REV Group (REVG) Q3 2025 Earnings Call September 03, 2025 10:00 AM ET Speaker0Greetings, and welcome to REV Group's Third Quarter Fiscal twenty twenty five Results Conference At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Mr. Drew Connip.Thank you. You may begin.Speaker1Good morning, and thanks for joining us. Earlier ...

FISCAL THIRD QUARTER 2025 RESULTS SEPTEMBER 3, 2025 CAUTIONARY STATEMENT & NON-GAAP MEASURES Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management believes that the evaluation of REV Group's ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and Return on Invested Capital, which are non-GAAP financial measures. Adjuste ...

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]

At the heart of the T-Boss 900L Crew is the proven 812cc Chery SQR372 DOHC 3-cylinder engine, delivering 39 kW (52 HP) at 6,000 RPM and 70 N•m of torque at 3,500–4,000 RPM. This liquid-cooled, fuel-injected powerhouse is an industry leader, offering: About Massimo Group (NASDAQ: MAMO) Massimo Group is a manufacturer and distributor of powersports products. Headquartered in Texas, the company offers a full lineup of UTVs, ATVs, and mini bikes built for outdoor adventure. Massimo Group is dedicated to providi ...

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].