Brunswick Corporation (BC.N): Value Segment Weighs on Industry, with Little Impact on BC Profits

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Brunswick Corporation (BC.N): Value Segment Weighs on Industry, with Little Impact on BC Profits

Brunswick Corporation (BC.N)

31 July 2026 Citi Research

Brunswick Corporation

Company description

Brunswick Corporation (NYSE: BC) is the world’s leading manufacturer of

marine products, including boats, marine engines, and parts and accessories.

While the boat segment is often the center of attention given the high profile

and price tags of the products, the Marine Engine segment made up 71% of

sales in 2020 vs. 29% for Boats. Within the Boat segment, sales consist of

39% aluminum freshwater boats (pontoons and aluminum fishing boats),

34% recreational fiberglass boats (Sea Ray and Bayliner), 24% fiberglass

saltwater boats (Boston Whaler), and 3% from its Business Acceleration unit,

which includes the Freedom Boat Club.

Investment strategy

We rate Brunswick Corporation (BC) a Buy. Brunswick is the largest and we

believe the best run company in the marine industry, and as such has not only

capitalized on the COVID-driven demand surge, but also positioned the

company for long-lasting top and bottom line success for years to come. A

combination of seasoned management and a comprehensive plan for organic

and inorganic growth give BC a good chance to continue its consistent march

forward once the marine industry works through its inventory issues and

returns to a healthier retail environment should macro concerns dissipate.

Valuation

Our target price of $101 is based on a 19x multiple of our FY27 estimate. The

historical average multiple is ~14x. On an EV/EBITDA basis, this equates to a

~10x multiple of our 2027E EBITDA, which compares to the long-term

historical average multiple of ~9.5x.

Risks

Risks that could prevent our target price being achieved include: 1) Global