Brunswick Bets on AI Boats to Fight Slowing Sales

Selling boats is getting harder — so Brunswick is changing its game plan. The company behind popular boat brands like Sea Ray and Boston Whaler is using new technology and clever business ideas to keep making money, even when fewer people are buying boats.

Why sales are slowing: New boats are expensive, and many buyers borrow money to pay for them. When interest rates (the extra cost of borrowing money) are high, cheaper 'value' boats become harder to sell. Brunswick expects boat sales to stay weak through 2026.

The company's plan has two main parts:

• Smart technology on boats. Brunswick is adding AI-powered navigation and 'autonomous docking' — features that help drivers steer and park their boats automatically, even in crowded marinas. The idea: make boating easier so people buy bigger, pricier boats loaded with electronics.
• A boat club instead of buying. Freedom Boat Club works like a gym membership for boaters. You pay a fee and monthly dues to use boats whenever you want. Membership has more than tripled since 2019 to over 63,000 members.

Why this matters: Brunswick now earns about 60% of its money from 'recurring revenue' — steady income from services, memberships, parts, and repairs, rather than one-time boat sales. This is more reliable than selling boats, which goes up and down with the economy.

Key numbers to know:

• Target revenue by 2030: $7 billion to $8 billion
• Target earnings: $8 to $12 per share (profit for each slice of company ownership)
• Freedom Boat Club: 90% of its sales are recurring, with trips up 10% from last year
• Cutting China-sourced parts by up to 75% to reduce tariff (import tax) costs

The bottom line: Brunswick's stock currently trades around $82 per share. Some analysts are optimistic — Roth Capital rates it a 'buy' with a $94 target price. Investors will watch whether AI features, better engines, and club memberships can keep profits strong even if fewer new boats are sold.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/08/18/sea-ray-parent-brunswick-ai-recurring-revenue-boat-sales.html