Operator

Good morning, and welcome to Brunswick Corporation’s Second Quarter 2026 Earnings Conference Call [Operator Instructions]. Today’s meeting will be recorded. If you have any objections, you may disconnect at this time.

I would now like to introduce Stephen Weiland, Senior Vice President and Deputy CFO of Brunswick Corporation.

Stephen Weiland
Deputy CFO & Senior VP

Good morning, and thank you for joining us.

With me on the call this morning are David Foulkes, Brunswick’s Chairman and CEO; and Ryan Gwillim, Brunswick’s CFO.

Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations.

For details on the factors to consider, please refer to our recent SEC filings and today’s press release. All of these documents are available on our website at brunswick.com.

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today’s results. I will now turn the call over

Now, in case you didn’t see it, please rush out, get today’s Wall Street Journal, and read James Freeman’s fabulous column: “How about Reagan-Style Reconciliation?” All right. I was there as a young man, deputy in the Office of Management and Budget, and it’s all music to my ears.

Basically, President Reagan’s tax cut magic. The first major vote was roughly 45 years ago, July, 1981. Reagan’s big tax cut bill passed the House by 238 to 195 votes. It was a Democratic House, remember that. A bit later by the by, the Senate would pass it 89 to 11. It was a Republican Senate.

The Gipper signed the legislation at his ranch that August. Now, this was absolutely the key element to the Reagan revolution, which was a supply-side revolution, which basically argued that you lower taxes to promote growth, jobs, wages, wealth, and a strong national security. Reagan’s tax cuts brought joy and prosperity to a whole nation desperately in need of both. 

Now, as Art Laffer puts it, if you tax something less, you get more of it. You tax the whole economy less as Reagan did, and the economic pie grew larger and larger.  In other words, incentives matter. If you keep more of what you earn, you’re going to work harder, invest more, take more risks, and the economy grew. Those 1981 tax cuts helped the economy roar. With real growth of about 5.5 percent per year for more than seven years during Ronald Reagan’s two terms. 

The stock market roared, as did jobs, and frankly, the whole national morale roared. It was so demoralized during the Carter years, but under Reagan, the animal spirits and the happiness indexes just jumped off the page. And the enormous growth in the American economy created the resources that ultimately Mr. Reagan used to destroy Soviet communism. Peace through strength was an integral part of supply side economics. Mr. Freeman does a wonderful job of reminding all of us of the phenomenal benefits of Mr. Reagan’s supply side tax cuts.

And yes, Mr. Laffer’s curve, the famous Laffer Curve, where he suggested that lower tax rates would produce higher tax revenues with more economic growth and less tax avoidance. Well, it worked out very well. The revenue base actually jumped by almost 25 percent during the whole Reagan boom.

Now, remember, Tip O’Neill was the liberal Democratic speaker. He opposed the Reagan tax cuts, but he got rolled. In the House, 48 Democrats voted for Reagan, who himself, by the way, started out in politics as a Democrat.

What a list of tax cuts. The 25 percent income tax was the headline led by the late Jack Kemp. There were lower taxes on marriage, estates, inheritance, capital gains, interest, dividends, savings, retirements, and businesses. Oh my God. And it worked.

The tax cut magic worked. So I’ll just say, why not remember those days 45 years ago? I remember it very well. How about the Republicans today, thinking about the midterms, but more importantly, thinking about our whole national economy, our whole morale, our whole happiness, our national security. These are things that are helped and virtually solved by lower tax rates across the board.

The U.S. Department of Agriculture has issued a public health alert for a frozen burrito sold at Costco because officials claim it contains an undeclared allergen.

A product labeled as Red’s Steak Cilantro and Lime Burrito, which was produced on June 19, contains egg not declared on its label.

The burritos were shipped to Costco stores in Illinois, Michigan and Minnesota.

MORE THAN 12,000 POUNDS OF BACON RECALLED AFTER USDA ISSUES HIGHEST-RISK ALERT

A recall for the product wasn’t issued because the burritos are no longer for sale, but the USDA said they could be inside customers’ freezers.

The problem was discovered after a consumer flagged the issue to the company after they realized there was egg inside the burrito, and the company notified the USDA’s Food Safety and Inspection Service.

No adverse reactions have been reported after eating the burrito.

CYCLOSPORA OUTBREAK: IS IT STILL SAFE TO EAT AT RESTAURANTS? HERE’S WHAT TO KNOW

The burritos were both packaged individually and sold 10 in a 3 lb, 2 oz. carton.

The product lots for the affected burritos include: L1 SD6170 1503, L1 SD6170 1535, L1 SD6170 1606, L1 SD6170 1639, L1 SD6170 1717, L1 SD6170 1750, L1 SD6170 1831, L1 SD6170 1908, L1 SD6170 1954, L1 SD6170 2031, L1 SD6170 2108, and L1 SD6170 2130 on the side of the label.

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They also have “EST. 46069” inside the USDA mark of inspection.

Anyone who finds one of the burritos in their freezer is urged to throw them out or return them to where they were bought.

Red’s and Costco did not immediately respond to FOX Business’ requests for comment.

Success rarely comes from a single path. For Chris Pascale, it has been built through decades of discipline, hard work, and a willingness to pursue excellence in everything he does.

From running businesses and working in the flooring industry to winning fishing tournaments and poker competitions, Pascale has spent his life chasing goals and learning from every experience along the way.

Today, based in Naples, Florida, Pascale is known as a business owner, entrepreneur, outdoorsman, and competitor. His story offers a look at how focus and consistency can shape both a career and a life.

How Chris Pascale Developed His Competitive Mindset

Growing up, Pascale was drawn to activities that challenged him. Surfing became one of his earliest passions and introduced him to the discipline required to improve over time.

“I’ve always enjoyed things that push you,” Pascale says. “Whether it’s sports, business, fishing, or poker, I like the challenge of getting better.”

That mindset would stay with him throughout his life.

After earning an associate degree from Florida Atlantic University, Pascale entered the business world. Coming from a family business background, he was exposed early to the realities of ownership, responsibility, and customer service.

Those lessons would later influence how he approached his own ventures.

Building a Career in the Flooring Industry

Pascale eventually built his career in the flooring industry, where he developed a reputation for taking a full-service approach to business.

Over the years, he opened several businesses and gained firsthand experience navigating different markets and opportunities. While industries and projects changed, his philosophy remained the same.

“You have to stay focused on what you’re doing,” he says. “If you lose focus, you lose momentum.”

That commitment to consistency helped him build long-term relationships and sustain multiple business ventures throughout his career.

His experience as an owner also taught him the importance of adaptability.

“Every business has challenges,” Pascale says. “The people who last are the ones who keep moving forward and find solutions.”

What Leadership Means to Chris Pascale

While many people define leadership by titles, Pascale views it differently.

For him, leadership starts with personal discipline.

“Discipline is everything,” he says. “You can have goals, but if you don’t have discipline, those goals stay ideas.”

That principle has guided both his professional and personal life. Whether managing businesses, pursuing outdoor competitions, or planning future projects, Pascale emphasizes preparation and consistency over shortcuts.

He believes success is often the result of small actions repeated over time.

“People see the results,” he says. “They don’t always see the work that happens every day behind the scenes.”

That perspective has helped him navigate changing markets, economic cycles, and the demands of entrepreneurship over several decades.

Fishing, Competition, and a Life on the Water

Outside of business, Pascale has established himself as an accomplished fisherman and outdoorsman.

Based near the waters of Naples and Marco Island, he has earned a captain’s license and competed successfully in numerous fishing tournaments. His accomplishments include record catches, backwater slams, offshore slams, and sponsorships from fishing apparel and equipment companies.

His fishing experiences have taken him far beyond Florida.

Over the years, he has fished in Costa Rica, Panama, and destinations around the world. His achievements have also been recognized in publications including Florida Sportsman and Fish and Surf.

“Fishing teaches patience,” Pascale says. “You learn that preparation matters, but you also have to be ready when opportunities show up.”

Today, he continues to enjoy life on the water and owns a 48-foot Leopard sailing catamaran based in St. Thomas.

Lessons From Poker, Hunting, and Entrepreneurship

Pascale’s competitive spirit extends beyond business and fishing.

As an active poker player, he has competed in tournaments in Las Vegas, earning significant wins along with rings, trophies, and other accolades.

For him, poker offers lessons that apply well beyond the game itself.

“You have to stay calm and make good decisions,” he says. “Emotions can get in the way if you let them.”

His passion for hunting has also produced notable accomplishments, including Florida registry bucks, Osceola turkey successes, and wild boar records.

Across all of these pursuits, common themes emerge: preparation, patience, focus, and resilience.

Chris Pascale on Goals, Balance, and Long-Term Success

After decades of business ownership and personal achievement, Pascale remains focused on growth while maintaining balance.

He continues to explore new opportunities while enjoying the lifestyle he has worked hard to build.

“I’ve always believed in setting goals,” he says. “Once you reach one, it’s time to find the next challenge.”

At the same time, he values balance and perspective.

“You have to enjoy the journey,” Pascale says. “Success isn’t just one thing. It’s building a life you’re proud of.”

That philosophy has helped shape a career that spans entrepreneurship, competition, and outdoor adventure.

Whether leading businesses, navigating open water, or pursuing his next goal, Chris Pascale continues to demonstrate how discipline and focus can create opportunities across every stage of life.

Anand Mahindra can’t wait to get back home from the US because all the action is happening in India with a new, stable government led by Narendra Modi in place. Hours after chairing a board meeting of Mahindra & Mahindra at midnight US time, the company’s chairman and MD spoke on Saturday to Satish John at length from Boston on his hopes and aspirations for the country. The new administration has begun well and a lot more is expected from it, he said. Excerpts:

On Modi government’s 10-point agenda.

I think it is almost brilliant to put at the head of the list the fact that bureaucrats should be encouraged to take decisions without fear. In a sense he’s gone to the heart of the problem of the paralysis. The Indian government is extraordinarily large and it is difficult to try and believe that one leader can make all the change. This is a federal system. In a large bureaucracy you cannot exercise the transformation of any situation without coopting bureaucracy.

So empowerment becomes important. It’s a good sign. If you remember, one of the major apprehensions about Modi was an autocratic style of functioning. By putting right at the top of the agenda the empowerment of the bureaucracy I think one has to appreciate and admit that it is definitely not the act of an autocrat.

On disbanding ministerial groups.

Without making much heavy weather of it, he’s been a case study for business schools on how to exercise leadership and have an impact from day one in the new job. He’s setting a clear agenda and is making a clear promise of making a measurement of progress made against that clear agenda. For example, making an agenda for 100 days will make it clear what the matrix would be for measuring success of that agenda. It is important that every day some incremental progress is made towards that agenda and that progress is communicated transparently. He has got his team ready, which is a focused team. To me, every decision needn’t be a big-bang reform but a signal of proactive decision-making and removal of red tape and bureaucracy. And a promise of even speedier decision-making in the future.