Boat and marine manufacturer Brunswick (NYSE: BC) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 6.8% year on year to $1.36 billion. The company’s full-year revenue guidance of $5.2 billion at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $0.97 per share was 13.3% above analysts’ consensus estimates.

Is now the time to buy Brunswick? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Brunswick grew its sales at a sluggish 4.8% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Brunswick’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 11.5% annually.

This quarter, Brunswick reported year-on-year revenue growth of 6.8%, and its $1.36 billion of revenue exceeded Wall Street’s estimates by 8.9%.

Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector.

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Operating Margin

Brunswick’s operating margin has been trending down over the last 12 months and averaged 3.2% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.

In Q3, Brunswick generated an operating margin profit margin of negative 17.8%, down 25.5 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Brunswick, its EPS declined by 8.5% annually over the last five years while its revenue grew by 4.8%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

In Q3, Brunswick reported adjusted EPS of $0.97, down from $1.17 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Brunswick’s full-year EPS of $2.93 to grow 42.4%.

Key Takeaways from Brunswick’s Q3 Results

We were impressed by how significantly Brunswick blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $65.05 immediately after reporting.

So should you invest in Brunswick right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.