Brunswick Corporation (NYSE:BC) Q3 2024 Earnings Conference Call October 24, 2024 11:00 AM ET

Company Participants

Neha Clark - Senior Vice President, Enterprise Finance
Dave Foulkes - Chief Executive Officer
Ryan Gwillim - Chief Financial Officer

Conference Call Participants

Matthew Boss - JPMorgan
James Hardiman - Citi
Megan Alexander - Morgan Stanley
Fred Wightman - Wolfe Research
Craig Kennison - Baird
Mike Swartz - Truist Securities
Xian Siew - BNP Paribas
Joe Altobello - Raymond James

Operator

Good morning, welcome to Brunswick Corporation's Third Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode until the question and answer period. Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

I would now like to introduce Neha Clark, Senior Vice President, Enterprise Finance, Brunswick Corporation. You may begin.

Neha Clark

Good morning, and thank you for joining us. With me on the call this morning are Dave Foulkes, Brunswick CEO, and Ryan Gwillim, CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at brunswick.com.

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation section of the unaudited consolidated financial statements accompanying today's results.

I will now turn the call over to Dave.

Dave Foulkes

Thanks, Neha, and good morning, everyone. Our businesses delivered solid results in the quarter as continued market share gains, wealth of new products, and expanded contribution from recurring revenue businesses resulted in financial performance in line with expectations despite the challenging marine market.

We continue to tightly manage field inventory across all our channels and have adjusted production accordingly, ending the quarter with 10,700 units in the U.S. pipeline, around 200 units below prior year.

Our third quarter results again demonstrated the resiliency of our portfolio with our recurring revenue businesses and channels, including our engine P&A business, Propulsion's repower business, Freedom Boat Club, and Navico Group's aftermarket sales contributing nearly 70% of our Q3 adjusted operating earnings. As we enter the final months of the year, we estimate full year new boat retail unit sales to finish in line with our expectations of down approximately 10% versus prior year.