Brunswick Corporation

05/07/2026 | Press release | Distributed by Public on 05/07/2026 09:53

Quarterly Report for Quarter Ending April 4, 2026 (Form 10-Q)

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.
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 %
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.
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, respectively, which were primarily related to our marine and technology-related joint ventures.
We recognized $(1.6) million and $1.3 million of Other (expense) income, net in the three months ended April 4, 2026, and March 29, 2025, respectively. Other (expense) income, net primarily includes remeasurement gains and losses resulting from changes in foreign currency rates and other post-retirement benefit costs.
Net interest expense decreased for the three months ended April 4, 2026 compared with the same prior year period. Refer to Note 10 - Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 - Debt in the Notes to Consolidated Financial Statements in the 2025 Form 10-K.
We recognized an Income tax provision for the three months ended April 4, 2026 of $5.9 million compared to $7.9 million for the three months ended March 29, 2025. The effective tax rate, which is calculated as the Income tax provision as a percentage of Earnings before income taxes, was 21.9% and 28.1% for the three months ended April 4, 2026 and March 29, 2025, respectively.
Due to the factors described in the preceding paragraphs, Net earnings from continuing operations and Diluted earnings per common share from continuing operations increased during the three months ended April 4, 2026 compared with the same prior year period.
Propulsion Segment
The following table sets forth Propulsion segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Three Months Ended 2026 vs. 2025
(in millions) April 4, 2026 March 29, 2025 $
Change 		%
Change
Net sales $ 571.3 $ 487.0 $ 84.3 17.3%
GAAP operating earnings $ 34.4 $ 46.1 $ (11.7) (25.4)%
Supplier bankruptcy expense 7.6 - 7.6 NM
Purchase accounting amortization 0.3 0.3 - NM
Acquisition, integration, and IT related costs - 0.1 (0.1) NM
Adjusted operating earnings $ 42.3 $ 46.5 $ (4.2) (9.0)%
GAAP operating margin 6.0 % 9.5 % (350) bps
Adjusted operating margin 7.4 % 9.5 % (210) bps
NM = not meaningful
bps = basis points
Propulsion segment's net sales increased in the first quarter of 2026 compared to the first quarter of 2025, primarily driven by an improved market, global share gains, pricing, favorable changes in foreign currency exchange rates, and strong OEM demand heading into selling season.
The components of the Propulsion segment's net sales change were as follows:
Percent change in net sales compared to the prior comparative period
April 4, 2026
Three Months Ended
Volume 12.7 %
Product Mix and Price 1.0 %
Currency 3.6 %
17.3 %
International sales were 39 percent of the Propulsion segment's net sales in the first quarter of 2026 and increased 20 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased 10 percent.
Propulsion segment's operating earnings in the first quarter of 2026 decreased when compared to the first quarter of 2025 due to planned accelerated investments in new product development and incremental tariffs partially offset by benefits of higher sales and improved 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 three months ended:
Three Months Ended 2026 vs. 2025
(in millions) April 4, 2026 March 29, 2025 $
Change 		%
Change
Net sales $ 289.8 $ 255.3 $ 34.5 13.5%
GAAP operating earnings $ 45.6 $ 39.1 $ 6.5 16.6%
Supplier bankruptcy expense 2.8 - 2.8 NM
Adjusted operating earnings $ 48.4 $ 39.1 $ 9.3 23.8%
GAAP operating margin 15.7 % 15.3 % 40 bps
Adjusted operating margin 16.7 % 15.3 % 140 bps
NM = not meaningful
bps = basis points
Engine P&A segment's net sales increased in the first quarter of 2026 compared to the first quarter of 2025, due to healthy early season boating participation, continued market share gains in its distribution business, and favorable changes in foreign currency exchange rates.
The components of the Engine P&A segment's net sales change were as follows:
Percent change in net sales compared to the prior comparative period
April 4, 2026
Three Months Ended
Volume 6.5 %
Product Mix and Price 4.5 %
Currency 2.5 %
13.5 %
International sales were 30 percent of the Engine P&A segment's net sales in the first quarter of 2026 and increased 16 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased 7 percent from the prior year.
Engine P&A segment's operating earnings in the first quarter of 2026 increased compared to the first quarter of 2025, due to higher sales from healthy boating participation and continued distribution share gains.
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 three months ended:
Three Months Ended 2026 vs. 2025
(in millions) April 4, 2026 March 29, 2025 $
Change 		%
Change
Net sales $ 223.5 $ 208.2 $ 15.3 7.3%
GAAP operating earnings (loss) $ 5.1 $ (2.8) $ 7.9 NM
Purchase accounting amortization 13.1 13.2 (0.1) (0.8)%
Restructuring, exit, and impairment charges 0.2 0.8 (0.6) (75.0)%
Adjusted operating earnings $ 18.4 $ 11.2 $ 7.2 64.3%
GAAP operating margin 2.3 % (1.3) % 360 bps
Adjusted operating margin 8.2 % 5.4 % 280 bps
NM = not meaningful
bps = basis points
Navico Group segment's net sales increased in the first quarter of 2026 compared to the first quarter of 2025, as sales increased across all business lines, supported by improving OEM demand, steady aftermarket performance, pricing, favorable changes in foreign currency exchange rates, and operational efficiency.
The components of the Navico Group segment's net sales change were as follows:
Percent change in net sales compared to the prior comparative period
April 4, 2026
Three Months Ended
Volume (0.9) %
Product Mix and Price 4.3 %
Currency 3.9 %
7.3 %
International sales were 44 percent of the Navico Group segment's net sales in the first quarter of 2026 and increased 18 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased 8 percent.
Navico Group segment's operating earnings in the first quarter of 2026 increased when compared to the first quarter of 2025 reflecting the early benefits of product portfolio optimization, operational improvements, and disciplined cost control actions, and operating leverage from increased sales, which more than offset incremental tariffs.
Boat Segment
The following table sets forth Boat segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Three Months Ended 2026 vs. 2025
(in millions) April 4, 2026 March 29, 2025 $
Change 		%
Change
Net sales $ 394.7 $ 372.1 $ 22.6 6.1%
GAAP operating earnings $ 6.5 $ 7.7 $ (1.2) (15.6)%
Restructuring, exit, and impairment charges 4.6 0.3 4.3 NM
Loss on sale of assets 2.2 - 2.2 NM
Purchase accounting amortization 1.1 1.1 - NM
Acquisition, integration, and IT related costs 0.4 - 0.4 NM
Adjusted operating earnings $ 14.8 $ 9.1 $ 5.7 62.6%
GAAP operating margin 1.6 % 2.1 % (50) bps
Adjusted operating margin 3.7 % 2.4 % 130 bps
NM = not meaningful
bps = basis points
Boat segment's net sales increased in the first quarter of 2026 compared to the first quarter of 2025, driven by higher wholesale shipments matching stabilized retail conditions, favorable mix, pricing, favorable changes in foreign currency exchange rates, and sales growth from the Business Acceleration portfolio.
The components of the Boat segment's net sales change were as follows:
Percent change in net sales compared to the prior comparative period
April 4, 2026
Three Months Ended
Volume 0.8 %
Product Mix and Price 4.0 %
Currency 1.3 %
6.1 %
International sales were 22 percent of the Boat segment's net sales in the first quarter of 2026 and increased 21 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased by 14 percent.
Boat segment's operating earnings in the first quarter of 2026 decreased when compared to the first quarter of 2025, as higher sales were offset by costs associated with the planned exit of our facilities in Reynosa, Mexico, and Flagler Beach, Florida.
Corporate/Other
The following table sets forth Corporate/Other results for the three months ended:
Three Months Ended 2026 vs. 2025
(in millions) April 4, 2026 March 29, 2025 $
Change 		%
Change
Operating loss $ (41.3) $ (33.8) $ (7.5) (22.2)%
Corporate operating loss in the first quarter of 2026 increased compared to the first quarter of 2025 driven by increased spending in support of growth and operational initiatives.
Financing Joint Venture
Details of our Financing Joint Venture are outlined in the 2025 Form 10-K. There have been no material changes in our Financing Joint Venture since December 31, 2025.
Off-Balance Sheet Arrangements and Contractual Obligations
Our off-balance sheet arrangements and contractual obligations as of December 31, 2025 are detailed in the 2025 Form 10-K. There have been no material changes in these arrangements and obligations outside the ordinary course of business since December 31, 2025.
Environmental Regulation
There were no material changes in our environmental regulatory requirements since the filing of our 2025 Form
10-K.
Critical Accounting Policies
There were no material changes in our critical accounting policies since the filing of our 2025 Form 10-K.
As discussed in the 2025 Form 10-K, the preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and revenues and expenses during the periods reported. Actual results may differ from those estimates.
Recent Accounting Pronouncements
Recent accounting pronouncements that have been adopted during the three months ended April 4, 2026, or will be adopted in future periods, are included in Note 1 - Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements.
Forward-Looking Statements
Certain statements in this Quarterly Report on Form 10-Q are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick's business and by their nature address matters that are, to different degrees, uncertain. Words such as "may," "could," "should," "expect," "anticipate," "project," "position," "intend," "target," "plan," "seek," "estimate," "believe," "predict," "outlook," "will," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this report. These risks include, but are not limited to: the effect of adverse general economic conditions, including rising interest rates, and the amount of disposable income consumers have available for discretionary spending; changes to trade policy and tariffs, including retaliatory tariffs; fiscal and monetary policy changes; adverse capital market conditions; changes in currency exchange rates; competitive pricing pressures; higher energy and fuel costs; managing our manufacturing footprint and operations; loss of key customers; international business risks, geopolitical tensions or conflicts, sanctions, embargoes, or other regulations; actual or anticipated increases in costs, disruptions of supply, or defects in raw materials, parts, or components we purchase from third parties; supplier manufacturing constraints, increased demand for shipping carriers, and transportation disruptions; adverse weather conditions, climate change events and other catastrophic event risks; our ability to develop new and innovative products and services at a competitive price; absorbing fixed costs in production; our ability to meet demand in a rapidly changing environment; public health emergencies or pandemics; our ability to successfully implement our strategic plan and growth initiatives; attracting and retaining skilled labor, implementing succession plans for key leadership and executing organizational and leadership changes; our ability to integrate acquisitions and the risk for associated disruption to our business; the risk that restructuring or strategic divestitures will not provide business benefits; our ability to identify and complete targeted acquisitions; maintaining effective distribution; dealer and customer ability to access adequate financing; inventory reductions by dealers, retailers, or independent boat builders; requirements for us to repurchase inventory; risks related to the Freedom Boat Club franchise business model; outages, breaches, or other cybersecurity events regarding our technology systems, which have affected and could further affect manufacturing and business operations and could result in lost or stolen information and associated remediation costs; our ability to protect our brands and intellectual property; an impairment to the value of goodwill and other assets; product liability, warranty, and other claims risks; legal, environmental, and other regulatory compliance, including increased costs, fines, and reputational risks; risks associated with joint ventures that do not operate solely for our benefit; changes in income tax legislation or enforcement; managing our share repurchases; and risks associated with certain divisive shareholder activist actions.
Additional risk factors are included in the 2025 Form 10-K and may be further updated in our filings with the SEC. Forward-looking statements speak only as of the date on which they are made, and Brunswick does not undertake any obligation to update them to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.
Cash Flow, Liquidity and Capital Resources
The following table sets forth data from our Condensed Consolidated Statements of Cash Flows for the three months ended:
(in millions) April 4, 2026 March 29, 2025
Net cash used for operating activities $ (64.1) $ (27.4)
Net cash used for investing activities (55.2) (35.0)
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
The following table sets forth an analysis of free cash flow for the three months ended:
(in millions) April 4, 2026 March 29, 2025
Net cash used for operating activities of continuing operations $ (63.7) $ (13.4)
Net cash (used for) provided by:
Add: Capital expenditures (57.2) (37.7)
Add: Proceeds from the sale of property, plant, and equipment 4.7 3.4
Add: Effect of exchange rate changes on cash and cash equivalents (0.6) 3.3
Total free cash flow (A)
$ (116.8) $ (44.4)
(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 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 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.
2026 Cash Flow
Net cash used for operating activities of continuing operations in the three months ended April 4, 2026 totaled $63.7 million compared to $13.4 million in the three months ended March 29, 2025. The increase is primarily due to operating results and changes in working capital. Working capital is defined as Accounts and notes receivable, Inventories and Prepaid expenses and other, net of Accounts payable and Accrued expenses as presented in the Condensed Consolidated Balance Sheets, excluding the impact of acquisitions and non-cash adjustments. Accounts and notes receivable increased $118.7 million, due to timing of collections, Accounts payable increased $96.3 million, due to timing of payments, inventory increased $81.8 million due to increased production, and Accrued expenses decreased $44.4 million, due to payment of approximately $80.0 million of the prior year's variable compensation expense which had been accrued as of December 31, 2025.
Net cash used for investing activities was $55.2 million and primarily related to $57.2 million of capital expenditures. Our capital spending was focused on investments in new products and technologies.
Net cash provided by financing activities was $133.5 million and primarily related to proceeds from issuance of short-term debt, partially offset by dividends paid to common shareholders and common stock repurchases.
Liquidity and Capital Resources
We view our highly liquid assets as of April 4, 2026, December 31, 2025 and March 29, 2025 as:
(in millions) April 4,
2026 		December 31,
2025 		March 29,
2025
Cash and cash equivalents $ 277.8 $ 256.8 $ 286.7
Short-term investments in marketable securities 0.8 0.8 0.8
Total cash, cash equivalents, and marketable securities $ 278.6 $ 257.6 $ 287.5
The following table sets forth an analysis of total liquidity as of April 4, 2026, December 31, 2025 and March 29, 2025:
(in millions) April 4,
2026 		December 31,
2025 		March 29,
2025
Cash, cash equivalents and marketable securities $ 278.6 $ 257.6 $ 287.5
Amounts available under lending facility (A)
984.0 994.0 997.0
Total liquidity (B)
$ 1,262.6 $ 1,251.6 $ 1,284.5
(A) See Note 10 - Debt in the Notes to Condensed Consolidated Financial Statements for further details on our lending facility.
(B) We define Total liquidity as Cash and cash equivalents and Short-term investments in marketable securities as presented in the Condensed 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 $278.6 million as of April 4, 2026, an increase of $21.0 million from $257.6 million as of December 31, 2025, and a decrease of $8.9 million from $287.5 million as of March 29, 2025. Total debt as of April 4, 2026, December 31, 2025 and March 29, 2025 was $2,296.4 million, $2,102.2 million and $2,484.1 million, respectively. Our debt-to-capitalization ratio was approximately 59 percent as of April 4, 2026 compared to 56 percent as of December 31, 2025 and 57 percent as of March 29, 2025.
There were no borrowings under the Revolving Credit Agreement (Credit Facility) during the three months ended April 4, 2026 and we did not have any borrowings outstanding as of April 4, 2026. Available borrowing capacity under the Credit Facility as of April 4, 2026 totaled $984.0 million, net of $16.0 million of letters of credit outstanding. During the three months ended April 4, 2026, the maximum amount utilized under the CP Program was $540.0 million, and as of April 4, 2026, the Company had $485.0 million of borrowings outstanding under the CP Program. Refer to Note 10 - Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 - Debt in the Notes to Consolidated Financial Statements in the 2025 Form 10-K, for further details.
The levels of borrowing capacity under our Credit Facility and CP Program are 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. As of April 4, 2026, Brunswick was in compliance with the financial covenants associated with its debt and based on our anticipated earnings generation throughout the year, we expect to maintain sufficient cushion against the existing debt covenants.
2026 Capital Strategy
The Company anticipates approximately $160 million of debt reduction, $200 million of capital expenditures, and share repurchases of at least $50 million for the year.
Brunswick Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 07, 2026 at 15:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]