BRUNSWICK CORP
For the period ended Apr 4, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 4, 2026 · Filed May 7, 2026
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Item 1. Condensed Consolidated Financial Statements (Unaudited)
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Comprehensive Income
| Three Months Ended | ||
|---|---|---|
| (in millions, except per share data) | April 4,2026 | March 29,2025 |
| Net sales | $1,378.1 | $1,221.8 |
| Cost of sales | 1,034.5 | 917.9 |
| Selling, general and administrative expense | 242.2 | 208.0 |
| Research and development expense | 46.3 | 38.5 |
| Restructuring, exit and impairment charges | 4.8 | 1.1 |
| Operating earnings | 50.3 | 56.3 |
| Equity earnings | 1.6 | 2.2 |
| Other (expense) income, net | (1.6) | 1.3 |
| Earnings before interest and income taxes | 50.3 | 59.8 |
| Interest expense | (24.6) | (29.7) |
| Interest income | 1.2 | 1.7 |
| Loss on early extinguishment of debt | — | (3.7) |
| Earnings before income taxes | 26.9 | 28.1 |
| Income tax provision | 5.9 | 7.9 |
| Net earnings | $21.0 | $20.2 |
| Earnings per common share: | ||
| Basic | ||
| Earnings from continuing operations | $0.32 | $0.31 |
| Net earnings | $0.32 | $0.31 |
| Diluted | ||
| Earnings from continuing operations | $0.32 | $0.30 |
| Net earnings | $0.32 | $0.30 |
| Weighted average shares used for computation of: | ||
| Basic earnings per common share | 65.4 | 66.2 |
| Diluted earnings per common share | 65.7 | 66.3 |
| Comprehensive income | $26.0 | $32.9 |
| The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated financial statements. | ||
Condensed Consolidated Balance Sheets
| (in millions, except share and per share data) | April 4,2026 | December 31,2025 | March 29,2025 |
|---|---|---|---|
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | $277.8 | $256.8 | $286.7 |
| Restricted cash | 10.7 | 18.1 | 18.0 |
| Short-term investments in marketable securities | 0.8 | 0.8 | 0.8 |
| Total cash and short-term investments in marketable securities | 289.3 | 275.7 | 305.5 |
| Accounts and notes receivable, less allowances of $11.0, $10.6, and $11.0 | 638.8 | 522.8 | 553.1 |
| Inventories | |||
| Finished goods | 804.6 | 767.4 | 870.5 |
| Work-in-process | 167.6 | 146.9 | 172.7 |
| Raw materials | 281.3 | 278.0 | 310.6 |
| Net inventories | 1,253.5 | 1,192.3 | 1,353.8 |
| Prepaid expenses and other | 104.5 | 72.5 | 93.5 |
| Current assets | 2,286.1 | 2,063.3 | 2,305.9 |
| Property | |||
| Land | 40.6 | 43.8 | 44.0 |
| Buildings and improvements | 679.3 | 681.5 | 650.0 |
| Equipment | 1,611.2 | 1,597.1 | 1,559.8 |
| Total land, buildings and improvements and equipment | 2,331.1 | 2,322.4 | 2,253.8 |
| Accumulated depreciation | (1,316.4) | (1,291.1) | (1,214.0) |
| Net land, buildings and improvements and equipment | 1,014.7 | 1,031.3 | 1,039.8 |
| Unamortized product tooling costs | 178.7 | 176.5 | 199.8 |
| Net property | 1,193.4 | 1,207.8 | 1,239.6 |
| Other assets | |||
| Goodwill | 676.4 | 681.2 | 972.5 |
| Other intangibles, net | 842.5 | 854.8 | 910.3 |
| Deferred income tax asset | 272.0 | 272.2 | 198.2 |
| Operating lease assets | 165.2 | 170.2 | 163.6 |
| Equity investments | 37.2 | 34.4 | 38.3 |
| Other long-term assets | 33.0 | 28.3 | 28.6 |
| Other assets | 2,026.3 | 2,041.1 | 2,311.5 |
| Total assets | $5,505.8 | $5,312.2 | $5,857.0 |
| The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated financial statements. | |||
| (in millions, except share and per share data) | April 4,2026 | December 31,2025 | March 29,2025 |
|---|---|---|---|
| Liabilities and shareholders' equity | |||
| Current liabilities | |||
| Short-term debt and current maturities of long-term debt | $490.2 | $295.4 | $386.4 |
| Accounts payable | 460.4 | 374.9 | 420.3 |
| Accrued expenses | 711.1 | 758.4 | 661.5 |
| Current liabilities | 1,661.7 | 1,428.7 | 1,468.2 |
| Long-term liabilities | |||
| Debt | 1,806.2 | 1,806.8 | 2,097.7 |
| Operating lease liabilities | 145.3 | 151.7 | 142.0 |
| Postretirement benefits | 37.8 | 37.9 | 46.3 |
| Deferred income tax liability | 9.9 | 10.2 | 10.0 |
| Other long-term liabilities | 243.4 | 251.3 | 220.6 |
| Long-term liabilities | 2,242.6 | 2,257.9 | 2,516.6 |
| Shareholders' equity | |||
| Common stock; authorized: 200,000,000 shares, $0.75 par value; issued: 102,538,000 shares; outstanding: 65,014,000, 64,889,000 and 65,767,000 shares | 76.9 | 76.9 | 76.9 |
| Additional paid-in capital | 410.2 | 426.8 | 396.2 |
| Retained earnings | 3,357.1 | 3,364.8 | 3,606.7 |
| Treasury stock, at cost: 37,524,000, 37,649,000, and 36,771,000 shares | (2,225.0) | (2,220.2) | (2,166.9) |
| Accumulated other comprehensive loss, net of tax | (17.7) | (22.7) | (40.7) |
| Shareholders' equity | 1,601.5 | 1,625.6 | 1,872.2 |
| Total liabilities and shareholders' equity | $5,505.8 | $5,312.2 | $5,857.0 |
| The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated financial statements. | |||
Condensed Consolidated Statements of Cash Flows
| Three Months Ended | ||
|---|---|---|
| (in millions) | April 4,2026 | March 29,2025 |
| Cash flows from operating activities | ||
| Net earnings | $21.0 | $20.2 |
| Less: net earnings from discontinued operations, net of tax | — | — |
| Net earnings from continuing operations | 21.0 | 20.2 |
| Depreciation and amortization | 74.9 | 70.1 |
| Stock compensation expense | 9.5 | 6.8 |
| Asset impairment charges | 0.6 | — |
| Deferred income taxes | 0.9 | 0.1 |
| Changes in certain current assets and current liabilities | (159.8) | (119.9) |
| Extended warranty contracts and other deferred revenue | 2.3 | 2.3 |
| Income taxes | (11.6) | 8.0 |
| Other, net | (1.5) | (1.0) |
| Net cash used for operating activities of continuing operations | (63.7) | (13.4) |
| Net cash used for operating activities of discontinued operations | (0.4) | (14.0) |
| Net cash used for operating activities | (64.1) | (27.4) |
| Cash flows from investing activities | ||
| Capital expenditures | (57.2) | (37.7) |
| Investments | (2.7) | (2.8) |
| Proceeds from the sale of property, plant and equipment | 4.7 | 3.4 |
| Other, net | — | 2.1 |
| Net cash used for investing activities | (55.2) | (35.0) |
| Cash flows from financing activities | ||
| Net proceeds from issuances of short-term debt | 195.0 | 266.2 |
| Payments of short-term debt | — | (1.5) |
| Payments of long-term debt including current maturities | (1.2) | (126.1) |
| Common stock repurchases | (16.2) | (25.6) |
| Cash dividends paid | (28.7) | (28.2) |
| Tax withholding associated with shares issued for share-based compensation | (15.4) | (6.9) |
| Net cash provided by financing activities | 133.5 | 77.9 |
| Effect of exchange rate changes | (0.6) | 3.3 |
| Net increase in Cash and cash equivalents and Restricted cash | 13.6 | 18.8 |
| Cash and cash equivalents and Restricted cash at beginning of period | 274.9 | 285.9 |
| Cash and cash equivalents and Restricted cash at end of period | 288.5 | 304.7 |
| Less: Restricted cash | 10.7 | 18.0 |
| Cash and cash equivalents at the end of period | $277.8 | $286.7 |
| Supplemental cash flow disclosures: | ||
| Cash paid for taxes | $16.5 | $2.6 |
| Cash paid for interest | $41.8 | $46.4 |
The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated financial statements.
Brunswick Corporation
Condensed Consolidated Statements of Shareholders' Equity
| (in millions, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated other comprehensive loss, net of tax | Total |
|---|---|---|---|---|---|---|
| Balance at December 31, 2025 | $76.9 | $426.8 | $3,364.8 | $(2,220.2) | $(22.7) | $1,625.6 |
| Net earnings | — | — | 21.0 | — | — | 21.0 |
| Other comprehensive income | — | — | — | — | 5.0 | 5.0 |
| Dividends ($0.44 per common share) | — | — | (28.7) | — | — | (28.7) |
| Compensation plans and other | — | (16.6) | — | 11.4 | — | (5.2) |
| Common stock repurchases | — | — | — | (16.2) | — | (16.2) |
| Balance at April 4, 2026 | $76.9 | $410.2 | $3,357.1 | $(2,225.0) | $(17.7) | $1,601.5 |
| (in millions, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated other comprehensive loss, net of tax | Total |
|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | $76.9 | $401.8 | $3,614.7 | $(2,147.7) | $(53.4) | $1,892.3 |
| Net earnings | — | — | 20.2 | — | — | 20.2 |
| Other comprehensive income | — | — | — | — | 12.7 | 12.7 |
| Dividends ($0.43 per common share) | — | — | (28.2) | — | — | (28.2) |
| Compensation plans and other | — | (5.6) | — | 6.6 | — | 1.0 |
| Common stock repurchases | — | — | — | (25.8) | — | (25.8) |
| Balance at March 29, 2025 | $76.9 | $396.2 | $3,606.7 | $(2,166.9) | $(40.7) | $1,872.2 |
The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated financial statements.
Note 1 – Significant Accounting Policies
Interim Financial Statements
Brunswick's unaudited interim condensed consolidated financial statements have been prepared pursuant to SEC rules and regulations. Therefore, certain information and disclosures normally included in financial statements and related notes prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted.
These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Brunswick's Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Form 10-K). These results include, in management's opinion, all normal and recurring adjustments that are necessary to present fairly Brunswick's financial position, results of operations, and cash flows. Due to the seasonality of Brunswick's businesses, the interim results are not necessarily indicative of the results that may be expected for the remainder of the year.
The Company maintains its financial records on the basis of a fiscal year ending on December 31, with the fiscal quarters spanning approximately thirteen weeks. The first quarter ends on the Saturday closest to the end of the first thirteen-week period. The second and third quarters are thirteen weeks in duration and the fourth quarter is the remainder of the year. The first quarter of fiscal year 2026 ended on April 4, 2026 and the first quarter of fiscal year 2025 ended on March 29, 2025.
Recently Issued Accounting Standards
Income Statement: In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires disclosures about significant expense categories, including but not limited to, inventory purchases, employee compensation, depreciation, amortization, and selling expenses. ASU 2024-03 is effective for financial statements for annual periods beginning after December 15, 2026. We are currently evaluating the impact of adopting this guidance on the consolidated financial statements.
Note 2 –Revenue Recognition
The following tables present the Company's revenue in categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors:
| Three Months Ended | |||||
|---|---|---|---|---|---|
| April 4, 2026 | |||||
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Total |
| Geographic Markets | |||||
| United States | $347.3 | $203.6 | $125.5 | $306.3 | $982.7 |
| Europe | 106.4 | 30.2 | 68.2 | 35.3 | 240.1 |
| Asia Pacific | 41.3 | 27.5 | 18.1 | 3.0 | 89.9 |
| Canada | 20.8 | 15.5 | 5.7 | 44.2 | 86.2 |
| Rest-of-World | 55.5 | 13.0 | 6.0 | 5.9 | 80.4 |
| Segment Eliminations | (75.0) | (1.7) | (23.7) | (0.8) | (101.2) |
| Total | $496.3 | $288.1 | $199.8 | $393.9 | $1,378.1 |
| Major Product Lines | |||||
| Outboard Engines | $448.3 | $— | $— | $— | $448.3 |
| Controls, Rigging, and Propellers | 93.2 | — | — | — | 93.2 |
| Sterndrive Engines | 29.8 | — | — | — | 29.8 |
| Distribution | — | 175.0 | — | — | 175.0 |
| Products | — | 114.8 | — | — | 114.8 |
| Electronic Solutions | — | — | 102.5 | — | 102.5 |
| Power Solutions | — | — | 81.1 | — | 81.1 |
| Performance Solutions | — | — | 39.9 | — | 39.9 |
| Aluminum Freshwater Boats | — | — | — | 164.8 | 164.8 |
| Recreational Fiberglass Boats | — | — | — | 118.4 | 118.4 |
| Saltwater Fishing Boats | — | — | — | 76.1 | 76.1 |
| Business Acceleration | — | — | — | 54.7 | 54.7 |
| Boat Eliminations/Other | — | — | — | (19.3) | (19.3) |
| Segment Eliminations | (75.0) | (1.7) | (23.7) | (0.8) | (101.2) |
| Total | $496.3 | $288.1 | $199.8 | $393.9 | $1,378.1 |
| Three Months Ended | |||||
|---|---|---|---|---|---|
| March 29, 2025 | |||||
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Total |
| Geographic Markets | |||||
| United States | $300.2 | $181.0 | $125.0 | $298.9 | $905.1 |
| Europe | 82.6 | 24.6 | 58.5 | 29.4 | 195.1 |
| Asia Pacific | 40.0 | 24.6 | 15.1 | 3.9 | 83.6 |
| Canada | 17.0 | 12.9 | 4.4 | 35.1 | 69.4 |
| Rest-of-World | 47.2 | 12.2 | 5.2 | 4.8 | 69.4 |
| Segment Eliminations | (73.3) | (2.4) | (24.7) | (0.4) | (100.8) |
| Total | $413.7 | $252.9 | $183.5 | $371.7 | $1,221.8 |
| Major Product Lines | |||||
| Outboard Engines | $376.5 | $— | $— | $— | $376.5 |
| Controls, Rigging, and Propellers | 80.2 | — | — | — | 80.2 |
| Sterndrive Engines | 30.3 | — | — | — | 30.3 |
| Distribution | — | 155.4 | — | — | 155.4 |
| Products | — | 99.9 | — | — | 99.9 |
| Electronic Solutions | — | — | 100.2 | — | 100.2 |
| Power Solutions | — | — | 73.1 | — | 73.1 |
| Performance Solutions | — | — | 34.9 | — | 34.9 |
| Aluminum Freshwater Boats | — | — | — | 140.7 | 140.7 |
| Recreational Fiberglass Boats | — | — | — | 117.2 | 117.2 |
| Saltwater Fishing Boats | — | — | — | 80.8 | 80.8 |
| Business Acceleration | — | — | — | 51.6 | 51.6 |
| Boat Eliminations/Other | — | — | — | (18.2) | (18.2) |
| Segment Eliminations | (73.3) | (2.4) | (24.7) | (0.4) | (100.8) |
| Total | $413.7 | $252.9 | $183.5 | $371.7 | $1,221.8 |
During 2025, Navico Group realigned its business unit structure to align product portfolios and management structure. During the third quarter of 2025, the Company changed the presentation of major product lines for the Navico Group segment to disaggregate the previous Navico Group product line into Electronic Solutions, Power Solutions, and Performance Solutions to conform to Navico Group's new organizational structure. Prior period amounts have been reclassified to conform to the current period presentation.
As of December 31, 2025,$194.0 million of contract liabilities associated with extended warranties, deferred revenue and customer deposits were reported in Accrued expenses and Other long-term liabilities, of which $21.2 million was recognized as revenue during the three months ended April 4, 2026. As of April 4, 2026, total contract liabilities were $206.3 million. The total amount of the transaction price allocated to unsatisfied performance obligations as of April 4, 2026 was $202.2 million for contracts greater than one year, which primarily relates to extended warranties. The Company expects to recognize $54.2 million of this amount in 2026, $54.3 million in 2027, and $93.7 million thereafter.
Note 3 –Restructuring, Exit, and Impairment Activities
During the three months ended April 4, 2026 and March 29, 2025, the Company recorded restructuring charges related to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies. The Company also incurred charges related to the rationalization of its manufacturing footprint, including the decision in the third quarter of 2025 to rationalize our fiberglass boat manufacturing footprint and exit our facilities in Reynosa, Mexico and Flagler Beach, Florida and consolidate production from those facilities into existing U.S. facilities.
The following table is a summary of these expenses for the three months ended April 4, 2026:
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Corporate | Total |
|---|---|---|---|---|---|---|
| Restructuring, exit, and impairment activities: | ||||||
| Employee termination and other benefits | $— | $— | $0.2 | $1.5 | $— | $1.7 |
| Asset-related | — | — | — | 2.0 | — | 2.0 |
| Professional fees | — | — | — | 1.1 | — | 1.1 |
| Total restructuring, exit, and impairment charges | $— | $— | $0.2 | $4.6 | $— | $4.8 |
| Total cash payments for restructuring, exit and impairment charges (A) | $— | $— | $1.4 | $3.7 | $0.1 | $5.2 |
| Accrued charges at end of the period (B) | $0.5 | $0.1 | $1.7 | $9.4 | $0.2 | $11.9 |
(A) Cash payments for the three months ended April 4, 2026 includes payments related to prior period charges.
(B) Restructuring, exit, and impairment charges accrued as of April 4, 2026 are expected to be paid in the next twelve months.
The following table is a summary of these expenses for the three months ended March 29, 2025:
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Corporate | Total |
|---|---|---|---|---|---|---|
| Restructuring, exit, and impairment activities: | ||||||
| Employee termination and other benefits | $— | $— | $0.8 | $0.3 | $— | $1.1 |
| Total cash payments for restructuring, exit and impairment charges (A) | $1.1 | $0.5 | $1.6 | $1.2 | $0.8 | $5.2 |
| Accrued charges at end of the period | $0.3 | $0.2 | $0.7 | $1.1 | $0.1 | $2.4 |
(A) Cash payments for the three months ended March 29, 2025 may include payments related to prior period charges.
Note 4 –Financial Instruments
The Company operates globally with manufacturing and sales facilities around the world. Due to the Company’s global operations, the Company engages in activities involving both financial and market risks. The Company utilizes normal operating and financing activities, along with derivative financial instruments, to minimize these risks. See Note 12 in the Notes to Consolidated Financial Statements in the 2025 Form 10-K for further details regarding the Company's financial instruments and hedging policies.
The following table summarizes the notional values of the Company's derivative instruments as of April 4, 2026, December 31, 2025, and March 29, 2025:
| (in millions) | Notional Value | ||
|---|---|---|---|
| Instruments | April 4, 2026 | December 31, 2025 | March 29, 2025 |
| Cross-currency swaps | $500.0 | $500.0 | $400.0 |
| Commodity contracts (A)(B) | 41.1 | 38.5 | 31.6 |
| Foreign exchange contracts (B)(C) | 762.7 | 706.1 | 701.5 |
(A) Commodity contracts outstanding as of April 4, 2026 mature through 2027.
(B) The amount of gain or loss that is expected to be reclassified from Accumulated other comprehensive loss to earnings in the next twelve months is immaterial.
(C) Forward contracts outstanding as of April 4, 2026 mature through 2027 and mainly relate to the Euro, Australian dollar, Canadian dollar, and Norwegian krone.
As of April 4, 2026, December 31, 2025, and March 29, 2025, the fair values of the Company’s derivative instruments were:
| (in millions) | Fair Value | ||
|---|---|---|---|
| Asset Derivatives | April 4, 2026 | December 31, 2025 | March 29, 2025 |
| Derivatives Designated as Cash Flow Hedges | |||
| Foreign exchange contracts | $8.4 | $4.8 | $5.4 |
| Commodity contracts | 10.4 | 7.9 | 3.2 |
| Total | $18.8 | $12.7 | $8.6 |
| Other Hedging Activity | |||
| Foreign exchange contracts | $1.7 | $0.6 | $2.1 |
| Liability Derivatives | |||
| Derivatives Designated as Cash Flow Hedges | |||
| Foreign exchange contracts | $8.4 | $11.9 | $4.5 |
| Commodity contracts | 0.2 | 0.1 | 0.2 |
| Total | $8.6 | $12.0 | $4.7 |
| Derivatives Designated as Net Investment Hedges | |||
| Cross-currency swaps | $37.5 | $45.5 | $12.3 |
| Other Hedging Activity | |||
| Foreign exchange contracts | $5.6 | $0.7 | $0.2 |
As of April 4, 2026, December 31, 2025, and March 29, 2025, asset derivatives are included within Prepaid expenses and other and Other long-term assets, and liability derivatives are included within Accrued expenses and Other long-term liabilities in the Condensed Consolidated Balance Sheets.
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended April 4, 2026 and March 29, 2025 is shown in the tables below.
The amount of gain (loss) on derivatives recognized in Accumulated other comprehensive loss was as follows:
| (in millions) | Three Months Ended | |
|---|---|---|
| Derivatives Designated as Cash Flow Hedging Instruments | April 4, 2026 | March 29, 2025 |
| Commodity contracts | $6.2 | $3.2 |
| Foreign exchange contracts | 4.6 | (5.0) |
| Total | $10.8 | $(1.8) |
| Derivatives Designated as Net Investment Hedging Instruments | ||
| Cross-currency swaps | $8.0 | $(12.4) |
The amount of gain (loss) reclassified from Accumulated other comprehensive loss into earnings was as follows:
| (in millions) | Three Months Ended | ||
|---|---|---|---|
| Derivatives Designated as Cash Flow Hedging Instruments | Location of Gain (Loss) | April 4, 2026 | March 29, 2025 |
| Foreign exchange contracts | Cost of sales | $(2.4) | $1.7 |
| Commodity contracts | Cost of sales | 3.1 | 0.5 |
| Total | $0.7 | $2.2 | |
The amount of gain (loss) on derivatives recognized directly into earnings was as follows:
| (in millions) | Three Months Ended | ||
|---|---|---|---|
| Other Hedging Activity | Location of Gain (Loss) | April 4, 2026 | March 29, 2025 |
| Foreign exchange contracts | Cost of sales | $(1.5) | $(4.7) |
| Foreign exchange contracts | Other (expense) income, net | (3.8) | 5.1 |
| Total | $(5.3) | $0.4 | |
Note 5 –Fair Value Measurements
The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis:
| Fair Value | ||||
|---|---|---|---|---|
| (in millions) | Fair Value Level | April 4, 2026 | December 31, 2025 | March 29, 2025 |
| Cash equivalents | 1 | $0.2 | $0.4 | $16.9 |
| Short-term investments in marketable securities | 1 | 0.8 | 0.8 | 0.8 |
| Restricted cash | 1 | 10.7 | 18.1 | 18.0 |
| Derivative assets | 2 | 20.5 | 13.3 | 10.7 |
| Derivative liabilities | 2 | 51.7 | 58.2 | 17.2 |
| Deferred compensation | 1 | 1.1 | 1.1 | 0.8 |
| Deferred compensation | 2 | 22.6 | 22.6 | 18.5 |
| Liabilities measured at net asset value | 15.8 | 15.6 | 12.8 | |
Fair Value of Other Financial Instruments. The carrying values of the Company's short-term financial instruments, including cash and cash equivalents and accounts and notes receivable, approximate their fair values because of the short maturity of these instruments. The fair value of the Company's long-term debt, including current maturities, and short-term debt is determined using Level 1 and Level 2 inputs described in Note 6 to Notes to Consolidated Financial Statements in the 2025 Form 10-K. The fair value and carrying value of long-term debt, including current maturities, and short-term debt as of April 4, 2026, December 31, 2025, and March 29, 2025 was as follows:
| (in millions) | April 4, 2026 | December 31, 2025 | March 29, 2025 |
|---|---|---|---|
| Fair Value | $2,170.9 | $2,004.9 | $2,299.3 |
| Carrying Value | 2,311.6 | 2,118.0 | 2,509.5 |
Note 6 –Commitments and Contingencies
Product Warranties
The following activity related to product warranty liabilities was recorded in Accrued expenses during the three months ended April 4, 2026 and March 29, 2025:
| (in millions) | April 4, 2026 | March 29, 2025 |
|---|---|---|
| Balance at beginning of period | $162.2 | $152.8 |
| Payments | (23.9) | (19.3) |
| Provisions/additions for contracts issued/sold | 31.1 | 27.2 |
| Aggregate changes for preexisting warranties | (5.6) | 5.0 |
| Foreign currency translation | (0.3) | 0.8 |
| Other | 0.3 | 0.1 |
| Balance at end of period | $163.8 | $166.6 |
Extended Product Warranties
The following activity related to deferred revenue for extended product warranty contracts was recorded in Accrued expenses and Other long-term liabilities during the three months ended April 4, 2026 and March 29, 2025:
| (in millions) | April 4, 2026 | March 29, 2025 |
|---|---|---|
| Balance at beginning of period | $146.0 | $136.6 |
| Extended warranty contracts sold | 11.7 | 10.1 |
| Revenue recognized on existing extended warranty contracts | (9.1) | (8.0) |
| Foreign currency translation | (0.2) | 0.1 |
| Other | (0.1) | 0.1 |
| Balance at end of period | $148.3 | $138.9 |
Note 7 –Goodwill and Other Intangibles
Changes in the Company's goodwill during the three months ended April 4, 2026 and March 29, 2025, by segment, are summarized below:
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Total |
|---|---|---|---|---|---|
| December 31, 2025 | $54.0 | $233.2 | $223.6 | $170.4 | $681.2 |
| Adjustments | 0.1 | — | (2.2) | (2.7) | (4.8) |
| April 4, 2026 | $54.1 | $233.2 | $221.4 | $167.7 | $676.4 |
| December 31, 2024 | $50.8 | $232.6 | $513.4 | $169.3 | $966.1 |
| Adjustments | 0.8 | 0.2 | 5.3 | 0.1 | 6.4 |
| March 29, 2025 | $51.6 | $232.8 | $518.7 | $169.4 | $972.5 |
Adjustments in both periods include the effect of foreign currency translation on goodwill denominated in currencies other than the U.S. dollar. The accumulated impairment loss on Navico Group goodwill was $385.8 million as of April 4, 2026 and December 31, 2025, and $80.0 million as of March 29, 2025, respectively.
The Company's intangible assets, included within Other intangibles, net on the Condensed Consolidated Balance Sheets as of April 4, 2026, December 31, 2025, and March 29, 2025, are summarized by intangible asset type below:
| April 4, 2026 | December 31, 2025 | March 29, 2025 | ||||
|---|---|---|---|---|---|---|
| (in millions) | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization |
| Intangible assets: | ||||||
| Customer relationships | $907.3 | $(529.2) | $908.1 | $(518.1) | $912.0 | $(485.8) |
| Trade names | 295.7 | — | 295.2 | — | 304.5 | — |
| Developed technology | 167.6 | (50.0) | 167.4 | (47.1) | 166.9 | (38.4) |
| Other | 144.7 | (93.6) | 138.0 | (88.7) | 123.1 | (72.0) |
| Total | $1,515.3 | $(672.8) | $1,508.7 | $(653.9) | $1,506.5 | $(596.2) |
Other intangible assets primarily consist of software, patents, and franchise agreements. Gross amounts and related accumulated amortization amounts include adjustments related to the impact of foreign currency translation. Aggregate amortization expense for intangibles was $19.5 million and $19.2 million for the three months ended April 4, 2026, and March 29, 2025, respectively.
The Company tests its intangible assets for impairment during the fourth quarter of each year, or whenever a change in events and circumstances (triggering event) occurs that indicates the fair value of intangible assets may be below their carrying values. The Company did not record any impairment charges for the three months ended April 4, 2026 or March 29, 2025.
Note 8 –Segment Information
Information about the operations of Brunswick's reportable and geographic segments is set forth below:
| Three Months Ended April 4, 2026 | ||||||
|---|---|---|---|---|---|---|
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Corporate/Other | Total |
| Net sales (A) | $496.3 | $288.1 | $199.8 | $393.9 | $— | $1,378.1 |
| Cost of sales (B) | 383.1 | 208.0 | 124.8 | 321.9 | — | 1,037.8 |
| Operating expenses (C) | 78.8 | 34.5 | 69.9 | 65.5 | 41.3 | 290.0 |
| Operating earnings | $34.4 | $45.6 | $5.1 | $6.5 | $(41.3) | $50.3 |
(A) Net sales include $75.0 million, $1.7 million, $23.7 million, and $0.8 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.
(B) Includes $3.3 million of Cost of sales related restructuring, exit, and impairment charges.
(C) Includes $242.2 million of Selling, general, and administrative expense, $46.3 million of Research and development expense and $1.5 million of Restructuring, exit, and impairment charges.
| Three Months Ended March 29, 2025 | ||||||
|---|---|---|---|---|---|---|
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Corporate/Other | Total |
| Net sales (A) | $413.7 | $252.9 | $183.5 | $371.7 | $— | $1,221.8 |
| Cost of sales (B) | 307.9 | 185.3 | 116.7 | 308.7 | — | 918.6 |
| Operating expenses (C) | 59.7 | 28.5 | 69.6 | 55.3 | 33.8 | 246.9 |
| Operating earnings | $46.1 | $39.1 | $(2.8) | $7.7 | $(33.8) | $56.3 |
(A) Net sales include $73.3 million, $2.4 million, $24.7 million and $0.4 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.
(B) Includes $0.7 million of Cost of sales related Restructuring, exit, and impairment charges.
(C) Includes $208.0 million of Selling, general, and administrative expense, $38.5 million of Research and development expense and $0.4 million of Restructuring, exit, and impairment charges.
| Depreciation · Amortization | ||||
|---|---|---|---|---|
| Three Months Ended | Three Months Ended | |||
| (in millions) | April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 |
| Propulsion | $30.8 | $29.8 | $1.5 | $1.9 |
| Engine P&A | 4.3 | 4.0 | 0.2 | 0.2 |
| Navico Group | 2.9 | 2.7 | 14.9 | 14.5 |
| Boat | 16.1 | 13.2 | 1.5 | 1.5 |
| Corporate/Other | 1.3 | 1.2 | 1.4 | 1.1 |
| Total | $55.4 | $50.9 | $19.5 | $19.2 |
| Total Assets | |||
|---|---|---|---|
| (in millions) | April 4, 2026 | December 31, 2025 | March 29, 2025 |
| Propulsion | $1,464.9 | $1,381.0 | $1,512.1 |
| Engine P&A | 943.9 | 861.3 | 922.2 |
| Navico Group | 1,501.3 | 1,524.4 | 1,884.9 |
| Boat | 920.8 | 893.9 | 898.3 |
| Corporate/Other | 674.9 | 651.6 | 639.5 |
| Total | $5,505.8 | $5,312.2 | $5,857.0 |
| Capital Expenditures · Research & Development Expense | ||||
|---|---|---|---|---|
| Three Months Ended | Three Months Ended | |||
| (in millions) | April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 |
| Propulsion | $25.7 | $15.2 | $24.4 | $18.5 |
| Engine P&A | 3.3 | 2.2 | 0.3 | 0.4 |
| Navico Group | 3.0 | 2.5 | 13.0 | 11.4 |
| Boat | 20.9 | 15.9 | 7.5 | 7.2 |
| Corporate/Other | 4.3 | 1.9 | 1.1 | 1.0 |
| Total | $57.2 | $37.7 | $46.3 | $38.5 |
| Net Sales | ||
|---|---|---|
| Three Months Ended | ||
| (in millions) | April 4, 2026 | March 29, 2025 |
| United States | $894.7 | $818.1 |
| International | 483.4 | 403.7 |
| Total | $1,378.1 | $1,221.8 |
| Net Property | |||
|---|---|---|---|
| (in millions) | April 4, 2026 | December 31, 2025 | March 29, 2025 |
| United States | $1,085.8 | $1,097.9 | $1,133.9 |
| International | 107.6 | 109.9 | 105.7 |
| Total | $1,193.4 | $1,207.8 | $1,239.6 |
Note 9 – Comprehensive Income
Changes in the components of Comprehensive income, net of tax, for the three months ended April 4, 2026 and March 29, 2025 are as follows:
| Three Months Ended | ||
|---|---|---|
| (in millions) | April 4, 2026 | March 29, 2025 |
| Net earnings | $21.0 | $20.2 |
| Other comprehensive income (loss): | ||
| Foreign currency cumulative translation adjustments | (8.4) | 25.4 |
| Net change in unamortized prior service credits | (0.2) | (0.1) |
| Net change in unamortized actuarial losses | (0.1) | (0.2) |
| Net change in unrealized derivative gains (losses) | 13.7 | (12.4) |
| Total other comprehensive income | 5.0 | 12.7 |
| Comprehensive income | $26.0 | $32.9 |
The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the three months ended April 4, 2026:
| (in millions) | Foreign currency translation | Prior service credits | Net actuarial gains | Unrealized investment gains | Net derivative gains | Total |
|---|---|---|---|---|---|---|
| Beginning balance | $(24.6) | $(8.4) | $11.8 | $0.2 | $(1.7) | $(22.7) |
| Other comprehensive income (loss) before reclassifications (A) | (8.4) | — | — | — | 14.1 | 5.7 |
| Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C) | — | (0.2) | (0.1) | — | (0.4) | (0.7) |
| Net other comprehensive income (loss) | (8.4) | (0.2) | (0.1) | — | 13.7 | 5.0 |
| Ending balance | $(33.0) | $(8.6) | $11.7 | $0.2 | $12.0 | $(17.7) |
(A) The tax effect for the three months ended April 4, 2026 was $0.4 million for foreign currency translation and $(4.7) million for derivatives.
(B) The tax effect for the three months ended April 4, 2026 was $0.3 million for derivatives.
(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the three months ended April 4, 2026. Refer to Note 4 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.
The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the three months ended March 29, 2025:
| (in millions) | Foreign currency translation | Prior service credits | Net actuarial gains | Unrealized investment gains | Net derivative gains | Total |
|---|---|---|---|---|---|---|
| Beginning balance | $(96.9) | $(7.9) | $10.5 | $0.2 | $40.7 | $(53.4) |
| Other comprehensive income (loss) before reclassifications (A) | 25.4 | — | — | — | (10.7) | 14.7 |
| Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C) | — | (0.1) | (0.2) | — | (1.7) | (2.0) |
| Net other comprehensive income (loss) | 25.4 | (0.1) | (0.2) | — | (12.4) | 12.7 |
| Ending balance | $(71.5) | $(8.0) | $10.3 | $0.2 | $28.3 | $(40.7) |
(A) The tax effect for the three months ended March 29, 2025 was $(3.6) million for foreign currency translation and $3.5 million for derivatives.
(B) The tax effect for the three months ended March 29, 2025 was $0.5 million for derivatives.
(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the three months ended March 29, 2025. Refer to Note 4 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.
Note 10 –Debt
The following table provides the changes in the Company's debt for the three months ended April 4, 2026:
| (in millions) | Short-term debt and current maturities of long-term debt | Long-term debt | Total |
|---|---|---|---|
| Balance as of December 31, 2025 | $295.4 | $1,806.8 | $2,102.2 |
| Proceeds from issuances of debt (A) | 195.0 | — | 195.0 |
| Repayments of debt | (0.6) | (0.6) | (1.2) |
| Reclassification of long-term debt | 0.5 | (0.5) | — |
| Other | (0.1) | 0.5 | 0.4 |
| Balance as of April 4, 2026 | $490.2 | $1,806.2 | $2,296.4 |
(A) During the first quarter of 2026, the Company had short-term borrowings and repayments under its unsecured commercial paper program.
Credit Facility
The Company maintains a Revolving Credit Agreement (Credit Facility). During the three months ended April 4, 2026, and March 29, 2025, there were no borrowings under the Credit Facility. As of April 4, 2026, available borrowing capacity totaled $984.0 million, net of $16.0 million of letters of credit outstanding under the Credit Facility. As of March 29, 2025, available borrowing capacity totaled $997.0 million, net of $3.0 million of letters of credit outstanding under the Credit Facility. Refer to Note 14 in the Notes to Consolidated Financial Statements in the 2025 Form 10-K for details regarding Brunswick's Credit Facility.
Commercial Paper
The Company maintains an unsecured commercial paper program (CP Program) pursuant to which the Company may issue short-term, unsecured commercial paper notes (CP Notes). During the three months ended April 4, 2026, borrowings under the CP Program totaled $280.0 million. As of April 4, 2026, the Company had $485.0 million of borrowings outstanding under the CP Program with a weighted average interest rate of 4.38%. During the three months ended April 4, 2026, the maximum amount utilized under the CP Program was $540.0 million. During the three months ended March 29, 2025, borrowings under the CP Program totaled $435.9 million. As of March 29, 2025, the Company had $380.0 million of borrowings outstanding under the CP Program. During the three months ended March 29, 2025, the maximum amount utilized under the CP Program was $445.5 million. Refer to Note 14 in the Notes to Consolidated Financial Statements in the 2025 Form 10-K for details regarding Brunswick's CP Program.
Note 11 –Supplier Finance Program Obligations
As of April 4, 2026, December 31, 2025, and March 29, 2025, the Company had $9.5 million, $6.2 million, and $9.0 million confirmed invoices under the supplier finance program, respectively, which were included in Accounts payable on the Condensed Consolidated Balance Sheets.
Note 12 – Subsequent Events
On April 16, 2026, the Company acquired the Freedom Boat Club of Greater Boston & Cape Cod franchise operations. The acquisition includes 21 locations across Greater Boston, Cape Cod and surrounding areas and further expands Freedom Boat Club's growing corporate club portfolio in the Northeast. The transaction also includes a maintenance operations center and dealership anchored by a 7,200-square-foot facility, strengthening Freedom's regional maintenance and fleet resale capabilities to support continued growth.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.