A global maker of recreational boats and marine engines, Brunswick builds Sea Ray and Boston Whaler boats along with the Mercury Marine outboard and sterndrive engines that power them, and runs Freedom Boat Club, the world's largest boat-club network. It began in 1845 when Swiss woodworker John Brunswick set up a Cincinnati carriage shop that soon pivoted to billiards tables — so a company that once built bowling equipment and phonographs now dominates the water. Fittingly, its 1961 pivot to marine began with the acquisition of Mercury Marine.
Brunswick's Q2 revenue rose 7.7% to $1.56B as IEEPA tariff refunds lifted gross margin 260 basis points to 28.1%.
grew for a third straight quarter, but the profit story was shaped by a one-time item. Net sales rose 7.7% to $1,557.8 million and increased 25.3% to $129.4 million, as $30.4 million in recognized in cost of sales drove to 28.1%. The underlying business is stabilizing, though weakened on higher .
Key takeaways
expanded 260 to 28.1%, primarily due to $30.4 million in recognized in cost of sales and higher sales volumes, which contributed 380 basis points of the improvement.
Consolidated rose 7.7% to $1,557.8 million, driven by a 5.0% benefit from product mix and price and a 1.4% increase in volume.
rose 25.3% to $129.4 million, while reached $150.1 million with adjusted expanding 90 to 9.6%.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 7.7% to $1.56B, with adjusted operating margin expanding 90 bps to 9.6%, aided by IEEPA tariff refunds.
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Consolidated grew 7.7% to $1,557.8M, driven by a 5.0% benefit from product mix and price and a 1.4% increase in volume.
expanded 260 to 28.1%, primarily due to higher sales (380 bps) and $30.4M in IEEPA tariff refunds recognized in cost of sales.
The fell to negative 1.7% due to a $24.6 million state R&D tax credit benefit, contributing to of $109.8 million, up 85.2% .
Propulsion sales increased 7.7% on healthy OEM orders and pricing, while Engine P&A sales rose 8.9% on strong boating participation and distribution gains.
Boat sales grew 4.6% despite a 5.7% volume decline, as a 10.0% favorable mix and price shift toward premium models and Freedom Boat Club growth lifted .
What changed
The Q1 2026 watch item on sustainability was confirmed: Q2 revenue rose 7.7% , marking the third consecutive quarter of growth after six quarters of declines through Q2 2025.
The Q1 2026 watch item on Propulsion showed improvement: after a 9.0% decline in Q1, the segment's operating earnings rose alongside a 7.7% sales increase, aided by .
weakened to $160.7 million in H1 2026 from $243.5 million a year ago, driven by higher , a reversal from the working capital improvements that had boosted cash flow in FY2025.
fell to $1,805.7 million, down 13.9% , as the company executed on its stated debt reduction plan, moving toward the at least $160 million target for the full year.
What to watch
Q3 2026 and volume against the 7.7% Q2 rise to see if the growth trajectory sustains without the benefit of .
trajectory against 28.1% as the $30.4 million IEEPA tariff refund is a one-time item and underlying margin, excluding this benefit, would be lower.
generation in H2 2026 after H1 fell to $160.7 million from $243.5 million, and whether the full-year debt reduction target of at least $160 million remains on track.
Navico Group performance and whether further non-cash charges follow, given the $322.5 million charge in FY2025 and ongoing tariff exposure.
Propulsion sales increased 7.7% on healthy orders and pricing, while Engine P&A sales rose 8.9% on strong boating participation and distribution gains.
Boat sales grew 4.6% despite a 5.7% volume decline, as a 10.0% favorable mix and price shift toward premium models and Freedom Boat Club growth lifted .
operating earnings rose 25.3% to $129.4M; adjusted operating earnings reached $150.1M, with the falling to (1.7)% due to a $24.6M state R&D tax credit benefit.
was $160.7M in H1 2026, down from $243.5M a year ago on higher , while the company plans at least $160M in debt reduction for the full year.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk from changes in foreign currency exchange rates, interest rate, and commodity prices. We enter into various hedging transactions to mitigate these risks in accordance with guidelines established by our management. We do not use financial instruments…
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We are exposed to market risk from changes in foreign currency exchange rates, interest rate, and commodity prices. We enter into various hedging transactions to mitigate these risks in accordance with guidelines established by our management. We do not use financial instruments for trading or speculative purposes. Our risk management objectives are described in Note 5 – Financial Instruments in the Notes to Condensed Consolidated Financial Statements and Note 12 in the Notes to Consolidated Financial Statements in the 2025 Form 10-K.
There have been no significant changes to our market risk since December 31, 2025. For a discussion of exposure to market risk, refer to Part II, "Item 7A. Quantitative and Qualitative Disclosures about Market Risk", set forth in the 2025 Form 10-K.