Updated 4/11/25
Brunswick Corporation (BC) is a leading force in the global marine industry, with a portfolio that spans propulsion systems, boats, electronics, and service-based models like Freedom Boat Club. With over $5.2 billion in revenue in 2024 and a forward dividend yield of 3.68%, the company continues to generate steady free cash flow despite cyclical headwinds. Shares have fallen nearly 50% over the past year, creating a valuation disconnect, with the stock now trading well below historical averages. Management has maintained a long-term focus, preserving capital returns and investing in marine innovation. While current demand is soft and debt levels elevated, cash generation remains solid and supports the dividend. Analyst sentiment is mixed, but the average price target still suggests significant upside from current levels.
Recent Events
It’s been a tough stretch for Brunswick shareholders. Over the past year, the stock has been cut nearly in half, falling from over $88 to the low $40s. The market cap has tumbled from around $6.5 billion down to just under $3 billion. That’s not a mild correction—that’s a full-blown rerating. And when you zoom in on recent performance, you can see why.
Revenue is down more than 15% year-over-year, driven largely by a slowdown in discretionary spending. High interest rates and cautious consumers don’t pair well with luxury purchases like new boats. Profit margins have felt the squeeze, too. The operating margin is barely scraping 3%, and net income margins are down to around 2.5%.
But despite all of that, Brunswick continues to generate real, tangible cash flow. Operating cash flow came in at $431 million over the last year, with free cash flow landing at $276 million. That’s an important point. While the income statement is under pressure, the business still throws off enough cash to comfortably support its dividend. And for dividend investors, that’s where the real story starts.
Key Dividend Metrics
🔹 Dividend Yield: 3.68% (Forward)
🔸 5-Year Average Yield: 1.76%
🔹 Annual Dividend Rate: $1.72 per share
🔸 Payout Ratio: 76.02%
🔹 Ex-Dividend Date: February 24, 2025
🔸 Most Recent Dividend Date: March 14, 2025
🔹 Trailing 12-Month Dividend: $1.68 per share
🔸 Dividend Increase Streak: Strong historical pattern
🔹 Total Debt / Equity: 132.73%
🔸 Cash Flow Coverage: Healthy at 1.6x coverage
Dividend Overview
Brunswick’s dividend yield is currently sitting at 3.68%, which is a big step up from its five-year average of 1.76%. That jump is largely due to the drop in stock price rather than a massive increase in the payout. For income-focused investors, that’s the kind of setup that starts to look interesting.
The company pays out $1.72 per share annually and has kept that payout steady, even while margins and sales have been under pressure. The payout ratio is sitting a bit high at just over 76%, but that’s not unusual for an industrial business dealing with some short-term headwinds. What matters is whether the dividend is supported by free cash flow—and right now, it is.
With over $430 million in operating cash flow and nearly $270 million in free cash after capital spending, Brunswick can afford to keep paying its shareholders without having to lean on debt or sacrifice key investments in its operations.
There’s also no sign that management is preparing to pull back. They haven’t made a show of the dividend, nor have they stretched to grow it beyond what the fundamentals support. It’s a straightforward, well-covered payout from a company that knows its cycle.
Dividend Growth and Safety
Over the years, Brunswick has quietly shifted its stance on dividends. What used to be a symbolic payout is now part of the long-term shareholder return strategy. The growth pace has been steady—not flashy—but consistent enough to build trust.
Given how cyclical the marine business is, that’s the right approach. Boat sales move with interest rates and economic sentiment. That’s not news. But even when revenue has dipped, Brunswick hasn’t slashed its dividend. That tells you they’ve built their payout model with enough flexibility to weather some rough quarters.
Looking under the hood, debt is worth keeping an eye on. With a debt-to-equity ratio above 130%, the balance sheet is a little stretched. That said, the company holds nearly $270 million in cash, and the current ratio of 1.65 shows it can manage short-term liabilities comfortably.
EBITDA came in at $723 million, giving them plenty of room to cover interest costs. And with the dividend taking up less than two-thirds of free cash flow, there’s a cushion in place. If the business stays roughly on its current cash flow path, the dividend appears secure—even if earnings stay bumpy.
Today’s dividend yield is high because the price is low—not because of deteriorating fundamentals. For long-term investors looking to collect steady income, that distinction matters a lot. When a dividend is backed by real cash flow, not hype, and the business still holds strong market positions, that income stream can become a steady companion even in rough waters.
Cash Flow Statement
Brunswick’s trailing twelve-month (TTM) cash flow reveals a shift toward tighter financial management, with operating cash flow landing at $431 million. That’s a notable drop from the $733 million seen in 2023, reflecting lower earnings power and a tougher consumer environment. Still, the company’s ability to consistently generate strong operational cash flow even in softer cycles shows the durability of its core marine business. Capital expenditures were trimmed to $167 million, contributing to free cash flow of $264 million—a level that still supports its dividend and reinvestment plans.
On the financing side, Brunswick was actively reshaping its balance sheet. The company raised $598 million in new debt but paid down a larger chunk—over $700 million—marking a clear deleveraging effort. In addition, it repurchased $200 million in stock, continuing its trend of shareholder returns despite a dip in overall liquidity. Cash at year-end stood at $269 million, down from nearly $468 million the year prior. The drop in cash isn’t alarming given the debt repayments and capital returns, but it does reflect a more cautious financial posture as the company navigates a more uncertain demand backdrop.
Analyst Ratings
Brunswick Corporation has experienced a mix of analyst sentiment in recent months, reflecting the company’s current market challenges and future prospects. 📈 The consensus 12-month price target among analysts stands at approximately $79.00, suggesting a significant upside from the current trading price.
🔻 Notably, Baird downgraded Brunswick from “Outperform” to “Neutral” and reduced the price target from $90 to $56. This adjustment was attributed to concerns over the company’s near-term earnings visibility and potential headwinds in consumer discretionary spending, particularly as interest rates and macro uncertainty weigh on big-ticket leisure products.
🟢 Conversely, some analysts maintain a positive outlook. Benchmark reiterated a “Strong Buy” rating, albeit with a slightly trimmed price target of $90 from $100. Their reasoning? Confidence in Brunswick’s long-term growth trajectory and its strong position in the marine aftermarket segment. Citigroup also held firm on its “Buy” rating while revising the price target to $85 from $92, pointing to a balanced view of near-term pressure and long-term stability.
🧭 Overall, the analyst community is split. Some are tapping the brakes due to short-term turbulence, while others see Brunswick’s fundamentals and brand strength as solid reasons to stay onboard for the ride ahead.
Earning Report Summary
Brunswick wrapped up 2024 with a performance that felt like a steady hand on the wheel, even in the face of a choppy environment for consumer spending. Total revenue came in at just over $5.2 billion, and adjusted earnings per share landed at $4.57. While those numbers might not scream breakout year, they reflect a company that’s holding its own and managing the storm rather than being caught in it.
Marine Propulsion Still in the Lead
The Marine Propulsion segment, which includes the well-known Mercury Marine brand, brought in the biggest chunk of revenue—over $2 billion. This part of the business continues to be Brunswick’s bread and butter. Demand for outboard engines and related products has been stable, even as the broader boat market cools down a bit. When customers are holding off on new boats, they’re still spending on engines and maintenance, and that’s keeping this segment solid.
Boats and Accessories Show Mixed Signals
The Boat segment generated about $1.55 billion in revenue, which is a step down from previous highs. It’s clear consumers are feeling the pinch with high interest rates and inflation, and it’s impacting big purchases like boats. On the flip side, the Engine Parts & Accessories business held up better, pulling in $1.16 billion. People may not be buying new boats, but they’re still taking care of the ones they have.
Tech and Services Play Bigger Roles
Navico Group, Brunswick’s marine electronics and tech arm, had a decent year with just over $800 million in sales. It’s becoming more and more apparent that technology on the water isn’t just a luxury anymore—it’s becoming an expectation. And with their ongoing investments in navigation and connectivity, Brunswick is positioning itself as more than just a boat company.
They’re also leaning into recurring revenue with services like Freedom Boat Club, giving them access to a growing base of customers who want the boating lifestyle without the full ownership burden. Brunswick isn’t immune to broader economic pressures, but this report shows a company staying agile.
Chart Analysis
Price Trend and Moving Averages
BC has been in a clear downtrend over the past year. The stock spent the earlier part of the year trying to find footing in the high $70s to low $80s, but once the 50-day moving average crossed below the 200-day moving average, the decline began to pick up speed. That bearish crossover, often referred to as a death cross, took shape in early fall and has stayed firmly in place since. What’s noticeable is how both moving averages are now sloping downward, with price consistently trending beneath both, suggesting continued weakness in momentum.
The chart shows that BC attempted a few rebounds around the start of 2024, but none of them held for long. Each rally lost steam just as the price approached the 50-day moving average, showing that sellers were still firmly in control. Over the last few weeks, the drop accelerated, and price is now hovering near its 52-week low, struggling to maintain support around the $44 mark.
Volume and Market Participation
Volume has remained steady throughout most of the year, but there are clear spikes during downswings, especially toward the end of the chart. This kind of volume behavior typically reflects stronger conviction on the sell side. Buyers have occasionally stepped in during short-lived rallies, but the lack of sustained volume on up days points to hesitation and low confidence.
The most recent selling activity brought with it some of the heaviest volume seen in the year, suggesting capitulation or forced selling. This type of action can sometimes precede a bottom, but it needs confirmation—something this chart doesn’t yet show.
RSI and Momentum
The RSI has spent a significant amount of time in the lower half of its range, rarely approaching overbought territory. For long stretches in the second half of the year, it hovered below 50, even dipping close to 30 on several occasions. That indicates persistent selling pressure. While the RSI hasn’t yet plunged deeply into oversold territory, it has flirted with those levels, showing that momentum remains weak.
In the last few candles, the RSI has tried to climb out of the low zone, but it’s still not showing any real strength. Without a sustained shift in momentum, this indicator suggests there isn’t yet enough buyer interest to reverse the trend in a meaningful way.
Management Team
Brunswick’s leadership team brings a steady and experienced hand to the helm. David Foulkes, the current CEO, took over in 2019 after serving as Chief Technology Officer and head of product development. His engineering and innovation background shows up in how the company has expanded into areas like digital systems, advanced propulsion, and connected marine services. Under his leadership, Brunswick has evolved beyond just boats and engines, with growth into recurring revenue models like Freedom Boat Club and a bigger push into marine electronics through the Navico Group.
The broader executive team balances financial discipline with operational know-how. They’ve maintained consistent capital allocation strategies, with a continued emphasis on returning capital to shareholders even during downturns. Their tone has been calm and forward-looking, focusing on durable value creation instead of quick turnarounds. While the environment hasn’t been easy lately, this management group has kept the company focused on execution, innovation, and sustaining long-term shareholder returns without overextending.
Valuation and Stock Performance
Brunswick’s stock has taken a noticeable hit over the past year, losing close to half its value. It’s now trading at levels that reflect a lot of caution, if not outright pessimism. The forward price-to-earnings ratio is just over 11, and the price-to-sales ratio has fallen under 0.6. Those figures put it in value territory by most standards, especially when you consider that free cash flow has remained solid despite earnings pressure.
There’s a clear disconnect between what the stock is pricing in and what the company is still delivering. While margins have tightened and topline growth has cooled, Brunswick continues to generate cash and maintain a solid operating structure. Even with weaker sentiment, analysts’ average price target sits well above the current level, suggesting there’s still confidence in a rebound if macro conditions begin to improve.
For now, the market isn’t rewarding stability—it’s pricing in concern. That leaves room for upside, but it also means investors need to be comfortable with the fact that sentiment could stay sour for a while longer. This is no longer a stock priced for growth. It’s a stock priced for doubt, and that shift in expectations creates opportunity for those willing to wait.
Risks and Considerations
Brunswick operates in a sector that doesn’t do well in uncertain economic environments. Boats and marine accessories are luxury items, and in a world of high interest rates, consumer hesitancy is a real drag. That’s already showing up in the earnings. Unless borrowing gets cheaper or consumer confidence picks up, it could take time before sales begin to stabilize and move higher again.
The company has also taken on more debt in recent years, in part to fund acquisitions and share buybacks. While free cash flow continues to cover interest and dividend obligations, the higher debt load does limit flexibility. The debt-to-equity ratio is over 130 percent, and while not alarming, it’s not a low-risk balance sheet either. With interest rates still elevated, carrying this much debt isn’t ideal.
Competition is another factor to keep in mind. While Brunswick has led the way in marine tech and boat club services, rivals are ramping up their offerings too. If adoption of new tech slows or market saturation sets in, it could weigh on growth targets.
Supply chain risks, though less intense than before, haven’t fully gone away. Rising input costs, shipping delays, or labor constraints can all still disrupt production or compress margins, especially if demand remains fragile.
Final Thoughts
Brunswick is working through a tough part of the cycle, but it’s not losing control. The company’s product lineup remains strong, its service offerings are expanding, and cash generation is still healthy. Management isn’t trying to fix short-term stock price weakness with flashy moves—they’re focused on sustaining the core business and investing in long-term value.
What’s happening with the share price looks more like a reflection of broader market fears than a collapse in the business itself. Valuation is attractive by historical standards, and while the road back to higher multiples might not be quick, the underlying fundamentals don’t appear broken.
In moments like this, when expectations are low and sentiment is uncertain, it often comes down to patience. Brunswick may not be riding a wave right now, but it’s steady enough to weather the current headwinds and stay positioned for the next upturn.