Brunswick Corporation Investor Day 2026

Hi, everyone, and thank you for joining us. I'm Dave Foulkes, Brunswick's Chairman and Chief Executive Officer. On behalf of our entire leadership team, I'd like to welcome you to our 2026 Investor Day presentation. We are very excited to share the powerful story of a business that has continued to execute consistently and outperform the market and sector through a series of external challenges, and that has multiple durable, well-established paths for organic growth, as well as exciting new paths that do not depend on a lot of help from the market. During this presentation, I'll remind you who we are, why we win, why the next few years will be very exciting, and how we intend to create significant value for you, our shareholders, in the years to come.

Let's start with a video that brings to life our business, our unrivaled market positions, and our incredible stable of industry-leading brands and technologies. Hope you enjoyed that video. It always energizes me. Before diving into more detail, I'd like to remind everyone that our comments today will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For the factors to consider, please refer to our recent SEC filings, all of which are available on brunswick.com. In addition, during our presentation, we'll refer to certain non-GAAP financial measures. Reconciliations of GAAP to non-GAAP measures are provided again at brunswick.com. Now I'd like to introduce the multi-award-winning members of our leadership team presenting today, a team that I firmly believe is the strongest leadership team in our industry and sector.

You'll hear from our division presidents, John Buelow, who leads Mercury Marine and Engine P&A, Áine Denari, who leads Navico Group, Brenna Preisser, who leads Boat Group, and Will Sangster, who leads Business Acceleration. You'll also hear from Lauren Beckstedt, our Chief Marketing Officer, and Ryan Gwillim, our Chief Financial and Strategy Officer. This is a deeply experienced and committed team that has been tested in multiple roles over many years and continues to deliver at an exceptional level. For those of you who may not be as familiar with our business, Brunswick is the world's largest recreational marine company, with five operating divisions positioned for growth and synergy. As you saw in the video, we hold the number one market position in multiple categories and geographies. In 2025, we generated $5.4 billion in net sales.

60% of our earnings came from recurring sources, and we delivered $400 million of synergy sales between our businesses. Value that only Brunswick can unlock, and which ultimately results in expanded margins. Since 2019, when we exited our last non-marine business and became a pure play marine company, we've delivered total shareholder returns of 112%, which is in the top quartile for consumer recreation companies. Our cycle-resistant portfolio delivers strong cash flow throughout the cycle that represents a foundational element of the unique and compelling investment case we'll build out for you today. Before I leave this slide, I'd like to highlight our tagline, "Next never rests." That is a reference to our continued investments in new products, technologies, and innovation, and our relentless pursuit of operational excellence. Now let's talk quickly through our five businesses, each a leader in its own right. First, propulsion. In 2025, our Mercury Marine engine business generated revenue of $2.2 billion.

Mercury is the outboard market share leader in all major global boating markets, and by far the number one global supplier of high-performance and racing engines, as well as sterndrive gasoline engines. Mercury also operates the number one eFoil brand in the world, Flite. That strong market share position has been achieved through sustained investment that has driven more than 15 years of market share gains. The sustained nature of the share growth in multiple markets against strong competitors tells you everything you need to know about the focus, capabilities, and strength of this business, and the unique technologies behind its products. Next, our engine parts and accessories business that generated revenue of $1.2 billion in 2025.

It is one of the world's largest suppliers of marine propulsion parts and the world's largest marine distributor through our Land Sea business, which accounts for roughly 43% of the U.S. marine distribution market. Our engine parts and accessories business will continue to grow with Mercury's increasing share of the outboard market, and is a high-margin, recurring revenue business that drives high earnings and cash flow through the cycle. Exactly the kind of predictable annuity earnings that investors value and that provides resiliency through economic and market volatility. Through its well-known Simrad, Lowrance, B&G, Attwood, and other go-to-market brands, Navico Group, our $800 million marine technology business, is a leading supplier of integrated marine electronics, power management, connectivity, and other technical subsystems, which represent some of the fastest-growing product categories in the marine industry.

Around 60% of Navico Group's earnings are from recurring aftermarket sales, and its content is increasingly deeply integrated into boat brands and models across the global industry. Navico Group has an unparalleled capability to deliver the advanced, autonomous, connected, and electrified solutions at the leading edge of marine technology. With 2025 revenue of $1.4 billion, Brunswick Boat Group is the largest recreational boat manufacturer in the world, and includes 17 market-leading brands serving every major segment of the recreational market. Amongst our iconic brands are three of the four most recognized boat brands in the world, Boston Whaler, Sea Ray, and Bayliner. They provide us pricing power and customer loyalty earned over decades that cannot be replicated. We are shaping our portfolio and investment toward the most resilient categories in the boat market, including premium, fishing, and adventure. Finally, business acceleration. At $200 million in revenue excluding synergy sales, it is our smallest but fastest-growing division, and one of our most unique and exciting.

It is an ecosystem of synergistic marine service and shared access businesses anchored by Freedom Boat Club, the world's largest boat club with 450 global locations. Freedom is a high-growth, recurring revenue platform that brings new customers onto the water, creates demands for our boats, engines, and P&A, and generates operating margins accretive to the enterprise. Overall, it is a future-leaning, powerful, and differentiated growth engine. With that background on our divisions, here are some of the overall themes you will hear about today at an aggregated enterprise level. Our overall growth is powered by our leading premium brands and by sustained product leadership and innovation, driving share gains and increased share of wallet.

Underpinning our business and growth are our recurring revenue businesses, our unrivaled scale, operating excellence, and enterprise synergies, and our deep vertical manufacturing integration, especially in the U.S., as well as our ongoing supply chain optimization efforts. Our growth and progress are being further accelerated through our efforts to provide superior customer experiences at all stages of their journey, by accessing an expanded demographic and new recreational and commercial markets, and by further embedding our already successful AI and robotic process automation, or RPA, efforts. Now I want to show, using a couple of slides, how our strategy allows us to outgrow the new boat market, even through a local trough in unit sales, and how it also allows us to capitalize on the very robust long-term trends in boating participation.

The dollar value of the U.S. boat market has grown roughly threefold since 2010 as the mix shifts towards premium boats, higher horsepower engines, and more technologically advanced systems, with only a modest recent decrease in the dollar value of the market, despite unit declines since the pandemic, to levels well below recent pre-pandemic highs and the natural replacement rate. Brunswick outgrows market unit sales trends by driving share gains in engines, boats, and Navico products, increasing our share of wallet on every boat through greater content and integrated systems, shaping our portfolio towards secular trends, leaning into the most robust boat categories, including premium, fishing, and adventure boats, driving more Brunswick boats into Freedom Boat Club, and creating new pathways to the water through Freedom, Flite, and certified pre-owned boats.

Beyond new boat sales, the installed base of registered recreational boats in the U.S. is a powerful source of growth, earnings, and cash flow for us. The total U.S. boat park has held steady for many years at around 10 million units. With the average useful life of a boat being around 25 years, and around 7 million of those units are in growing categories in which Brunswick participates. This huge and growing installed base drives our annuity parts, accessories, and service businesses, and the scale and richness of Brunswick's participation is increasing with our high and growing share in high horsepower outboard engines, which have a high proportion of captive parts.

We are also growing our aftermarket presence and share through Mercury Repower and through Navico Group's aftermarket sales, as well as continuing to expand Freedom Boat Club, both domestically and internationally, growing our certified pre-owned or CPO business, and expanding our finance, insurance, and warranty offerings. The M&A we have pursued over recent years has also over-indexed towards boating participation and annuity earnings, and we are accelerating our commercial and government activity, which will also drive service and replacement parts revenue streams. This chart shows in more detail the recurring revenue earnings contribution from each of our businesses and product categories. Brunswick's operating model, scale, and capabilities allow us to pursue existing and new growth vectors across multiple time horizons while continuing to optimize and protect our core business.

We continue to build and benefit from genuinely wide and deep competitive moats, including our scale, industry-leading global brands and market share positions, as well as our large U.S. manufacturing footprint and deep vertical integration. Our technology leadership enables us to confidently pursue the most technologically comprehensive, integrated, and advanced solutions, which we protect with an extensive intellectual property portfolio. We are also quickly growing our AI capabilities. Despite our scale, we are agile and able to pursue organic and M&A paths to new opportunities and growth, and we have experience and a right to win in most attractive marine spaces, including through our ability to leverage many great partners. I want to use this slide to punctuate our unrivaled capability to innovate and launch exceptional new products at scale.

In 2025 alone, across our businesses, we launched more than 100 new products and recently won 15 of Boating Industry's top product awards, as well as European Powerboat of the Year, European Motorboat of the Year, and many other awards. We continue to accelerate. With the launch of the award-winning Simrad AutoCaptain autonomous boating system, all pillars of our ACES, autonomous, connected, electrified, and shared strategy, are now fully commercialized and ripe for future development. In addition, we have recently completed the launch of an all-new lineup of Simrad and B&G multifunction displays, and we have five new Mercury outboard programs in flight. This is product leadership at scale and next never rests come to life. I would also like to bring to life the synergies that mean Brunswick is much more than the sum of its parts. In 2025, we delivered roughly $400 million in financial synergies or internal sales.