PresentationPhilippe DeschênesManager of Treasury & Investor Relations Good morning, and welcome to BRP's 2025 Analyst and Investor Day. Today, our senior management team will provide an update on the business and present our M28 plan and its key strategic initiatives. Before moving to the presentation, please note that today's presentation will include some forward-looking statements and future results may differ from those implied in these statements. The forward-looking information is based on certain as ...

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Core Viewpoint - BRP Inc. will host its 2025 Investor and Analyst Day on October 9, 2025, where management will discuss the company's current activities and its Mission 28 (M28) Strategic Plan [1][2]. 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 [3]. - The company offers a diverse portfolio of brands, including Ski-Doo, Lynx, Sea-Doo, Can-Am, Quintrex, and Rotax, aimed at providing exhilarating adventures and experiences [3]. - As of January 31, 2025, BRP reported annual sales of CA$7.8 billion and employed approximately 16,500 people across more than 130 countries [3].

Company Overview - BRP Inc. is a Canada-based designer, manufacturer, and distributor of recreational vehicles and marine products, with core brands including Ski-Doo, Sea-Doo, and Can-Am [2][36] - The company operates a hybrid business model that combines proprietary product design with manufacturing and a dealer distribution network, allowing for rapid product refresh cycles and regional marketing [3][6] Financial Performance - BRP has a market capitalization of approximately CAD 6.18 billion and generated revenue of roughly CAD 7.75 billion over the past twelve months, but reported a net income loss of about CAD 37.6 million due to narrow margins and elevated operating costs [8][13] - The company maintains a modest annual dividend of CAD 0.86 per share, yielding about 1.02%, with a year-over-year dividend growth of approximately 5.56% [11][14] Operational Insights - BRP's operational complexity includes global sourcing of components and managing seasonal inventory, with a focus on lifecycle value that enhances brand loyalty and aftermarket revenue [16][20] - The company has a strong aftermarket channel, with parts and accessories representing high-margin revenue streams, supported by its in-house engine division, Rotax [6][18] Market Position and Strategy - BRP's competitive positioning is bolstered by its well-recognized brands, extensive dealer networks across North America and Europe, and integrated product-engine systems that enhance margins [7][28] - The company emphasizes product innovation, dealer and aftermarket strengthening, and disciplined capital allocation as part of its strategic priorities [25][30] Shareholder Dynamics - There are approximately 73.13 million shares outstanding, with a year-over-year reduction of about 4.30% due to active share buybacks, and institutional ownership is around 45.51% [9][26] - BRP's free cash flow generation capacity, estimated at CAD 534.4 million, supports its shareholder return strategy through dividends and buybacks [10][40] Industry Context - BRP operates in the recreational vehicle and marine product sectors, which are characterized by seasonally driven demand patterns influenced by geography and consumer behavior [39][43] - The company faces competition from other manufacturers in the marine and recreational vehicle markets, necessitating a focus on brand differentiation and customer engagement [18][19]

Group 1 - BRP Inc. announced the closing of a bought deal secondary offering, where Bain Capital sold 1,500,000 subordinate voting shares at C$90.71 each, generating total gross proceeds of C$136,065,000 [1][3] - The offering was conducted under a prospectus supplement dated September 10, 2025, as part of an effective registration statement with the U.S. SEC and Canadian securities authorities [2] - Bain and its affiliates now hold 10,496,629 multiple voting shares, representing approximately 14.35% of the total issued shares and about 24.39% of the voting power [4] Group 2 - BRP is a global leader in powersports products, with annual sales of $7.8 billion and a workforce of approximately 16,500 as of January 31, 2025 [5]

Core Insights - BRP Inc. held its largest annual event, Club BRP 2026, showcasing new products and recognizing top dealers [1][2] - The company launched the 2026 Can-Am Outlander Electric, expanding its electric powersports offerings [3] - BRP introduced several innovative products, including the next generation of Can-Am Defender and new Sea-Doo models [4][6] Product Launches - The 2026 Can-Am Outlander Electric is powered by the modular Rotax E-Power powerpack, similar to previous electric models [3] - Can-Am Defender received a comprehensive redesign, enhancing its capabilities as a utility-recreational side-by-side vehicle [4] - New features for Can-Am Spyder, Ryker, and Canyon include fresh colors and over 250 innovative accessories [5] Dealer Recognition - BRP recognized top dealers and distributors for their achievements in customer service and market performance during the event [7][9] - Sheridan Powersports was awarded U.S. Dealer of the Year for Can-Am ATVs and SSVs, highlighting their commitment to customer experience [8] Responsible Riding Initiative - The Responsible Rider Masterclass was launched to promote safe riding practices among dealers and customers [10][11] - The program, developed with Tread Lightly!, aims to empower the global powersports community to ride responsibly [11][12] - The dealer-specific edition of the Masterclass includes practical tools for enhancing customer experience and promoting responsible recreation [12] Company Overview - BRP is a global leader in powersports products, with annual sales of CA$7.8 billion and a workforce of approximately 16,500 [13] - The company focuses on innovation and sustainability, developing electric models across its product lines [13]

Financial Performance - BRP Inc. reported quarterly earnings of 67 cents per share, exceeding the analyst consensus estimate of 33 cents per share [1] - The company achieved quarterly sales of $1.374 billion, surpassing the analyst consensus estimate of $1.310 billion [1] Management Commentary - José Boisjoli, President and CEO of BRP, expressed satisfaction with the second-quarter results, noting they were better than expected in the current macroeconomic context [2] - The company recently held a successful dealer event, unveiling numerous industry-leading products and experiencing a strong upswing in dealer sentiment [2] - Boisjoli highlighted that the timing of new product introductions coincided well with healthier inventory levels [2] Stock Performance - Following the earnings announcement, BRP shares rose by 5.2%, trading at $66.27 [2] Analyst Ratings and Price Targets - CIBC analyst Mark Petrie upgraded BRP from Neutral to Outperformer and raised the price target from C$66 to C$100 [5] - Scotiabank analyst Jonathan Goldman maintained the stock with a Sector Perform rating and increased the price target from C$67 to C$98 [5]

Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience [4] - The company reported annual sales of CA$7.8 billion from over 130 countries and employs approximately 16,500 people as of January 31, 2025 [4] Upcoming Financial Results - BRP Inc. will hold its second quarter FY26 financial results conference call on August 29, 2025, at 9 am (EDT) [1] - The press release for the financial results will be distributed on Canadian and American newswires at approximately 6 a.m. (EDT) on the same day [2] Conference Call Details - Analysts can join the conference call via telephone at 1 800 717-1738 (toll-free in North America) using event code 50511 [2] - The call will be accessible via a live webcast and an archived recording will be available two hours after the event for 30 days [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: BRP Inc. (DOOO) Performance - BRP Inc. (DOOO) has shown a four-week price change of 8.8%, indicating growing investor interest [3] - Over the past 12 weeks, DOOO's stock gained 57.1%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - DOOO has a beta of 1.24, suggesting it moves 24% higher than the market in either direction [4] Group 3: Valuation and Earnings Estimates - DOOO has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - DOOO is trading at a Price-to-Sales ratio of 0.74, meaning investors pay 74 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides DOOO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]

Group 1 - BRP Inc. is currently ranked 16 in the Zacks Sector Rank for the Auto-Tires-Trucks group, which consists of 96 companies [2] - The Zacks Rank for BRP Inc. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] - Over the past 90 days, the Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 9.8%, reflecting improved analyst sentiment [4] Group 2 - BRP Inc. has achieved a year-to-date return of approximately 13.9%, significantly outperforming the Auto-Tires-Trucks sector average return of -9.4% [4] - In comparison, Ferrari, another stock in the sector, has a year-to-date return of 11% and a Zacks Rank of 1 (Strong Buy) [5] - BRP Inc. is part of the Automotive - Original Equipment industry, which includes 50 companies, and this industry has an average gain of 7.8% this year [6] Group 3 - Investors should continue to monitor BRP Inc. and Ferrari for potential sustained strong performance in the Auto-Tires-Trucks sector [7]