Brunswick Buoyed by Recurring Revenue Lines, but Cyclical Headwinds Still Abound

Brunswick is a long-established manufacturer of pleasure boats and engines, operating under market-leading brands like Sea Ray and Mercury Marine. We believe a portfolio of innovative products has allowed Brunswick to capture consistent pricing power, supporting its brand intangible asset, which underpins our narrow moat rating. Bolstering its market leadership is an ability to meet evolving customer preferences through its autonomy, connectivity, electrification, and shared access, or ACES, strategies, which strives to elevate the user experience, cater to the impending migration to electric products, and facilitate higher awareness through Freedom Boat Club.