BRP(US:DOOO)2025-08-29 11:05Revenue and Sales Performance - For the three-month period ended July 31, 2025, Year-Round Products accounted for 59.0% of total revenues, up from 54.4% in the same period of 2024[22]. - Seasonal Products represented 24.9% of total revenues for the three-month period ended July 31, 2025, a decrease from 29.9% in the prior year[22]. - For the three-month period ended July 31, 2025, total revenues increased by 4.3% to $1,888.2 million compared to $1,811.1 million in the same period last year[43]. - Year-Round Products revenues increased by 13.1% to $1,113.8 million for the three-month period ended July 31, 2025, driven by higher unit sales and favorable pricing[52]. - Seasonal Products revenues decreased by 13.3% to $469.7 million for the three-month period ended July 31, 2025, primarily due to lower unit sales in PWC[52]. - Revenues from the United States decreased by 8.0% to CAD 2,090.4 million, while international revenues increased by 15.4% to CAD 1,154.4 million[88]. - Total revenues for the six-month period ended July 31, 2025, decreased by 2.0% to CAD 3,735.1 million compared to CAD 3,811.1 million in the same period of 2024[73]. Profitability and Margins - Gross profit margin decreased by 90 basis points to 21.1% for the three-month period ended July 31, 2025, compared to 22.0% in the same period last year[43]. - The company reported a net income of $57.1 million for the three-month period ended July 31, 2025, representing a 36.0% increase from $42.0 million in the same period last year[43]. - Net income for the three-month period ended July 31, 2025, increased by 158.1% to CAD 218.1 million, primarily due to a lower income tax expense[73]. - Normalized EBITDA decreased by 23.7% to CAD 414.0 million for the six-month period ended July 31, 2025, primarily due to lower gross profit[82]. - Normalized net income for the three-month period ended July 31, 2025, was CAD 66.9 million, compared to CAD 76.5 million in the same period of 2024, reflecting a decrease of 12.5%[161]. - The gross profit margin for the three-month period ended July 31, 2025, was 21.1%, slightly down from 22.0% in the same period of 2024[161]. Expenses and Costs - Operating expenses increased by 10.3% to CAD 307.3 million for the three-month period ended July 31, 2025, compared to CAD 278.7 million in the same period of 2024[59]. - Research and development expenses rose by 21.4% to CAD 96.4 million, while general and administrative expenses increased by 18.0% to CAD 96.5 million[59]. - Financing costs for the six-month period ended July 31, 2025, were CAD 97.1 million, a slight decrease from CAD 98.7 million in the same period of 2024[152]. Cash Flow and Liquidity - For the six-month period ended July 31, 2025, the net cash flows generated from operating activities were $373.1 million, an increase of $141.1 million compared to $232.0 million for the same period in 2024[103]. - Free cash flow for the six-month period ended July 31, 2025, was CAD 239.2 million, significantly up from CAD 51.2 million in the same period of 2024[156]. - The company had cash and cash equivalents of $271.6 million at the end of the period, an increase from $165.4 million at the end of the same period in 2024[102]. - The net cash flows used in financing activities were $(174.0) million for the six-month period ended July 31, 2025, significantly lower than $(378.8) million for the same period in 2024[107]. Discontinued Operations - The Company completed the sale of Alumacraft during the three-month period ended July 31, 2025, classifying it as discontinued operations[7]. - The total comprehensive loss from discontinued operations for the six-month period ended July 31, 2025, was $(37.2) million, compared to $(82.4) million for the same period in 2024[97]. - The net loss from discontinued operations for the three-month period ended July 31, 2025, was $(33.6) million, slightly improved from $(34.8) million in the same period of 2024[97]. Strategic Initiatives - The Company is committed to developing electric models for its existing product lines to grow responsibly[19]. - The Company expects to introduce new products regularly and invest in research and development to push the boundaries of innovation[12]. - The Company launched several new products, including the Can-Am Defender SSV and the Can-Am Outlander Electric ATV, as part of its innovation strategy[45]. Inventory and Supply Chain - The Company experienced a 20% decrease in North American network inventories as of July 31, 2025, compared to the previous year, aligning with its focus on reducing inventory levels[49]. - The Company plans to maintain a focus on tight network inventory management and proactive production management to enhance dealer value[12]. Financial Position and Debt - The company reported a total of $1,593.5 million in trade payables and accruals due within one year as of July 31, 2025[109]. - The company has a Revolving Credit Facility totaling $1,500.0 million, with no outstanding amount drawn as of July 31, 2025[112]. - The company declared a quarterly dividend of $0.215 per share on August 28, 2025, to be paid on October 14, 2025[124]. Internal Controls and Governance - Management determined that the company's internal control over financial reporting was effective as of July 31, 2025[192]. - There have been no changes in the company's internal control over financial reporting during the six-month period ended July 31, 2025, that materially affected its effectiveness[192]. - The company has designed disclosure controls and procedures to provide reasonable assurance regarding the reliability of financial reporting[191].