Brunswick Bets on AI and Memberships for Boat Sales

Brunswick Corporation is adapting its strategy to address stalling new boat sales by heavily investing in advanced technology and recurring revenue models. The company, which owns prominent brands such as Sea Ray and Boston Whaler, is developing innovations like autonomous docking to simplify boat handling.

This two-pronged approach aims to boost sales of new vessels, which are expected to remain subdued through 2026, and simultaneously increase aftermarket and software-related income. Approximately 60% of Brunswick's earnings already stem from these non-new boat sales segments.

The company's Freedom Boat Club, a global membership service, has seen significant growth, tripling its membership since 2019 to over 63,000 members. This club contributes substantially to Brunswick's recurring revenue, with about 90% of its income being recurring.

Brunswick has set ambitious financial targets, projecting revenues between $7 billion and $8 billion by 2030, with operating margins between 10% and 13%. This plan anticipates modest demand recovery and growth driven by premium product mix, market share gains, and innovation, while also reducing supply chain risks by cutting China-sourced parts and tariff exposure.

CEO David Foulkes noted that premium boat sales are performing well, whereas value-oriented boats, often financed and sensitive to interest rates, are experiencing weaker demand. Brunswick's strategy focuses on enhancing technology and electronics within its boats, irrespective of the overall sales volume of new vessels.