Accessibility StatementSkip Navigation With Global 2026 Product Reveal, Dealer of the Year Recognitions and Responsible Rider Masterclass Launch for Dealers Product Key Takeaways BRP sustained its momentum in driving innovation with the launch of several industry-firsts and breakthrough, purposeful products. BRP is expanding its global electric powersports offering with the launch of the all-new 2026 Can-Am Outlander Electric. The electric all-terrain vehicle (ATV) is powered by the same in-house, modular ...

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 [20][4] - Normalized EBITDA was $213 million, and normalized EPS was $0.92, which included approximately $0.35 from tax credits recorded in the quarter [20][4] - Free cash flow from continuing operations reached $100 million, with over $270 million in cash at the end of the quarter, indicating a solid balance sheet [20][4] 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 [5][6] - Year-round product revenue increased by 13% to $1.1 billion, driven by higher ORV shipments following last year's inventory reduction plan [13] - Seasonal product revenues decreased by 13% to $470 million, mainly due to a planned reduction in personal watercraft shipments [16] Market Data and Key Metrics Changes - Retail in Latin America grew by 22%, led by strong performance in ORV, while Asia Pacific saw a 5% increase, marking the first growth in two years [6] - EMEA experienced a 13% decline in retail, consistent with industry trends [6] - The overall global industry trend showed slight improvement compared to previous quarters [7] Company Strategy and Development Direction - The company announced a definitive agreement for the sale of Manitou, expected to close soon, indicating strategic divestment [4] - The introduction of new products, including the new generation Can Am Defender and expanded electric vehicle offerings, is aimed at gaining market share [9][11] - The company is focused on operational efficiency and managing shipments to improve network inventory positions [19][22] 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 reception for new products [23][24] - The macroeconomic environment remains uncertain, but the company is well-positioned to capture demand upside when market conditions improve [23][24] - Management highlighted the importance of adapting to tariff situations and maintaining competitive pricing strategies [34][36] Other Important Information - The company is experiencing a 20% year-over-year reduction in network inventory, which is expected to enhance competitiveness and protect brand value [21][22] - The guidance for fiscal year 2026 includes revenues of $8.15 billion to $8.3 billion, normalized EBITDA of $1.04 billion to $1.09 billion, and normalized EPS of $4.25 to $4.75 [25][26] Q&A Session Summary Question: What are the tariff scenarios that you're contemplating? - Management indicated that they are closely monitoring the USMCA and are prepared to adapt to any regulatory changes [33][34] Question: Can you shed light on your plans to mitigate the tariff exposure? - The company is actively working on sourcing strategies and production adjustments to minimize tariff impacts [36][37] Question: What does the retail outlook look like for the second half? - Management expects retail to improve in the second half, particularly in ORV, as inventory levels are cleaner and new products are introduced [46][68] Question: How do you see the revenue profile outlook with the alignment of wholesale and retail? - Management noted that destocking has had a significant revenue impact, but they anticipate a recovery as inventory levels normalize [52][53] Question: What are the expectations for margins going forward? - The company expects to see margin improvements due to reduced promotional activity and better inventory management [60][61] Question: What are the factors driving the discrepancy in retail sales between Canada and the U.S.? - Management attributed the differences to macroeconomic conditions, including inflation and consumer confidence in the U.S. compared to Canada [110][112]

Core Insights - Massimo Group successfully participated in the Mid-States 2025 Rendezvous, which serves as a key platform for collaboration and strategy development [1][2][3] Company Overview - Massimo Group is a manufacturer and distributor of powersports products, including UTVs, ATVs, and mini bikes, dedicated to providing high-performance and reliable vehicles [5] Strategic Partnerships - The company has partnered with Mid-States for over six years, utilizing the annual show to strengthen relationships and discuss growth opportunities [2][3] Product Launches - At the event, Massimo introduced several upcoming product launches, including the HVAC Sentinel Series and the T-Boss 900L Crew UTV, aimed at expanding its product portfolio [3][4] Market Positioning - By leveraging its relationship with Mid-States and showcasing a robust pipeline of new products, Massimo is well positioned to capture market momentum in Q4 2025 [4]

Group 1 - The article is part of a series focusing on great and undercovered companies that are currently valued attractively [1] - It aims to provide in-depth analysis of business models, financials, and valuations of these companies [1] Group 2 - All financial figures discussed in the article are presented in Canadian dollars unless stated otherwise [1]

Core Insights - Polaris-supported racer Mitch Guthrie Jr. achieved victory in the UTV category at the 2025 Las Vegas to Reno race, finishing second overall among all four-wheeled vehicles, showcasing the performance of the RZR Pro R Factory [1][2][5] Performance Highlights - The race featured extreme conditions with temperatures exceeding 100°F and speeds over 110 mph across challenging terrains, including graded gravel roads and rugged mountains [2][3] - Guthrie's total race time was 8:19:14, narrowly defeating Can-Am's Cody Bradbury by a margin of 9 seconds, marking one of the closest finishes in recent history [2][4] Vehicle Performance - The RZR Pro R Factory demonstrated exceptional durability and performance, allowing Guthrie to navigate the demanding course confidently, which was highlighted by Polaris' Director of Off-Road Motorsports [3][5] - The vehicle effectively handled various challenging terrains, absorbing impacts while maintaining control, which contributed to Guthrie's ability to push through technical sections that hindered other competitors [5][6] Future Competitions - Following this victory, the Polaris RZR Factory Racing team is preparing for the Baja 400, aiming for a strong performance to secure a spot in the prestigious Baja 1000 [6]

Core Insights - Sea-Doo is enhancing customer experience through innovative technology and continuous product improvements aimed at fostering community engagement [1][2][3] Product Innovations - The 2026 Sea-Doo models will feature a 10.25'' Touchscreen Display with smart connectivity functions, enhancing user experience with driving stats, navigation, and music integration [2] - The Switch family of pontoon boats will now offer a 300 hp Rotax 1630 ACE engine and a 60% larger fuel tank for extended fun on the water [3] - New ergonomic features such as a tilting handlebar and depth finder access on the dash display will be available across all Switch models [3] Enhanced Features - The Switch Cruise and Sport models will include a new Tech Package with corner tables, speakers, and the 10.25'' Touchscreen Display for an improved on-water experience [4] - Rear corner doors on the Switch Cruise models will facilitate easier access to the swim platform, enhancing usability for families [5] - The introduction of a new Switch Fish Compact model with 170 hp will cater to fishing enthusiasts in a smaller package [6] Accessories and Customization - A variety of new accessories for the Sea-Doo Switch will enhance the on-water experience, including a BBQ Table, Pop-Up Changing Room, and a LinQ Rear Floating Mat Holder [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 [10]

Core Insights - The 2026 Can-Am Off-Road lineup introduces significant innovations, including the first full-size production electric ATV and advancements in existing models, emphasizing the company's commitment to enhancing rider experience [1][12] Electric ATV Innovations - 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 under optimal conditions [1] - It offers quick charging capabilities, reaching 20 to 80% in just 50 minutes using a Level 2 charger [1] - The model is designed for quiet operation, equipped with noise-reducing tires and a low-noise cooling system, making it suitable for outdoor enthusiasts [2] Utility and Performance - The Can-Am Outlander MAX 6x6 is engineered for tough terrains, featuring six-wheel traction and a robust chassis, making it the hardest-working ATV in the lineup [3] - The Outlander MAX 6x6 Backcountry 1000R is powered by a 999cc V-Twin Rotax engine, producing 101 horsepower and 69 lb-ft of torque, with advanced suspension for a smooth ride [4] Advanced Suspension Technology - Can-Am introduces a semi-active suspension system, Smart-Shox, for the Outlander XT-P and MAX Limited packages, which adjusts shock settings in real-time based on terrain [5][6] - The system offers multiple ride modes, enhancing versatility for various riding conditions [6] Rock-Crawling Capabilities - The 2026 Can-Am Maverick R X rc is designed for rock-crawling performance, featuring specialized gear and components for challenging terrains [7][8] - It includes industry-first features like 35-inch tires and protective components to enhance durability and performance [8][9] Enhanced Rider Experience - The Maverick X3 receives key refinements, including modernized LED lighting and a 10.25'' Touchscreen Display with built-in GPS, improving visibility and navigation [10][11] - New package offerings, such as the Maverick X3 X Turbo, provide premium features for enhanced performance on trails [11] 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 [13]

Company Expansion - Massimo Motor has obtained licensing to launch sales in Oregon and Arkansas, adding over 100 new retail locations [1][2] - The expansion is expected to significantly boost sales during the holiday season based on initial stocking and re-order trends [2] - CEO David Shan emphasized that this expansion strengthens retail presence and positions the company for sustained growth [2][3] Operational Enhancements - Massimo has made strategic enhancements to its global sourcing and logistics model, including expanded factory partnerships in Vietnam [2] - These improvements have led to reduced lead times, improved product flow, and increased operational flexibility [2] - The company is well-positioned to meet market needs during the peak sales cycle in Q3 and Q4 [3]

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]