Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience and a strong consumer focus [3] - The company has annual sales of CA$10.4 billion and operates in over 130 countries, employing nearly 20,000 people as of January 31, 2024 [3] Upcoming Financial Results - BRP Inc. will hold its fourth quarter and full-year FY25 financial results conference call on March 26, 2025, at 9 a.m. (EDT) [1] - The press release detailing the financial results will be distributed on March 26 at approximately 6 a.m. (EDT) [2] - José Boisjoli, President and CEO, and Sébastien Martel, CFO, will present the results and address analyst questions during the call [1][2]

Core Insights - The Can-Am Pulse and Can-Am Origin have set a new standard in the two-wheel electric vehicle market, recognized by the iF Design Award for their innovation, functionality, and aesthetics [1][2] Company Overview - BRP Inc. is a global leader in powersports products with over 80 years of experience, generating annual sales of CA$10.4 billion and employing nearly 20,000 people as of January 31, 2024 [7] Product Features - The Can-Am Pulse is designed for agility and stability, appealing to both new and experienced riders, particularly those of smaller stature [5] - The Can-Am Origin is a dual-sport electric motorcycle that offers a stable and comfortable ride, catering to powersports enthusiasts and urban commuters alike [6] Technological Innovations - Both models feature a liquid-cooled power system that minimizes battery degradation, optimizing range and charge time, allowing for a 20% to 80% charge in just 50 minutes using Level 2 charging [4]

Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience and a strong consumer focus [3] - The company has annual sales of CA$10.4 billion and operates in over 130 countries, employing nearly 20,000 people as of January 31, 2024 [3] Upcoming Financial Results - BRP Inc. will hold its fourth quarter and full-year FY25 financial results conference call on March 26, 2025, at 9 a.m. (EDT) [1] - The press release detailing the financial results will be distributed on March 26 at approximately 6 a.m. (EDT) [2] - José Boisjoli, President and CEO, and Sébastien Martel, CFO, will present the results and address analyst questions during the call [1][2] Communication Details - Investors and analysts can join the call via a toll-free number in North America: 1 800 717 1738, using event code 55768 [2] - A webcast of the call will be available online, and an archived recording will be accessible for 30 days following the event [2]

Core Insights - BRP's design team has received recognition for their innovative products, showcasing a commitment to exceptional experiences in the powersports industry [1][6][10] Product Highlights - The Sea-Doo Spark has been recognized for its fun and accessible design, featuring improved comfort and sustainability through its lightweight and recyclable materials [1][7] - The Can-Am Maverick R combines race-inspired innovation with comfort and performance, featuring a driver-centric interior and a 10.25-inch digital touchscreen [2][9] - The Can-Am Outlander Pro is designed for durability and versatility, equipped with a powerful Rotax engine and modular design for customizable functionality [3][9] - The Ski-Doo Grand Touring Electric offers an emissions-free snowmobiling experience, appealing to both new and experienced riders [4][8] - The Sea-Doo Switch Cruise Limited enhances modularity and comfort with nearly 100 customizable options, designed for family outings [5] Awards and Recognition - BRP's 2024 lineup has received a total of 17 prestigious design honors, including five GOOD DESIGN Awards, highlighting the company's innovative approach [6][10] - The Sea-Doo Spark and Spark Trixx received accolades from multiple design awards, emphasizing their innovative features [7] - The Ski-Doo Grand Touring Electric and Lynx Adventure Electric have been recognized for their commitment to emissions-free exploration [8] - The Can-Am Maverick R and Outlander Pro have also received honors for their bold innovation and performance in diverse conditions [9] Company Overview - BRP Inc. is a global leader in powersports products with annual sales of CA$10.4 billion, employing nearly 20,000 people [11]

Core Insights - BRP Inc. and Tread Lightly! have launched the Responsible Rider Masterclass, a free online training series aimed at promoting safe and responsible riding within the global powersports community [1][2][3] Group 1: Program Details - The first module of the Responsible Rider Masterclass is available for snowmobilers, with plans for additional modules covering various outdoor activities in multiple languages [2][3] - The training series is designed to be interactive and entertaining, featuring powersports ambassadors [2] Group 2: Program Objectives - The Responsible Rider Masterclass is based on three pillars: riding etiquette, environmental stewardship, and safety [3] - The program aims to provide guidance for powersports enthusiasts to enjoy their activities sustainably for years to come [3] Group 3: Company Background - BRP Inc. is a global leader in powersports products, with annual sales of CA$10.4 billion and a workforce of nearly 20,000 employees [8] - The company is committed to responsible growth and is developing electric models for its product lines [8] Group 4: Tread Lightly! Overview - Tread Lightly! is a nonprofit organization focused on promoting responsible outdoor recreation through stewardship and ethics education [6] - The organization aims to balance outdoor recreation needs with environmental health through long-term educational initiatives [6]

Core Insights - Kyle Chaney and his co-driver Terry Madden achieved victory in the 4400 Unlimited race at the King of the Hammers, showcasing the capabilities of the Can-Am Maverick R platform with a completion time of 7 hours, 53 minutes, and 45 seconds [2][3] - Can-Am drivers dominated the Pro Mod class in the UTV Hammers Championship race, with Cody Miller winning the Pro Mod and finishing second overall, while Nathan Parker and Paul Wolf secured second and third in Pro Mod respectively [4] Company Overview - BRP Inc. is a global leader in powersports products, with a diverse portfolio including Ski-Doo, Lynx, Sea-Doo, and Can-Am vehicles, as well as boats and propulsion systems, generating annual sales of CA$10.4 billion from over 130 countries [6]

Core Points - BRP is actively combating bullying through its Yellow Day initiative, which includes donations to anti-bullying organizations for social media engagement [1][2] - The company highlights the prevalence of bullying, stating that one in three children faces bullying at school and nearly half of professionals experience it in the workplace [2] - Since 2022, BRP has partnered with nearly 30 anti-bullying organizations globally, including the Born This Way Foundation and Ditch the Label, to support community initiatives [3] Company Overview - BRP Inc. is a global leader in powersports products, with over 80 years of experience and annual sales of CAD $10.4 billion from over 130 countries [4] - The company offers a diverse portfolio of brands, including Ski-Doo, Sea-Doo, and Can-Am, and is committed to developing electric models for its product lines [4] - BRP employs close to 20,000 people and focuses on responsible growth and consumer-centric innovation [4]

Core Insights - Can-Am, a brand of BRP Inc., achieved a second-place finish and ten stage wins in the 2025 Dakar Rally, showcasing the performance of the Maverick R platform in challenging conditions [1][11] - The team demonstrated resilience and adaptability, with notable performances from drivers such as Francisco "Chaleco" López, who secured five stage wins, and other racers who contributed to the overall success [2][3][11] Performance Highlights - Francisco "Chaleco" López led the team with five stage wins, the highest in the T4 Side-by-Side Vehicle Class, finishing with a total time of 61 hours 19 minutes and 15 seconds [1][2] - Sara Price and Jeremías González Ferioli also achieved stage wins, with Price securing three stage wins despite early race issues [4][5][6] - Rookie Hunter Miller finished in the top ten overall, demonstrating strong potential with a notable fourth-place finish on stage four [8][9][10] Vehicle Performance - The Maverick R's advanced features, including a tall-knuckle suspension design and a turbocharged three-cylinder Rotax engine, were highlighted as key factors in the team's success [11] - The vehicle's performance improved significantly after initial challenges, leading to a series of stage wins and a strong finish in the rally [3][7] Team and Management Insights - BRP Race Manager Jean-Francois Leclerc praised the team's effort and adaptability throughout the rally, emphasizing the positives to build on for future competitions [2] - The team expressed a commitment to learning from the experience and returning stronger for the next Dakar Rally [7][10]

Group 1 - The Dakar Rally is a significant event for BRP, with the introduction of the Maverick R aimed at enhancing performance and meeting FIA regulations [1][2] - The 2025 Dakar Rally will be the first FIA-sanctioned race for the Can-Am Maverick R, which has already shown success in other desert races [1][2] - Can-Am and South Racing have achieved six consecutive Dakar Rally wins since 2018, all with the Maverick X3 platform, marking a transition to the new Maverick R platform for future competitions [2] Group 2 - The 2025 Dakar Rally will take place over 12 days and cover 8000 kilometers, starting on January 3, 2025, in Bisha, Saudi Arabia, and concluding on January 17, 2025, in Shubaytah [3] - BRP Inc. is a global leader in powersports products with annual sales of CA$10.4 billion and a workforce of nearly 20,000 employees [4]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $1.8 billion, with normalized EBITDA at $199 million and normalized EPS at $0.61, generally in line with expectations [4][16] - Network inventory was reduced by 13% year-to-date, progressing towards a target reduction of 15% to 20% by the end of fiscal 2025 [4][18] - Gross profit was $377 million, representing a margin of 20.4%, down from the previous year due to lower production volumes and higher sales programs [16] Business Line Data and Key Metrics Changes - North American Powersports sales declined by 18% compared to a strong Q2 last year, reflecting weaker consumer demand [4][6] - Retail performance was down 10% across North America, EMEA, and Asia Pacific, while Latin America saw an 18% increase driven by strong sales in Mexico and Brazil [6][11] - Year-round product revenue decreased by 33% to $1 billion, primarily due to reduced shipments, with Can-Am side-by-side sales down in the high single digits [11][13] Market Data and Key Metrics Changes - The overall retail market in North America is expected to decline mid to high single digits for ORV, low to mid-teens for snowmobiles, and slightly above 20% for watercraft and three-wheel vehicles [23][27] - The company gained market share in the ORV segment, with record retail performance up 8% in a flat industry, and a 2-point increase in side-by-side vehicle market share [7][19] Company Strategy and Development Direction - The company is focused on reducing network inventory to support dealers amid a challenging economic environment and high interest rates [3][18] - Recent product launches, including the Can-Am Pulse and Origin electric motorcycles, signify a strategic re-entry into the two-wheel market, aiming to become a global leader in this space [8][10] - The company plans to continue investing in R&D and innovation to maintain dealer relationships and brand value [21][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic pressures affecting consumer demand and the need for cautious planning for the second half of the year [3][19] - The company expects a sequential improvement in Q3 for revenue, normalized EBITDA, and normalized EPS, despite the overall challenging environment [20][21] - Management remains optimistic about long-term growth potential, emphasizing the importance of supporting dealers and maintaining a strong product lineup [21][41] Other Important Information - The company has adjusted its guidance for the year, expecting revenues between $7.8 billion and $8 billion, normalized EBITDA between $890 million and $940 million, and normalized EPS between $275 million and $325 million [19][20] - The promotional environment remains high, with expectations for continued promotional activities into the next year [38][62] Q&A Session Summary Question: How does the company know it has cut enough inventory? - Management indicated that they are monitoring retail trends and adjusting their approach based on observed declines in consumer demand [23][24] Question: What are the revised expectations for industry sales in North America? - The company expects ORV sales to decline mid to high single digits, snowmobiles down low to mid-teens, and watercraft and three-wheel vehicles down slightly above 20% [27][29] Question: What is the company's outlook for fiscal year 2026? - Management stated it is too early to provide specific guidance for fiscal year 2026 due to ongoing macroeconomic uncertainties [59][60] Question: How does the company plan to manage operating expenses moving forward? - The company plans to maintain relatively flat operating expenses while focusing on cost improvement initiatives and efficiency [63][65]