Marine Industry Giant Brunswick's Q3 Sales Sink Over 6% & Cuts FY23 Outlook: Here's Why

Brunswick Corporation BC reported Q3 2023 sales decline of 6.2% year-on-year, to $1.59 billion, missing the consensus of $1.66 billion.

Third-quarter sales were below prior year with lower wholesale orders resulting from field inventory reaching normal levels and softer retail market conditions.

Adjusted EPS of $2.42 beat the analyst consensus of $2.36.

The propulsion segment reported a 1% increase in sales resulting from a favorable product mix related to increased high-horsepower outboard engine demand and higher sales to repower customers.

The Engine Parts and Accessories segment reported a 4% decrease in sales versus the third quarter of last year. 

Navico Group segment reported a sales decrease of 9%, driven by reduced sales to marine OEMs as they aligned pipeline levels to lower retail and continued slow RV production.

The Boat segment reported a 16% decrease in sales due to the impact of planned lower product shipments, especially of value products.

Adjusted operating margin was 14.4%, contracting by 200 bps. 

The company held $330.9 million in cash and equivalents as of Q3 2023. 

Also Read: Brunswick Navigates Turbulent Near-Term Headwinds: Analysts Warn

Outlook: Brunswick lowered guidance for 2023 sales to $6.45 billion-$6.5 billion versus the $6.65 billion estimate (Prior View: $6.7 billion-$6.8 billion).

For 2023, the company projects adjusted EPS of approximately $9.00 versus the $9.30 estimate (Prior View: $9.50).

The company expects fourth-quarter 2023 net sales down by high-single-digit percent versus Q4 2022 and adjusted EPS of approximately $1.65 (estimate: $2). 

Price Action: BC shares are trading lower by 0.46% at $68.46 on the last check Thursday.