morning, and Thanks, Neha, good everyone.
a per of strong in and operational solid quarter, Security billion in a and second new the discuss of market net We $X.X moment. Incident, benefiting the performance received well IT which share more delivered share businesses I'll sales Our $X.XX, earnings executed including gains, financial products, impact diligent control. cost from adjusted
prior Mercury Marine market share versus market share with gain up XXX continues points year-to-date US outboard basis the to retail year.
headwinds, boat year-to-date. main preliminary there's new to market months, and June positive the in retail relative market the and recent continues turning June improvement in While Powerboat been SSI face with US Brunswick outperforming
in most units we pipeline. the through XX,XXX move global And core season, appropriate Oakfield categories. we level at the As with our remains second inventory closed in around quarter an
to ensuring freshness. we balancing the locations, and our focused portfolio representation and exiting the into We other carry XXXX, that XXXX while of good dealers on their our remain healthy, inventory for a at ensuring maintain are channel partners pipelines need going
than resulting generated XXXX higher half free in first cash in quarter, in of second $XXX flow flow million year. million prior coming We free $XXX the strong cash
of In repurchases with addition, million $XXX repurchases, share year-to-date. aggressive we be executing continue to
including across reduction priorities, new operational enterprise. investing executing advancing cost in our our Aces our goals products, We actions strategic progressing the structural are relentlessly excellence implementing initiatives, and
announced significant an disruption On that security second by was opportunity impacted with Engine we because within than expectations. incident The the of quarter segments. most the Security June which fully in XX, resulted that was period. IT our Incident, the & to there end been Accessories in financial initial results associated recover were ultimately limited and proximity Parts the we've Propulsion the quarter, lower the And of same IT to
manufacturing distribution days, operational Within nine global and that fully impacts. facilities with primary no were significant the all residual company announced
opportunity the We second and production have offset to days the lost businesses, recover some will partially distribution in lost our across which quarter.
of to lost impact challenging already on financial $XX of year. year. balance outboard full million revenue million high in schedule be the horsepower to However, days the recover for engines production the the quarter be million because $XX the to for was full and $XX $XX estimate We approximately production will to the million
IT Security some Prior facilitated has the the progressing horsepower ramp-up was our the product resumed, portfolio. Mercury of partners. expand retail OEM to repower outboard shipments allowing increase strength continues share market comprehensive Propulsion Propulsion customers us our to Marine to around and Demonstrating and globe. the segment Incident, solid a I'll that of second turn disruption production quarter. to now high to engine the outboard from since highlights and
of two the shift Racing first Electric the next During Avator in quarter, serial and production we've announced we our global lineup to launched XXXR the models. that begun outboard, model the Mercury outboard customers
the of were XXXX, XX% performed & second up Parts Accessories Engine Our XXXX. versus record quarter second expected, reflecting versus of although sales anticipated as and businesses a declines earnings sales quarter
sales Second were the near XXXX, strong quarter. to flat reflecting growth business quarter of QX portion products sales in exiting the US the
to Indiana transition the distribution progress center. Brunswick, new We continue the to
However, sales as turns improved lower of and of retailers were to hold into the have inventory, business XXXX, levels distribution the versus in dealers continue although the portion down season.
some As improving foreseen, versus many Navico in Group trends posted continued, by stocking retail pressure of XXXX, the in period. with but partners channel quarter second lower retailers the sales latter as part
Our recently launched radar very products, HDS HALO in are and finder including Simrad fish performing the Lowrance well market. the PRO
restructuring year. operating lower actions Additionally, prior were versus accelerated, expenses generating
the double-digit on consecutive fifth for Finally, promotions select our due discounting product retail adjusted the trend. Boat business lines and despite increased continued delivered margins strengthening quarter upward and operating
continues and membership network-wide, sales Freedom XX,XXX agreements exceptionally sequential members marine strong on basis experience all synergy same-store a Boat XX,XXX while membership generating our sales portfolio. covering locations has to nearly strong Club now and growth XXX across
buyers, to loan an interest be boat to particularly Wildfires factors. of recently already with Canadian have a impacted and Higher external for headwind product smaller rates continue retail also exceeding rates Shifting market. X%. prices softer
carefully in inventory From close while for healthy, some and promotional And a dealer perspective, cautious. sentiment and retail our monitoring being the levels dealers Discounting replenishment. they as in partners activity and sell height of with the sales successful levels remains plan caution XXXX Brunswick's are proceeding is supporting to channel are is season.
sentiment Our Google boating year, participation suggests above remains search prior trends also to in on related with June. surveys internal improving boating terms voter
now numbers has In very welcome. retail both Brunswick's The peak addition, to Ripple are members. and online more grown positive XX,XXX season community than
consumers, fundamental However, easing we prices rates driven see pressures on higher do interest elevated and short-term. by the the in not
approach very flexibility. So we are taking maintaining to a planning production while balanced
showing X% market decline versus acquisitions, of global Overall, we Incident. a the Shifting XXXX. flat the saw with relative the international excluding basis, sales to currency impact including to a strength Security sales view constant of IT markets, a US on is revenue. Year-to-date,
sequentially XXXX. powerboat was SSI first segment retail from second main the main The second quarter powerboat From view, unit quarter. US X% the industry sales quarter versus an down improved of
prior picking promotions our of US and relative industry periods, strong share aluminum Brunswick However, X% both select and preliminary brands, product supported planned by June site premium through better year. performance marketing performed asset above to was up than by fiberglass lines.
year. points in categories. the prior outperform the industry in versus gains was above second to the XXX basis Outboard XXX above XX%, share down Mercury share retail industry outboard engine horsepower engine with reflecting of quarter continues now data second quarter X%
We continue closely manage season. to the levels through inventory
we particularly see in versus end unit at quarter premium below level recovered still for XXXX, we inventory the levels pre-COVID years, recent As product look pipelines, of but lines.
As than we look less at the per in pipeline number equal the approximately basis, Boat of inventory to dealers see a with of on we units our levels dealer XXXX. or XX%
and products new recent to on innovation. Moving
XXXR the earlier, high which XXXR horsepower The high lineup, As Racing we joins the Mercury the I only weighing recently luxury is light, and the already for mentioned pounds. the but XXXR XXXR. incredibly fast Racing delivers Mercury and performance sport XXX boats XXXR, includes new launched in and replaces
end XXe and the now Earlier serial the this be orders two our produced summer. Mercury X,XXX models and and launch combustion we we beginning internal expect of year, XXXR the XXe, new production industry of Avator at lineup, have strong next in outboard. around recently to the Electric Avator the X.Xe production we which around of both in begin launched We've electric units, to for intention the from propulsion. the the Avator of globe. the and leader customers the reinforce to award-winning the announced The the shipping We models
importance on sources upgrades, new content products, reinforcing revenue flexible new release its for the Group products increasing software creation the and continues upgrades by of and software but architecture to newest Android-based as value our also Navico and exciting deployed business. of facilitated software
location locations. X Club its an Freedom We've Florida. continues average expand the announcing in which Bulk around added globally, to recently located of Freedom international rapidly, acquisition XXXX, since per XX is location XXXth in including Jupiter, week
continuing the Boateka the resell pre-owned from We're market. boat to pre-owned business, Freedom ecosystem, also into build Freedom, including successfully we expanding out boat them takes them and refurbishes our
turn Ryan financial over outlook. comments on to call now the to I'll additional performance and provide our
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morning, Dave, Thanks, and good everyone.
June quarter week, As second previewed down to IT solid XX%. year, a impact Brunswick last of Security net the prior EPS When quarter were despite compared X% the $X.XX decreased and Incident. delivered adjusted sales of
lower primarily Net Propulsion markets. IT P&A in offset quarters and implemented and softer previous and lower Boat Engine shipments the value pricing product resulting horsepower and and in conditions sales performance, new the in from Incident Security market benefited from by segments production engine
impacted the were partially earnings second by of but benefits containment efforts and by were versus slightly prudent XXXX, sales offset and Adjusted quarter input higher cost from across lower organization. costs margins operating the
the quarter. retail a Security slightly we cash in flow of due Lastly, million working capital quarter generation also the $XXX impacts solid market XXX% Incident. cash of IT stronger in remained strong in resulting flow conversion marine free had despite Year-to-date results softer to the primarily free generation, and of the
in control adjusted slightly the resilience first operating aggressive performance down company, XXXX share are steady half expense across of record activity. from from margin the prudent EPS Sales gross margin adjusted with and repurchase in and continued EPS the case resulting the operating
portfolio each that operational excellence XXXX, is measure a improved continued testament You'll capital greatly to successful versus management, note strategy also execution. and our
Now at despite we'll in Incident our delivered quarter. segment, most and starting the each look Propulsion earnings business, IT being Security reporting sales by which impacted the resolute the with segment
were Revenue in of sales and horsepower repower as pricing, and stern decreased and production. production engine X% versus high engine and the benefits horsepower product continued related planned high and demand stoppages customers mix drive engine offset reductions from the outboard quarter to second XXXX favorable of outboard impact lower by to strong sales
timing as related quarter, lower XXX sales, in capitalized cost inventory benefit to margins you'll first down was variances, operating the offset aggressive higher input remember Adjusted the very an quarter and the in points which control. equal costs were basis
second flat sales a output X.X%, in quarter XXXX, but sales steady high horsepower by versus XXXX, absent business Sales IT Production Security which Accessories XX% improve, Engine have quarter, enable Incident. US The to our continues would decreased been engines up second the but & second the products XX% the Parts half essentially over XXXX. with delivered should of down business versus quarter of of growth.
Sales that in of same the to markets distribution Adjusted the operating in decreased the earnings positive remained Brownsburg continued input to and start-up products international and year. measures. collectively center, trend margins factors, offset which benefits and business costs orders our below with the strong. carryover in boat opened related control usage costs as prior businesses together newly increases cost slight from to remains due distribution Note, July
RV and strong a OEM by of of slightly XXXX, Navico earnings versus input actions offset operating adjusted versus half driven lower costs, sequentially slow improved performance. by points very by anticipated margins that a first elevated cost Segment XX%, accelerated of first second declined recovery with basis the partially sales sales performance. decrease offset orders strong quarter as quarter with reduction second exceed new production, half reorganization the efforts. operating XX Group Note, to of by a product and partially margins together lower operating result reported
for and orders demand year strength inventory of orders, the tailwind two-thirds aftermarket be year, are late As the versus this Group We versus marine sales back more manufacturers channel, the believe help which this Navico the slower will as inventories season. are these to monitor represents are and offset we retailer last dealers the continues as time showing look to remainder of of RV normalized half potential in wholesale as production and solid. lag OEM areas sell-through in in levels XXXX,
strong delivering another together and earnings earnings had double-digit any straight operating is quarter. Boat in achieved million Group slight history. the top adjusted highest segment quarter, the with in Boat for quarter the earnings second margins growth The in adjusted line $XX.X Xth quarter steady of operating Our
prior to due The year higher sales value still products within mix expectations. Boat X% being shipments are segment which a the by of of pricing lower favorable actions in offset discount and reported and products premium levels, favorable impact towards decrease
the and of Freedom was gains. productivity revenue segment's growth Boat sustained quarter. is in enabled by earnings acceleration, which operational operating included Boat during gains approximately above X% with business the factors share Adjusted contributed Club, the coupled
last Our outlook outlook our updated shared matches XXXX preliminary week.
year adjusted and of revenue between approximately EPS billion $X.XX, approximately with and XX.X%. We of operating full $X.X $X.X adjusted billion are guide reiterating margins our of
and capital We the million than anticipate continue generating year. to for see $XXX cash trends more and flow working free of conversion cash still flow positive free
where quarter $X.XX between $X.XX. of slightly revenue of adjusted Finally, be EPS below flat we to XXXX and anticipate should third a solid QX and
range This XXX with was our updated slide on of guidance the components The get estimates. The of provides following EPS midpoint our additional of components updated guidance. approximately clarity to being our each EPS guidance are the $XX.XX. to of prior
engine the earnings related in of loss primarily P&A Security IT horsepower to middle related the non-recoverable season. outboard the of in less Incident, of to Engine downtime $X.XX and the Marine high production retail sales
being expectations, markets. slightly and our pressure initial given cautious partners channel market domestically businesses regarding channel the on to despite in related market and $X.XX macroeconomic across US consumers our where many dynamics, pipeline the international uncertain are and being retail worse than only continued environment refill
the boat back working XXXX value and supply prime orders marine at end engine the may toward of we boat uncertain season face taking restocking in examples being to season, XXX-horsepower with lower more at the a sufficient Northern we're pace. anticipate OEMs half fewer and end these to Accessories the of ability fill retailers pressures the As of XXXX. the their boats the under Specific & having retail of Parts in dealers include in channel climates, and dealers boat product and late-season get and satisfy satisfied reserved in
EPS aggressive XX% Note adjusted activities, Brunswick $X.XX acceleration from strong be $X.XX OpEx history from new than including a benefits result of share integration resulting repurchases. Navico lower from control, aside from any lastly, benefit higher and in still planned that and And of XXXX. an products restructuring would Group count in
a have we assumptions handful year that updated. small we full Lastly, of have
and First, dislocation, strong to year. $XXX cash price the share million for given are our Brunswick our repurchase exceed full repurchases we increasing performance continued of target
global XX.X foreign currency for our now be our the We're year $XX at as it a million. Accordingly, and better of slightly shares a headwind diluted also million year environment outstanding approximately seeing relates average anticipate slightly shares. should full lower to businesses
appendices the presentation on changed. not which the information assumptions see Please for sheet and of other have balance additional this materially P&L year, for
to remarks. will call I Dave pass concluding now back the for over
Dave Foulkes
Thanks, Ryan.
USA recent share named the today awards X,XXX sustainability by Before our final of among We be we're recognition for out, inaugural for Climate report, XXX some that made an to to out list were Leaders on issued to delighted of want the close the and company, XXXX. America's companies I people. considered. list We the our and update products brands, recently we and
Top & Report’s companies Brunswick We Design of quality all categories in Companies of of named the in for finished list Work was XX also Mercury News US work-life to Best and to the pay. For, XXXX. World XXXX, the for the companies best of balance won recently VXX The its two the design awards products, each VXX prestigious crossing and four engines. all business Avator international new iF iF awards outboard sectors. and for awards awards including X.Xe are one of Design most for our for one
leaders four from Magazine, industry-leading Boat Boating record recognizing Making Industry from featured of XXXX Navico a were top named its by that Mercury consecutive and In to second products May, leaders Brunswick and list. Brunswick product women XX, Magazine received Brunswick on awards outstanding Boating Group female year of innovative list XXXX Women Industry new Marine, Waves, marking have the our the four Group;
our members by which I'd meet Analyst products businesses XX, close, management followed XXXX, technologies water, September our well Investor team. to from you the as remind at to as be will of our I across York on and on with new Before event about exciting Stock Exchange, like New the an experience opportunity Day and
That Thank for remarks. prepared now We'll line you questions. for our concludes joining open the the call.
