Financial Highlights [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The Baldwin Group reported strong second quarter 2025 results with double-digit total and organic revenue growth of 11%, achieving significant growth in adjusted metrics despite a GAAP net loss, with Adjusted Diluted EPS increasing by 24% and Adjusted EBITDA growing by 14%, leading to a 60 basis point margin expansion Q2 2025 Key Financial Metrics | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $378.8 Million | +11% | | Organic Revenue Growth | 11% | - | | GAAP Net Loss | $5.1 Million | - | | GAAP Diluted Loss Per Share | $0.05 | - | | Adjusted Diluted EPS | $0.42 | +24% | | Adjusted EBITDA | $85.5 Million | +14% | | Adjusted EBITDA Margin | 22.6% | +60 bps | [Six Months 2025 Highlights](index=2&type=section&id=Six%20Months%202025%20Highlights) For the first six months of 2025, the company sustained strong performance with 10% total revenue growth and 11% organic growth, with Adjusted EBITDA growing 13% and a 70 basis point margin expansion, though adjusted free cash flow experienced a significant 35% year-over-year decrease Six Months Ended June 30, 2025 Key Financial Metrics | Metric | Six Months 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $792.2 Million | +10% | | Organic Revenue Growth | 11% | - | | GAAP Net Income | $19.8 Million | - | | Adjusted Diluted EPS | $1.06 | +18% | | Adjusted EBITDA | $199.3 Million | +13% | | Adjusted EBITDA Margin | 25.2% | +70 bps | | Adjusted Free Cash Flow | $34.4 Million | -35% | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Trevor Baldwin emphasized the company's strong Q2 performance, highlighting double-digit organic growth and margin expansion, with the completion of remaining earnout obligations enhancing capital allocation flexibility for future strategic investments aimed at sustaining growth, improving margins, and reducing leverage - The CEO highlighted the completion of earnout obligations from partnership activity over the last five years as a key milestone[3](index=3&type=chunk) - The company now has increased flexibility for capital allocation to invest in strategic opportunities, improve margins, and decrease financial leverage[3](index=3&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, The Baldwin Group maintained a solid liquidity position with **$105.7 million** in cash and cash equivalents and substantial borrowing capacity of **$474 million** under its revolving credit facility - As of June 30, 2025, the company had **$105.7 million** in cash and cash equivalents[5](index=5&type=chunk) - The company had **$474 million** of borrowing capacity under its revolving credit facility[5](index=5&type=chunk) Consolidated Financial Statements [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) For Q2 2025, total revenues increased to $378.8 million from $339.8 million in Q2 2024, leading to a reduced net loss of $5.1 million compared to a $30.9 million loss in the prior-year period, while for the six-month period, revenues grew to $792.2 million, and net income increased to $19.8 million from $8.2 million year-over-year Income Statement Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $378,811 | $339,840 | $792,216 | $720,207 | | Operating Income | $27,940 | $16,458 | $83,957 | $50,716 | | Net Income (Loss) | $(5,141) | $(30,867) | $19,757 | $8,233 | | Diluted EPS | $(0.05) | $(0.28) | $0.15 | $0.06 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets stood at $3.74 billion, an increase from $3.53 billion at the end of 2024, accompanied by a rise in total liabilities to $2.69 billion from $2.53 billion, primarily due to increased long-term debt and borrowings on the revolving credit facility, with total stockholders' equity also increasing to $1.05 billion Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $105,695 | $90,045 | | Total Assets | $3,738,985 | $3,534,731 | | Long-term debt, less current portion | $1,494,712 | $1,398,054 | | Total Liabilities | $2,688,616 | $2,525,934 | | Total Stockholders' Equity | $1,049,924 | $1,008,344 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, the company reported net cash used in operating activities of $80.7 million, a significant reversal from the $21.3 million provided by operations in the same period of 2024, heavily influenced by payments for contingent earnout consideration, while net cash from financing activities was $197.8 million, largely from proceeds from the revolving line of credit and debt refinancing Cash Flow Summary (in thousands) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(80,704) | $21,346 | | Net cash provided by (used in) investing activities | $(46,201) | $35,602 | | Net cash provided by financing activities | $197,838 | $76,265 | | Net increase in cash | $70,933 | $133,213 | Non-GAAP Financial Measures and Reconciliations [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures such as Adjusted EBITDA, Organic Revenue, Adjusted Net Income, and Adjusted Free Cash Flow to provide investors with a clearer understanding of its core operating performance, excluding items like amortization, share-based compensation, transaction expenses, and other non-recurring costs to enhance comparability across periods - **Adjusted EBITDA:** Defined as net income adjusted for interest, taxes, D&A, and other specific items like share-based compensation and transaction expenses to measure operating performance[23](index=23&type=chunk) - **Organic Revenue:** Calculated based on commissions and fees, excluding the first twelve months of revenue from new partners and revenue from divestitures, to measure underlying growth[26](index=26&type=chunk) - **Adjusted Free Cash Flow:** Calculated as net cash from operating activities, excluding the impact of payments for contingent and colleague earnout consideration, to measure cash generation from business operations[29](index=29&type=chunk) [Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Adjusted EBITDA for Q2 2025 increased to $85.5 million from $74.9 million in Q2 2024, with the margin expanding to 22.6%, and for the six-month period, Adjusted EBITDA grew to $199.3 million from $176.6 million, with the margin increasing to 25.2%, reconciled from GAAP Net Income (Loss) through adjustments for interest, amortization, share-based compensation, and other non-recurring expenses Adjusted EBITDA Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(5,141) | $(30,867) | $19,757 | $8,233 | | Total Adjustments | $90,653 | $105,755 | $179,550 | $168,341 | | Adjusted EBITDA | $85,512 | $74,888 | $199,307 | $176,574 | | Adjusted EBITDA Margin | 22.6% | 22.0% | 25.2% | 24.5% | [Reconciliation of Organic Revenue and Organic Revenue Growth](index=11&type=section&id=Reconciliation%20of%20Organic%20Revenue%20and%20Organic%20Revenue%20Growth) The company's organic revenue, which adjusts for new partnerships, was $374.3 million for Q2 2025 and $784.8 million for the first six months, resulting in an 11% organic revenue growth rate for both periods when compared to the adjusted prior-year figures Organic Revenue Growth Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Commissions and fees | $376,249 | $337,103 | $786,780 | $715,199 | | Partnership commissions and fees | $(1,980) | - | $(1,980) | - | | Organic Revenue | $374,269 | $337,103 | $784,800 | $715,199 | | Organic Revenue Growth % | 11% | 19% | 11% | 17% | [Reconciliation of Adjusted Net Income and Adjusted Diluted EPS](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Adjusted Net Income for Q2 2025 was $49.5 million, a significant increase from $40.3 million in Q2 2024, translating to an Adjusted Diluted EPS of $0.42, up 24% from $0.34, while for the six-month period, Adjusted Net Income reached $126.1 million, with Adjusted Diluted EPS growing 18% to $1.06 Adjusted Net Income & Diluted EPS Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) Attributable to Baldwin | $(3,164) | $(17,557) | $10,775 | $4,021 | | Adjusted Net Income | $49,510 | $40,339 | $126,068 | $106,255 | | Diluted EPS | $(0.05) | $(0.28) | $0.15 | $0.06 | | Adjusted Diluted EPS | $0.42 | $0.34 | $1.06 | $0.90 | [Reconciliation of Adjusted Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Free%20Cash%20Flow) For the six months ended June 30, 2025, Adjusted Free Cash Flow was $34.4 million, a 35% decrease from $52.9 million in the prior-year period, with the reconciliation adjusting the GAAP net cash used in operating activities of ($80.7 million) by adding back payments related to contingent earnout consideration and colleague earnout incentives Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(80,704) | $21,346 | | Payment of contingent earnout consideration | $85,090 | $20,373 | | Payment of colleague earnout incentives | $30,061 | $11,144 | | Adjusted free cash flow | $34,447 | $52,863 | Other Information [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) The Baldwin Group will host a conference call and webcast to discuss the second quarter 2025 financial results on August 5, 2025, at 5:00 PM ET, with materials and access details available on the company's investor relations website - A conference call and webcast to discuss Q2 2025 results is scheduled for 5:00 PM ET on the day of the release[7](index=7&type=chunk) - A live webcast, slide presentation, and replay will be available on the company's investor relations website at ir.baldwin.com[7](index=7&type=chunk)[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release includes forward-looking statements concerning future events and financial performance, based on current management expectations and subject to significant risks and uncertainties that could cause actual results to differ materially, with investors advised to consult the company's SEC filings for a detailed discussion of these risks - The report contains forward-looking statements that are not historical facts and involve significant risks and uncertainties[12](index=12&type=chunk) - Readers are directed to the "Risk Factors" section of the company's Form 10-K and other SEC filings for a comprehensive understanding of potential risks[13](index=13&type=chunk)

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Hesai Group Sponsored ADR (HSAI) . The stock has returned 47.7% year-to-date. Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has BRP Inc. (DOOO) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question. BRP Inc. is ...

BRP Inc. (DOOO) shares soared 7.4% in the last trading session to close at $53.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.9% gain over the past four weeks. Shares of BRP are up as the company is making good progress on reducing inventory. It is also gearing up for major product launches. Sales of BRP's Manitou asset sale, part of a broader Marine divestment strategy, has also streamlined portfolio. Further boosting sen ...

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. BRP (DOOO) is a stock many investors are watching right now. DOOO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.28, which compares to its ind ...

Core Insights - BRP's Design & Innovation team has been awarded the "Red Dot: Design Team of the Year 2025" title, highlighting the company's commitment to rider-centric innovation and design excellence [1][2] - The company has received five new Red Dot awards, bringing its total to 200 international design and innovation recognitions, including 61 Red Dots [12] Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience and a focus on consumer needs [13] - The company reported annual sales of CA$7.8 billion and employs approximately 16,500 people as of January 31, 2025 [13] Design Highlights - The Can-Am Pulse motorcycle emphasizes urban mobility and accessibility with a bold, compact design that encourages inclusivity [3][4] - The Can-Am Origin motorcycle combines motocross heritage with modern design, suitable for both city and rugged terrains [5][6] - The Can-Am Canyon Redrock features a new design language for three-wheel adventure vehicles, focusing on off-road capability and rider comfort [7][8] - The Can-Am Maverick R Max is designed for shared off-road experiences, accommodating four passengers while maintaining agility [9][10] - The Can-Am Outlander XT 1000R sets a new visual identity for utility ATVs, balancing functionality with a bold aesthetic [11][12]

Core Viewpoint - BRP Inc. has entered into a definitive agreement for the Marcott family to acquire Manitou assets in Lansing, Michigan, as part of BRP's strategy to divest its Marine businesses and focus on core Powersports activities, aiming for long-term success [1][2]. Group 1: Transaction Details - The transaction is expected to close during BRP's third quarter of Fiscal 2026, with both BRP and the Marcott family collaborating to ensure a smooth transition [2]. - The Marcott family, with a strong background in the pontoon industry, is committed to maintaining the Manitou brand's reputation for performance, quality, and service [2]. Group 2: Background and Context - This announcement follows the sale of Alumacraft, which was finalized in the second quarter of BRP's Fiscal 2026, and an agreement for the sale of the Telwater business, pending customary closing conditions [3]. - BRP is a global leader in powersports products, with annual sales of CA$7.8 billion and a workforce of approximately 16,500 as of January 31, 2025 [5].

Core Insights - BRP Inc. has invested over CAD $10 million in its global community engagement program, Ride Out Intimidation, since its launch in 2022, aiming to combat bullying [2][4] - The initiative has reached over 385,000 individuals and impacted 973 schools, workplaces, and institutions across 12 countries [4] - BRP's annual Yellow Day event, which promotes awareness against bullying, saw participation from over 3,650 employees and numerous partners in 2025 [5] Company Overview - BRP Inc. is a global leader in powersports products, with annual sales of CAD $7.8 billion and a workforce of approximately 16,500 employees as of January 31, 2025 [6][7] - The company offers a diverse portfolio of brands, including Ski-Doo, Lynx, Sea-Doo, and Can-Am, and is committed to developing electric models for its product lines [6]

Core Insights - Bombardier Recreational Products (BRP) reported strong first-quarter results for fiscal 2026, leading to a nearly 13% increase in stock price, outperforming the S&P 500 index's 0.3% gain [1] Financial Performance - BRP's revenue for the quarter was just under CA$1.85 billion ($1.34 billion), representing a year-over-year decline of almost 8%, but exceeding analyst expectations of CA$1.23 billion ($893 million) [2] - Non-IFRS net income fell to just under CA$35 million ($25 million) from nearly CA$121 million ($88 million) in the previous year, translating to CA$0.47 ($0.34) per share, which was better than the expected CA$0.29 ($0.21) per share [4] Market Position and Strategy - The company attributed its better-than-expected performance to strong end-of-season sales in the snowmobile segment, despite facing macroeconomic uncertainties [5] - Management remains cautious about providing future guidance due to ongoing macroeconomic challenges, although the CEO noted that the company's strong product portfolio and leaner inventory levels position it favorably for a potential rebound [6]

Core Viewpoint - BRP Inc. reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, but down from $0.70 per share a year ago, indicating a significant earnings surprise of 13.79% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - BRP's revenues for the quarter ended April 2025 were $1.3 billion, exceeding the Zacks Consensus Estimate by 5.48%, although this is a decrease from $1.5 billion in the same quarter last year [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Group 2: Stock Performance and Outlook - BRP shares have declined approximately 29.4% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $1.26 billion, and for the current fiscal year, it is $2.38 on revenues of $5.4 billion [7] Group 3: Industry Context - The Automotive - Original Equipment industry, to which BRP belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact BRP's stock performance [5]

Core Insights - José Boisjoli, President and CEO of BRP Inc., will retire by the end of the fiscal year after 22 years in leadership, marking a significant transition for the company [1][2][3] - Under Boisjoli's leadership, BRP has transformed from a Bombardier spin-off into a leading global Powersports OEM, tripling its revenue and significantly increasing its market share [2][3] Company Leadership Transition - The Board of Directors is actively searching for a successor to Boisjoli as part of a succession plan, ensuring continuity in leadership [1][3] - Boisjoli will remain in his role until a new CEO is appointed, facilitating a smooth transition [1][3] Company Growth and Performance - Since becoming a standalone company in 2003, BRP has diversified its product portfolio and expanded its manufacturing footprint, resulting in a threefold increase in market share over two decades [2][3] - BRP's annual sales reached CA$7.8 billion, with a workforce of approximately 16,500 employees as of January 31, 2025 [6]