Brunswick Corporation has become a focal point for investors tracking the recreational marine industry's recovery. The company, which manufactures boats and Mercury outboard engines, recently experienced a rating adjustment reflecting both strong recent performance and questions about future upside.
Texas Capital Securities downgraded Brunswick (NYSE:BC) from Buy to Hold in January 2026, while raising its price target from $84 to $90. The stock has gained 58% over the past year, trading at $77.86.
The company's third-quarter 2025 results exceeded expectations, with internal boat retail demand flat year-over-year. Brunswick provided FY2025 guidance of ~$5.2 billion revenue and ~$3.25 adjusted EPS.
For FY2026, mid-to-high single-digit sales growth is expected, with revenue between $5.4B and $5.7B. Tariffs represent both a headwind and a catalyst; a Supreme Court ruling could add over $100 million to annual EBITDA.
Mercury's outboard engine market share remains stable at 49.4%. Brunswick has raised its dividend for 13 consecutive years and paid dividends for 56 years.
