Brunswick Announces Record Earnings Through First Half of 2021

By: Scott Way

The Sea Ray SLX-R 400e

With the current boom in recreational boating it is not particularly surprising that the Brunswick Corporation, who own major brands like Mercury, Boston Whaler, and Sea Ray among others, are having a successful 2021. However, the segments in which their sales figures are increasing, and the degree of that upwards trend, offer some interesting insights into the current state, and the future, of recreational boating as a whole.

Brunswick hosted their Q2 earnings call with investors on July 29th and announced a net income of $179.4 million during the second quarter with a profit of $2.29 per share. That is a significant jump from $70.7 million and $0.89 per share in Q2 last year.

The company's total revenue was an immense $1.55 billion, noticeably above the Wall Street forecast of $1.49 billion. All told, those figures amount to an increase in share value by 28% in 2021, and a 41% increase in value over the last 12 months. They also represent a 56.6% increase in revenue versus Q2 in 2020.

The true impact of these figures becomes evident when looking at their overview by category. Some of the most interesting Brunswick-specific statistics from the earnings presentation include:

• US retail market up 17% despite there being 50% fewer boats in inventory than Q2 2020

• Outboard engine sales were up 57% compared to 2020

• Sterndrive sales were up 112% compared to 2020

• The largest growth occurred in aluminum freshwater boats (up 102% versus 2020), recreational fibreglass boats (up 72% versus 2020), and saltwater fishing boats (up 58% versus 2020)

• Total boat sales in Q2 were $449 million, marking an 80% increase in total sales versus Q2 2020

• First time Brunswick boat buyers are, on average, 3 years younger than first time buyers in the overall industry

• The average age of a Brunswick boat owner is 2 years lower than the industry average

• Engine sales were up 64.3% over 2020

• Parts & accessories sales are up 42% over 2020

• Boat sales are up 79.7% over 2020 with adjusted margins

• Total boat production remains on schedule despite pandemic disruptions and amounts to 38,000 wholesale boats

While those figures apply only to Brunswick, it is possible to extrapolate larger trends to the industry as a whole. There has been a significant increase in first time boat buyers beginning in early 2020, many of which are younger, urban, and without previous ties to the industry or boating lifestyle. The Brunswick data appears to corroborate the trends happening to the industry at large.

According to Brunswick CEO David Foulkes, "Robust retail demand for our products in the first-half of the year has driven field inventory levels to the lowest level in decades, and we are progressing our efforts to efficiently increase capacity across most of our facilities to satisfy orders from our global customer base. The combination of strong demand and low inventory, together with continued strong boat usage through the prime boating season, which is driving high parts and accessories sales, provides enhanced visibility on our ability to deliver against our extremely favorable outlook for the remainder of 2021 and beyond."

Even though 2021 is just halfway through, this is likely to be one of Brunswick's busiest years in recent memory. The company has not been idle in other pursuits, either. So far in 2021 Brunswick has acquired electronics company Navico in a $1 billion deal, launched the industry's first 600 hp outboard engine, unveiled mobile apps for their Sea Ray and Boston Whaler customers, released the all-new HeyDey H22 in their expanding wakeboat segment, and expanded the Freedom Boat Club on a global scale.

As we move through peak season in the North American market sales data and market figures heading into Q4 are most likely to continue to demonstrate increased demand throughout recreational boating segments.

You can check out the Brunswick news release for Q2 data as well as the earnings presentation from their investor meeting for a complete overview. #news #brunswick #brunswickcorporation #mercury #mercurymarine #bostonwhaler #searay