Brunswick Corporation, the parent of Sea Ray, Boston Whaler, and other boat brands, is adopting new revenue models to counter weak sales in recreational boating.
The plan focuses on two areas: simplifying boat operation with advanced navigation tools and expanding recurring revenue beyond traditional sales. With retail sales of new vessels projected to remain flat through 2026, Brunswick is relying on aftermarket products and services to protect earnings.
Advanced technology eases the learning curve
Brunswick’s Navico Group, which provides marine electronics, has introduced over 30 new products since 2025. Among them is Simrad AutoCaptain, a system that assists with navigation and autonomous docking. The aim is to reduce the difficulty of maneuvering in crowded marinas, making boating more approachable for new buyers.
“Make it easy to take the boat out, and more importantly back in, and you might sell a larger, more expensive model,” Brunswick stated. About 55% of Navico’s original-equipment customers have increased their use of its technology since 2023, indicating demand for smarter onboard systems is rising even as boat sales stall.
Brunswick’s CEO, David Foulkes, told investors that premium and mid-tier boats are performing better than entry-level models, which are more affected by interest rate changes. “Value boats, often financed, aren’t doing as well as our higher-end products,” he said.
Recurring revenue keeps profits afloat
Aftermarket sales, parts, and subscription services now account for nearly 60% of Brunswick’s earnings. This change has helped shield the company from the ups and downs of new boat demand.
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One of its fastest-growing areas is Freedom Boat Club, a membership service offering access to a fleet across over 450 locations. Since 2019, membership has grown to more than 63,000, while trips and reservations have increased fourfold. The club’s recurring revenue model, which makes up 90% of its sales, has remained strong, with trips rising 10% year-over-year despite weak new-boat sales.
Brunswick is also trying to remove supply chain risk by reducing its China-sourced parts.
Brunswick isn’t expecting a return to the industry’s peak years. It forecasts modest growth, with annual boat sales of 145,000 to 160,000 units by 2030—up from fewer than 135,000 this year. The company targets $7 billion to $8 billion in revenue by then, with operating margins of 10% to 13% and earnings of $8 to $12 per share.
Analysts have mixed views. Roth Capital Partners rates Brunswick a “buy” with a $94 price target, calling it well positioned to grow earnings even without a strong recovery in new-boat demand. KeyBanc maintains a sector-weight rating, citing pricing power, a richer product mix, and market-share gains as key factors.
Shares trade near $82. Investors will monitor whether advanced navigation, efficient engines, and recurring revenue from services like Freedom Boat Club can deliver steady profits in a market with uncertain unit growth.
