A year marked by falling sales and profits
Brunswick Corporation has published its financial results for the fourth quarter and full year 2024, reporting a significant drop in sales and profits. Annual net sales fell by 18.2% to $5.24 billion. Adjusted operating profit fell by 43% to $495.4 million, while adjusted earnings per share declined by 48.1%.
In the fourth quarter of 2024, net sales declined by 15.2% compared with 2023, to $1.15 billion. This decline is attributed to lower wholesale orders and an adjustment in production levels, although the company was able to maintain solid performance in certain high-end segments.
Prudent inventory and production management
Faced with the current economic situation, Brunswick has adopted a rigorous inventory management strategy, maintaining a 36.8-week supply level in its dealer network. This approach aims to adjust supply to demand and preserve margins in a slowing market.
Rationalization efforts were particularly visible in the propulsion segment, where production was scaled back. Nevertheless, Brunswick gained 110 basis points in the US outboard motor market, confirming its position in this key sector.
Contrasting performances by segment
The engine segment recorded a 24% drop in sales in the fourth quarter, impacted by a reduction in orders and inflation in production costs. However, sales of parts and accessories were more resilient, with a decline limited to 5%, underpinned by stable demand in certain international markets.
The Navico Group, which specializes in marine electronics, saw its sales fall by 1%, affected by a drop in orders from OEMs. On the other hand, the spare parts segment held up well, contributing to improved results over the quarters.
The boat segment saw an 18% drop in sales due to weaker demand and increased discounts. Brunswick subsidiary Freedom Boat Club, however, maintained positive momentum, with over 600,000 trips in 2024 and geographic expansion in the USA, Europe, Australia and New Zealand.
A cautious outlook for 2025
Brunswick anticipates net sales of between $5.2 and $5.6 billion for 2025. The company remains cautious about the evolution of new yacht sales in the United States, forecasting stability compared to 2024.
David Foulkes, CEO of Brunswick, outlined the company's strategy for the year ahead: " 2025 has the potential to be a year of gradual easing of financial conditions. We remain focused on disciplined pipeline management, cash generation and new product development. "
With a presence across the entire nautical value chain, from Mercury engines to Sea Ray and Boston Whaler boats, via Simrad and Lowrance marine electronics, Brunswick continues to adapt to a changing market.
