BRP Inc (DOOO) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the BRP Inc.'s Fiscal Year '25 First Quarter Results Conference Call. (Operator Instructions)

早安，女士們，先生們。歡迎參加 BRP Inc. '25 財年第一季業績電話會議。（操作員說明）

And I would like to turn the meeting over to Mr. Philippe Deschenes. Please go ahead, Mr. Deschenes.

我想把會議交給菲利普·德舍尼斯先生。請繼續，德舍尼斯先生。

Thank you, Sylvie. Good morning, and welcome to BRP's conference call for the first quarter of fiscal year '25. Joining me this morning are Jose Boisjoli, President and Chief Executive Officer; and Sebastien Martel, Chief Financial Officer.

謝謝你，西爾維。早安，歡迎參加 BRP '25 財年第一季的電話會議。今天早上和我一起來的還有總裁兼執行長 Jose Boisjoli；和財務長塞巴斯蒂安·馬特爾。

Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the call and that the actual results could differ from those implied in these statements. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult BRP's MD&A for a complete list of these. Also during the call, reference will be made to supporting slides, and you can find the presentation on our website at brp.com under the Investor Relations section.

在我們開始準備發言之前，我想提醒大家，電話會議期間將做出某些前瞻性陳述，實際結果可能與這些陳述中暗示的結果有所不同。前瞻性資訊基於某些假設，並存在風險和不確定性，我邀請您諮詢 BRP 的 MD&A 以獲取完整的清單。此外，在電話會議期間，還將參考支援幻燈片，您可以在我們網站 brp.com 的投資者關係部分找到簡報。

So with that, I'll turn the call over to Jose.

因此，我會將電話轉給何塞。

Thank you, Philippe. Good morning, everyone, and thank you for joining us. The first quarter of fiscal '25 play out essentially in line with our plan. Financial results were as expected and reflect our focus on managing network inventory to support our dealers. From a retail standpoint, our product portfolio performed relatively well despite softer market conditions.

謝謝你，菲利普。大家早安，感謝您加入我們。25 財年第一季的情況基本上符合我們的計劃。財務表現符合預期，反映出我們專注於管理網路庫存以支援我們的經銷商。從零售角度來看，儘管市場狀況疲軟，我們的產品組合仍表現相對良好。

As the year continues to unfold, our dealers are very cautious with respect to inventory as uncertain economic condition and high interest rates are impacting them more than anticipated. Moreover, many OEMs are turning to more aggressive promotional activity, and dealer profitability is under pressure as they are selling at low margin to move inventory.

隨著這一年的繼續發展，我們的經銷商對庫存非常謹慎，因為不確定的經濟狀況和高利率對他們的影響超出預期。此外，許多原始設備製造商正在轉向更積極的促銷活動，經銷商的盈利能力面臨壓力，因為他們以低利潤銷售以轉移庫存。

On the marine side, the industry has been softer than expected since April, and dealers are taking a limited number of new book. As you know, we are -- we have always been close to our dealers and proactive in taking market conditions. Therefore, in light of the current context, we are adjusting our production to further reduce dealer inventory. This is reflected in our updated guidance.

海運方面，自4月以來，業界疲軟程度低於預期，經銷商新訂數量有限。如您所知，我們一直與經銷商保持密切聯繫，並積極主動地了解市場狀況。因此，針對當前情勢，我們正在調整生產，進一步減少經銷商庫存。這反映在我們更新的指南中。

Let's turn to Slide 4 for key financial highlights. Revenue reached $2 billion, normalized EBITDA was $247 million, and normalized EPS was $0.95, all as expected and consistent with our planned volume reduction. As for retail, our North American powersport sales were down 5%, in line with the industry with a solid performance in Year-Round Products, offset by softer trends in Seasonal Products, as you can see on Slide 5. In fact, our Year-Round Products retail was up 11% with solid growth and market share gains across all product lines. Meanwhile, Seasonal Products were down, reflecting a soft end of season for snowmobiles due to unfavorable winter conditions. Softer overall industry trend in Marine, which also impacted the Sea-Doo Switch and a difficult comparable for Personal Watercrafts as Q1 last year was unusually strong. Sales, while the industry was down mid-teens percent versus last year, it was up about 10% versus pre-COVID.

讓我們轉向幻燈片 4 了解主要財務亮點。收入達到 20 億美元，標準化 EBITDA 為 2.47 億美元，標準化 EPS 為 0.95 美元，一切都符合預期，並且與我們計劃的產量減少一致。至於零售，我們的北美動力運動銷售額下降了 5%，與全年產品的穩健表現與行業一致，但被季節性產品的疲軟趨勢所抵消，如幻燈片 5 所示。事實上，我們的全年產品零售量成長了 11%，所有產品線均實現穩健成長和市場佔有率成長。同時，季節性產品下降，反映出由於冬季條件不利，雪地摩托車的季節結束較疲軟。船舶產業整體產業趨勢疲軟，也影響了 Sea-Doo Switch 和個人船隻，因為去年第一季異常強勁。銷售額雖然與去年相比下降了百分之十左右，但與新冠疫情爆發前相比成長了約 10%。

In summary, despite more challenging market condition, we continue outpacing the industry across most product lines.

總之，儘管市場環境更具挑戰性，我們在大多數產品線上繼續領先於產業。

Turning to Slide 6 for an update on the Global Powersports market. First, looking at geographical region. Canada remained relatively strong with retail up 18% in the quarter, excluding snowmobiles. The U.S., however, is softer with retail down 4%, also excluding snowmobiles. Latin America is continuing to show strength with retail up 11%. EMEA and Asia-Pacific are still seeing softer demand, with retail down 13% and 2%, respectively. From a consumer preference standpoint, we continue to see more traction globally for premium vehicles. In the off-road category, trends are more positive in the utility segment compared to recreational products. One element that has evolved during the quarter is that many OEMs have been more aggressive with promotions and pricing. We expect this trend to continue throughout the year.

請參閱投影片 6，以了解全球 Powersports 市場的最新情況。首先，看地理區域。加拿大仍然相對強勁，本季零售業成長 18%（不包括雪地摩托車）。然而，美國的零售業表現較為疲軟，下降了 4%（也不包括雪地摩托車）。拉丁美洲持續展現強勁勢頭，零售額成長 11%。歐洲、中東和非洲和亞太地區的需求仍然疲軟，零售額分別下降 13% 和 2%。從消費者偏好的角度來看，我們持續看到全球高端汽車越來越受歡迎。在越野類別中，與休閒產品相比，公用事業領域的趨勢更為積極。本季發生的一個變化是，許多原始設備製造商在促銷和定價方面更加積極。我們預計這一趨勢將持續全年。

As I said earlier, our focus is on managing network inventory. In March, our objective was to reduce powersport shipments by 10% to 15% by the end of the year. Now with consumer remaining focus, a more competitive landscape, and the high cost of carrying inventory, dealer profitability is under pressure. Our revised plan calls for 15% to 20% reduction, and to accelerate depletion, we will limit Q2 shipments. In parallel for marine, we are also further reducing production until the end of the year. In addition, we are increasing promotional support for powersports and marine to accelerate inventory returns. Bottom line, we will support our dealers through this more challenging environment. This is a priority.

正如我之前所說，我們的重點是管理網路庫存。3 月份，我們的目標是到年底將動力運動版出貨量減少 10% 至 15%。現在，由於消費者仍然關注，競爭格局更加激烈，以及庫存成本高昂，經銷商的獲利能力面臨壓力。我們修改後的計畫要求減少 15% 至 20%，為了加速消耗，我們將限制第二季的出貨量。同時，在船舶方面，我們也在年底前進一步減少產量。此外，我們還加大了對動力運動和航海產品的促銷支持，以加快庫存回報。最重要的是，我們將支持我們的經銷商度過這個更具挑戰性的環境。這是一個優先事項。

Now let's turn to Slide 8 for a more detailed look at Year-Round Products. Revenue were down 13% to $1.2 billion, primarily due to reduced shipments. At retail, Can-Am Side-by-Side had its strongest Q1 ever. Retail was up low-teen percent, primarily driven by solid growth in the utility category and in premium model, notably the Defender CAB. We are pleased with the sustained momentum of our side-by-side lineup as our numbers of units retailed during the first quarter has nearly doubled compared to pre-COVID level.

現在讓我們轉向幻燈片 8，更詳細地了解全年產品。營收下降 13% 至 12 億美元，主要是因為出貨量減少。在零售方面，Can-Am Side by Side 的第一季表現最強。零售業成長了百分之十，主要是受到公用事業類別和高階車型（尤其是 Defender CAB）的強勁成長所推動。我們對並排產品線的持續成長勢頭感到高興，因為我們第一季的零售單位數量與新冠疫情爆發前的水平相比幾乎翻了一番。

ATV also had a solid quarter, reaching its highest quarterly market share ever, with retail up high-single-digit percentage. This performance was driven by the continued success of our new Outlander platform, which delivered market share gain in the mid-CC segment. Looking at 3-wheel vehicle, Can-Am is off to a good season start with retail up low-single-digits. These strong results are driven by the positive consumer reaction to the recent upgrades we made to our Spyder F3 and RT lineups.

ATV 的季度表現也很強勁，達到了有史以來最高的季度市場份額，零售額增長了高個位數百分比。這一業績得益於我們新的 Outlander 平台的持續成功，該平台在中階 CC 領域帶來了市場份額的成長。就三輪汽車而言，Can-Am 迎來了一個良好的季節開局，零售額實現低個位數增長。這些強勁的業績得益於消費者對我們最近對 Spyder F3 和 RT 系列進行的升級的積極反應。

Turning to Seasonal Products on Slide 9. Revenue were down 23% from last year to $535 million, primarily reflecting reduced shipments. Looking at our retail performance. In snowmobiles, we've closed the North American season on March 31, with retail down high-single-digits, once again outpacing the industry and further increasing our record high market share. We also ended the season with the #1 position in each segment in which we compete. In Scandinavia, the season had a late start, resulting in retail down low-teen percent, but we remain -- we maintain our industry-leading position with market share over 70%. The spectrum has demonstrated the strength of our Ski-Doo and Lynx brand.

轉向投影片 9 上的季節性產品。營收較去年下降 23% 至 5.35 億美元，主要反映了出貨量的減少。看看我們的零售業績。在雪地摩托車方面，我們已於 3 月 31 日結束了北美銷售季，零售額出現高個位數下降，再次超越行業，並進一步提高了我們創紀錄的高市場份額。我們還在參加比賽的每個細分市場中以第一名的成績結束了本賽季。在斯堪的納維亞半島，產季開始較晚，導致零售額下降了百分之十左右，但我們依然保持著行業領先地位，市場份額超過 70%。這張頻譜展示了我們 Ski-Doo 和 Lynx 品牌的實力。

Now looking at the upcoming season, we just completed our spring booking. While volume came in broadly in line with expectations, the mix is not as rich as anticipated.

現在展望即將到來的季節，我們剛剛完成了春季預訂。雖然成交量基本上符合預期，但組合併不像預期的那麼豐富。

Looking at Sea-Doo product, retail was down as we were facing a difficult comparable due to late shipments last year. However, from an historical perspective, retail is performing well with Sea-Doo up about 1% from a typical pre-COVID first quarter. As for the Sea-Doo Switch, it also faced the same dynamic as personal watercraft with late shipments in Q1 of last year, leading to a decrease in retail this year. Given softer trends in the marine industry, increased promotional activity and high level of dealer inventory, we are also taking a more cautious stance with our Sea-Doo Switch business. As such, we have decided to reduce our shipment for the balance of the year. However, we remain confident in the long-term prospects for this business, especially with new products in the pipeline for the coming years.

看看 Sea-Doo 產品，零售量下降，因為去年發貨延遲，我們面臨著難以比較的情況。然而，從歷史角度來看，零售業表現良好，Sea-Doo 較新冠疫情爆發前第一季的典型水平增長了約 1%。至於Sea-Doo Switch，也面臨與個人船隻相同的動態，去年第一季出貨較晚，導致今年零售量下降。鑑於船舶行業的疲軟趨勢、促銷活動的增加以及經銷商庫存的高水平，我們對 Sea-Doo Switch 業務也採取了更加謹慎的立場。因此，我們決定減少今年剩餘時間的出貨量。然而，我們對該業務的長期前景仍然充滿信心，尤其是未來幾年即將推出的新產品。

Moving to Slide 10 with Powersports Parts, Accessories and Apparel and OEM Engines. Revenue were up 1% to $289 million, driven by higher volume and favorable pricing, offset by higher sales program. From a product standpoint, our parts and accessory business for off-road continued to increase, driven by the growing fleet of vehicles in use and the positive retail momentum. However, unfavorable winter conditions negatively impacted sales of parts and accessories for snow-related product.

前往幻燈片 10，了解 Powersports 零件、配件以及服裝和 OEM 引擎。銷售成長和優惠價格推動營收成長 1%，達到 2.89 億美元，但銷售計畫增加所抵銷。從產品角度來看，在使用車輛數量不斷增加以及零售動能良好的推動下，我們的越野零件業務持續成長。然而，不利的冬季條件對雪相關產品的零件銷售產生了負面影響。

Moving to Marine. Revenue were down 58% to $50 million, driven by the lower volume of bulk shipments. Looking at retail sales, Alumacraft retail was up in the low-20%, while Manitou retail was about flat. Our retail increase in North America was the result of good presales at boardshorts. As for Quintrex, retail was down low-teen percent, in line with the industry trend. Although the marine industry has been challenging in recent quarter, this business is for us a long-term growth plan.

搬到海軍陸戰隊。由於大宗出貨量減少，營收下降 58% 至 5,000 萬美元。從零售額來看，Alumacraft 零售額成長了 20% 左右，而 Manitou 零售額基本上持平。我們在北美的零售量成長是由於短褲預售良好的結果。至於 Quintrex，零售業下降了百分之十幾，與產業趨勢一致。儘管海洋產業在最近一個季度面臨挑戰，但這項業務對我們來說是一個長期成長計畫。

With that, I turn the call over to Sebastien.

說完，我把電話轉給了賽巴斯蒂安。

Thank you, Jose, and good morning, everyone. Our first quarter results came in essentially in line with our expectations. Looking at the numbers. Revenues were down 16% to $2 billion, primarily due to lower shipments and higher sales program. We generated $480 million of gross profit, representing a margin of 23.6%, down 210 basis points from last year. This decline was primarily due to lower shipment volumes and higher sales program, partly offset by a richer mix of products, favorable pricing, and cost efficiencies. Note that an important margin headwind was related to our marine business as we significantly reduced shipments and introduced new promotions during the quarter. Meanwhile, our Powersports gross profit margin remained strong at 26.2%.

謝謝你，何塞，大家早安。我們第一季的業績基本上符合我們的預期。看看數字。收入下降 16% 至 20 億美元，主要是由於出貨量減少和銷售計劃增加所致。我們實現毛利 4.8 億美元，利潤率為 23.6%，比去年下降 210 個基點。這一下降主要是由於出貨量減少和銷售計劃增加造成的，但部分被更豐富的產品組合、優惠的定價和成本效率所抵消。請注意，重要的利潤逆風與我們的海運業務有關，因為我們在本季度大幅減少了發貨量並推出了新的促銷活動。同時，我們的 Powersports 毛利率仍保持在 26.2% 的強勁水平。

Continuing down the P&L. Our normalized EBITDA ended at $247 million, and our normalized earnings per share at $0.95. Free cash flow came in stronger than anticipated at $66 million, driven by tight management of CapEx and working capital. From a usage perspective, we continue to actively return capital to shareholders with a 17% increase in the quarterly dividend and through $47 million of share repurchases.

繼續降低損益表。我們的標準化 EBITDA 為 2.47 億美元，標準化每股收益為 0.95 美元。由於資本支出和營運資本的嚴格管理，自由現金流達到 6,600 萬美元，強於預期。從使用角度來看，我們繼續積極向股東返還資本，季度股息增加 17%，並透過 4,700 萬美元的股票回購。

Now for an update on our network inventory. Our dealers inventory ended the first quarter up 23% from last year. This increase was in line with our expectations as we faced a difficult comparison with last year's overall linear inventory levels. And we ended the snow season with more inventory due to the unfavorable winter we just experienced. Note that snowmobile accounted for 43% of the year-over-year increase. From Q4, we began making progress in rightsizing and improving the quality of our off-road inventory, which was down 6% sequentially, including more important reductions in noncurrent models and in categories that are experiencing softer retail trends. As for other product lines, the inventory evolved from Q4 levels following the traditional seasonal pattern with declines at the end of the season for snowmobiles and a buildup ahead of the core retail period for personal watercraft, Switch Pontoon and 3-wheel.

現在更新我們的網路庫存。截至第一季度，我們的經銷商庫存比去年增加了 23%。這一增長符合我們的預期，因為我們面臨著與去年整體線性庫存水準進行比較的困難。由於剛剛經歷了不利的冬季，我們以更多的庫存結束了雪季。請注意，雪地摩托車佔同比增長的 43%。從第四季開始，我們開始在調整規模和提高越野庫存品質方面取得進展，越野庫存環比下降了 6%，其中包括非當前車型和零售趨勢疲軟類別的更重要減少。至於其他產品線，庫存從第四季度的水平演變而來，遵循傳統的季節性模式，雪地摩托車的庫存在季節末下降，而個人船隻、Switch Pontoon 和三輪車的庫存在核心零售期之前增加。

Despite operating with better inventory turns versus pre-COVID, as Jose mentioned, the uncertain macroeconomic environment, higher interest rates, and increased competitive dynamics are putting pressure on dealer margins, making them more cautious about taking on more products. To support them, we decided to further reduce our network inventory compared to our initial guidance. Accordingly, we plan on limiting shipments in Q2 to accelerate the depletion process, which will continue throughout H2. Our objective is to gradually improve our overall inventory levels to reach a year-over-year reduction of 15% to 20% by the end of fiscal '25. While these actions are expected to impact our financial results, we strongly believe that supporting our dealers in this challenging operating environment for them is essential to ensure our long-term mutual success.

正如Jose 所提到的，儘管庫存週轉率比新冠疫情前更好，但不確定的宏觀經濟環境、較高的利率和日益激烈的競爭動態給經銷商的利潤帶來了壓力，使他們對購買更多產品更加謹慎。為了支持他們，我們決定與最初的指導相比進一步減少我們的網路庫存。因此，我們計劃限制第二季的出貨量，以加速耗盡過程，該過程將持續整個下半年。我們的目標是逐步提高整體庫存水平，並在 25 財年末實現年減 15% 至 20%。雖然這些行動預計會影響我們的財務業績，但我們堅信，在這個充滿挑戰的經營環境中為我們的經銷商提供支援對於確保我們長期共同成功至關重要。

With this in mind, let's turn to Slide 14 for an update on the guidance. We have adjusted our guidance to reflect the impact of the initiatives we have put in place to further support our dealers in the form of lower shipments and increased promotional support, the result of our spring booking for snowmobile, and the ongoing softer trends in marine. Accordingly, we now expect revenues to end between $8.6 billion and $8.9 billion with greater adjustments made to seasonal products in Marine. Considering the decrease in our top line, along with the benefit of additional efficiencies and cost reduction efforts, we now anticipate our normalized diluted EPS to end between $6 and $7. As you can appreciate, these expected results do not represent the true earnings power of the business as the onetime 15% to 20% expected reduction in inventory is impacting our revenues unfavorably by $575 million to $775 million this year.

考慮到這一點，讓我們轉向幻燈片 14 以了解指南的更新。我們調整了指導方針，以反映我們為進一步支持經銷商而採取的舉措的影響，包括減少出貨量和增加促銷支持、春季雪地摩托車預訂的結果以及海運業持續疲軟的趨勢。因此，隨著海洋產品季節性產品的更大調整，我們現在預計營收將在 86 億至 89 億美元之間。考慮到我們營收的下降，以及提高效率和降低成本努力的好處，我們現在預計正常化攤薄後每股收益將在 6 美元至 7 美元之間。正如您所理解的，這些預期結果並不代表業務的真實盈利能力，因為庫存預期減少 15% 至 20%，對我們今年的收入產生了 5.75 億美元至 7.75 億美元的不利影響。

From a cash perspective, we further optimized our CapEx plan by $25 million. This saving, combined with expected working capital improvements and lower tax outflows, still positions us to deliver approximately $750 million of free cash flow for the year. As such, we expect to have the financial flexibility to continue providing a strong return of capital to shareholders.

從現金角度來看，我們進一步優化了 2,500 萬美元的資本支出計畫。這種節省，加上預期的營運資本改善和稅收流出減少，仍然使我們能夠在今年提供約 7.5 億美元的自由現金流。因此，我們期望擁有財務靈活性，並繼續為股東提供強勁的資本回報。

Before turning the call over to Jose, I would like to provide further color on the adjustments we made to the guidance by taking a look at Slide 15. As you can see from the chart, about $1.65 of the adjustment in the guidance is coming from Powersports, notably driven by the additional measures we are taking to support our dealers in this challenging environment for them. As for Marine, we expect additional impact of about $0.50 versus last guidance. As a result, Marine is expected to represent a drag of more than $1.50 on our earnings for the year. To offset these, we have put in place additional efficiencies and cost reduction measures that are expected to generate an incremental $0.75 benefit for the year.

在將電話轉交給 Jose 之前，我想透過查看投影片 15 來進一步說明我們對指南所做的調整。從圖表中可以看出，指導調整中約 1.65 美元來自 Powersports，這主要是受到我們為支持經銷商應對這一充滿挑戰的環境而採取的額外措施的推動。至於海事，我們預計與上次指導相比會產生約 0.50 美元的額外影響。因此，Marine 預計將對我們今年的收益造成超過 1.50 美元的拖累。為了抵​​消這些影響，我們採取了額外的效率和成本削減措施，預計今年將帶來 0.75 美元的增量效益。

Looking ahead, as previously mentioned, our plan is to further limit shipments in Q2 in order to accelerate the network inventory depletion process for our dealers. Consequently, we expect revenues for the second quarter to be down high-single-digit and normalized EBITDA to be down about mid-20% from Q1 levels. Our results are then expected to improve in H2 with a return to growth over last year in Q4. Once again, fiscal '25 is expected to be a transition year from a financial standpoint as we focus on supporting our dealers. Filmed with our strong business fundamentals and continued focus on efficiency and innovation, we are well-positioned to sustain our long-term success.

展望未來，如前所述，我們的計劃是進一步限制第二季度的出貨量，以加速經銷商的網路庫存消耗過程。因此，我們預計第二季營收將出現高個位數下降，正常化 EBITDA 將較第一季水準下降約 20%。我們的業績預計將在下半年有所改善，並在第四季度恢復到去年的成長。從財務角度來看，25 財年預計將再次成為過渡年，因為我們專注於支援經銷商。憑藉我們強大的業務基礎以及對效率和創新的持續關注，我們有能力保持長期成功。

And on that, I'll turn the call over to Jose.

關於這一點，我會將電話轉給何塞。

Thank you, Sebastien. Over the short term, we are focused on protecting our dealer value proposition by managing network inventory and proactively adjusting our shipment. Looking beyond this correction year, we remain confident in our long-term strategy. Our agility is a significant advantage, and we have proven many times over that we are geared up to respond to evolving market conditions and continue to outperform the industry. We are managing the business to ensure continuing success, and we are committed to investing in the development of market-shaping product. And through BRP fashion, we'll keep on innovating to strengthen our leadership position in the powersports industry.

謝謝你，賽巴斯蒂安。短期內，我們的重點是透過管理網路庫存和主動調整我們的發貨來保護我們的經銷商價值主張。展望今年的調整之後，我們對我們的長期策略仍然充滿信心。我們的敏捷性是一個顯著的優勢，我們已經多次證明，我們已準備好應對不斷變化的市場條件，並繼續超越行業。我們管理業務以確保持續成功，並且我們致力於投資於市場塑造產品的開發。透過 BRP 時尚，我們將不斷創新，鞏固我們在動力運動產業的領導地位。

On that note, we look forward to hosting our dealer event in August, and you are invited to join us in Anaheim, California. As usual, we will introduce new technologies and products to bolster our lineups. We are also on plan to launch our promising new Can-Am electric motorcycle, which will allow us to enter a new industry. I thank all our employees for their hard work and dedication. Their capacity to adapt to changing market dynamics enable us to continue to succeed in a challenging context. I also acknowledge our dealers for supporting our lineups and for their confidence in our ability to provide them with a superior value proposition.

有鑑於此，我們期待在八月舉辦我們的經銷商活動，並邀請您參加在加州阿納海姆舉行的活動。像往常一樣，我們將推出新技術和產品來充實我們的產品陣容。我們還計劃推出前景光明的新型 Can-Am 電動摩托車，這將使我們能夠進入一個新行業。我感謝我們所有員工的辛勤工作和奉獻精神。他們適應不斷變化的市場動態的能力使我們能夠在充滿挑戰的環境中繼續取得成功。我還要感謝我們的經銷商對我們產品線的支持，以及他們對我們為他們提供卓越價值主張的能力的信心。

On that note, I turn the call over to the operator for questions.

就此而言，我將電話轉給接線員詢問問題。

(Operator Instructions) And your first question will be from Craig Kennison at Baird.

（操作員說明）您的第一個問題將來自貝爾德 (Baird) 的克雷格·肯尼森 (Craig Kennison)。

You talked about inventory. I'm wondering if you could share with us the percentage of your powersports inventory that is noncurrent.

你談到了庫存。我想知道您是否可以與我們分享您的非流動動力運動庫存的百分比。

Obviously, the noncurrent inventory is a subject that we've heard quite a bit about, and we're actually -- when I look at the overall retail numbers for the first quarter, about 65% of the total retail that we did was current inventory. So we're actually in a very good position from an inventory point of view. And that's pretty much in line with the industry as well where they were trending in that percentage as well. The inventory that we have is, let's say, noncurrent model year '23, less than 1% of the total inventory that we have is model year '23 and over. So what we have left is model year '24, and that is relatively clean, and the rest is current inventory. And as I mentioned, for Q1, 65% of the retail was current inventory. So that's an indication of how healthy it is.

顯然，非流動庫存是我們經常聽說的一個主題，實際上，當我查看第一季的整體零售數據時，我們的零售總額中約有 65% 是流動庫存存貨。因此，從庫存角度來看，我們實際上處於非常有利的位置。這與行業以及該百分比的趨勢非常一致。比方說，我們擁有的庫存是非當前車型 '23 年的庫存，不到我們擁有的總庫存的 1% 是車型年 '23 及以上的。所以我們剩下的是 24 年款，相對乾淨，其餘的是當前庫存。正如我所提到的，第一季度，65% 的零售是當前庫存。這表明它的健康程度。

Next question will be from James Hardiman at Citi.

下一個問題將由花旗銀行的詹姆斯哈迪曼提出。

So on the last call, I thought it was really helpful sort of your view as we look through some of the noise. I think you said something along the lines of it felt like from an underlying earnings power perspective, more of an [11.50]-type year in terms of earnings. And once we add back some of those, if you want to call them, onetime-ish cost, I guess, a couple of months later, the guidance is down another $1.25. I guess maybe if you could take us through a similar exercise, does this still feel like an 11.50-type year once we sort of get past some of these onetime-ish costs?

因此，在上次通話中，我認為當我們審視一些噪音時，您的觀點確實很有幫助。我認為你說了類似的話，從潛在盈利能力的角度來看，就盈利而言，更像是[11.50]類型的一年。一旦我們加回其中一些，如果你想稱它們為一次性成本，我猜，幾個月後，指導價又下降了 1.25 美元。我想也許如果你能帶我們進行類似的練習，一旦我們克服了一些一次性成本，今年是否仍然感覺像 11.50 類型的一年？

Yes. First, I will just give you high level what has changed since March. And I would like to put things in perspective to start with. The inventory in unit is up 36% pre-COVID, but our retail is up 50% versus pre-COVID. Then our turn of inventory is better than pre-COVID. And we're fully aware that the increased value of the units have changed. There is a new product line that which size of the product has got bigger. And obviously, the cost of carrying an inventory is putting pressure on dealer to move product and retail and the retail at a low margin.

是的。首先，我將簡單介紹一下自 3 月以來發生的變化。我想先正確看待事情。單位庫存在新冠疫情爆發前增加了 36%，但我們的零售量比新冠疫情爆發前增加了 50%。那麼我們的庫存週轉情況就比新冠疫情之前好。我們充分意識到單位的增加價值已經改變了。有一個新的產品線，產品尺寸更大。顯然，庫存成本給經銷商帶來了壓力，迫使他們以低利潤轉移產品和零售。

What has changed since that guidance is the high level of snowmobile that is confirmed, the softer trend in Marine, and the U.S. market that is softer for the first time in a while. Then if you combine all this to the macroeconomic context, the competitive landscape and the high interest rate, all -- this is a lot at the same time. And we were aware of those element and it's no surprise to us. But to be honest, we have not anticipated how dealer react to the accumulation of those factors. And this is why we decided to reduce inventory by an additional 5% now up to 15% to 20% by the end of the year. We will also limit shipment of seasonal products outside of the core retail season. And we are investing in more promotion support to move inventory faster.

自從該指導意見發布以來，發生的變化是雪地摩托車的高水準得到確認，海洋領域的疲軟趨勢以及美國市場一段時間以來首次變得疲軟。然後，如果你將所有這些與宏觀經濟背景、競爭格局和高利率結合起來，所有這些都是同時發生的。我們意識到了這些因素，這對我們來說並不奇怪。但說實話，我們並沒有預料到經銷商對這些因素的累積會做出怎樣的反應。這就是為什麼我們決定在今年年底前將庫存再減少 5%，達到 15% 至 20%。我們還將限制核心零售季節以外的季節性產品的出貨。我們正在投資更多促銷支持，以更快轉移庫存。

Then all of this is obviously impacting the financial performance. And you can be sure that we don't like having to reduce our guidance just 1 quarter into the year. But again, we believe it's essential that we protect our value proposition with the dealer and it's the right thing to do for the long-term success of the business.

那麼所有這些顯然都會影響財務表現。您可以肯定，我們不喜歡在今年僅一個季度就降低我們的指導。但我們再次相信，保護我們與經銷商的價值主張至關重要，這對業務的長期成功來說是正確的做法。

Yes. If I give you a bit of color to this year, and it is, in fact, a transition year, and we do have a few headwinds that you mentioned that will turn into positives in the near future. And I would bucket them into 3 categories. Obviously, the first one is the impact of the snow season where we're reducing deliveries and being more promotional this year. The other element is the Marine business, which I highlighted this morning. It's a drag on earnings of $1.50, and obviously, that's unacceptable, and we're obviously going to work to fix that.

是的。如果我給你一些今年的色彩，事實上，這是一個過渡年，我們確實遇到了你提到的一些逆風，這些逆風將在不久的將來變成積極的。我將它們分為三類。顯然，第一個是雪季的影響，今年我們減少了交貨量並加大了促銷。另一個要素是海洋業務，我今天早上強調了這一點。這會拖累 1.50 美元的收入，顯然這是不可接受的，我們顯然會努力解決這個問題。

And the other element is the onetime element of reducing inventory. Inventory turns are better than pre-COVID. Jose gave you some color on the retail versus the inventory. So the inventory is in a healthy situation because of the higher interest rates. Obviously, dealers are more cautious on taking on inventory. But that 15% to 20% inventory reduction is a drag to revenue, as I mentioned, of $575 million to $775 million. So when I package all of these 3 elements together is there like a $3 to $4 of EPS that will come back to our earnings post fiscal year '25. Yes. Does it all happen next year? Obviously, we're going to certainly work to make sure that we crystallize that as quickly as possible. But obviously, these onetime headwinds are certainly impacting our financials this year, and on a normalized basis, the earnings potential of BRP is much higher than what we're presenting as a guidance this morning.

另一個因素是減少庫存的一次性因素。庫存週轉率優於新冠疫情之前。何塞為您提供了一些有關零售與庫存的資訊。因此，由於利率較高，庫存處於健康狀況。顯然，經銷商對於庫存的去庫存更加謹慎。但正如我所提到的，庫存減少 15% 至 20% 會拖累收入 5.75 億至 7.75 億美元。因此，當我將所有這 3 個要素打包在一起時，大約 3 到 4 美元的每股盈餘將回到我們 25 財年後的收益。是的。這一切都會發生在明年嗎？顯然，我們肯定會努力確保盡快具體化這一點。但顯然，這些一次性的逆風肯定會影響我們今年的財務狀況，並且在正常化的基礎上，BRP 的獲利潛力遠高於我們今天早上提出的指導。

Got it. That's really helpful. And then maybe as a follow-up, I mean, you noted a couple of times about limiting inventory carrying costs and wanting to protect dealer profitability, and I think implied there is that it's at the expense of your own profitability in a lot of cases. So this sounds like somewhat of a sort of a goodwill play, right, that dealers will appreciate the support that you're giving them. I guess maybe speak to what you're seeing in the broader industry, and if there's broader sort of industry support to protect the dealers? And ultimately, do you get that back, right? Does that goodwill, as we look forward, benefit you in some tangible way or some financial benefit?

知道了。這真的很有幫助。然後，也許作為後續行動，我的意思是，您多次提到限制庫存持有成本並希望保護經銷商的盈利能力，我認為這暗示在很多情況下這是以犧牲您自己的盈利能力為代價的。所以這聽起來有點像是善意的遊戲，對吧，經銷商會感謝你給予他們的支持。我想也許可以談談您在更廣泛的行業中看到的情況，以及是否有更廣泛的行業支持來保護經銷商？最終，你會得到回報嗎？正如我們所期望的那樣，這種善意是否會以某種切實的方式或某種經濟利益使您受益？

Then maybe just to add, over the years, we are the OEM who invests the most in R&D and in CapEx. And we're pushing to gain market share in all the product category, and we proved that over the last few years. And we always say to our dealers, you can expect from us that it will push for market share because we're investing more than the competition, and we deserve -- with the product innovation and the investment, we deserve to gain market share. But you can count on us that if there is a hiccup, we will support you. And this has been our speech for the last 20 years with the dealers. And here, we are in a situation where we are after the COVID bubble and we want to make sure that we support our dealers. And we are sure that it's the right thing to do for the long term of the business.

然後也許只是補充一下，多年來，我們是在研發和資本支出方面投資最多的 OEM。我們正在努力爭取所有產品類別的市場份額，過去幾年我們證明了這一點。我們總是對我們的經銷商說，你可以期望我們會推動市場份額，因為我們的投資比競爭對手更多，而且我們值得——透過產品創新和投資，我們值得獲得市場份額。但您可以信賴我們，如果有問題，我們會為您提供支援。這是我們過去20年來對經銷商的演講。在這裡，我們正處於新冠泡沫之後的情況，我們希望確保我們支持我們的經銷商。我們確信，從長遠來看，這是正確的做法。

Next question will be from Jonathan Goldman at Scotiabank.

下一個問題將由豐業銀行的喬納森·戈德曼提出。

Maybe to start off, Jose, you did discuss this in your prepared remarks, but could you discuss specifically how the competitive environment has changed since Q4? And relatedly, what gives you confidence that the additional actions you've taken to rightsize production will be sufficient and that competitive intensity won't accelerate through the year?

何塞，也許首先您在準備好的發言中確實討論了這一點，但是您能否具體討論自第四季度以來競爭環境發生了怎樣的變化？與此相關的是，是什麼讓您相信您為調整生產規模而採取的額外行動將是足夠的，並且競爭強度不會在這一年中加劇？

Yes. First, like we said, there is more promotional activity and also some OEM have reduced their pricing on the new model, and this is putting pressure. And some OEM are still pushing the dealer to take more. Then -- and you can't say if this will play in your favor or not, but I would like to remind you the dynamic for multiline leaders, then we convinced that reducing inventory will increase inventory turnover and reduce the floor plan costs. And for a multiline dealer, they have a credit line for each OEM. It's not one credit line for all the OEM. Each OEM brings its financial partners. And by reducing our inventory, it does not mean that the other will fill the credit line.

是的。首先，正如我們所說，促銷活動增多，而且一些 OEM 降低了新車型的定價，這帶來了壓力。而一些整車廠仍在催促經銷商採取更多措施。然後——你不能說這是否對你有利，但我想提醒你多線領導者的動態，然後我們相信減少庫存將增加庫存週轉率並降低平面圖成本。對於多線經銷商來說，他們對每個 OEM 都有信用額度。這並不是為所有 OEM 提供的一項信用額度。每個 OEM 都會帶來其金融合作夥伴。而且我們減少庫存，並不代表對方會填補信用額度。

Then the other thing that is different versus other OEMs, we are more than an ORV business. We are the leader with high market share in watercraft and snow. And we'll make sure that we're reducing shipment that will help the dealer and will shift closer to the retail peak of those big product lines for us. Then overall, and you could see some market share play from month-to-month depending on the action of the other OEM and the sales program and the dynamic in the industry. But for this year, we're still planning to gain share in ORV and maintain our leadership position in watercraft and snow. And again, we convinced it's the right thing to do.

與其他原始設備製造商不同的是，我們不僅僅是一家 ORV 企業。我們是船舶和雪地領域的領導者，擁有很高的市場份額。我們將確保減少出貨量，這將有助於經銷商，並使我們的大型產品線更接近零售高峰。總體而言，您可以看到每月的市場份額有所變化，具體取決於其他 OEM 的行動、銷售計劃以及行業動態。但今年，我們仍計劃擴大 ORV 市場份額，並保持我們在船隻和雪地領域的領導地位。我們再一次確信這是正確的做法。

I appreciate those comments. That's very helpful. And I guess a follow-up then. Do you have any visibility, or do you have a sense of how much excess inventory is in the industry generally related to current demand levels?

我很欣賞這些評論。這非常有幫助。我想接下來會有後續行動。您是否有任何可見性，或者您是否了解行業中的過剩庫存量通常與當前需求水準相關？

Well, as Jose mentioned, I mean, our inventory levels are healthy. Our turns are better than pre-COVID. I don't think it's a question of having way too much inventory. It's much more a question of higher interest rates, the current macro environment, the marine business that is softer. And that's making dealers more hesitant on taking more inventory for the fear of having that huge floor plan interest expense that they have to pay. And again, the floor plan cost for dealers is in the -- probably in the 13% to 14% range. And so it is quite expensive. And in a context where dealers are more cautious on inventory, means they're more discounting, hence, making less profits. And when you add that floor plan costs, it obviously puts more pressure on their profitability.

嗯，正如何塞所提到的，我的意思是，我們的庫存水準是健康的。我們的輪次比新冠疫情前好。我不認為這是庫存過多的問題。這更多的是一個更高的利率、當前的宏觀環境、以及疲軟的海運業務的問題。這使得經銷商在增加庫存方面更加猶豫，因為他們擔心必須支付巨額的平面圖利息費用。再說一次，經銷商的平面圖成本可能在 13% 到 14% 的範圍內。所以它是相當昂貴的。在經銷商對庫存更加謹慎的情況下，意味著他們會進行更多折扣，因此利潤會減少。當你加上平面圖成本時，顯然會給他們的獲利能力帶來更大的壓力。

So it's not a question of having too much inventory, it's more a question of dealers being more cautious given the current context. And again, us as OEMs, we have that ability of reducing our deliveries in order to give them a bit more breathing room.

所以這不是庫存過多的問題，而是經銷商在當前環境下更謹慎的問題。再說一遍，作為原始設備製造商，我們有能力減少交付量，以便給他們更多的喘息空間。

Next question will be from Joe Altobello at Raymond James.

下一個問題將來自 Raymond James 的 Joe Altobello。

I guess, first question sort of broadly, has your North America powersports industry retail outlook has changed at all? I think last quarter, you were talking about industry down low-single-digits.

我想，第一個問題大致上是，您的北美動力運動產業零售前景是否改變了？我認為上個季度，您談論的是行業低個位數下降。

We've done a few tweaks to the outlook, especially on the seasonal side. And that's where we've adjusted the guidance more for seasonal on Sea-Doo Switch on the Sea-Doo Watercraft. But overall, pretty much in line with what we had versus last guidance. And one good indication of this is that we've maintained our P&A guidance equal to what it was previously, because retail is a big driver of the P&A business. So overall, no big changes other than the seasonal business.

我們對前景進行了一些調整，特別是在季節性方面。這就是我們對 Sea-Doo 船上 Sea-Doo Switch 的季節性指南進行了更多調整的地方。但總體而言，與我們上次的指導意見基本一致。一個很好的跡像是，我們將 P&A 指導維持在與之前相同的水平，因為零售是 P&A 業務的一大推動力。總體而言，除了季節性業務外，沒有重大的變化。

Okay. And just to follow up on that. The increased promotional activity and support that you cited in powersports, is that across the board, or is it concentrated in particular product categories? And how does that compare maybe with the competition? Are you guys generally more or less promotional than other players?

好的。只是為了跟進。您提到的動力運動領域增加的促銷活動和支援是全面的，還是集中在特定的產品類別？與競爭對手相比如何？你們的促銷活動通常比其他玩家多還是少？

It varies by product category. Obviously, for snowmobile, everyone has been more promotional because everyone ended with more inventory. We are in a relatively good position when you look at our market share versus the inventory that's remaining. What we've seen as well is that OEM has introduced new models with price reduction. And so that's a new phenomena that we're seeing. But overall, yes, the industry is more promotional. Dealers are more promotional as well. And OEMs are more promotional because they see that dealers are hesitant to take on inventory, and therefore, offer higher wholesale incentives or even retail incentives as well, so...

它因產品類別而異。顯然，對於雪地摩托車，每個人都進行了更多促銷，因為每個人最終都獲得了更多庫存。當你看到我們的市佔率與剩餘庫存時，我們處於相對有利的位置。我們還看到，OEM 推出了降價的新車型。這就是我們看到的一個新現象。但總體而言，是的，這個行業更具促銷性。經銷商的促銷力道也更大。OEM 廠商的促銷力道更大，因為他們看到經銷商對庫存猶豫不決，因此提供更高的批發激勵甚至零售激勵，所以…

I guess just in terms of our vehicles though, are you seeing it in that space as well?

我想就我們的車輛而言，您也在那個空間中看到它嗎？

The promotional, yes, it's in that space as well for ORV. And marine, I would say, if I -- the pure traditional marine business is significantly more promotional than the powersports industry.

是的，ORV 也有促銷活動。至於航海業，我想說的是，純粹的傳統航海業比動力運動產業更具促銷性。

Next question will be from Cameron Doerksen of National Bank Financial.

下一個問題將由國家銀行金融部門的卡梅倫·多爾克森（Cameron Doerksen）提出。

Just wanted to ask about Marine. I mean, obviously, it's difficult to predict when that market will start to rebound. But just wondering what actions you can take if we don't get a return to more healthy market conditions. I mean, obviously, you mentioned the $1.50 drag on EPS. But is there something you can do to try to make that business more profitable even if we don't get a significant rebound in underlying demand?

只是想問海軍的事。我的意思是，顯然，很難預測市場何時會開始反彈。但只是想知道如果我們不能恢復到更健康的市場狀況，您可以採取什麼行動。我的意思是，顯然，您提到了每股收益 1.50 美元的拖累。但是，即使我們的潛在需求沒有顯著反彈，您是否可以採取一些措施來提高該業務的盈利能力？

Obviously, it's not the start that we were planning and when we were up and running, we were ready and up to run. The industry softened more promotional activity, and this season, dealers are very hesitant to take inventory. And it's a difficult environment, and obviously nobody could plan that. What I would say is right now, what we have done, we have reduced to a minimum our production between now and the end of the year for both Alumacraft, Manitou and Switch.

顯然，這不是我們計劃的開始，當我們啟動並運行時，我們已經準備好運行。業界促銷活動趨於疲軟，本季經銷商對庫存非常猶豫。這是一個困難的環境，顯然沒有人可以計劃這一點。我想說的是，從現在到今年年底，我們已經將 Alumacraft、Manitou 和 Switch 的產量降至最低。

In Australia, Quintrex is in line with the industry and the reduction is lighter. But basically, we reduced production to a minimum and now we're working to deplete the inventory of the dealer, then you can expect minimum production of model year '25, and we will restart in '26 with more normal volume. Then this is a transition year. We need to go to that bubble of inventory. Early in the year, we were thinking that it would be a 1-year correction. It might take to the industry, not [slower] a bit more than 1 year, maybe 18 months to correct this bubble of inventory. Obviously -- and obviously, every business in our portfolio needs to contribute and Marine is no different. And we believe we have the right strategy. We just need to go through this industry normalization or the inventory normalization.

在澳大利亞，Quintrex與業界一致，降幅較輕。但基本上，我們將產量減少到最低限度，現在我們正在努力耗盡經銷商的庫存，然後您可以預期 25 年車型的最低產量，我們將在 26 年以更正常的產量重新啟動。那麼今年就是一個過渡年。我們需要消除庫存泡沫。今年年初，我們認為這將是一年的調整。該行業可能需要（不慢）1年多一點，也許18個月的時間來糾正這種庫存泡沫。顯然，我們投資組合中的每項業務都需要做出貢獻，海洋也不例外。我們相信我們有正確的戰略。我們只需要經歷這個行業正常化或庫存正常化。

Okay. No, that's helpful. And as obviously, you've reduced your workforce, I think, for some of the Marine segments, but is this going to represent a challenge when you do restart production? I mean, obviously, there's a fair bit of, I guess, skilled labor required and I think production efficiencies have been somewhat of a challenge as it is. Just wondering how you sort of manage that re-ramp once it does come?

好的。不，這很有幫助。顯然，我認為，你們已經減少了某些海洋部門的勞動力，但是當你們重新開始生產時，這是否會構成挑戰？我的意思是，顯然，我認為需要相當多的熟練勞動力，而且我認為生產效率在某種程度上是一個挑戰。只是想知道一旦重新調整到來，你如何管理它？

No, you're totally right. There is a lot in those sector we didn't know how, and we did make sure that we keep the right level of people to be able to ramp up when things get better.

不，你完全正確。這些領域有很多我們不知道如何做的事情，但我們確實確保保留了適當的人員水平，以便在情況好轉時能夠增加人員。

Next question will be from Mark Petrie at CIBC.

下一個問題將由 CIBC 的 Mark Petrie 提出。

Mostly, I just wanted to follow up on a couple of the topics you've hit on. I guess just specifically, the guided decline for Q2 would imply that the second half EBITDA will actually be modestly higher than what you had previously guided to, I think. And just hoping you can help square that up. Is that mostly sort of unchanged revenue and gross margin, but just lower costs and that's tied to the cost reductions you've put in place? Or can you just clarify that, please?

大多數情況下，我只是想跟進您提到的幾個主題。我想具體來說，第二季度的指導下降意味著下半年的 EBITDA 實際上將略高於您之前的指導，我認為。只是希望你能幫助解決這個問題。收入和毛利率基本上沒有變化，只是成本降低了，這與您實施的成本削減措施有關嗎？或者你能澄清一下嗎？

Yes, it's a combination of elements. We're taking a harder adjustment on the volume deliveries in the second quarter. Some of these units will be delivered in the third quarter. But in order to give an immediate relief to the dealers from an inventory point of view, that's why we decided to reduce shipments significantly. So we'll be shipping some of the snowmobiles that were initially planned in the second quarter, in the third quarter, closer to retail season as well.

是的，它是元素的組合。我們將對第二季的交付量進行更嚴格的調整。其中一些單位將於第三季交付。但為了從庫存角度立即緩解經銷商的壓力，這就是我們決定大幅減少出貨量的原因。因此，我們將在第二季和第三季（也接近零售季節）運送一些最初計劃的雪地摩托車。

And also, yes, obviously, as you saw in the bridge, we're driving higher cost efficiencies, which are going to pay off in the second half of the year, helping the overall EBITDA and EBITDA margin as well.

而且，是的，顯然，正如您在橋樑中看到的那樣，我們正在推動更高的成本效率，這將在今年下半年得到回報，也有助於整體 EBITDA 和 EBITDA 利潤率的提高。

Yes. Okay. And could you just elaborate on the actions you took with regards to the cost structure and that $0.75. I mean, you alluded to that being mostly in Marine, but any color would be helpful. And do you think of those as permanent cost reductions and efficiencies or mostly temporary?

是的。好的。您能否詳細說明您在成本結構和 0.75 美元方面採取的行動。我的意思是，你提到主要是海軍陸戰隊的，但任何顏色都會有幫助。您認為這些是永久性的成本降低和效率提高還是主要是暫時的？

Some of it are permanent, some of it are temporary. I'd say the reductions we've had probably split. Half is variable compensation given the lower profitability, and the other half is efficiency, [yield]. Obviously, over the last 4 or 5 years, our business has grown significantly and the operations team have been hyper-focused on adding capacity and producing units in challenging COVID times. And sometimes we were producing these units at any cost.

有些是永久的，有些是暫時的。我想說的是，我們的削減可能是分開的。考慮到獲利能力較低，一半是可變薪酬，另一半是效率，[屈服]。顯然，在過去的四、五年裡，我們的業務取得了顯著成長，營運團隊一直高度關注在充滿挑戰的新冠疫情時期增加產能和生產單位。有時我們不惜一切代價生產這些裝置。

Now, obviously with reduced volumes, the teams are able to rethink the way they operate, reassess deficiencies in the plant. And we're actually getting a lot of savings coming from a greater focus from our teams on driving lean practices in our business, which as you see, is helping compensate some of the headwinds we have this year.

現在，顯然隨著產量的減少，團隊能夠重新思考他們的運作方式，重新評估工廠的缺陷。實際上，我們的團隊更加專注於推動業務中的精益實踐，從而節省了大量成本，正如您所看到的，這有助於彌補我們今年遇到的一些不利因素。

Okay. And so it's fair to say that... Sorry, go ahead. Go ahead.

好的。所以可以公平地說......抱歉，請繼續。前進。

That will be permanent, Mark. Yes.

這將是永久的，馬克。是的。

Yes. Yes. Understood. But I guess just to clarify, so that half of the $0.75, which you're calling efficiency, most of that would actually be outside of Marine, it sounds like?

是的。是的。明白了。但我想只是為了澄清一下，所以 0.75 美元的一半，也就是你所說的效率，其中大部分實際上是在海軍陸戰隊之外，聽起來像？

Yes. Yes.

是的。是的。

Next question will be from Fred Wightman at Wolfe Research.

下一個問題將來自沃爾夫研究中心的弗雷德懷特曼。

I just wanted to come back to the promotional outlook, and you did talk about some incremental promos in Powersports and Marine. And I think in the past, you talked about still being a little bit below pre-COVID levels. So can you sort of level set where that current expectation would put you? Are you going to be higher than sort of normal pre-COVID levels for this year?

我只想回到促銷前景，您確實談到了 Powersports 和 Marine 中的一些增量促銷。我想在過去，您談到仍略低於新冠疫情前的水平。那麼，您能否設定當前期望的水平？今年你的體溫會高於新冠疫情前的正常水平嗎？

Yes. Currently, the -- when I look at the forecast, they were pretty much in line. I'm looking at the Powersports business, we're in line with where we were pre-COVID. That is in a context where interest rates are higher and any retail financing promotions are more expensive as well. So from a, call it, as a percentage of revenue basis, we're pretty much in line with where we were pre-COVID.

是的。目前，當我查看預測時，它們幾乎是一致的。我正在關注 Powersports 業務，我們的情況與新冠疫情之前的情況一致。這是在利率較高且任何零售融資促銷活動也更昂貴的背景下進行的。因此，從佔收入的百分比來看，我們與新冠疫情爆發前的情況基本一致。

Okay. That makes sense. And when you take a step back, and you talked about interest rate headwinds. Retail has been mixed across different categories, like what gets dealers comfortable ordering again? Do you need to see a pickup in retail? Is it really just a matter of a couple of rate cuts lowering these floor plan rates? What is sort of the big catalyst that gets people comfortable going forward?

好的。這就說得通了。當你退後一步時，你談到了利率逆風。不同類別的零售業混雜在一起，例如是什麼讓經銷商再次放心訂購？您需要在零售店上門取貨嗎？這真的只是幾次降息就能降低這些平面圖費率的問題嗎？讓人們安心前進的重要催化劑是什麼？

Well certainly, I mean, financing is probably, let's say, 500 basis points higher for them versus pre-COVID, so it's obviously a big dent in the profitability. And so, if we were to see rate cuts happening, who knows when, that would certainly provide more comfort for the dealers and their appetite to take on more inventory. Certainly, that's something that is going to help.

當然，我的意思是，與新冠疫情之前相比，他們的融資可能高出 500 個基點，因此這顯然對盈利能力造成了很大影響。因此，如果我們看到降息發生，誰知道什麼時候發生，這肯定會給經銷商帶來更多安慰，也會讓他們有更多庫存的胃口。當然，這會有所幫助。

Next question will be from Benoit Poirier at Desjardins Capital Markets.

下一個問題將由 Desjardins Capital Markets 的 Benoit Poirier 提出。

Just looking back at Marine, obviously, you provide great color about the weather, the promotional activity. We know there has been sizable investment with the stealth technology. So any more color? What -- how would you qualify the market acceptance of your new stealth technology? And any change in the strategy for Marine going forward? I'm just trying to know how committed are you to this segment given the contribution right now.

回顧 Marine，顯然，你們提供了有關天氣和促銷活動的精彩色彩。我們知道隱形技術已經投入了大量資金。那麼還有什麼顏色嗎？什麼－你如何評價你的新隱形技術的市場接受度？海軍陸戰隊未來的戰略有什麼改變嗎？我只是想知道考慮到您現在的貢獻，您對這個細分市場的投入程度如何。

Benoit, so far -- and again, the product have not been there long, but so far, what we call the MAX Deck. And the MAX Deck is the platform extension in the back of the boat. You're gaining 4 feet or 6 feet depending if a single or dual engine. This is a big value for the consumers. And this is only feasible if you have the Rotax stealth engine package.

Benoit，到目前為止——再說一遍，該產品出現的時間並不長，但到目前為止，我們稱之為 MAX Deck。MAX Deck 是船後部的平台延伸部分。您將獲得 4 英尺或 6 英尺的高度，具體取決於是單引擎還是雙引擎。這對消費者來說是一個很大的價值。只有擁有 Rotax 隱形引擎套件，這才可行。

So far, we have Manitou, it's available with MAX Deck, Alumacraft is coming with their model right now. And this is basically what we were betting for when we developed this new technology, and this is so far well received by the consumers. Obviously, like I said in my remarks, the timing to introduce those new boats with this feature is not ideal, but we need to first deplete inventory and be patient with the strategy.

到目前為止，我們有 Manitou，它可以與 MAX Deck 一起使用，Alumacraft 現在也可以使用他們的模型。這基本上就是我們在開發這項新技術時所押注的，並且迄今為止受到了消費者的好評。顯然，正如我在演講中所說，引入具有此功能的新船的時機並不理想，但我們需要先耗盡庫存並對該策略保持耐心。

Okay. And with respect to PWC, it seems that you're looking market share when you look at your trends versus the industry, it looks like Canada right now is much stronger than the U.S. with respect to PWC and ATV. So I'm just wondering the discrepancy between 2 countries, whether it's more weather-related or the competitive landscape? Is it more aggressive right now in U.S. versus Canada? What explains basically the discrepancy between both countries?

好的。就普華永道而言，當您查看與該行業的趨勢時，您似乎正在尋找市場份額，看起來加拿大目前在普華永道和 ATV 方面比美國強得多。所以我只是想知道兩個國家之間的差異，是與天氣有關還是與競爭格局有關？現在美國比加拿大更激進嗎？從根本上解釋兩國之間的差異的原因是什麼？

Then first, our market share in Canada is very high. It's over 75%. And Canada has always been a good market for watercraft. I would say it's a bit too early to what to conclude anything. The big retail season for watercraft is May, June, July, and the watercraft customer, it's an impulse buy. It's relatively low priced product and it can go very fast, up or down, depending of the weather, obviously, depending of the overall situation. Then I think we have good momentum in Canada. Softer in U.S., but I think it's too early to call if it will be a good season or a very good season or not so good season. I think it's too early, but so far Canada is doing well. A bit lag in U.S. We'll see how things evolve.

首先，我們在加拿大的市佔率非常高。已經超過75%了。加拿大一直是船舶的良好市場。我想說現在下結論還太早。船舶的零售旺季是五月、六月、七月，對船舶消費者來說，這是一種衝動購買。它是價格相對較低的產品，而且價格上漲或下跌的速度非常快，取決於天氣，顯然取決於整體情況。然後我認為我們在加拿大勢頭良好。美國的情況較為疲軟，但我認為現在判斷這是一個好季節、非常好的季節還是不太好的季節還為時過早。我認為現在還為時過早，但到目前為止加拿大表現還不錯。美國有點滯後，我們將看看事情如何發展。

Next question will be from Robin Farley at UBS.

下一個問題將由瑞銀集團的羅賓法利提出。

Actually, I had a similar question on the Marine outlook. Just given, you said in ORV and Snow, great market share and great share growth and Marine maybe doesn't have that position to recover back to even when the market gets better. So I wonder if you could kind of give us a thought on it, because it seems like it would actually be fairly additive to earnings if you exited the Marine business? And just wondering how you see that longer term?

事實上，我對海洋前景也有類似的問題。剛才，您在 ORV 和 Snow 中提到，巨大的市場份額和巨大的份額增長，而 Marine 可能即使市場好轉也無法恢復到原來的位置。所以我想知道你是否可以給我們一個想法，因為如果你退出海洋業務，它實際上會相當增加收入？只是想知道您如何看待這個長期目標？

Just a comment, Robin. With the high market share we have in watercraft and snowmobile and we're gaining enough road [meaning and] us, we need to continue to plan first to grow the business. And if you remember the addressable market, we have 1/3 of the Powersports industry and we need to plan mid- to long-term where we will continue to grow because we will continue to grow in Powersports, but we need to plan what's next.

只是一個評論，羅賓。由於我們在船舶和雪地摩托車方面擁有較高的市場份額，並且我們正在獲得足夠的道路[意味著]我們，我們需要繼續首先計劃以發展業務。如果你還記得潛在市場，我們擁有 Powersports 產業的 1/3，我們需要規劃中長期我們將繼續成長的地方，因為我們將繼續在 Powersports 領域成長，但我們需要規劃下一步。

And Marine, obviously, it's the same scale that we have on Powersports. And it's a big market, and we believe we can be successful there. Again, like I said, the timing of our production could not be worse, and we didn't execute perfectly either. But this is a long-term play. We just need to go through the bubble and this is a long-term play, and we will next year, reduce our expenses in that product category.

顯然，Marine 的規模與我們在 Powersports 上的規模相同。這是一個很大的市場，我們相信我們能夠在那裡取得成功。再說一次，就像我說的，我們的製作時機再糟糕不過了，我們也沒有完美地執行。但這是一個長期的遊戲。我們只需要度過泡沫，這是一個長期的過程，我們明年將減少該產品類別的支出。

Next question will be from Tristan Thomas-Martin at BMO Capital Markets.

下一個問題將由 BMO 資本市場的 Tristan Thomas-Martin 提出。

How has May trended at retail?

5月零售業趨勢如何？

I would say, first, we don't have industry data yet. But so far, May is a bit softer than what we were initially anticipating. We've just been through the Memorial weekend. In the U.S., we don't have all the registration yet in our system, but the feedback we have from the dealer is a bit softer than what we thought. But again, like I just explained, Memorial weekend is the start of the season in U.S. for all the Marine products, and it's a bit too early to say how it will go.

我想說，首先，我們還沒有產業數據。但到目前為止，五月的情況比我們最初預期的要溫和一些。我們剛剛度過陣亡將士紀念週末。在美國，我們的系統中尚未完成所有註冊，但我們從經銷商那裡得到的回饋比我們想像的要溫和一些。但同樣，就像我剛才解釋的那樣，陣亡將士紀念週末是美國所有海鮮產季的開始，現在說它將如何發展還為時過早。

So far, BRP off-road is performing good. Watercraft Switch is a bit lower than what we were planning. And obviously, the Marine product is lower than what we were planning. Then this is basically where we are. But again, I would be careful because we are very early into the Marine season.

到目前為止，BRP越野表現良好。Watercraft Switch 比我們計劃的要低一些。顯然，海洋產品低於我們的計劃。那麼這基本上就是我們現在的情況。但我還是要小心，因為我們正處於海洋季節的早期。

Okay. Well, I'm just going to sneak in one more question. You alluded to one of your competitors cutting pricing a couple of times. Is that something you would consider?

好的。好吧，我只想再問一個問題。您提到您的一位競爭對手多次降價。這是你會考慮的事情嗎？

Of reducing pricing?

降低定價？

Yes.

是的。

Well, obviously, when you look at the whole life cycle of our product, if we're able to drive cost efficiencies in our product, obviously, pricing is something that we would consider. But the pricing adjustments we've made over time to increase pricing was in line with the inflation that we saw.

嗯，顯然，當你審視我們產品的整個生命週期時，如果我們能夠提高產品的成本效率，顯然，定價是我們會考慮的事情。但隨著時間的推移，我們為提高價格而進行的定價調整與我們看到的通貨膨脹是一致的。

One thing that we're mindful about is people who brought a product 6 months ago or 12 months ago, if you come out with a new model year and you're discounting the new model year, obviously, it reduces the whole value proposition for that consumer. And so obviously, our focus is let's bring innovative product, let's bring great products to the market. Let's make sure we reprice that PDA for the customer. And that in the end, consumers see the value that you're bringing that they're willing to pay for the innovation and novelty.

我們要注意的一件事是，人們在 6 個月前或 12 個月前推出了一款產品，如果你推出了一款新車型，並且你對新車型打折，顯然，它會降低整個價值主張那個消費者。顯然，我們的重點是帶來創新產品，將優秀的產品推向市場。讓我們確保為客戶重新定價該 PDA。最終，消費者會看到您帶來的價值，他們願意為創新和新穎性付費。

And in situations where markets are more tougher, we prefer to use retail incentives in order to drive consumers to the dealer and stimulate sales. So it's a complex balance Tristan, and all of that.

在市場更加嚴峻的情況下，我們更願意使用零售誘因來吸引消費者到經銷商並刺激銷售。所以這是一個複雜的平衡，特里斯坦，以及所有這些。

Next question will be from Martin Landry at Stifel.

下一個問題將由 Stifel 的 Martin Landry 提出。

I may have missed it, but did you change your assumption for your retail sales in North America this year and for industry retail sales as well? And I was wondering if you can just update us on these assumptions?

我可能錯過了，但是您是否改變了對今年北美零售額以及行業零售額的假設？我想知道您是否可以向我們介紹這些假設的最新情況？

Yes. We had that question a bit earlier, Martin, maybe you missed it. But we did a few tweaks on the seasonal business, and that's why we adjusted the guidance. That's where we've made some adjustments internally. But nothing more significant on the ORV side.

是的。我們早些時候就有過這個問題，馬丁，也許你錯過了。但我們對季節性業務做了一些調整，這就是我們調整指導的原因。這就是我們內部進行一些調整的地方。但對 ORV 來說，沒有什麼比這更重要的了。

Okay. And I heard in your opening remarks, Sebastien, you talked about Powersports gross margins being around 26.2% despite sales being down in the high-teens. Can you just -- it looks like it's pretty solid and despite sales decline. Can you just talk a little bit about what's -- like how are you able to sustain your Powersports margin despite the lower sales?

好的。Sebastien，我在您的開場白中聽說，儘管 Powersports 的銷售額下降了十多歲，但其毛利率仍約為 26.2%。你能不能——儘管銷量下降，但看起來它仍然相當穩健。您能否簡單談談一下，例如儘管銷量較低，您如何能夠維持 Powersports 的利潤？

Well, it's been part of our long-term strategy of obviously leveraging our growth through the -- our Mexican footprint, driving innovation to the consumers and also in-sourcing some technologies. We've talked about turbocharging, we've talked about modularity with our engines, with our platform. I think when you take the sum of all of that and also the focus of the teams on efficiency -- when you take the sum of all of that, even though we have lower volumes, even though we've put more programs in the quarter, we're still able to drive very healthy gross margins for the Powersports business. And so the long-term strategy we've had, as you can see today, is paying off.

嗯，這是我們長期策略的一部分，顯然是透過我們在墨西哥的足跡來利用我們的成長，為消費者推動創新，並內購一些技術。我們討論了渦輪增壓，我們討論了引擎和平台的模組化。我認為，當你把所有這些以及團隊對效率的關注放在一起時——當你把所有這些都放在一起時，即使我們的數量較低，儘管我們在本季度投入了更多的項目，我們仍然能夠為Powersports 業務帶來非常健康的毛利率。因此，正如您今天所看到的，我們的長期策略正在取得成效。

Next question will be from Brian Morrison at TD Cowen.

下一個問題將由 TD Cowen 的 Brian Morrison 提出。

Seb, I know you made tweaks to your assumptions. What are your assumptions within your guidance with respect to retail sales volumes and your net pricing? And is the message that you're destocking will be complete by the end of Q3?

Seb，我知道你對你的假設進行了調整。您在指導方針中對零售量和淨定價有何假設？您的去庫存工作是否會在第三季末完成？

Well, the destocking is going to happen throughout the year because snowmobile destocking is going to be a Q4 element. ORV dealers are going to feel it right away in the second quarter. And so it's going to be progressive. But a big part of it will happen in the second quarter. Inventory should probably be down versus Q1 in the second quarter, it's probably down 15%.

嗯，去庫存將貫穿全年，因為雪地摩托車去庫存將成為第四季的要素。ORV 經銷商將在第二季立即感受到這一點。所以這將會是進步的。但其中很大一部分將發生在第二季。第二季庫存可能會比第一季下降，可能下降 15%。

In terms of pricing, obviously, we were going to club, as Jose mentioned, in a few months, and we'll obviously be introducing new products, a new model year, and we'll revisit our assumptions then. You'll appreciate that for competitive reasons, we won't necessarily disclose what our plan is. But as I mentioned earlier, we want to make sure that we price the value that we bring to our consumers. And also, we prefer using incentives as a way to stimulate retail sales when things are tougher.

在定價方面，顯然，正如何塞所提到的，我們將在幾個月內加入俱樂部，我們顯然將推出新產品、新車型年，然後我們將重新審視我們的假設。您會明白，出於競爭原因，我們不一定會透露我們的計劃是什麼。但正如我之前提到的，我們希望確保我們對為消費者帶來的價值進行定價。而且，當情況更加困難時，我們更喜歡使用激勵措施來刺激零售銷售。

Maybe to add on this, on the pricing -- from your question, but the previous question, this is a very -- it's a science. We always measure the technology we have in our product versus the competition, all the feature and how much the customer is ready to pay for that feature and that feature. And that don't mean because another OEM reduced pricing that automatically we will follow. It depends on how product is competitive and what are the value of our feature and our technology and our product versus others.

也許要補充一點，關於定價——從你的問題來看，但上一個問題，這是一門非常——這是一門科學。我們總是衡量我們產品中的技術與競爭對手的比較、所有功能以及客戶準備為該功能和該功能支付多少費用。這並不意味著因為另一家 OEM 降低了價格，我們就會自動跟隨。這取決於產品的競爭力如何，以及我們的功能、技術和產品相對於其他產品的價值是什麼。

Then don't take for granted that because another one do it, we will follow automatically. We will -- we're doing our homework right now, and we're preparing for the model year '25 launch at [Club] in California.

然後，不要理所當然地認為，因為另一個人做了，我們就會自動跟隨。我們現在正在做功課，正在為 25 年在加州 [Club] 推出的車型做準備。

Okay. Sorry, just to clarify, I appreciate that color. To clarify, in terms of your retail sales volumes, do you expect them to be flat to down? And then just a follow-up, Seb, within this base level of earnings that everyone likes to focus upon, what is your normalized EBITDA margin within those $10, $11, whatever you want to call it?

好的。抱歉，只是為了澄清一下，我很欣賞這種顏色。澄清一下，就你們的零售額而言，你們預期它們會持平還是下降？然後是一個後續問題，Seb，在每個人都喜歡關注的這個基本收益水平內，在這 10 美元、11 美元（無論你怎麼稱呼它）內，你的標準化 EBITDA 利潤率是多少？

Yes. Well, on the -- in terms of retail, obviously, to give you a global number, probably doesn't give you the full appreciation of what we're driving. But the expectation is that for ORV retail will be up in the low single digits. And for Seasonal Products business, we expect retail to be down, softer. Obviously, personal watercraft market, we had a very strong retail last year. Switch as well, expected to be down because of the Marine business. And snowmobile, obviously, with the softer snow we had this year, it impacted our -- obviously, our retail expectations. And so we're expecting our seasonal business to be down probably in the high single digits.

是的。嗯，在零售方面，顯然，給你一個全球數字，可能不會讓你充分理解我們正在推動的事情。但預計 ORV 零售量將以較低的個位數成長。對於季節性產品業務，我們預期零售業將下降、疲軟。顯然，在個人船隻市場，我們去年的零售非常強勁。交換器也是如此，預計會因海洋業務而下降。顯然，雪地摩托車今年的雪較軟，它影響了我們的零售預期。因此，我們預計我們的季節性業務可能會出現高個位數的下降。

And sorry, just the EBITDA margin that you factor into your base level of earnings?

抱歉，您只是將 EBITDA 利潤率計入基本收入水準嗎？

Well, we've communicated the expectation that EBITDA should come back to 17% for us with the size of the business we have. With the investments we've made in modularity and technology, we certainly believe that a 17% EBITDA margin is something that should be achieved. Even when you look at the implied guidance for the second half of the year, we'll actually be fringing close to that 17% EBITDA margin in a year where we're cutting deliveries. So it's certainly something that we believe is achievable.

嗯，我們已經傳達了這樣的預期：根據我們的業務規模，我們的 EBITDA 應該會回到 17%。透過我們在模組化和技術方面的投資，我們當然相信 17% 的 EBITDA 利潤率是應該實現的。即使你看看下半年的隱含指導，我們實際上也會在削減交付量的一年中接近 17% 的 EBITDA 利潤率。所以我們相信這是可以實現的。

Next question will be from Xian Siew at BNP Paribas.

下一個問題將由法國巴黎銀行的 Xian Siew 提出。

I think in the previous guidance, net price is supposed to be a $0.50 benefit and now it's, I guess, $0.75 headwind. So maybe putting that together, $0.25 year-on-year headwind. I guess is that -- how do you -- what gives you confidence that this is enough, like -- just like a $0.25 headwind. And is this kind of the new normal on promos? Or do you think promos get better next year?

我認為在先前的指導中，淨價應該是 0.50 美元的收益，但現在我猜是 0.75 美元的逆風。因此，也許將其放在一起，同比逆風為 0.25 美元。我想是 - 你如何 - 是什麼讓你有信心這已經足夠了，就像 - 就像 0.25 美元的逆風一樣。這是促銷的新常態嗎？或者你認為明年的促銷活動會更好嗎？

Well, certainly, when I look at the promos, one of the big costs of the promos is the high interest rates, and that's what's costing us more money. And so if rates were to come down, and hopefully, they do in the near future, obviously, that's going to reduce the cost to us for these promotions. And less of a headwind from a margin point of view.

嗯，當然，當我查看促銷時，促銷的一大成本是高利率，這就是我們花費更多錢的原因。因此，如果費率下降（希望在不久的將來會下降），顯然，這將降低我們這些促銷活動的成本。從邊際角度來看，阻力也較小。

And again, based on what we have in our forecast, what we see today, we believe the pricing assumptions and the program assumptions we have are sufficient. We've taken important provisions for the Marine business at the end of Q1 and also planning for some programs in the second quarter. So again, with the guidance we have, I'm comfortable that we have enough money to go through what we see today in terms of overall demand.

再次，根據我們的預測和我們今天所看到的情況，我們相信我們擁有的定價假設和計劃假設是足夠的。我們在第一季末為海洋業務制定了重要的規定，並在第二季度規劃了一些計劃。因此，根據我們的指導，我很高興我們有足夠的資金來應對今天的整體需求。

Okay. It's very helpful. And then maybe just can you elaborate a bit more on the gross margin assumptions between Marine and Powersports. I mean it sounds like Marine is still negative. But I mean, to your point, the 26% Powersports gross margin, is that like -- how do we think about the rest of the year relative to that?

好的。這非常有幫助。然後也許您可以詳細說明 Marine 和 Powersports 之間的毛利率假設。我的意思是，聽起來海軍陸戰隊仍然持消極態度。但我的意思是，就你的觀點而言，26% 的 Powersports 毛利率是這樣的——我們如何看待今年剩餘時間的相對情況？

Well, the margin was obviously impacted in the quarter from higher promotions. But again, margin in the back half of the year are planned to be a bit higher than what we delivered in the first quarter. Usually, the second half of the year, we see better margins as well historically from the mix of the products that we ship, we usually ship obviously new model year snowmobile premium models for side-by-side at the start of the season, and that tends to drive higher margins in the back half of the year.

嗯，本季的利潤率明顯受到促銷力道加大的影響。但同樣，今年下半年的利潤率計畫略高於第一季的水準。通常，在下半年，我們會從我們發貨的產品組合中看到歷史上更好的利潤，我們通常會在季節開始時並排發貨顯然是新車型年的雪地摩托車高級車型，並且這往往會在下半年推動更高的利潤率。

Next question will be from Luke Hannan at Canaccord Genuity.

下一個問題將由 Canaccord Genuity 的 Luke Hannan 提出。

Jose, on the last call, I know you gave good color on how the snowmobile industry has sort of bounced back from periods where units -- industry units were sort of lower than expectations. I'm curious when we think about the Marine business, I think I heard you correctly and that it probably is going to take about 12 to 18 months for inventory to normalize there. How does that compare to maybe past periods where retail was a little bit softer and dealers had excess inventory to work off?

何塞，在上次電話會議上，我知道您很好地闡述了雪地摩托車行業如何從行業單位低於預期的時期中反彈。當我們考慮海洋業務時，我很好奇，我想我沒聽錯，那裡的庫存可能需要大約 12 到 18 個月的時間才能恢復正常。與過去零售業稍微疲軟、經銷商有過剩庫存需要處理的時期相比，情況如何？

Yes, I think the 2 industry are quite different. In the snowmobile, you have only a few OEMs, and we are the market leader. And the snowmobile is very, I would say, enthusiast about the sport. And what is happening on snowmobile is like this year, there will be quite a lot in the next season, but there will be quite a lot of model year '24 with discount and the model year '25 reduced numbers. And this is why the snowmobile industry typically is quite resilient after a bad snow season.

是的，我認為這兩個行業有很大不同。在雪地摩托車領域，只有少數原始設備製造商，而我們是市場領導者。我想說，雪地摩托車非常熱衷於這項運動。雪地摩托車上發生的事情就像今年一樣，下一季會有很多，但是會有很多 '24 車型有折扣，而 '25 車型則減少數量。這就是為什麼雪地摩托車產業在惡劣的雪季後通常具有相當的彈性。

On Marine, the big difference is a lot of smaller OEMs supplying the industry. And there is a lot of different behavior between the OEMs. And this is why it's a bit more difficult to predict, but it will take probably more time. Like I was saying, we were planning that it would be corrected in 2025. Now we say maybe it will take 2 seasons to correct the industry bubble -- the inventory bubble that is out there. But the dynamic is a bit different because of the number of OEMs that have different behavior.

在船舶領域，最大的區別是有許多較小的原始設備製造商為該行業供貨。OEM 之間存在著許多不同的行為。這就是為什麼預測比較困難，但可能需要更多時間。正如我所說，我們計劃在 2025 年糾正該問題。現在我們說也許需要兩個季度才能糾正行業泡沫——即存在的庫存泡沫。但由於行為不同的原始設備製造商數量較多，情況略有不同。

And when we say 2 seasons, we maybe do 75% in this season and then 25% in the next.

當我們說 2 個賽季時，我們可能會在本賽季完成 75%，然後在下一賽季完成 25%。

Okay. I appreciate that. And then a very quick follow-up. Seb, I think I heard you correctly, it's still expecting $750 million of free cash flow. What do you have baked into your assumptions as far as working capital goes?

好的。我很感激。然後是非常快速的跟進。Seb，我想我沒聽錯，它仍然期望 7.5 億美元的自由現金流。就營運資金而言，您的假設包含哪些內容？

Well, we do expect a slight tailwind from working capital. We, as we've shared in the past, we were still running with high raw material inventory post COVID and supply chain challenges, so we kept higher safety stocks. But now we're progressively reducing these. And so, I'm expecting probably a tailwind of about $100 million from working capital this year.

嗯，我們確實預期營運資金會帶來輕微的推動作用。正如我們過去所分享的那樣，在新冠疫情和供應鏈挑戰之後，我們仍然面臨著較高的原材料庫存，因此我們保持了較高的安全庫存。但現在我們正在逐步減少這些。因此，我預計今年營運資金可能會帶來約 1 億美元的推動力。

Next question will be from Jaime Katz at Morningstar.

下一個問題將由晨星公司的 Jaime Katz 提出。

I just have one question on CapEx. It looks like you guys have taken CapEx down just a touch this year, but are we thinking about maybe moderating any of the bigger projects over the next year or 2, given that the environment looks like it might remain soft a little bit longer than previously expected?

我只有一個關於資本支出的問題。看起來你們今年已經稍微降低了資本支出，但考慮到環境看起來可能會比以前保持疲軟的時間更長一些，我們是否考慮在未來一兩年內調整任何更大的項目預期的？

Yes. We're actually selective in how we deploy the CapEx. And as we've shared in the past, we're comfortable with the capacity we have today. So we don't see us needing to add more capacity in the mid- to short-term. And so we're good there. And -- but obviously, we'll continue investing in technology. And so that's CapEx investments for new products, you'll see that. But again, this year, I think we're at the right level with where the business is, and we'll make sure that we continue driving returns and drive good free cash flow as well for the business by being selective in our investment decision.

是的。實際上，我們在部署資本支出的方式上是有選擇性的。正如我們過去所分享的，我們對今天擁有的產能感到滿意。因此，我們認為中短期內不需要增加更多產能。所以我們在那裡做得很好。而且——但顯然，我們將繼續投資於科技。這就是新產品的資本支出投資，你會看到的。但今年，我認為我們的業務處於正確的水平，我們將確保透過選擇性投資決策，繼續推動回報並為業務帶來良好的自由現金流。

So does that imply that maybe next year, it will be around the same spend level or perhaps just slightly higher as things resume rather than picking up again?

那麼，這是否意味著明年，隨著情況的恢復，支出水準將大致相同，或者可能略高，而不是再次回升？

Yes, it could be slightly higher. That's certainly something that's possible, not to the levels we were in the last few years, but a bit higher than this year is a possibility. Could you add $50 million, $75 million? Yes, we could.

是的，可能會稍微高一些。這當然是可能的，雖然達不到過去幾年的水平，但比今年高一點是有可能的。你能加上5000萬美元、7500萬美元嗎？是的，我們可以。

Next question will be from Brandon Rolle at D.A. Davidson.

下一個問題將由 D.A. 的 Brandon Rolle 提出。戴維森。

Just a couple of quick questions. First, just on off-road vehicle. Given what's going on with some of the other OEMs being aggressive with their shipping approach, do you feel as though there could be a market share headwind in the near term over the next couple of quarters because they're continuing to ship aggressively while you're kind of pulling back on inventory and introducing a new model year kind of out of season?

只是幾個簡單的問題。首先，僅在越野車上。考慮到其他一些原始設備製造商正在積極採用他們的運輸方式，您是否認為在接下來的幾個季度中短期內可能會出現市場份額逆風，因為他們在您的同時繼續積極地運輸是否會減少庫存並在淡季推出新車型？

Like I said in my question before -- my answer before, each dealer, each multiline dealer have a credit line by OEM, then we don't. An OEM -- the dealer cannot fulfill with other product line, our credit line. Then this is -- well, we believe we will have, despite the reduction in inventory, enough inventory not to miss retail. But also it could happen that a month we lose some, but we gain some. But overall for the year, we still believe we will gain a few market share in the off-road business.

就像我之前在問題中所說的——我之前的回答，每個經銷商、每個多線經銷商都有 OEM 信用額度，然後我們就沒有。OEM－經銷商無法滿足其他產品線、我們的信用額度。那麼，我們相信，儘管庫存減少，我們仍將擁有足夠的庫存，不會錯過零售。但也有可能一個月我們失去一些，但我們得到一些。但總體而言，今年我們仍然相信我們將在越野業務中獲得一些市場份額。

Okay. Great. And just finally, I think you had mentioned you're going to be introducing an electric motorcycle at your dealer event in August. Could you just kind of talk about what you're seeing in the electric motorcycle market? And the reasoning for why you think now is a good time to kind of introduce a new model there?

好的。偉大的。最後，我想您曾提到您將在八月的經銷商活動中推出電動摩托車。您能談談您對電動摩托車市場的看法嗎？為什麼您認為現在是在那裡引入新模式的好時機？

Then first, this project has started about 3 years ago, then everything is done, the investment is made. But I have to admit that I had the chance to try the product myself, and it's funny. In the last 2 days and today, there is dealers from Europe and North America that are riding the product, and we get their feedback. And we feel quite optimistic about our product and how it will be competitive in that new segment for us.

首先，這個計畫大約三年前就開始了，然後一切都完成了，投資也完成了。但我必須承認，我有機會親自嘗試該產品，這很有趣。過去兩天和今天，有來自歐洲和北美的經銷商在使用該產品，我們得到了他們的回饋。我們對我們的產品及其在新細分市場中的競爭力感到非常樂觀。

But again, I think you cannot ignore the trend that you see in the electric product. It's slowed down over the last few years, but it's still there to stay. And we believe we have a good product and we need to start somewhere. The beauty of what we've done is the power pack that we're using on the motorcycle is exactly the same power pack that we have on snowmobile. And this part of our power pack will end up in other product lines. Then you can leverage multiproduct line with one investment in the electric power pack. And we believe -- it's a long term play, but we believe it's the right thing to do for the continuation of our business.

但同樣，我認為你不能忽視在電子產品中看到的趨勢。在過去的幾年裡，它的速度有所放緩，但它仍然存在。我們相信我們有一個好的產品，我們需要從某個地方開始。我們所做的事情的美妙之處在於我們在摩托車上使用的電源組與我們在雪地摩托車上使用的電源組完全相同。我們的這部分電源組最終將出現在其他產品線。然後，您可以透過對電源組的一項投資來利用多產品線。我們相信，這是一項長期策略，但我們相信，為了我們業務的持續發展，這是正確的做法。

Thank you. At this time, I will turn the call to Mr. Deschenes to close the meeting.

謝謝。此時，我將呼叫 Deschenes 先生來結束會議。

Thank you, Sylvie. And thanks, everyone, for joining us this morning and for your interest in BRP. We look forward to speaking with you again for our Second Quarter Conference Call on September 6. Thanks again, everyone, and have a good day.

謝謝你，西爾維。感謝大家今天早上加入我們並對 BRP 感興趣。我們期待在 9 月 6 日舉行的第二季電話會議上再次與您交談。再次感謝大家，祝福大家有美好的一天。

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines. Have a good weekend.

謝謝你，先生。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席。此時，我們確實要求您斷開線路。有一個美好的周末。