# BRUNSWICK CORP (BC)

Informational only - not investment advice.

CIK: 0000014930
SIC: 3510 Engines & Turbines
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3510 Engines & Turbines](/industry/3510/)
Latest 10-K filed: 2026-02-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=14930
Filing source: https://www.sec.gov/Archives/edgar/data/14930/000001493026000027/bcorp-20251231.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 5362800000 | USD | 2025 | 2026-02-13 |
| Net income | -137300000 | USD | 2025 | 2026-02-13 |
| Assets | 5312200000 | USD | 2025 | 2026-02-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014930.json. Derived margins are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,488,500,000 | 3,802,200,000 | 4,120,900,000 | 4,108,400,000 | 4,347,500,000 | 5,846,200,000 | 6,812,200,000 | 6,401,400,000 | 5,237,100,000 | 5,362,800,000 |
| Net income | 276,000,000 | 146,400,000 | 265,300,000 | -131,000,000 | 372,700,000 | 593,300,000 | 677,000,000 | 420,400,000 | 130,100,000 | -137,300,000 |
| Operating income | 479,500,000 | 330,300,000 | 355,500,000 | 471,000,000 | 539,300,000 | 812,900,000 | 947,800,000 | 734,900,000 | 311,600,000 | -40,700,000 |
| Diluted EPS | 3.00 | 1.62 | 3.01 | -1.53 | 4.68 | 7.57 | 9.00 | 5.96 | 1.93 | -2.08 |
| Assets | 3,284,700,000 | 3,358,200,000 | 4,291,500,000 | 3,564,400,000 | 3,770,600,000 | 5,425,000,000 | 6,321,300,000 | 6,230,500,000 | 5,677,700,000 | 5,312,200,000 |
| Stockholders' equity | 1,440,100,000 | 1,482,900,000 | 1,582,600,000 | 1,300,900,000 | 1,510,000,000 | 1,914,200,000 | 2,042,300,000 | 2,087,400,000 | 1,892,300,000 | 1,625,600,000 |
| Cash and cash equivalents | 422,400,000 | 448,800,000 | 294,400,000 | 320,300,000 | 519,600,000 | 354,500,000 | 595,600,000 | 467,800,000 | 269,000,000 | 256,800,000 |
| Net margin | 6.15% | 3.85% | 6.44% | -3.19% | 8.57% | 10.15% | 9.94% | 6.57% | 2.48% | -2.56% |
| Operating margin | 10.68% | 8.69% | 8.63% | 11.46% | 12.40% | 13.90% | 13.91% | 11.48% | 5.95% | -0.76% |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014930.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-07-02 |  |  | 2.59 | reported discrete quarter |
| 2022-Q3 | 2022-10-01 |  |  | 2.20 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 |  |  | 1.56 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  | 112,300,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-07-01 | 1,702,300,000 |  | 1.90 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  | 134,700,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,593,600,000 |  | 1.61 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,361,900,000 | 60,900,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-30 | 1,365,000,000 | 68,000,000 | 0.99 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 |  | 68,000,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-06-29 |  | 100,000,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 1,443,900,000 |  | 1.48 | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 1,273,300,000 |  | 0.67 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,154,900,000 | -82,500,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-29 | 1,221,800,000 | 20,200,000 | 0.30 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 |  | 20,200,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-06-28 |  | 59,300,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 1,447,000,000 |  | 0.89 | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 1,360,200,000 |  | -3.59 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,333,800,000 | 18,700,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-04-04 | 1,378,100,000 | 21,000,000 | 0.32 | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/14930/000001493026000070/bcorp-20260404.htm

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization.
Confidence: high
Filing date: 2026-05-07
Report date: 2026-04-04

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in Management's Discussion and Analysis of Financial Condition and Results of Operations of Brunswick Corporation (the Company, we, us, our) are forward-looking statements. Forward-looking statements are based on current expectations, estimates, and projections about our business and by their nature address matters that are, to different degrees, uncertain. Actual results may differ materially from expectations and projections as of the date of this filing due to various risks and uncertainties. For additional information regarding forward-looking statements, refer to Forward-Looking Statements below.

Certain statements in Management's Discussion and Analysis are based on non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A "non-GAAP financial measure" is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the consolidated statements of operations, balance sheets or statements of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. For example, the discussion of our cash flows includes an analysis of free cash flows and total liquidity; the discussion of our net sales includes net sales on a constant currency basis; and the discussion of our earnings includes a presentation of operating earnings and operating margin excluding restructuring, exit and impairment charges, purchase accounting amortization, acquisition, integration, and IT related costs, supplier bankruptcy expenses and other applicable charges, and of diluted earnings per common share, as adjusted. Supplier bankruptcy expenses include additional expenses incurred, in excess of normal inventory costs, to purchase inventory from a key supplier that filed for bankruptcy. Non-GAAP financial measures do not include operating and statistical measures.

We include non-GAAP financial measures in Management's Discussion and Analysis as management believes these measures and the information they provide are useful to investors because they permit investors to view our performance using the same tools that management uses to evaluate our ongoing business performance. In order to better align our reported results with the internal metrics management uses to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to acquisitions, among other adjustments.

We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include restructuring, exit and impairment costs, special tax items, acquisition-related costs, and certain other unusual adjustments.

Known Trends or Uncertainties

We continue to monitor macroeconomic trends and uncertainties such as recently implemented tariffs along with the potential for new or modified tariffs, and related impacts to consumers, any or all of which could have a material impact on our business, financial condition and results of operations.

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were not authorized by the statute. The Company was previously subject to such tariffs under IEEPA. Because the process, timing, and amount of any IEEPA tariff recovery are uncertain, we have not recorded any benefit from a potential refund at this time.

19

Table of Contents

Overview

Net sales increased 12.8% during the first quarter of 2026 compared with the first quarter of 2025. This increase reflected improved wholesale and retail trends, continued market share gains in propulsion and several boat categories, strong OEM demand for propulsion, components and electronics, favorable changes in foreign currency exchange rates, pricing actions commencing in the second half of 2025, and solid boating participation driving aftermarket performance. For the third consecutive quarter, year-over-year net sales increased across all segments. The Propulsion segment delivered significant sales growth resulting primarily from an improved market, strong OEM orders, wholesale acceleration, and continued global share gains. The Engine P&A segment benefited from healthy boater participation and continued distribution share gains, which led to sales improvement compared to the prior year. Navico Group reported sales growth over the prior year quarter as growth across all business lines was supported by improving OEM demand, steady aftermarket performance, and operational efficiency. Finally, the Boat segment sales grew over prior year driven by higher wholesale shipments and stabilized retail conditions, favorable mix, and continued momentum in the Business Acceleration portfolio. Freedom Boat Club added four new locations, increased trips and improved same store sales. Our international net sales increased 20 percent on a GAAP basis and increased 11 percent on a constant currency basis in the first quarter compared with the prior year.

Operating earnings in the first quarter of 2026 were $50.3 million and $82.6 million on a GAAP and as adjusted basis, respectively. This compares to operating earnings during the first quarter of 2025 of $56.3 million and $72.1 million on a GAAP and As Adjusted basis, respectively. Adjusted operating earnings increased due to increased sales, favorable mix, pricing, improved absorption and disciplined cost management more than offsetting the impact of incremental tariffs implemented after the first quarter of 2025.

Matters Affecting Comparability

Changes in Foreign Currency Rates. Percentage changes in net sales expressed in constant currency reflect the impact that changes in currency exchange rates had on comparisons of net sales. To determine this information, net sales transacted in currencies other than the U.S. dollar have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative period. The percentage change in net sales expressed on a constant currency basis better reflects the changes in the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Approximately 24 percent of our annual net sales are transacted in a currency other than the U.S. dollar. Our most material exposures include sales in Euros, Canadian dollars, Australian dollars, and Brazilian real.

The table below summarizes the impact of changes in currency exchange rates on our net sales:

Three Months Ended

Net Sales

2026 vs. 2025

(in millions)

April 4, 2026

March 29, 2025

GAAP

Currency Impact

Propulsion

$

571.3 

$

487.0 

17.3 

%

3.6 

%

Engine P&A

289.8 

255.3 

13.5 

%

2.5 

%

Navico Group

223.5 

208.2 

7.3 

%

3.9 

%

Boat

394.7 

372.1 

6.1 

%

1.3 

%

Segment Eliminations

(101.2)

(100.8)

(0.4)

%

0.8 

%

Total

$

1,378.1 

$

1,221.8 

12.8 

%

3.0 

%

20

Table of Contents

Results of Operations

Consolidated

The following table sets forth certain amounts, ratios, and relationships calculated from the Condensed Consolidated Statements of Comprehensive Income for the three months ended:

Three Months Ended

2026 vs. 2025

(in millions, except per share data)

April 4, 2026

March 29, 2025

$

%

Net sales

$

1,378.1

$

1,221.8

$

156.3

12.8%

Cost of sales

1,034.5

917.9

116.6

12.7%

Gross margin(A)

343.6

303.9

39.7

13.1%

Selling, general, and administrative expense

242.2

208.0

34.2

16.4%

Research and development expense

46.3

38.5

7.8

20.3%

Restructuring, exit, and impairment charges

4.8

1.1

3.7

NM

  Operating earnings

50.3

56.3

(6.0)

(10.7)%

Equity earnings

1.6

2.2

(0.6)

(27.3)%

Other (expense) income, net

(1.6)

1.3

(2.9)

NM

  Earnings before interest and income taxes

50.3

59.8

(9.5)

(15.9)%

Interest expense

(24.6)

(29.7)

5.1

17.2%

Interest income

1.2

1.7

(0.5)

(29.4)%

Loss on early extinguishment of debt

—

(3.7)

3.7

NM

  Earnings before income taxes

26.9

28.1

(1.2)

(4.3)%

Income tax provision

5.9

7.9

(2.0)

(25.3)%

  Net earnings

21.0

20.2

0.8

4.0%

Diluted earnings per common share from continuing operations

$

0.32

$

0.30

$

0.02

6.7%

Expressed as a percentage of Net sales:

Gross margin (A)

24.9 

%

24.9 

%

- bps

Selling, general, and administrative expense

17.6 

%

17.0 

%

60 bps

Research and development expense

3.4 

%

3.2 

%

20 bps

Restructuring, exit, and impairment charges

0.3 

%

0.1 

%

20 bps

Operating margin

3.6 

%

4.6 

%

(100) bps

NM = not meaningful

bps = basis points

(A)Gross margin is defined as Net sales less Cost of sales as presented in the Condensed Consolidated Statements of Comprehensive Income.

21

Table of Contents

The following is a reconciliation of our non-GAAP measures, adjusted operating earnings and adjusted diluted earnings per common share from continuing operations for the three months ended April 4, 2026 compared with the same prior year comparative period:

Three Months Ended

Operating Earnings

Diluted Earnings Per Share

(in millions, except per share data)

April 4, 2026

March 29, 2025

April 4, 2026

March 29, 2025

GAAP

$

50.3

$

56.3

$

0.32 

$

0.30 

Purchase accounting amortization

14.5

14.6

0.18 

0.18 

Supplier bankruptcy expense

10.4

—

0.13 

— 

Restructuring, exit, and impairment charges

4.8

1.1

0.05 

0.01 

Loss on sale of assets

2.2

—

0.03 

— 

Acquisition, integration, and IT related costs

0.4

0.1

— 

— 

Special tax items

—

—

(0.01)

0.03 

Loss on early extinguishment of debt

—

—

— 

0.04 

As Adjusted

$

82.6

$

72.1

$

0.70 

$

0.56 

GAAP operating margin

3.6 

%

4.6 

%

Adjusted operating margin

6.0 

%

5.9 

%

Net sales increased 12.8% during the first quarter of 2026 compared with the same prior year period. The components of the consolidated net sales change were as follows:

Percent change in net sales compared to the prior comparative period

April 4, 2026

Three Months Ended

Volume

6.6 

%

Product Mix and Price

3.2 

%

Currency

3.0 

%

12.8 

%

Gross margin remained relatively consistent in the first quarter of 2026 when compared to the same prior year period, driven by increased sales (380 bps) and favorable foreign currency exchange rate fluctuations (60 bps) offset by impact of incremental tariffs (240 bps), labor costs (100 bps), and inflation (100 bps).

Selling, general and administrative expense as a percentage of net sales increased 60 basis points during the first quarter of 2026 compared with the same prior year period due to increased spending in support of growth and operational initiatives. Research and development expense increased in the first quarter of 2026 versus the same period in 2025 due to accelerated, strategic investments in new products.

We recorded Restructuring, exit and impairment charges of $4.8 million and $1.1 million during the three months ended April 4, 2026 and March 29, 2025 respectively. First quarter 2026 actions are not expected to result in material annualized cost savings. Refer to Note 3 –Restructuring, Exit, and Impairment Activities in the Notes to Condensed Consolidated Financial Statements for further information.

We recorded Equity earnings of $1.6 million and $2.2 million in the three months ended April 4, 2026 and March 29, 2025, respe

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization.
Confidence: high

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in Management’s Discussion and Analysis of Financial Condition and Results of Operations of Brunswick Corporation (the Company, we, us, our) are forward-looking statements. Forward-looking statements are based on current expectations, estimates, and projections about our business and by their nature address matters that are, to different degrees, uncertain. Actual results may differ materially from expectations and projections as of the date of this filing due to various risks and uncertainties. For additional information regarding forward-looking statements, refer to Forward-Looking Statements above.

Certain statements in Management's Discussion and Analysis are based on non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A "non-GAAP financial measure" is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the consolidated statements of operations, balance sheets or statements of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. For example, the discussion of our cash flows includes an analysis of free cash flows and total liquidity; the discussion of our net sales includes net sales on a constant currency basis; the discussion of our net sales includes net sales excluding acquisitions; and the discussion of our earnings includes a presentation of operating earnings and operating margin excluding restructuring, exit and impairment charges, purchase accounting amortization, acquisition, integration, and IT related costs, IT security incident costs and other applicable charges and of diluted earnings per common share, as adjusted. Non-GAAP financial measures do not include operating and statistical measures.

We include non-GAAP financial measures in Management's Discussion and Analysis as management believes these measures and the information they provide are useful to investors because they permit investors to view our performance using the same tools that management uses to evaluate our ongoing business performance. In order to better align our reported results with the internal metrics management uses to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to acquisitions, among other adjustments.

We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable effort. These items may include restructuring, exit and impairment costs, special tax items, acquisition-related costs, and certain other unusual adjustments.

For a discussion of Brunswick's consolidated results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 14, 2025.

29

Table of Contents

IT Security Incident

In June 2023, the Company experienced an IT security incident that impacted some of its systems and global facilities. Please refer to Note 1 – Significant Accounting Policies in the Notes to the Consolidated Financial Statements for further details.

Acquisitions

On September 12, 2024, we acquired additional Freedom Boat Club franchise operations and territories in Southeast Florida for net cash consideration of $31.3 million. Refer to Note 4 – Acquisitions in the Notes to the Consolidated Financial Statements for further information.

Matters Affecting Comparability

Changes in Foreign Currency Rates. Percentage changes in net sales expressed in constant currency reflect the impact that changes in currency exchange rates had on comparisons of net sales. To determine this information, net sales transacted in currencies other than the U.S. dollar have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative period. The percentage change in net sales expressed on a constant currency basis better reflects the changes in the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Approximately 26 percent of our annual net sales are transacted in a currency other than the U.S. dollar. Our most material exposures include sales in Euros, Canadian dollars, Australian dollars and Brazilian real.

The table below summarizes the impact of changes in currency exchange rates and also the impact of acquisitions on our net sales:

Net Sales

2025 vs. 2024

(in millions)

2025

2024

GAAP

Currency Impact

Acquisition Impact

Propulsion

$

2,177.2 

$

2,074.2 

5.0%

0.3%

—%

Engine P&A

1,217.5 

1,160.8 

4.9%

0.1%

—%

Navico Group

800.4 

800.2 

—%

0.9%

—%

Boat

1,525.2 

1,553.5 

(1.8)%

0.2%

0.5%

Segment Eliminations

(357.5)

(351.6)

(1.7)%

—%

—%

Total

$

5,362.8 

$

5,237.1 

2.4%

0.3%

0.2%

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Results of Operations

Consolidated

The following table sets forth certain amounts, ratios and relationships calculated from the Consolidated Statements of Operations for 2025 and 2024:

2025 vs. 2024

(in millions, except per share data)

2025

2024

 $

%

Net sales

$

5,362.8

$

5,237.1

$

125.7

2.4%

Cost of sales

4,030.6

3,886.3

144.3

3.7%

Gross margin (A)

1,332.2

1,350.8

(18.6)

(1.4)%

Selling, general and administrative expense

851.1

747.9

103.2

13.8%

Research and development expense

168.7

169.6

(0.9)

(0.5)%

Restructuring, exit and impairment charges

353.1

121.7

231.4

NM

Operating (loss) earnings

(40.7)

311.6

(352.3)

NM

Equity earnings

7.0

8.6

(1.6)

(18.6)%

Other (expense) income, net

(1.6)

9.0

(10.6)

NM

(Loss) earnings before interest and income taxes

(35.3)

329.2

(364.5)

NM

Interest expense

(111.7)

(126.6)

14.9

11.8%

Interest income

7.2

13.4

(6.2)

(46.3)%

Gain (loss) on early extinguishment of debt

4.1

(12.7)

16.8

NM

(Loss) earnings before income taxes

(135.7)

203.3

(339.0)

NM

Income tax provision

0.2

54.0

(53.8)

(99.6)%

Net (loss) earnings from continuing operations

(135.9)

149.3

(285.2)

NM

Net (loss) from discontinued operations, net of tax

(1.4)

(19.2)

17.8

(92.7)%

Net (loss) earnings

(137.3)

130.1 

(267.4)

NM

Diluted (loss) earnings per common share from continuing operations

$

(2.06)

$

2.21

$

(4.27)

NM

Expressed as a percentage of Net sales:

Gross margin (A)

24.8 

%

25.8 

%

(100) bps

Selling, general and administrative expense

15.9 

%

14.3 

%

160 bps

Research and development expense

3.1 

%

3.2 

%

(10) bps

Restructuring, exit and impairment charges

6.6 

%

2.3 

%

430 bps

Operating margin

(0.8)

%

5.9 

%

(670) bps

NM = not meaningful

bps = basis points

(A)Gross margin is defined as Net sales less Cost of sales as presented in the Consolidated Statements of Operations.

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Table of Contents

The following is a reconciliation of our non-GAAP measures, adjusted operating earnings and adjusted diluted earnings per common share from continuing operations for 2025 and 2024:

Operating (loss) Earnings

Diluted (Loss) Earnings Per Share

(in millions, except per share data)

2025

2024

2025

2024

GAAP

$

(40.7)

$

311.6 

$

(2.06)

$

2.21 

Restructuring, exit and impairment charges

353.1 

121.7 

5.03 

1.41 

Purchase accounting amortization

58.6 

58.5 

0.84 

0.68 

Acquisition, integration, and IT related costs

0.1 

3.6 

— 

0.04 

Special tax items (A)

— 

— 

(0.48)

0.19 

(Gain) loss on early extinguishment of debt

— 

— 

(0.06)

0.15 

Release of dissolved entity foreign currency translation

— 

— 

— 

0.01 

Gain on sale of business

— 

— 

— 

(0.12)

As Adjusted

$

371.1 

$

495.4 

$

3.27 

$

4.57 

GAAP operating margin

(0.8)

%

5.9 

%

Adjusted operating margin

6.9 

%

9.5 

%

(A) Special tax items during the year ended December 31, 2025 primarily relates to the discrete income tax benefit associated with goodwill impairment and 2024 tax return to provision adjustments. Special tax items during the year ended December 31, 2024 primarily relate to the discrete income tax expense recorded associated with an increase in the state valuation allowance and the discrete income tax benefit associated with goodwill impairment.

2025 vs. 2024

Net sales increased 2.4 percent during 2025 when compared with 2024. The components of the consolidated net sales change were as follows:

Percent change in net sales compared to the prior year

2025

Volume

(0.8)

%

Product Mix and Price

2.7 

%

Acquisitions

0.3 

%

Currency

0.2 

%

2.4 

%

Sales in 2025 increased compared to the prior year resulting from improved second-half market conditions and resulting stronger wholesale orders together with strong P&A and after market performance that helped overcome the impacts of the challenging first-half retail environment. Refer to the Propulsion, Engine P&A, Navico Group and Boat segments for further details on the drivers of net sales changes.

Gross margin decreased 100 basis points in 2025 when compared with 2024 driven by material inflation including tariffs (250 bps), partially offset by an increase in sales (120 bps), favorable currency exchange-rate fluctuations (20 bps), and higher absorption (10 bps).

Selling, general and administrative expenses as a percentage of net sales increased 160 basis points during 2025 when compared with the same prior year period, primarily due to the reinstatement of variable compensation (194 bps), which was partially offset by higher sales (34 bps). Research and development expense remained flat during 2025 versus 2024.

During 2025, we recorded restructuring, exit and impairment charges of $353.1 million compared with $121.7 million in 2024. Restructuring, exit and impairment charges include $322.5 million and $85.0 million of Navico Group impairments in 2025 and 2024 respectively. We estimate that the restructuring actions executed in 2025 will result in approximately $16.0 million of annualized cost savings. See Note 3 – Restructuring, Exit and Impairment Activities in the Notes to Consolidated Financial Statements for further details.

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Table of Contents

We recognized Equity earnings (loss) of $7.0 million and $8.6 million in 2025 and 2024, respectively, which were mainly related to our marine and technology-related joint ventures. Refer to Note 1 – Significant Accounting Policies in the Notes to Consolidated Financial Statements for further information.

We recognized $(1.6) million and $9.0 million in 2025 and 2024, respectively, in Other (loss) income, net. Other (loss) income, net primarily includes remeasurement gains and losses resulting from changes in foreign currency rates and other postretirement benefit costs as well as the gain on sale of one of our businesses in 2024.

Net interest expense decreased in 2025 compared with 2024 due to a decrease in average daily debt outstanding, which was driven by early extinguishment of debt. We recognized a gain on early extinguishment of debt related to the tender offer slightly offset by a loss on early extinguishment of debt related to 2048 Notes and 2049 Notes. Refer to Note 14 – Debt in the Notes to Consolidated Financial Statements.

We recognized an income tax provision of $0.2 million and $54.0 million in 2025 and 2024, respectively. For the year ended December 31, 2025 the effective income tax rate differed from the statutory federal income tax rate of 21%, primarily due to the impact of the goodwill and intangible asset impairments. The effective tax rate, which is calculated as the income tax provision as a percentage of earnings before income taxes, was (0.2) percent and 26.6 percent for 2025 and 2024, respectively. See Note 10 – Income Taxes in the Notes to Consolidated Financial Statements for a reconciliation of our effective tax rate and statutory Federal income tax rate.

Due to the factors described in the preceding paragraphs, Operating (loss) earnings, Net (loss) earnings from continuing operations, and Diluted (loss) earnings per common share from continuing operations decreased during 2025. Diluted (loss) earnings per common share from continuing operations benefited from common stock repurchases in both years.

Segments

We have four reportable segments: Propulsion, Engine P&A, Navico Group, and Boat. Refer to Note 5 – Segment Information in the Notes to Consolidated Financial Statements for details on the segment operations.

Propulsion Segment

The following table sets forth Propulsion segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the years ended December 31, 2025 and 2024:

2025 vs. 2024

(in millions)

2025

2024

 $

%

Net sales

$

2,177.2

$

2,074.2

$

103.0 

5.0 

%

GAAP operating earnings

$

193.0

$

242.6

$

(49.6)

(20.4)

%

Restructuring, exit and impairment charges

1.2

9.6

(8.4)

(87.5)

%

Purchase accounting amortization

1.2

1.5

(0.3)

(20.0)

%

Acquisition, integration, and IT related costs

0.1

1.5

(1.4)

(93.3)

%

Adjusted operating earnings

$

195.5

$

255.2

$

(59.7)

(23.4)

%

GAAP operating margin

8.9 

%

11.7 

%

(280) bps

Adjusted operating margin

9.0 

%

12.3 

%

(330) bps

bps = basis points

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Table of Contents

2025 vs. 2024

Propulsion segment's net sales increased 5 percent in 2025 versus prior year due to pricing actions and strong OEM orders. The components of the Propulsion segment's net sales change were as follows:

Percent change in net sales compared to the prior year

2025

Volume

0.3 

%

Product Mix and Price

4.4 

%

Currency

0.3 

%

5.0 

%

International sales were 37 percent of the Propulsion segment's net sales in 2025. International sales increased 8 percent year-over-year on a GAAP basis and 8 percent on a constant currency basis.

Propulsion segment's operating earnings decreased versus the prior year, primarily due to the impact of incremental tariffs and reinstatement of variable compensation slightly offset by increased sales and higher absorption.

Engine P&A Segment

The following table sets forth Engine P&A segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the years ended December 31, 2025 and 2024:

2025 vs. 2024

(in millions)

2025

2024

 $

%

Net sales

$

1,217.5

$

1,160.8

$

56.7 

4.9 

%

GAAP operating earnings

$

220.3

$

219.9

$

0.4 

0.2 

%

Restructuring, exit and impairment charges

0.4

4.8

(4.4)

(91.7)

%

Adjusted operating earnings

$

220.7

$

224.7

$

(4.0)

(1.8)

%

GAAP operating margin

18.1 

%

18.9 

%

(80) bps

Adjusted operating margin

18.1 

%

19.4 

%

(130) bps

NM = not meaningful

bps = basis points

2025 vs. 2024

Engine P&A segment's net sales increased 4.9 percent in 2025 versus the prior year reflecting strong boater participation and continued share gains in our distribution business line. The components of the Engine P&A segment's net sales change were as follows:

Percent change in net sales compared to the prior year

2025

Volume

4.3 

%

Product Mix and Price

0.5 

%

Currency

0.1 

%

4.9 

%

International sales were 29 percent of the Engine P&A segment's net sales in 2025. International sales increased 2 percent year-over-year on a GAAP basis and increased 1 percent on a constant currency basis.

Engine P&A segment's operating earnings increased slightly versus prior year primarily due to increased sales, which were partially offset by the reinstatement of variable compensation and tariffs.

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Table of Contents

Navico Group Segment

The following table sets forth Navico Group segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the years ended December 31, 2025 and 2024:

2025 vs. 2024

(in millions)

2025

2024

 $

%

Net sales

$

800.4

$

800.2

$

0.2 

0.0 

%

GAAP operating loss

$

(339.6)

$

(100.6)

$

(239.0)

NM

Restructuring, exit and impairment charges

334.5

98.6

235.9 

NM

Purchase accounting amortization

53.0

53.0

— 

NM

Acquisition, integration, and IT related costs

—

1.7

(1.7)

NM

Adjusted operating earnings

$

47.9

$

52.7

$

(4.8)

(9.1)

%

GAAP operating margin

(42.4)

%

(12.6)

%

NM

Adjusted operating margin

6.0 

%

6.6 

%

(60) bps

NM = not meaningful

bps = basis points

2025 vs. 2024

Navico Group segment's net sales were flat in 2025 versus the prior year. The components of the Navico Group segment's net sales change were as follows:

Percent change in net sales compared to the prior year

2025

Volume

(3.3)

%

Product Mix and Price

2.4 

%

Currency

0.9 

%

— 

%

International sales were 42 percent of the Navico Group segment's net sales in 2025. International sales increased 2 percent year-over-year on a GAAP and slight decrease on a constant currency basis.

Navico Group segment's operating loss increased versus the prior year primarily due to the impact of non-cash, intangible asset impairment charges along with the impact of tariffs and reinstatement of variable compensation.

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Table of Contents

Boat Segment

The following table sets forth Boat segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the years ended December 31, 2025 and 2024:

2025 vs. 2024

(in millions)

2025

2024

 $

%

Net sales

$

1,525.2

$

1,553.5

$

(28.3)

(1.8)

%

GAAP operating earnings

$

32.2

$

63.3

$

(31.1)

(49.1)

%

Restructuring, exit and impairment charges

16.4

6.3

10.1 

NM

Purchase accounting amortization

4.4

4.0

0.4 

10.0 

%

Acquisition, integration, and IT related costs

—

0.4

(0.4)

(100.0)

%

Adjusted operating earnings

$

53.0

$

74.0

$

(21.0)

(28.4)

%

GAAP operating margin

2.1 

%

4.1 

%

(200) bps

Adjusted operating margin

3.5 

%

4.8 

%

(130) bps

NM = not meaningful

bps = basis points

2025 vs. 2024

Boat segment's net sales slightly decreased in 2025 versus the prior year as second half growth only partially offset first half cautious wholesale ordering patterns. The components of the Boat segment's net sales change were as follows:

Percent change in net sales compared to the prior year

2025

Volume

(4.6)

%

Product Mix and Price

2.1 

%

Acquisitions

0.5 

%

Currency

0.2 

%

(1.8)

%

International sales were 20 percent of the Boat segment's net sales in 2025. International sales decreased 2 percent year-over-year on a GAAP basis and 3 percent on a constant currency basis.

Boat segment operating earnings decreased versus the prior year due to the lower volume, impact of tariffs, and reinstatement of variable compensation.

Corporate/Other

The following table sets forth Corporate/Other results and a reconciliation to our non-GAAP measure of adjusted operating loss for the years ended December 31, 2025 and 2024:

2025 vs. 2024

(in millions)

2025

2024

 $

%

GAAP operating loss

$

(146.6)

$

(113.6)

$

(33.0)

(29.0)

%

Restructuring, exit and impairment charges

0.6 

2.4 

(1.8)

(75.0)

%

Adjusted operating loss

$

(146.0)

$

(111.2)

$

(34.8)

31.3 

%

Corporate operating loss increased compared with 2024 driven by higher variable compensation costs slightly offset by lower restructuring charges compared to prior year.

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Table of Contents

Cash Flow, Liquidity and Capital Resources

The following table sets forth data from our Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024:

(in millions)

2025

2024

Net cash provided by operating activities

$

562.1 

$

431.4 

Net cash used for investing activities

(141.6)

(168.9)

Net cash used for financing activities

(441.2)

(442.7)

Effect of exchange rate changes

9.7 

(12.8)

Net decrease in Cash and cash equivalents and Restricted cash

(11.0)

(193.0)

Cash and cash equivalents and Restricted cash at beginning of period

285.9 

478.9 

Cash and cash equivalents and Restricted cash at end of period

$

274.9 

$

285.9 

The following table sets forth an analysis of free cash flow for the years ended December 31, 2025 and 2024:

(in millions)

2025

2024

Net cash provided by operating activities of continuing operations

$

585.7 

$

449.5 

Net cash (used for) provided by:

Plus: Capital expenditures

(165.8)

(167.4)

Plus: Proceeds from the sale of property, plant and equipment

12.6 

15.0 

Plus: Effect of exchange rate changes on cash and cash equivalents

9.7 

(12.8)

Total free cash flow (A)

$

442.2 

$

284.3 

(A) We define "Free cash flow" as cash flow from operating and investing activities of continuing operations (excluding cash provided by or used for acquisitions, investments, purchases or sales/maturities of marketable securities and other investing activities, net of tax) and the effect of exchange rate changes on cash and cash equivalents. Free cash flow is not intended as an alternative measure of cash flow from operations, as determined in accordance with GAAP in the United States. We use this financial measure both in presenting results to shareholders and the investment community and in our internal evaluation and management of our businesses. We believe that this financial measure and the information it provides are useful to investors because it permits investors to view our performance using the same tool that we use to gauge progress in achieving our goals. We believe that the non-GAAP financial measure "Free cash flow" is also useful to investors because it is an indication of cash flow that may be available to fund investments in future growth initiatives.

Our major sources of funds for capital investments, acquisitions, share repurchase programs and dividend payments are cash generated from operating activities, available cash and marketable securities balances, divestitures and borrowings. We evaluate potential acquisitions, divestitures and joint ventures in the ordinary course of business.

2025 Cash Flow

Net cash provided by operating activities of continuing operations in 2025 totaled $585.7 million versus $449.5 million in 2024. The primary drivers of Net cash provided by operating activities of continuing operations in 2025 were net earnings, net of non-cash items, and working capital. Net inventory decreased $114.3 million primarily due to lower production. Accounts and notes receivable increased $73.4 million primarily due to increased sales and timing of collections. Accounts payable decreased $26.1 million, primarily due to lower purchasing resulting from reduced production. Accrued expenses increased $96.8 million, primarily driven by an increase in accrued variable compensation.

Net cash used for investing activities was $141.6 million, which included $165.8 million of capital expenditures, and $12.6 million of proceeds from sales of property, plant and equipment. Our capital spending was focused on investments in new products and technologies.

Net cash used for financing activities was $441.2 million, which included $412.6 million of payments of long-term debt including current maturities, $80.0 million of common stock repurchases, $112.6 million of cash dividends paid to common shareholders, partially offset by $173.1 million of proceeds from issuances of short-term debt. Refer to Note 14 – Debt in the Notes to Consolidated Financial Statements for further details on our debt activity during the year ended December 31, 2025.

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Table of Contents

Liquidity and Capital Resources

We view our highly liquid assets as of December 31, 2025 and 2024 as:

(in millions)

2025

2024

Cash and cash equivalents, at cost, which approximates fair value

$

256.8 

$

269.0 

Short-term investments in marketable securities

0.8 

0.8 

Total cash, cash equivalents and marketable securities

$

257.6 

$

269.8 

The following table sets forth an analysis of Total liquidity as of December 31, 2025 and 2024:

(in millions)

2025

2024

Cash, cash equivalents and marketable securities

$

257.6 

$

269.8 

Amounts available under lending facilities(A)

994.0 

997.0 

Total liquidity (B)

$

1,251.6 

$

1,266.8 

(A) See Note 14 – Debt in the Notes to Consolidated Financial Statements for further details on our lending facilities.

(B) We define Total liquidity as Cash and cash equivalents and Short-term investments in marketable securities as presented in the Consolidated Balance Sheets, plus amounts available for borrowing under our lending facilities. Total liquidity is not intended as an alternative measure to Cash and cash equivalents and Short-term investments in marketable securities as determined in accordance with GAAP in the United States. We use this financial measure both in presenting our results to shareholders and the investment community and in our internal evaluation and management of our businesses. We believe that this financial measure and the information it provides are useful to investors because it permits investors to view our performance using the same metric that we use to gauge progress in achieving our goals. We believe that the non-GAAP financial measure "Total liquidity" is also useful to investors because it is an indication of our available highly liquid assets and immediate sources of financing.

Cash, cash equivalents and marketable securities totaled $257.6 million as of December 31, 2025, a decrease of $12.2 million from $269.8 million as of December 31, 2024. Total debt as of December 31, 2025 and December 31, 2024 was $2,102.2 million and $2,340.6 million, respectively. Our debt-to-capitalization ratio was 56 percent and 55 percent as of December 31, 2025 and December 31, 2024, respectively.

There were no borrowings under the Revolving Credit Agreement (Credit Facility) during 2025. Available borrowing capacity under the Credit Facility as of December 31, 2025 totaled $994.0 million, net of $6.0 million of letters of credit outstanding. During 2025, the maximum amount utilized under our unsecured commercial paper program (CP Program) was $445.5 and as of December 31, 2025, we had $290.0 million of borrowings outstanding under the CP Program.

There were no borrowings under the Credit Facility during 2024. Available borrowing capacity under the Credit Facility as of December 31, 2024 totaled $997.0 million, net of $3.0 million of letters of credit outstanding. During 2024, the maximum amount utilized under our CP Program was $280.0 million.

The level of borrowing capacity under our Credit Facility and CP Program is limited by both a leverage and interest coverage test. These covenants also pertain to termination provisions included in our wholesale financing joint venture arrangements with Wells Fargo Commercial Distribution Finance. Based on our anticipated earnings generation throughout the year, we expect to maintain sufficient cushion against the existing debt covenants. As of December 31, 2025, we were in compliance with the financial covenants in the Credit Facility and CP Program.

We believe that we have adequate sources of liquidity to meet our short-term and long-term needs.

2026 Capital Strategy

We anticipate executing a thoughtful capital strategy in 2026 with planned debt reductions of approximately $160 million, capital expenditures of approximately $200 million, and $50 million of share repurchases, which could increase in the event cash generation outpaces initial expectations.

Financial Services

Refer to Note 8 – Financing Joint Venture in the Notes to Consolidated Financial Statements for more information about our financial services.

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Table of Contents

Off-Balance Sheet Arrangements

Guarantees. We have reserves to cover potential losses associated with guarantees and repurchase obligations based on historical experience and current facts and circumstances. Historical cash requirements and losses associated with these obligations have not been significant. See Note 11 – Commitments and Contingencies in the Notes to Consolidated Financial Statements for a description of these arrangements.

Contractual Obligations

The following table sets forth a summary of our contractual cash obligations as of December 31, 2025:

Payments due by period

(in millions)

Total

Less than 1 year

1-3 years

3-5 years

More than 5 years

Contractual Obligations

Debt (A)

$

2,120.8 

$

295.4 

$

7.7 

$

402.7 

$

1,415.0 

Interest payments on long-term debt

886.0 

80.3 

160.6 

124.2 

520.9 

Operating leases (B)

239.8 

38.8 

61.4 

44.2 

95.4 

Purchase obligations (C)

107.9 

107.6 

0.2 

0.1 

— 

Deferred management compensation (D)

38.5 

5.0 

6.0 

6.0 

21.5 

Other long-term liabilities (E)

139.8 

1.7 

82.2 

45.7 

10.2 

  Total contractual obligations

$

3,532.8 

$

528.8 

$

318.1 

$

622.9 

$

2,063.0 

(A)    See Note 14 – Debt in the Notes to Consolidated Financial Statements for additional information on our debt. "Debt" refers to future cash principal payments. Debt also includes our finance leases as discussed in Note 20 – Leases in the Notes to Consolidated Financial Statements.

(B)    See Note 20 – Leases in the Notes to Consolidated Financial Statements for additional information.

(C)    Purchase obligations represent agreements with suppliers and vendors as part of the normal course of business.

(D)    Amounts primarily represent long-term deferred compensation plans.

(E)    Other long-term liabilities primarily include long-term warranty contracts, future projected payments related to our nonqualified pension plans.

Legal Proceedings

See Note 11 – Commitments and Contingencies in the Notes to Consolidated Financial Statements.

Critical Accounting Estimates

The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. If current estimates for the cost of resolving any specific matters are later determined to be inadequate, results of operations could be adversely affected in the period in which additional provisions are required. We have discussed the development and selection of the critical accounting policies with the Audit and Finance Committee of the Board of Directors and believe the following are the most critical accounting policies that could have an effect on our reported results.

Revenue Recognition and Sales Incentives. Revenue is recognized as performance obligations under the terms of contracts with customers are satisfied; this occurs when control of promised goods (engines, parts and accessories, and boats) is transferred to the customer. We exercise judgment and consider the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession, and customer acceptance when determining when control transfers to the customer. We recognize revenue related to the sale of extended warranty contracts that extend the coverage period beyond the standard warranty period over the life of the extended warranty period.

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Revenue is measured as the amount of consideration expected to be entitled to in exchange for transferring goods or providing services. We have excluded sales, value add, and other taxes collected concurrent with revenue-producing activities from the determination of the transaction price for all contracts. We exercise judgment when determining the transaction price, including the estimate of discounts, which is partly based on estimates of customer sales volumes. These estimates are subject to uncertainty as historical discount experience and sales volumes may not be consistent with future activity. We have elected to account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment activity. For all contracts with customers, we have not adjusted the promised amount of consideration for the effects of a significant financing component as the period between the transfer of the promised goods and the customer's payment is expected to be one year or less.

See Note 2 – Revenue Recognition in the Notes to Consolidated Financial Statements for more information.

Warranty Reserves. We record an estimated liability for product warranties at the time revenue is recognized. The liability is estimated using historical warranty experience, projected claim rates and expected costs per claim. We exercise judgment when determining the appropriate historical periods to project claim rates and expected costs per claim. Further, these estimates are subject to uncertainty as historical warranty experience may not be consistent with future warranty claims. We adjust our liability for specific warranty matters when they become known and the exposure can be estimated. Our warranty liabilities are affected by product failure rates as well as material usage and labor costs incurred in correcting a product failure. If actual costs differ from estimated costs, we must make a revision to the warranty liability, which could have an adverse impact on our results of operations and cash flows.

Goodwill. Goodwill results from the excess of purchase price over the net assets of businesses acquired. We review goodwill for impairment annually and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the annual test, we may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of our reporting units are "more likely than not" to exceed their carrying values. In performing this qualitative analysis, we consider various factors, including the effect of market or industry changes and the reporting units' actual results compared with projected results. We exercise judgment when evaluating the impact of market and industry changes and when comparing actual results to projected results.

If the fair value of a reporting unit does not meet the "more likely than not" criteria discussed above, we perform a quantitative assessment which begins by measuring the fair value of the reporting unit. If the carrying value of the reporting unit exceeds its fair value, a goodwill impairment is recorded equal to the carrying value of the reporting unit less its fair value, not to exceed the carrying value of goodwill.

We calculate the fair value of our reporting units considering both the income approach and the guideline public company method, a form of the market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow approach utilizing a Gordon Growth model. Internally forecasted future cash flows, which we believe reasonably approximates market participant assumptions, are discounted using a weighted average cost of capital (Discount Rate) developed for each reporting unit. The Discount Rate is developed using market observable inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. We exercise judgment when forecasting future cash flows including the performance of the underlying market in which the reporting unit operates as well as the impact of specific initiatives. We exercise judgment when determining the level of risk associated with achieving the forecasted future cash flows. These estimates are subject to uncertainty as actual results may differ from our forecast. If actual results differ from the forecast, our results of operations could be materially adversely affected. Fair value under the guideline public company method is determined for each reporting unit by applying market multiples for comparable public companies to the unit’s current and forecasted financial results. We exercise judgment when determining the comparable public companies and market multiples. The key uncertainties in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples.

We recorded a $305.8 million and $80.0 million impairment of the Navico Group reporting unit's goodwill in 2025 and 2024, respectively.

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Other Intangible Assets. Our primary other intangible assets are customer relationships, trade names, and developed technology acquired in business combinations. Intangible assets are initially valued using a methodology commensurate with the intended use of the asset. Customer relationships, trade names, and developed technology are valued using the income approach. The fair value of customer relationships is measured using the multi-period excess earnings method (MPEEM). The fair value of trade names and developed technology are measured using a relief-from-royalty (RFR) approach, which assumes the value of the trade name or technology is the discounted amount of cash flows that would be paid to third parties had we not owned the trade name or technology and instead licensed the trade name or technology from another company. Higher royalty rates are assigned to premium brands within the marketplace based on name recognition and profitability, while other brands receive lower royalty rates. We exercise judgment when selecting the royalty rates and evaluating profitability. The basis for future sales projections for both the RFR and MPEEM are internal revenue forecasts which we believe represent reasonable market participant assumptions. We exercise judgment when forecasting revenue including the performance of the underlying market in which the intangible asset operates as well as the impact of specific initiatives. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset. We exercise judgment when determining the level of risk associated with achieving the forecasted revenue. For MPEEM calculations, we exercise judgment in determining the customer attrition rate, which is generally based on historical experience. These estimates are subject to uncertainty as actual results may differ from our forecast. If actual results differ from the forecast including higher than anticipated customer attrition, our results of operations could be materially adversely affected.

The key uncertainties in the RFR and MPEEM calculations, as applicable, are: the selection of an appropriate royalty rate, assumptions used in developing internal revenue growth and expense forecasts, assumed customer attrition rates, as well as the perceived risk associated with those forecasts in determining the Discount Rate and risk premium.

The costs of amortizable intangible assets are recognized over their expected useful lives, typically between three and fifteen years, using the straight-line method. Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. The impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. We recorded impairment charges of $16.7 million during the year ended December 31, 2025 related to various Navico trade names. We recorded impairment charges of $5.0 million during the year ended December 31, 2024 related to the Navico trade name. We recorded impairment charges of $16.6 million during the year ended December 31, 2023, including a $13.0 million impairment of the Navico trade name.

Refer to Note 4 – Acquisitions and Note 9 – Goodwill and Other Intangibles in the Notes to Consolidated Financial Statements for more information.

Recent Accounting Pronouncements

See Note 1 – Significant Accounting Policies in the Notes to Consolidated Financial Statements for the recent accounting pronouncements that have been adopted during the year ended December 31, 2025, or will be adopted in future periods.