Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $644.9 million, up from $579.4 million in Q3 2024, representing a 20.5% increase when excluding the impact of the exited E and C transit bus business [14] - Consolidated adjusted EBITDA increased to $64.1 million from $45.2 million in Q3 2024, a year-over-year increase of 66.1% when excluding the $6.6 million impact from the divested bus business [15][16] - Trade working capital decreased to $191.6 million from $248.2 million at the end of fiscal 2024, primarily due to lower inventory balances and increased customer advances [24] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales were $483.3 million, an increase of 11.8% compared to the prior year, with adjusted EBITDA of $64.6 million, up 71.4% year-over-year [17][18] - Fire unit shipments increased by 11% and ambulance unit shipments increased by 7% compared to the previous year, reflecting operational resilience and increased throughput [6][18] - Recreational Vehicle segment sales rose to $161.7 million, a 9.7% increase, but adjusted EBITDA decreased by 13.8% due to increased dealer assistance and tariff impacts [21][22] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of the quarter was $4.3 billion, with a decrease in the number of units in backlog by approximately 4% sequentially and 6% year-over-year [19][22] - Recreational Vehicle segment backlog declined by 7% year-over-year, reflecting soft end market demand and dealer caution [22] Company Strategy and Development Direction - The company is focused on reinvesting in its businesses to drive long-term growth, pursuing opportunistic share repurchases, and maintaining a sustainable dividend while evaluating M&A opportunities [13] - A significant investment of approximately $20 million is being made to expand the Spartan Emergency Response facility, increasing fire apparatus production capacity by 40% [8][9] - The company aims to improve operational efficiency and quality through targeted capital investments across its fire and ambulance groups [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts and maintain strong performance, raising the fiscal 2025 outlook based on year-to-date performance [13][27] - The company anticipates continued demand for fire apparatus and ambulance units, with expectations for low single-digit sequential revenue growth in the Specialty Vehicles segment for Q4 [20] - Management acknowledged the challenges in the Recreational Vehicle segment due to macroeconomic uncertainty but remains optimistic about the long-term outlook [21][23] Other Important Information - The company completed the sale of its Lance Camper business, streamlining its RV portfolio to focus on motorized RVs [11] - Year-to-date cash flow has strengthened the balance sheet, allowing for continued investments and enhancing financial flexibility [12] Q&A Session Summary Question: Were the record EBITDA margins in line with expectations? - Management confirmed that they are on track with their midterm targets and are pleased with the progression [31][32] Question: Will the first quarter of fiscal 2026 start slow due to tariffs? - Management expects a typical sequential decline in sales of 10-15% in the first quarter, with incrementals aligning with previous guidance [34] Question: How is pricing being managed in light of tariffs and inflation? - Management is actively reviewing pricing strategies to offset inflation costs but has not yet implemented price increases specifically due to tariffs [36][46] Question: Is the company seeing any impact from steel and aluminum tariffs? - Management indicated that they are managing costs through supplier relationships and have not seen a significant change in expected tariff impacts [41][43] Question: What is the outlook for the fire business and delivery timelines? - Management noted that delivery timelines are improving, and they expect to maintain competitive lead times while managing backlog normalization [51][53] Question: How is the company approaching capital deployment with strong cash flow? - Management emphasized the importance of investing in productivity improvements while remaining opportunistic regarding M&A opportunities [76][78]

Fiscal Third Quarter 2025 Highlights - REV Group experienced momentum in year-over-year throughput increases[7] - The company broke ground for a $20 million investment in the Brandon, SD facility[7] - REV Group completed the sale of Lance Camper[7] - The company demonstrated strong cash generation and a solid balance sheet position[7] - REV Group raised its fiscal year 2025 outlook[7] Third Quarter Fiscal 2025 Consolidated Results - Net sales increased to $644.9 million in Q3 2025, compared to $579.4 million in Q3 2024[9], a $109.7 million or 20.5% increase excluding Bus Manufacturing Businesses[13] - Adjusted EBITDA increased to $64.1 million in Q3 2025, compared to $45.2 million in Q3 2024[9], a $25.5 million or 66.1% increase excluding Bus Manufacturing Businesses[13] Full Year Fiscal 2025 Outlook - REV Group updated its net sales guidance to $2.40 to $2.45 billion, compared to the prior guidance of $2.35 to $2.45 billion and the 2024 actual of $2.38 billion[27] - The company updated its Adjusted EBITDA guidance to $220 to $230 million, compared to the prior guidance of $200 to $220 million and the 2024 actual of $162.8 million[27] - REV Group updated its Free Cash Flow guidance to $140 to $150 million, compared to the prior guidance of $100 to $120 million[27] Balance Sheet & Other Financial Items - Year-to-date cash from operations totaled $164.2 million[25] - Net debt was $54.0 million[25] - Trade working capital decreased by $56.6 million compared to 4Q24[26] - $117.6 million cash was returned to shareholders year to date[26]

Financial Data and Key Metrics Changes - The company reported revenue of $1.9 billion, a 4% increase year-over-year, primarily driven by stronger ORV shipments, offset by lower personal watercraft deliveries [6][22] - Normalized EBITDA was $213 million, and normalized EPS was $0.92, which included approximately $0.35 from tax credits recorded in the quarter [6][22] - Free cash flow from continuing operations reached $100 million, with over $270 million in cash at the end of the quarter, indicating strong financial flexibility [22] Business Line Data and Key Metrics Changes - North American powersports retail decreased by 11%, with Canada showing a 4% growth driven by ORV, while the U.S. experienced a 15% decline [7][8] - Year-round product revenue increased by 13% to $1.1 billion, driven by higher ORV shipments following last year's inventory reduction plan [15] - Seasonal product revenues decreased by 13% to $470 million, mainly due to a planned reduction in personal watercraft shipments [18] Market Data and Key Metrics Changes - Retail in Latin America grew by 22%, led by strong ORV performance, while Asia Pacific saw a 5% increase, marking the first growth in two years [8][9] - EMEA experienced a 13% decline in retail, consistent with industry trends [8] - The overall global industry trend showed slight improvement compared to previous quarters [9] Company Strategy and Development Direction - The company is focused on maintaining operational efficiency and managing shipments to improve network inventory positions [21][25] - A definitive agreement for the sale of Manitou was announced, expected to close in the coming weeks [6] - The introduction of new products, including the Can Am Defender, is aimed at capturing market share and enhancing dealer profitability [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, citing improved visibility on expected deliveries and a strong product lineup [25][29] - The macroeconomic environment remains uncertain, but the company is well-positioned to capitalize on market opportunities [25][29] - The guidance for revenues is set between $8.15 billion and $8.3 billion, with normalized EBITDA expected to be between $1.04 billion and $1.09 billion [27] Other Important Information - The company has successfully reduced dealer inventory by 20% year-over-year, positioning itself to better align wholesale with retail [23][24] - The tariff impact for the year is estimated at $90 million, reflecting increased tariffs on steel, aluminum, and copper [27][50] - Management emphasized the importance of innovation and technology in sustaining profitable growth [30] Q&A Session Summary Question: What are the tariff scenarios being contemplated? - Management is in constant dialogue with Canadian and Mexican authorities regarding tariff regulations and believes they can adapt to any changes [33][36] Question: Can you elaborate on the current versus non-current inventory situation? - The company noted that most OEMs are cautious with shipments, and they are encouraged by the improved inventory ratios [41][44] Question: What is the outlook for retail sales in the second half? - Management expects retail to improve in the second half, particularly in ORV, driven by new product introductions and a cleaner inventory environment [46][70] Question: How does the company plan to mitigate tariff exposure? - Mitigation efforts include sourcing adjustments and production shifts to minimize tariff impacts [37][50] Question: What is the expected revenue profile outlook? - The company anticipates a recovery in revenue as inventory aligns with retail, with a potential tailwind of $400 million to $500 million from destocking [53][102] Question: What are the expectations for EPS growth in the coming years? - Management believes the company has the capacity to grow EPS significantly, depending on industry dynamics and macroeconomic conditions [97][99]

Financial Performance - Revenues increased by 4% to CA$1,888 million in FY26 Q2 compared to CA$1,811 million in FY25 Q2 [13] - Normalized EBITDA decreased by 9% to CA$213 million in FY26 Q2 [16] - Normalized diluted earnings per share decreased by 10% to CA$0.92 in FY26 Q2 [16] - Free cash flow generation increased by 54% to CA$99 million in FY26 Q2 [16] - Net income increased by 36% to CA$57 million, with diluted earnings per share at CA$0.79 [16] Retail Sales and Market Dynamics - North American Powersports retail sales declined by 11% in FY26 Q2, mainly due to softer trends in PWC and 3WV [16] - North American network inventory is down by 20% [16] - Year-Round Products revenues were up 13%, with revenues reaching CA$1,114 million in FY26 Q2 compared to CA$985 million in FY25 Q2 [37] - Seasonal Products revenues decreased by 13%, with revenues of CA$470 million [46] Guidance and Outlook - The company estimates a tariff impact of approximately CA$90 million for FY26 [65] - The company expects total revenues between CA$8,150 million and CA$8,300 million for FY26 [64] - The company expects net income between CA$430 million and CA$470 million for FY26 [64]

Core Insights - BRP Inc. reported a solid second-quarter performance with revenues of CAD 1,888.2 million, a 4.3% increase year-over-year, and a net income of CAD 57.1 million, reflecting a 36.0% increase compared to the previous year [8][21][23]. Financial Performance - Revenues for the three-month period ended July 31, 2025, were CAD 1,888.2 million, up from CAD 1,811.1 million in the same period last year [6][13]. - Gross profit decreased slightly to CAD 397.7 million, with a gross profit margin of 21.1%, down from 22.0% [6][18]. - Normalized EBITDA fell to CAD 213.2 million, a decrease of 9.2% from CAD 234.9 million [6][20]. - Net income increased to CAD 57.1 million, compared to CAD 42.0 million in the previous year [6][21]. - Diluted earnings per share rose to CAD 0.79, an increase of CAD 0.24 per share year-over-year [6][8]. Segment Performance - Year-Round Products revenues increased by CAD 128.8 million, or 13.1%, to CAD 1,113.8 million [16]. - Seasonal Products revenues decreased by CAD 72.1 million, or 13.3%, to CAD 469.7 million [16]. - Revenues from PA&A and OEM Engines increased by CAD 20.4 million, or 7.2%, to CAD 304.7 million [16]. Market Outlook - The company anticipates a solid second half of the fiscal year, supported by a comprehensive product portfolio and improved inventory levels [4][3]. - Full-year revenue guidance is set between CAD 8.1 billion and CAD 8.3 billion, with normalized diluted earnings per share expected between CAD 4.25 and CAD 4.75 [8][9]. Cash Flow and Capital Expenditures - Consolidated net cash flows from operating activities totaled CAD 373.1 million for the six-month period ended July 31, 2025, compared to CAD 232.0 million in the previous year [28]. - The company invested CAD 119.1 million in capital expenditures for new product introductions and software modernization [29]. Dividend Declaration - The Board of Directors declared a quarterly dividend of CAD 0.215 per share, payable on October 14, 2025 [30].

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 Insights - Massimo Group has launched the 2026 T-Boss 900L Crew, a versatile utility terrain vehicle aimed at farmers, ranchers, and outdoor enthusiasts, with preorders already secured [1][3] Product Features - The T-Boss 900L Crew is powered by an 812cc Chery SQR372 DOHC 3-cylinder engine, producing 39 kW (52 HP) at 6,000 RPM and 70 N•m of torque at 3,500–4,000 RPM, making it a leader in the industry [2] - It features comfortable bench seating for multiple passengers, a 10-inch touchscreen interface with GPS navigation, and a comprehensive standard equipment package, enhancing its utility for various tasks [2] Strategic Positioning - The introduction of the T-Boss 900L Crew expands Massimo Group's UTV offerings, providing a range from single-row models to high-performance units, thus catering to both utility and recreational needs [3] - The CEO of Massimo Group emphasized that the T-Boss 900L Crew is a cornerstone of their 2026 lineup, highlighting its performance, comfort, and reliability [4] Company Overview - Massimo Group is a manufacturer and distributor of powersports products, headquartered in Texas, offering a full lineup of UTVs, ATVs, and mini bikes designed for outdoor adventures [4]

Core Insights - Dragonfly Energy Holdings Corp. has expanded its partnership with Airstream, making Battle Born Batteries standard in Airstream's Model Year 2026 Interstate and Atlas motorized lines, enhancing the product lineup with both standard features and optional upgrades [3][4][8] Company Overview - Dragonfly Energy is a leader in energy storage and battery technology, specializing in lithium battery systems, particularly the Battle Born Batteries brand, which has seen widespread deployment across various applications [10] - The company utilizes a patented dry electrode manufacturing process, enabling chemistry-agnostic power solutions for energy storage systems, electric vehicles, and consumer electronics [10] Product Features - The Advanced Power System includes three BBGC3 LiFePO₄ batteries, providing 10.3 kWh of usable energy at 100% depth of discharge, optimized for longevity and off-grid capability [5][6] - Airstream's new systems support extended off-grid use with features like integrated heating technology, seamless alternator charging, and solar compatibility [5][6] Partnership Dynamics - The collaboration between Dragonfly Energy and Airstream focuses on innovation, reliability, and enhancing off-grid travel experiences, aligning with the growing demand for high-capacity energy solutions [4][8] - Airstream's Vice President of Supply Chain emphasized the importance of partnering with companies that prioritize power independence and quality [4] Market Position - Dragonfly Energy's Battle Born Batteries are now the lithium battery option for all Airstream products, marking a significant step in the integration of advanced energy solutions in recreational vehicles [6][8]

Core Insights - The 2026 Can-Am Defender model represents a significant upgrade in the utility and recreational side-by-side market, enhancing its reputation for versatility and reliability [1][2] Powertrain - The new Defender features an HD11 999cc inline three-cylinder Rotax ACE engine, delivering 95 horsepower and 70 lb-ft of torque, paired with a continuously variable transmission (CVT) for improved performance [3] - It includes three selectable drive modes: Normal, Work, and Sport, optimizing performance for various tasks [3] Performance Enhancements - An updated intake system and cooling system improve engine performance and temperature management [4] - The Defender now has a larger 11.9-gallon fuel tank, extending operational time [5] Suspension and Chassis - The 2026 Defender boasts new suspension geometry with a 65-inch-wide design and 50% larger arched double A-arms, enhancing stability and handling [6] - It features 12 inches of front and rear suspension travel and 15 inches of ground clearance, both best in class [6] Workability and Rider Experience - The Defender offers the largest cab in its class with 8% more legroom than competitors, along with an adjustable quick tilt steering wheel for easier access [8] - An updated HVAC system improves climate control, and noise reduction features enhance passenger communication [9][10] Technology and Customization - A new 10.25'' Touchscreen Display includes features like a back-up camera, built-in GPS, and Wi-Fi connectivity for over-the-air updates [11] - The new charging system produces 1700 Watts, doubling the output of the previous generation, allowing for more electronic accessories [12] Safety and Maintenance - The 2026 Defender includes larger front brake rotors and hydraulic twin piston calipers for improved stopping power [7] - Designed for easy access to service points, it has some of the longest service intervals and lowest maintenance costs in the industry [14] Vehicle Lineup - The 2026 Defender HD11 is available in six configurations, including standard and MAX variations, with returning models HD7, HD9, and HD10 [15] Company Overview - BRP Inc. 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 [16]

Core Insights - BRP has expanded its electric vehicle lineup to include the Can-Am Pulse and Origin motorcycles, four electric snowmobiles, the Rotax E10 racing powerpack, and the Can-Am Outlander Electric, catering to various rider needs and applications [1][7]. Electric Vehicle Offerings - The 2026 Can-Am Outlander Electric features a modular Rotax E-Power powerpack, delivering 47 hp and 53 lb-ft of torque, with a range of up to 50 miles in optimal conditions [3]. - The Outlander Electric can charge from 20% to 80% in just 50 minutes using a Level 2 charger, and it offers selectable ride modes: Normal, Sport, and Work [3][4]. - BRP's electric motorcycles, the Can-Am Pulse and Origin, are powered by an 8.9 kWh battery system, providing up to 100 miles of range in urban settings and achieving 0-60 mph in under four seconds [6]. Market Position and Strategy - BRP is positioned as a leader in the powersports industry with the most electric models across various categories, reflecting a deep understanding of customer needs [8]. - The company emphasizes intentional and strategic electrification, focusing on areas where it adds real value to customers [2]. Innovation and Development - BRP has a fully integrated in-house modular electric powertrain, which includes the battery pack, inverter, motor, charger, and control software, providing unmatched agility and performance [9]. - The company has introduced electric snowmobiles under the Ski-Doo and Lynx brands, initially targeting tour operators and ski centers, now available to consumers [7]. Company Overview - BRP Inc. is a global leader in powersports products, with annual sales of CA$7.8 billion and a workforce of approximately 16,500 employees as of January 31, 2025 [11].