion to the tariff refunds, as the company’s incentive plans are tied to earnings and free cash flow performance without manual adjustments for one-time items.
Brunswick raised its full-year adjusted EPS guidance to a range of $4.35 to $4.75, with a midpoint of $4.55, citing second-quarter operating strength and net IEEPA benefits as the primary drivers.
Management clarified that the $0.30 EPS guidance raise reflects a $0.20 operational beat from Q2 and a $0.10 net benefit from phase-two tariff refunds, partly offset by an expected $0.15 per-share headwind.
Full-year revenue is projected at $5.7 billion to $5.8 billion, with an adjusted operating margin of approximately 8.0%, while third-quarter revenue is expected to land between $1.4 billion and $1.5 billion.
Segment performance was broad across the board, with Propulsion sales up 7.7%, Engine Parts and Accessories rising 8.9%, Navico Group growing 6.7%, and Boat sales advancing 4.6%.
GAAP operating earnings climbed 25.3% to $129.4 million, and GAAP net earnings surged 85% to $109.8 million, reflecting the combined lift from operations and tariff-related recognition.
Premium and core boating demand remained stable during the quarter, while value-oriented boat sales stayed weak amid lingering geopolitical uncertainty and prolonged conflict in the Middle East.
Freedom Boat Club reached 450 global locations and recorded a 13% rise in member trips during the first half of the year, signaling that boating participation remains healthy despite mixed consumer conditions.
Brunswick also outlined plans to retire $160 million or more of debt by year-end as it works to preserve its investment-grade balance sheet while continuing its share repurchase program.
