Financial Data and Key Metrics Changes - The company reported a top line growth of 3%, resulting in revenue of approximately $1,050,000,000 for the second quarter, with a trailing twelve-month revenue of approximately $3,800,000,000 [5][20] - Adjusted earnings per diluted share was $1.50 in the second quarter, reflecting a 4% increase compared to the prior year period [22] - Gross margin improved to 23.9%, up 110 basis points from the same period last year, while operating margin remained flat at 8.3% [21] - Net income decreased 32% to $32,000,000, impacted by a non-recurring legal settlement [22][24] Business Line Data and Key Metrics Changes - RV revenue increased 7% to $479,000,000, representing 46% of consolidated revenue, with RV content per unit on a trailing twelve-month basis remaining flat at $4,952 [11][20] - Marine revenues were $156,000,000, up 1% from the prior year, while powersports revenues decreased 9% to $96,000,000 [15][16] - Housing revenues increased 3% to $315,000,000, with manufactured housing representing approximately 58% of housing revenues [17] Market Data and Key Metrics Changes - RV retail and wholesale unit shipments were approximately 109,692 units, indicating a seasonal dealer inventory destock of about 16,700 units [12] - Marine retail and wholesale powerboat unit shipments were estimated at 60,838 units, reflecting a seasonal dealer inventory destock of approximately 22,800 units [15] - Powersports wholesale shipments were down year over year, while the company noted resilience in the utility side of the market [16] Company Strategy and Development Direction - The company is focused on enhancing product integration and innovative design at scale, with a strong emphasis on automation and innovation [6][8] - The diversification of the portfolio is seen as a core strength, providing resilience across the business model [6] - The company is actively cultivating its acquisition pipeline while returning value to shareholders through dividends and share repurchases [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for outdoor enthusiast lifestyles, despite a temporary pause in consumer activity due to tariffs [7] - The company anticipates a traditional seasonal slowdown in RV production in the second half of the year, while expecting some upside in marine shipments [40] - Management remains optimistic about cash flow generation and the ability to capitalize on growth opportunities, with a solid balance sheet and liquidity of $835,000,000 [8][24] Other Important Information - The company has continued to invest in innovation and automation, creating an advanced product group to enhance its full solutions model [9] - The return of former CFO Jake Pekovich as President of Marine businesses is expected to advance the company's full solutions model [9] Q&A Session Summary Question: Discussion on end market outlook for RV and marine - Management indicated a traditional seasonal slowdown in RV production while expecting some upside in marine shipments due to solid inventory management [40] Question: Cash flow outlook and impact of legal settlement - The reduction in cash flow guidance was attributed solely to the legal settlement, with no other significant changes noted [41] Question: Powersports inventory and retail demand - Management noted stabilization in inventory levels and increasing attachment rates, indicating optimism for future growth in the powersports market [49] Question: M&A pipeline and leverage strategy - The company is actively cultivating its M&A pipeline and is comfortable with its current leverage position, willing to stretch for the right deals [57][59] Question: Pricing expectations and inflation impact - Management expects low to mid single-digit pricing increases in response to tariffs and inflation, which will affect content expectations for 2026 [62] Question: Aftermarket exposure and demand visibility - The company has good visibility into aftermarket demand through RecPro, with a focus on upgrading and refurbishing RVs rather than just new units [95][97]

Financial Data and Key Metrics Changes - The company reported a 3% increase in revenue, totaling approximately $1,050,000,000 for the second quarter, with a trailing twelve-month revenue of approximately $3,800,000,000 [4][19] - Adjusted earnings per diluted share was $1.50, reflecting a 4% increase compared to the prior year period [21] - Gross margin improved to 23.9%, up 110 basis points year-over-year, while operating margin remained flat at 8.3% [20][24] - Net income decreased by 32% to $32,000,000, impacted by a non-recurring legal settlement [21][24] Business Line Data and Key Metrics Changes - RV revenue increased by 7% to $479,000,000, representing 46% of consolidated revenue, with RV content per unit remaining flat at $4,952 [11][19] - Marine revenues were $156,000,000, up 1% year-over-year, while powersports revenues decreased by 9% to $96,000,000 [13][15] - Housing revenues increased by 3% to $315,000,000, with manufactured housing content per unit rising by 3% to $6,670 [16][19] Market Data and Key Metrics Changes - RV retail and wholesale unit shipments were approximately 109,692 units, indicating a seasonal destock of about 16,700 units [12] - Marine retail and wholesale powerboat unit shipments were estimated at 60,838 units, reflecting a seasonal destock of approximately 22,800 units [14] - Powersports shipments were down year-over-year, with a focus on utility products showing resilience [15][100] Company Strategy and Development Direction - The company is focused on enhancing product integration and innovative design through a full solutions model, which is seen as a core strength [5][8] - There is an active cultivation of the acquisition pipeline, with ongoing investments in automation and innovation [6][24] - The company aims to optimize its cost structure and maximize cash flow generation while delivering high-quality service [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for outdoor enthusiast lifestyles, despite a temporary pause in consumer activity due to tariffs [6][26] - The company anticipates a seasonal slowdown in RV production in the second half of the year, while expecting potential upside in marine shipments [39][40] - The outlook for RV retail unit shipments is expected to decline in the mid-single digits, while housing starts are projected to decrease by approximately 10% year-over-year [26][27] Other Important Information - The company returned value to shareholders through $13,000,000 in dividends and over $23,000,000 in share repurchases during the second quarter [7][24] - The company has a solid balance sheet with liquidity of $835,000,000, allowing for strategic capital allocation [6][24] - The former CFO returned as President of Marine businesses, indicating a focus on leadership continuity [9] Q&A Session Summary Question: Can you discuss the end market outlook, particularly for RVs and marine? - Management indicated a traditional seasonal slowdown in RV production while expecting some upside in marine shipments due to solid inventory management [39][40] Question: What is the impact of the legal settlement on cash flow outlook? - The reduction in cash flow guidance is attributed solely to the legal settlement, with no other significant changes noted [40] Question: What are the current trends in powersports inventory and retail demand? - Inventory levels are stabilizing, and attachment rates are increasing, indicating potential for growth in the powersports market [47][100] Question: Can you elaborate on the new products and systems being developed? - The company is focusing on integrated solutions, such as a composite roofing system for RVs and a new polycarbonate windshield for golf carts, to enhance content per unit [50][52] Question: What is the status of the M&A pipeline and leverage strategy? - The M&A pipeline is actively cultivated, with a willingness to increase leverage for the right deals while maintaining a focus on financial flexibility [55][56] Question: How does pricing inflation affect content expectations for 2026? - Pricing is expected to see low to mid-single-digit increases, which will impact content expectations moving into 2026 [60][62]