Financial Data and Key Metrics Changes - Sales for the third quarter were $1.8 billion, representing a 7% increase driven by stronger shipments and a solid mix of off-road vehicles [4][18] - Adjusted EBITDA margin was under pressure compared to last year due to increased tariffs and normalized incentive compensation [6][20] - Adjusted EPS came in at $0.41, influenced by a strong mix and operational efficiencies, partially offset by tariffs [7][20] - Operating cash flow for the quarter was $159 million, with year-to-date cash flow exceeding $560 million [20][24] Business Line Data and Key Metrics Changes - Off-road vehicle (ORV) sales rose approximately 8%, supported by a richer mix of vehicles and strong commercial volume [20] - Marine sales increased by 20%, driven by positive shipments of new boats, including the new entry-level Bennington pontoon [22] - On-road sales were down 3%, impacted by ongoing softness in the motorcycle market [22] Market Data and Key Metrics Changes - North American retail rose 9%, led by strong off-road performance, resulting in a 3-point market share gain in ORV [5][21] - International sales grew by 2%, primarily driven by strength in Europe [18] Company Strategy and Development Direction - The company announced the sale of a majority stake in Indian Motorcycle to focus on core business areas with the greatest potential for profitable growth [4][14] - The company is committed to enhancing customer experience through rider-driven innovation and plans to invest in high-return opportunities [15][29] - The company aims to reduce its reliance on China for parts and components, targeting an 80% reduction in China spend by 2027 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate the current economic environment and deliver strong earnings and returns for shareholders [4][6] - The company is closely monitoring consumer health indicators and expects sales to grow sequentially in Q4, despite anticipated headwinds from mix and operating expenses [7][25] - Management indicated that the expected sale of Indian Motorcycle will free up resources for higher growth and margin opportunities [15][29] Other Important Information - Dealer inventory is down 21% year-over-year, with aged units in dealer inventory reduced by approximately 60% relative to six months ago [5][21] - The Polaris Factory Authorized Clearance program successfully engaged customers and drove increased dealership visits [8][49] Q&A Session Summary Question: What drove ORV retail strength and share gains in the quarter? - Management attributed the strength to right-sized inventory, a broad product lineup, and improved quality leading to lower warranty costs [32][33] Question: Any early thoughts on fiscal 2026? - The Indian Motorcycle deal is expected to have a significant impact, adding approximately $50 million in EBITDA and $1 in EPS, while tariffs are projected to increase costs [36][39] Question: What is the consumer profile for the Ranger 500? - The Ranger 500 appeals to new customers, including those who previously used golf carts or other brands, providing an entry point into the Polaris product line [41][43] Question: Concerns about demand pull-forward from the FAC program? - Management indicated that the FAC program did not drive significant incremental spend and that retail trends remain strong [48][50] Question: What are the margin drivers for Q4 and 2026? - Warranty costs are expected to remain favorable, while operational efficiencies and product mix will continue to be key drivers [69][71]

Safe Harbor & Non-GAAP Measures Except for historical information contained herein, the matters set forth in this presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the Company's ability to successfully implement its manufacturing operations strategy and supply chain initiatives; the Company's ability to successfully sourc ...

Core Insights - Brunswick Corporation released its third quarter 2025 financial results on October 23, 2025, with a complete press release available on its website [1] - A conference call to discuss the results will be held on the same day at 10 a.m. CT / 11 a.m. ET, featuring key executives [2] - The conference call will be accessible via telephone and webcast, with a replay available for a limited time [3][4] Company Overview - Brunswick Corporation is a global leader in marine recreation, focusing on innovation and technology-driven solutions [5] - The company operates over 60 industry-leading brands, including Mercury Marine and Boston Whaler, and has approximately 14,500 employees across 26 countries [5] - Brunswick has been recognized as one of America's Best Large Employers for six consecutive years by Forbes Magazine [5]

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $777.3 million for Q4, with adjusted diluted EPS of $0.71, reflecting a significant increase of 150% year-over-year [7][14] - Consolidated adjusted EBITDA increased by 33.1% year-over-year, while operating income improved significantly from the previous year, which had been impacted by an impairment charge [14][17] - The net leverage ratio improved to 3.1 at the end of the year, down from 4.8 at the end of the previous quarter [17][18] Business Line Data and Key Metrics Changes - The motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable product mix, particularly from Grand Design's motorized Lineage lineup [15][16] - The towable RV segment saw a slight revenue decline year-over-year, attributed to a shift towards more value-oriented consumers, although operating income margin increased by 210 basis points [15][16] - The marine segment reported double-digit revenue growth, with Barletta and Chris-Craft managing production effectively despite industry headwinds [16][17] Market Data and Key Metrics Changes - Retail demand for RVs remained stable, with dealer inventories improving, although total RV shipments declined slightly in August [8][9] - The company expects wholesale RV shipments to be in the range of 320,000-340,000 units for calendar 2025 and 315,000-345,000 units for calendar 2026 [9][10] - The inventory turn rate was 1.9 times at the end of Q4, reflecting seasonal dynamics and dealer demand [10] Company Strategy and Development Direction - The company is focused on executing operational initiatives to improve profitability and cash flow, including manufacturing optimization and vertical integration [13][24] - New product introductions and revitalized dealer partnerships are expected to drive growth in the Winnebago-branded motorhomes and travel trailers [12][13] - The company aims to achieve a net leverage ratio of approximately 2x by the end of fiscal 2026, prioritizing improvements in growth and leverage [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, emphasizing that growth will be driven by actions within the company's control rather than relying on market recovery [25][26] - The company anticipates a flat retail environment for the RV sector, with expectations for modest growth in the motorhome segment and a decline in the marine segment [22][25] - Management highlighted the importance of maintaining a prudent, demand-driven approach to inventory and production [10][19] Other Important Information - The company returned $88.9 million to shareholders in fiscal 2025, including $50 million in share repurchases and $38.9 million in dividends [18] - The company has proactively addressed tariff challenges through supplier engagement and sourcing diversification [19][20] Q&A Session Summary Question: Can you talk about the unmitigated portion of tariffs and its impact on guidance? - Management indicated that the guidance includes the anticipated full impact of tariffs, which remains dynamic and could change [31][32] Question: What are the assumptions for retail in 2025 and 2026? - Management acknowledged that retail in 2025 may see significant destocking, while they do not anticipate significant increases in dealer inventory for 2026 [39][40] Question: How does the company view market share trends, especially with a shift towards low-end units? - Management noted pressure in the Class B category and fifth wheel retail share but expects to stabilize and grow market share in fiscal 2026 [49][52] Question: What are the expectations for warranty expenses in FY2026? - Management expects consistent warranty rates in 2026, with no major drivers for change [85]

Financial Data and Key Metrics Changes - The company reported adjusted diluted earnings per share of $0.71 on net revenues of $777.3 million, with a significant increase in adjusted EBITDA by 33.1% year over year [9][18][25] - Consolidated gross profit increased due to higher revenues, although gross margin declined primarily due to costs associated with the ongoing transformation of the Winnebago branded businesses [18][21] - The net leverage ratio improved to 3.1 at the end of the year, a substantial improvement from 4.8 at the end of the third quarter [22] Business Line Data and Key Metrics Changes - The Towable RV segment saw a slight revenue decline year over year, reflecting a shift towards more value-oriented consumers, but operating income margin increased by 210 basis points due to targeted price increases and improved efficiencies [19] - The Motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable mix, particularly from Grand Design RV's motorized Lineage lineup [20] - The Marine segment reported double-digit revenue growth, with both Chris Craft and Barletta managing production effectively in a cautious retail environment [21] Market Data and Key Metrics Changes - RV retail registrations declined in August, but retail demand remained stable on a trailing three-month basis, with dealer inventories improving [10] - Wholesale RV shipments are expected to be in the range of 315,000 to 345,000 units for calendar year 2026, with a median estimate of 330,000 units [11][25] - The company anticipates a decline in sales in the Marine segment due to continuing soft retail trends [28] Company Strategy and Development Direction - The company is focused on executional drivers that contribute to volume, share, and profitability, with new product introductions and improved dealer partnerships expected to benefit the Winnebago branded motorhomes business [16] - Strategic actions are being taken to revitalize the Winnebago Motorhome and Towables lineup, align operations with market demand, and streamline the cost structure [30] - The company aims for a net leverage ratio approximating two times by the end of fiscal year 2026, prioritizing improvements to growth and net leverage [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, grounded in execution rather than assumptions about market recovery, with expectations for improved results driven by strategic initiatives [30] - The company is closely monitoring the tariff environment and has implemented proactive strategies to mitigate tariff challenges [24] - Management indicated that the RV consumer base is becoming younger and more diversified, which is beneficial for the industry [63] Other Important Information - The company returned $88.9 million to shareholders in fiscal year 2025, consisting of $50 million in share repurchases and $38.9 million in dividends [22] - The company repaid $159 million of debt during the past year, reinforcing its commitment to shareholder value [22] Q&A Session Summary Question: Can you talk about the unmitigated tariff expenses? - Management indicated that the guidance includes the anticipated full impact of tariffs on business performance, acknowledging the dynamic nature of the tariff environment [36] Question: What should be expected for retail and wholesale shipment numbers? - Management expects a relatively flat retail and wholesale shipment environment, with a focus on actions within their control to drive stronger results [40][49] Question: How does the company view market share trends? - Management acknowledged recent pressure on market share in certain segments but expressed confidence in plans to stabilize and grow share in fiscal year 2026 [62] Question: What are the expectations for warranty expenses in FY 2026? - Management expects consistent warranty rates in FY 2026, with no major drivers for change identified at this time [96]

Core Viewpoint - Brunswick Corporation is set to release its third quarter financial results for 2025 on October 23, 2025, before market opening, with full results available on its website and the SEC's site [1][2]. Financial Results Announcement - The financial results will be announced through an advisory release, with complete details accessible on the company's investor relations website [1]. - A conference call will be held on October 23, 2025, at 10 a.m. CT / 11 a.m. ET, featuring key executives including the CEO and CFO [2]. Conference Call Details - The conference call can be accessed via telephone or webcast, with specific numbers provided for participants in North America and internationally [3]. - A replay of the conference call will be available until 1 p.m. CST on October 31, 2025, through designated phone numbers and the company's investor website [4]. Company Overview - Brunswick Corporation is a leader in marine recreation, offering innovative solutions and technology-driven products across various brands, including Mercury Marine and Boston Whaler [5]. - The company operates in 26 countries with approximately 14,500 employees and has received multiple awards for its workplace culture and industry leadership [5].

Core Viewpoint - Brunswick Corporation is set to release its third quarter financial results for 2025 on October 23, 2025, before market opening, with full results available on its website and the SEC's site [1][2]. Financial Results Announcement - The financial results will be announced via an advisory release, with complete results accessible on the company's investor relations website [1]. - A conference call will be held on October 23, 2025, at 10 a.m. CT / 11 a.m. ET, featuring key executives including the CEO and CFO [2]. Conference Call Details - The conference call can be accessed via telephone or webcast, with specific numbers provided for participants in North America and internationally [3][4]. - A replay of the conference call will be available until October 31, 2025, through designated phone numbers and the company's investor website [4]. Company Overview - Brunswick Corporation is a leader in marine recreation, offering innovative solutions and operating over 60 industry-leading brands, including Mercury Marine and Boston Whaler [5]. - The company employs approximately 14,500 people across 26 countries and has received multiple awards, including being named America's Best Large Employers for 2024 by Forbes Magazine [5].

Group 1: Monetary Policy and Economic Outlook - The Reserve Bank of India (RBI) maintained its policy rate at 5.5%, aligning with economists' expectations [1] - Inflation has moderated significantly in the first quarter, but growth may decelerate in the second half of the financial year due to global trade uncertainties [2] - The RBI had an opportunity to cut interest rates to stimulate growth, especially after inflation data undershot the target band of 2% to 6% [2] Group 2: Impact of U.S. Tariffs - The U.S. imposed an additional 25% tariff on Indian imports, raising total duties to as high as 50%, significantly affecting sectors like textiles, gems, jewelry, and marine products [3] - Exports to the U.S. account for approximately 2% of India's GDP, with labor-intensive sectors facing potential job losses due to deteriorating business conditions [3] Group 3: Government Response and Domestic Consumption - To mitigate the impact of U.S. tariffs, the Indian government reduced the goods and services tax (GST) on several items to boost domestic demand ahead of the festive season [4] - India's domestic consumption constitutes over 60% of GDP, making it less reliant on exports, and the GST cuts are expected to alleviate the effects of U.S. tariffs [5] - Goldman Sachs raised its real GDP growth forecast for India to 7.1% for calendar year 2025 and 6.7% for fiscal year 2026, following a better-than-expected GDP growth of 7.8% in the June quarter [5]

Core Insights - Vision Marine Technologies Inc. has announced a distribution agreement with Taiga Motors Inc. for exclusive dealership and service provision of electric personal watercraft in major Florida markets [1] Company Overview - Vision Marine Technologies Inc. is positioned at the forefront of high-voltage electric propulsion technology [1] - The company is supported by an award-winning retail network, enhancing its market presence [1] Agreement Details - The agreement with Taiga Motors Inc. represents a significant step beyond a traditional dealership model, indicating a strategic partnership aimed at expanding market reach [1]

Company Strategy & Performance - Malibu Boats, Inc(MBI) aims to be the premier recreational marine company, focusing on delivering the ultimate on-the-water experience through a "Build, Innovate, and Grow" strategy[22] - MBI's strategic priorities include product & quality leadership, continuous improvement, gaining market share, and growing margins to achieve profitable growth[25] - MBI's illustrative mid-cycle baseline revenue opportunity is $1.3 billion, with an adjusted EBITDA margin of 17.5% and adjusted FCF of $130 million[43] - MBI's illustrative mid-cycle + outperformance framework targets revenue of $1.5 billion, with an adjusted EBITDA margin of 20% and adjusted FCF of approximately $200 million[43] - MBI has demonstrated sustainable growth, with revenue increasing from $191 million in 2014 to $808 million in FY25[66] Segment Performance & Opportunities - Malibu/Axis segment FY25 revenue was $313 million, representing 39% of total MBI revenue, with adjusted EBITDA of $61 million[75] - Cobalt segment FY25 revenue was approximately $215 million, accounting for 27% of total MBI revenue, with adjusted EBITDA of $18 million[113] - Saltwater segment FY25 revenue was $280 million, contributing 35% of total MBI revenue, with adjusted EBITDA of $27 million[152] Financial Overview - In FY25, Malibu Boats reported net sales of $807561 million and adjusted EBITDA margin of 93%[240] - MBI's adjusted free cash flow for FY25 was $28877 million, with an adjusted free cash flow conversion of 386%[243]