Brunswick Corporation (Brunswick) is a global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond.
The company's technology-driven solutions are informed and inspired by deep consumer insights and powered by its belief that ‘Next Never Rests.’ The company designs, manufactures, and markets recreational marine products, including leading marine propulsion products and boats, as well as parts and accessories for the marine and RV markets; and the...
Brunswick Corporation (Brunswick) is a global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond.
The company's technology-driven solutions are informed and inspired by deep consumer insights and powered by its belief that ‘Next Never Rests.’ The company designs, manufactures, and markets recreational marine products, including leading marine propulsion products and boats, as well as parts and accessories for the marine and RV markets; and the company operates the world's largest boat club. The company is dedicated to industry leadership, to being the best and most trusted partner to its many customers, and to building synergies and ecosystems that enable it to challenge convention and define the future.
Strategy
The company's strategy is focused on understanding and addressing the changing needs and behaviors of global boating participants; investing in innovative, global product leadership and leveraging its leading brands to meet consumer needs; providing customers with industry-leading quality and customer support; delivering distinctive, elevated ownership and shared-access experiences that expand boating participation; being the partner of choice to its customers by offering integrated technical and business solutions; engaging consumers with the richest, most intuitive digital experiences; leading the industry in Autonomy, Connectivity, Electrification, and Shared Access (ACES) strategies, with an expanding set of commercially available products in each category; unlocking unique and profound enterprise synergies; investing in increasing global business resiliency; and being an acknowledged marine industry leader in sustainability. These strategies support the company’s intention to create exceptional experiences, expand participation in recreational boating, deliver industry-transforming technology, and leverage its leading businesses to grow earnings and enhance shareholder value.
The company's integrated business strategy is supported by a balanced capital strategy that includes critical investments in new products and technology to further its market leadership position, organic growth initiatives, and its ACES and technology strategies, while also managing debt levels and maturities, maintaining strong cash and liquidity positions, and continuing to return capital to shareholders through dividends and moderate share repurchases.
Segments
Propulsion segment
The Propulsion segment is a world leader in the manufacturing and sale of recreational marine engines and propulsion systems. The Propulsion segment designs, manufactures, and sells engines, controls, rigging, and propellers globally to over 860 boat builders (both independent and Brunswick's Boat segment) and a network of more than 8,900 marine dealers and distributors, specialty marine retailers, marine service centers, and various local, state, and federal governmental accounts. White River Marine Group, LLC (including Tracker and Ranger Boats) and Brunswick Boat Group are significant customers.
Propulsion segment engines are designed for use in recreational, commercial, and racing applications. Mercury designs and sells four-stroke outboard engine models ranging from 2.5 to 600 horsepower; Mercury Marine and Mercury Racing manufacture gas and diesel inboard and sterndrive engine models ranging from 115 to 1,550 horsepower. Mercury Marine also manufactures two-stroke, non-DFI (direct fuel injection) engines for certain markets outside the United States, and Avator electric propulsion systems in models ranging from 7.5e to 110e. In 2023, Brunswick acquired Fliteboard Pty Ltd (Fliteboard), a leader in eFoiling technology, to further enhance its electrification and shared-access strategies.
Engine Parts and Accessories (Engine P&A) Segment
Engine P&A segment sells products, such as engine parts and consumables, including oils and lubricants, electrical products, boat parts and systems; and it also includes the company’s marine parts and accessories distribution businesses.
Engine P&A products are designed for and sold mostly to aftermarket retailers, dealers, distributors, and original equipment manufacturers (including Brunswick Boat segment brands) for both marine and non-marine markets. The Engine P&A distribution businesses are leading distributors of Brunswick and third-party marine parts and accessories throughout North America, Europe, and the Asia-Pacific, offering same-day or next-day delivery service to a broad array of marine service facilities.
Navico Group Segment
The Navico Group segment designs, develops, manufactures, and markets products and systems for the marine, RV, specialty vehicle, mobile, and industrial markets, as well as aftermarket channels. Navico Group products include cartography, marine electronics (such as sensors, sonar, radar, control and monitoring systems, fish finders, and multifunction displays), trolling motors, batteries, power management and conversion, electrical systems, and other functional components, such as water, fuel, lighting, and HVAC solutions. Navico Group sells its products to aftermarket distributors and retailers, as well as original equipment manufacturers. White River Marine Group, LLC, Brunswick's Engine P&A distribution businesses, and Brunswick Boat Group are significant customers.
Boat Segment
The Boat segment consists of the Brunswick Boat Group (Boat Group), which manufactures and distributes recreational boats, and Business Acceleration. The Boat segment manages Brunswick's boat brands, evaluates and optimizes the Boat segment's boat portfolio and strategy, promotes recreational boating services and activities to enhance the consumer experience and dealer profitability, including through its Business Acceleration initiatives, and speeds the introduction of new technologies into boat manufacturing and design processes.
The Boat segment procures substantially all of its engines from Brunswick's Propulsion segment, and boats often include other parts and accessories supplied by the Engine P&A and Navico Group segments. The Boat Group sells its products through a global network of more than 1,300 dealers and distributors, with some operating in more than one location and some carrying more than one of the company's boat brands. The Boat Group's dealer, MarineMax, Inc., is a significant external customer, which carries a number of the Boat Group's product lines and has multiple locations.
Included within the Boat segment is the Business Acceleration business, which is dedicated to developing emerging and disruptive business models, focusing on services and subscriptions, and engaging the next generation of diverse boaters. Business Acceleration businesses accounted for 13 percent of Boat segment net sales in 2024.
Business Acceleration's Freedom Boat Club is a boat club network. Freedom Boat Club operates in more than 400 locations across the U.S., Canada, Australia, New Zealand, and Europe, and has approximately 60,000 memberships. Members pay an upfront initiation fee and ongoing monthly dues in exchange for gaining shared access to their local club’s diverse fleet of boats and reciprocal privileges at all other Freedom Boat Club locations. Business Acceleration also operates a variety of other businesses, including dealer and retail financing; retail extended warranty and insurance businesses; Boateka, a certified pre-owned boat platform; and other marine services businesses.
Financing Services
Through its Brunswick Financial Services Corporation subsidiary, the company owns a 49 percent interest in a joint venture, Brunswick Acceptance Company, LLC (BAC). Under the terms of the joint venture agreement (JV Agreement), BAC provides secured wholesale inventory floor plan financing to the company's boat and engine dealers, as well as Freedom Boat Club franchisees. A subsidiary of Wells Fargo & Company owns the remaining 51 percent.
Many dealers secure floor plan financing from BAC, and to a lesser extent, from other third-party financing companies, enabling them to stock product in advance of the peak selling season and providing stable channels for the company's products. Brunswick provides risk mitigation to BAC and other finance companies in the form of inventory repurchase commitments, under which it is obligated to repurchase inventory in the event of a dealer's default. This risk mitigation is reflected in the company's estimate of repurchase liabilities. The company's business units, along with BAC, maintain active credit operations to manage this financial exposure, and it continually seeks opportunities to sustain and improve the financial health of its various distribution channel partners.
Distribution
The company utilizes independent distributors, dealers, and retailers (Dealers) for the majority of its boat sales, sales of parts and accessories, and some sales of marine engines. It has over 19,000 active Dealers serving its business segments worldwide. The Dealers typically carry one or more product categories and are independent companies or proprietors that range in size from small, family-owned businesses to large, publicly traded corporations with substantial revenues and multiple locations. Some Dealers sell the company's products exclusively, while a majority also carry competitor and complementary products. The company partners with its Dealer network to improve quality, service, distribution, and delivery of parts and accessories to enhance the boating customer's experience.
Besides its network of independent Dealers, the company sells parts and accessories to boat builders and operates its own wholesale parts and accessories distribution companies, which are leading distributors of marine parts and accessories with a network of warehouses located throughout the markets they serve, offering same or next-day delivery to a broad array of marine service facilities and Dealers. In addition, the company operates a leading boat dealer in the Southeastern U.S. with four locations selling boats and parts and accessories.
Technology and Innovation
In 2024, Brunswick broadened its ACES strategy through the addition of Boating Intelligence, with the intention to use artificial intelligence to deliver simpler, safer, smarter, and more sustainable products, refocusing its Boating Intelligence Design Lab at the University of Illinois Urbana-Champaign on these initiatives. Brunswick is in the final stages of development and validation of its autonomous docking technology system, with an expected commercial release in 2025. In 2024, it launched over 100 products. Some highlights include Mercury Marine's new joystick piloting system for single-engine outboards and the Boat Group's launch of the 2024 Harris Crowne, a full keel-up redesign with significant enhancements to the model. Harris Boats also announced the launch of the Cruiser e-210, the brand’s first all-electric pontoon, powered by Mercury’s innovative and award-winning Avator 35e Outboard. Freedom Boat Club launched the Apple iOS version of its new member app. Navico Group’s Simrad brand launched the NSX ULTRAWIDE, the world’s first fully-featured ultrawide marine display; Lowrance and Simrad introduced Recon, an electric-steer trolling motor featuring a unique joystick remote and GPS positioning capability; and Lowrance launched Eagle Eye.
Intellectual Property
As of December 31, 2024, the company owned more than 1,100 active U.S. patents; 530 pending U.S. patent applications; 700 active foreign patents; 230 pending foreign patent applications; 370 U.S. registered trademarks; and 1,800 foreign registered trademarks. The company invests in physical and IT security programs to prevent theft and inadvertent disclosure of trade secrets. In addition to ‘Brunswick,’ the company's primary trademarks include Mercury Marine, Boston Whaler, Lund, and Sea Ray.
Research and Development
The company’s research and development expense was $169.6 million in 2024.
Seasonality
Demand for the company’s products is typically seasonal, with sales generally highest in the second quarter of the calendar year (year ended December 2024).
History
Brunswick Corporation was founded in 1845. The company was incorporated in Delaware in 1907.