Oct 29, 2026 earnings call — Raised full-year EPS; strong Q3 results
Raised full-year adjusted EPS guidance to approximately $4.65 after a strong quarter with net sales of $1.5 billion.
Revenue $1.5B (est $1.5B) · EPS $1.58 (est $1.35) · Next-quarter revenue outlook $5.7B–$5.8B
Key quotes
"We are raising it again today to $4.65. That is approximately 13% above our initial outlook and an increase of more than 42% versus 2025."
"We maintained our market leading U.S. outboard retail share of 46%, with strong wholesale share gains year-to-date, and also saw gains in repower as we execute the repower expansion plan shared at our investor day."
"Sales rose 6% in the quarter, with growth in all business lines fueled by OEM wins and well-received new product launches."
Analyst Q&A 6
material cost inflation and Navico margins
Q (Anna Glaessgen · B. Riley): Analyst asked how recent material inflation affects 4Q and 2027, and then asked for an update on Navico Group's transformation and margin opportunities—more cuts or gross margin expansion?
A: Management said they saw commodity inflation in aluminum, copper and memory, and that inflation is stabilizing as they roll into 2027. They have taken mitigation actions like hedging, larger buys, and value engineering. Áine said memory is about 2% of costs and that inflation does not represent a headwind into next year.
"We called out commodity inflation in aluminum and copper, as you might expect, and also memory inflation." — David Foulkes (CEO·CHAIR)
Q4 drivers and 2027 setup
Q (James Hardiman · Citi): Analyst asked how the company moved from prior 4Q thinking to today—how much is dealer ordering or inflation driven—and how to think about the setup and tailwinds for 2027.
A: Ryan said about half of the Q3 beat was passed through and the other half was mostly material inflation that arose after July guidance. He called Q4 a relatively small quarter with some ordering variability but said commercial and aftermarket businesses remain steady. David added product and cost tailwinds for 2027, including new Mercury outboards, Navico product launches, restocking, footprint reversal benefits and market-share gains.
"I would say the other half really is the majority of that is just material inflation that arose in the quarter that we did not anticipate when we gave July guidance." — Ryan Gwillim (CFO)
fuel impact and Freedom cross-sell
Q (Scott Stember · ROTH MKM): Analyst asked whether higher fuel costs changed boating participation trends or the earlier view, and whether Freedom members are trading up to buy Brunswick boats.
A: David said they see no evidence that fuel prices are reducing boating participation, citing Freedom Boat Club trips as a proxy and noting year-over-year trips are up. He said P&A and distribution remain strong. On Freedom, he said it brings people into boating, has strong operational efficiency, and they are experimenting with programs to use entrance fees as credits and with cross-sell and upsell opportunities.
"What you see with Freedom for us is, not only a compelling consumer proposition, but also an extremely well-oiled machine behind it that is expanding margins, not just domestically, but globally." — David Foulkes (CEO·CHAIR)
boat and engine pricing; value model cuts
Q (Tristan Thomas-Martin · BMO): Analyst asked about like-for-like pricing next year for boats and outboard engines, and whether there will be further value-boat rationalization.
A: David said they took moderate boat pricing this year, typically in the 3%-4% range, and expects similar levels next year. On outboards they took a couple of points of pricing and expect modest pricing there given the competitive environment. He also said there is more value-boat rationalization to be done, modestly, especially on the fiberglass side, while pursuing premium categories.
"I think our pricing on the boat side this year, I would say we took moderate pricing." — David Foulkes (CEO·CHAIR)
Navico margin growth drivers
Q (Craig Kennison): Analyst asked for the top two or three drivers of Navico Group's margin expansion and the expected cadence.
A: Áine said new-product vitality drives margin because new launches typically have higher margin profiles and product life cycles are short. She also pointed to increasing content per vessel and more aftermarket sales as OEM penetration grows, plus operational efficiency and AI to lower costs. David added that physical footprint consolidation is a precursor to digital consolidation and that AI is reshaping end-to-end processes to yield benefits.
"I think a good chunk of the margin expansion here is really around the new product vitality." — Áine Denari (CTO)
dealer and OEM outlook for next year
Q (Joseph Altobello · Raymond James): Analyst asked how OEM and dealer partners are thinking about the year ahead—are they taking a wait-and-see approach given past optimism that didn't materialize—and how management views 2027.
A: David said dealers are in pretty good spirits and behaving rationally, with no distress evident. He noted that more than 50% of dealers have more than 50% of their credit lines still available. He said Brunswick is reshaping toward the major profit pools—engines, premium and core boats, electronics and shared access—which decouples long-term performance from broad unit-sale measures.
"We mentioned in the slide deck and possibly in the release as well, that more than 50% of our dealers have more than 50% of their credit lines still available." — David Foulkes (CEO·CHAIR)