BRP Inc (DOOO) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to BRP Inc's FY25 second quarter results conference call (Operator Instructions)

女士們、先生們，早安，歡迎參加 BRP Inc 2025 財年第二季業績電話會議（操作員指示）

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

我想將會議交給菲利普·德斯切納先生。先生，請繼續。

Thank you, [Sylvie]. Good morning and welcome to BRP's conference call for the second 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]。早上好，歡迎參加 BRP 25 財年第二季電話會議。今天早上與我一起出席的還有總裁兼執行長 Jose Boisjoli；以及財務長 Sebastien Martel。

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 result could differ from those implied in these statements.

在我們進入準備好的發言之前，我想提醒大家，電話會議期間將會做出某些前瞻性的陳述，實際結果可能與這些陳述中暗示的結果不同。

The forward-looking information is based on certain assumption and is subject to risk 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.

前瞻性資訊是基於某些假設，並受風險和不確定性的影響，我邀請您查閱 BRP 的 MD&A 以獲取完整的清單。此外，在通話過程中，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該簡報。

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

因此，我將把電話轉給何塞。

Thank you, Philippe. Good morning, everyone, and thank you for joining us. Our financial results for second quarter were essentially as expected and reflect our focus on reducing network inventory to support our dealers.

謝謝你，菲利普。大家早安，感謝大家的收看。我們第二季的財務表現基本上符合預期，反映了我們專注於減少網路庫存以支持我們的經銷商。

However, the macroeconomic environment and high interest rates continue to put pressure on consumer demand. As a result, the demand has declined more than anticipated, while promotional activity has intensified.

然而，宏觀經濟環境和高利率繼續給消費需求帶來壓力。結果，需求下降幅度超乎預期，而促銷活動卻愈演愈烈。

In this context, in given our commitment of safeguarding our dealer value proposition, we have decided to further adjust our production schedule for the year which is reflected in our updated guidance.

在此背景下，鑑於我們致力於維護經銷商的價值主張，我們決定進一步調整今年的生產計劃，這反映在我們更新的指導下。

Let's turn to slide 4 for key financial highlight. Revenue reached $1.8 billion, normalized EBITDA was $199 million, and normalized EPS was $0.61, generally in line with our expectation. We have made great strides to reduce network inventory, which is down 13% so far this year, progressing towards our objective of a 15% to 20% reduction by the end of fiscal 2025.

讓我們翻到幻燈片 4 來了解主要的財務亮點。營收達到 18 億美元，標準化 EBITDA 為 1.99 億美元，標準化 EPS 為 0.61 美元，基本上符合我們的預期。我們在減少網路庫存方面取得了巨大進步，今年迄今已下降了 13%，朝著到 2025 財年末減少 15% 至 20% 的目標邁進。

As for retail, our North American Powersports sales were down 18% from a strong second quarter last year as the industry experienced weaker consumer demand, as you can see on slide 5.

至於零售，正如您在幻燈片 5 中看到的那樣，由於該行業的消費者需求減弱，我們的北美動力運動銷售額較去年第二季度的強勁表現下降了 18%。

We are operating in an increasingly challenging economic environment. Market conditions were in line with our plan through April but deteriorated in the second quarter. Although these conditions are impacting many of the regions where we operate. It has recently become more challenging in North America, our key powersport market.

我們正處於一個日益充滿挑戰的經濟環境。截至四月份，市場狀況符合我們的計劃，但第二季度有所惡化。儘管這些情況正在影響我們經營的許多地區。最近，我們的主要動力運動市場北美的挑戰變得更具挑戰性。

On the plus side, we have been more proactive than most OEM at reducing network inventory, and this was received positively by our dealers. Having said that, OEMs with high-level of inventory have been more aggressive with promotion, which has impacted our market share this quarter.

積極的一面是，我們比大多數 OEM 更積極地減少網路庫存，並且得到了經銷商的積極回應。話雖如此，庫存水準高的原始設備製造商在促銷方面更加積極，這影響了我們本季的市場份額。

Looking at retail performance for the quarter on slide 6, overall retail was down in the [teen percentage] lagging the industry in North America, EMEA, and Asia Pacific. Meanwhile, it was up 18% in Latin America, driven by a very strong performance in Mexico and Brazil, where consumers are highly engaged with our Sea-Doo and Can-Am brands.

從投影片 6 來看本季的零售業績，整體零售額在 [青少年百分比] 中有所下降，落後於北美、歐洲、中東和非洲地區以及亞太地區的產業。同時，拉丁美洲的銷售額成長了 18%，這得益於墨西哥和巴西的強勁表現，這兩個地區的消費者對我們的 Sea-Doo 和 Can-Am 品牌非常感興趣。

Given our focus on bringing network inventory down, we were anticipating some market share loss, namely for side-by-side. A few words on our personal watercraft market share decline. Last year, you may remember that our main competitor had supply issues, which turned out to our advantage. The fact that this situation is back to normal, combined with the current industry weakness had a larger than expected impact on our retail this season.

鑑於我們專注於降低網路庫存，我們預計會有一些市場份額損失，特別是並排市場份額。簡單談談我們個人水上摩托車市場份額的下降。您可能還記得，去年我們的主要競爭對手出現了供應問題，這對我們有利。這種情況恢復正常，再加上目前行業疲軟，對我們本季的零售產生了比預期更大的影響。

Turning to slide 7. We are pleased with our results ORV for the full season as we've delivered record retail performance up 8% in an industry that was flat. We gained about 2 point of market share in side-by-side vehicle, passing the 30% mark for the first time. We also performed very well in ATV, gaining 1.5 point of market share.

翻到幻燈片 7。我們對 ORV 整個季度的業績感到滿意，因為我們在行業持平的情況下實現了創紀錄的 8% 的零售業績增長。我們在並排式車輛市場的佔有率增加了約 2 個百分點，首次突破 30% 大關。我們在ATV領域也表現非常出色，獲得了1.5個百分點的市佔率。

With these achievements, we have closed the gap with the number one position in the industry in term of ORV unit retail per dealers. In the current environment, we expect further short-term market share volatility. However, with our recent product launches and momentum with dealers, we believe we will continue to gain share in ORV for the coming season.

憑藉這些成就，我們在每家經銷商的 ORV 零售量方面已經縮小了與業界第一的差距。在當前環境下，我們預期短期市場佔有率將進一步波動。然而，隨著我們最近的產品發布和與經銷商的合作勢頭，我們相信我們將在下個季度繼續獲得 ORV 的份額。

Let's turn to slide 8 for highlight of our current -- of our recent dealer event held in California. It was one of the largest ever in terms of product news with over 3,000 participants in person and virtual. We announced the availability of our highly anticipated Can-Am Pulse and Origin all-electric motorcycle lineup, making our reentry into two-wheel space. These models leverage our own Rotax E-Power unit, which also propel our electric snowmobile and will be used in future VRP electric product.

讓我們翻到第 8 張幻燈片來了解我們目前——最近在加州舉辦的經銷商活動的精彩內容。這是有史以​​來規模最大的產品新聞發布會之一，有超過 3,000 名現場和虛擬參與者。我們宣布推出備受期待的 Can-Am Pulse 和 Origin 全電動摩托車系列，這標誌著我們重新進入兩輪摩托車領域。這些模型利用我們自己的 Rotax E-Power 裝置，該裝置也能推動我們的電動雪地摩托車，並將用於未來的 VRP 電動產品。

In term of the next step, we will be hosting several media events training our dealers and hosting VRP customer events throughout the second half of the year. We intend to become a global leader in that space with true innovation designed to simplify the riding experience for new riders and introduce electric motorcycles to all.

下一步，我們將在下半年舉辦多場媒體活動，培訓我們的經銷商，並舉辦VRP客戶活動。我們打算透過真正的創新成為該領域的全球領導者，旨在簡化新騎士的騎乘體驗並向所有人介紹電動摩托車。

But this was not the only key news of our dealer event as you can see on slide 9. We bolster our Can-Am off-road lineup, introducing the four-seat version of our top-of-the-line Maverick R. This extension was highly anticipated as multi-passenger model represents close to 60% of sales in that category.

但這並不是我們經銷商活動的唯一重要新聞，正如您在投影片 9 上看到的那樣。我們增強了 Can-Am 越野車陣容，推出了頂級 Maverick R 的四人座版本。由於多乘客車型佔據了該類別銷量的近 60%，因此這一擴展備受期待。

We also introduced our all-new Outlander ATV platform in the high-CC segment, representing the first major platform upgrade in that segment in about 15 years. This new platform has been very well received just like the Mid-CC last year.

我們也在高排氣量細分市場推出了全新的 Outlander ATV 平台，這是約 15 年來該細分市場的首次重大平台升級。這個新平台就像去年的 Mid-CC 一樣受到了熱烈歡迎。

As for three-wheel vehicles, we've launched the all-new Can-Am Canyon, our most rugged ever in this segment, purpose built to increase accessibility into the growing adventure terrain market, which has doubled in recent years.

至於三輪車，我們推出了全新的 Can-Am Canyon，這是我們在這一領域迄今為止最堅固的車型，旨在提高我們進入不斷增長的冒險地形市場的可行性，該市場近年來增長了一倍。

The Can-Am Canyon will target three-wheel riders of all skill levels. On the Sea-Doo side, we further build on the FishPro success by introducing the FishPro Apex, the most powerful personal watercraft in that segment, and the Switch Pontoon Fish edition, the first ever in that category.

Can-Am Canyon 將面向各個技能水平的三輪車騎士。在 Sea-Doo 方面，我們進一步鞏固了 FishPro 的成功，推出了 FishPro Apex（該領域最強大的個人水上摩托車）和 Switch Pontoon Fish 版（該類別中的首款產品）。

These models cater to very large potential consumer base with over [220 million] recreational angler worldwide. The product launches at our dealer event demonstrate our commitment to innovation and position us to continue gaining market share in the future.

這些模型迎合了全球超過 [2.2 億] 名休閒釣魚者龐大的潛在消費群體。我們在經銷商活動上推出的產品體現了我們對創新的承諾，並使我們在未來繼續獲得市場份額。

Now let's turn to slide 10 for more detail on our year-round product. Revenue were down 33% to $1 billion, primarily due to reduced shipment. At retail, Can-Am Side-By-Side was down high single-digit percentage, slightly more than the industry, as we were facing a very strong quarter last year and aggressive promotion from other OEMs this year. However, we continue gaining share in the utility category, driven by the ongoing success of our high-end Defender cab.

現在讓我們翻到第 10 張幻燈片來了解有關我們全年產品的更多詳細資訊。營收下降 33% 至 10 億美元，主要原因是出貨量減少。在零售方面，Can-Am Side-By-Side 的降幅高達個位數百分比，略高於行業平均水平，因為去年我們面臨著非常強勁的季度表現，而今年其他 OEM 也大力推廣。然而，受高端 Defender 駕駛室持續成功的推動，我們在多功能車類別中的份額繼續增長。

As for ATV, retail was down low-single-digit in the quarter in line with the industry. We are still seeing solid traction with our new Outlander platform, which deliver market share gain in the mid-CC segment.

至於 ATV，本季零售額與行業表現一致，下降了低個位數。我們仍然看到新款 Outlander 平台具有強勁的吸引力，它在中型 CC 領域擴大了市場份額。

Looking at three-wheel vehicle, our retail was down in the high 20%, slightly lagging the industry. We continue to see stronger performance at the high-end of our lineup, while the Ryker, our entry-level product is affected by the economic pressure on target consumers.

從三輪車來看，我們的零售額下降了20%以上，略微落後於該行業。我們持續看到高階產品線表現更加強勁，而我們的入門級產品 Ryker 則受到目標消費者經濟壓力的影響。

Turning to seasonal product on slide 11. Revenue were down 40% from last year to $542 million. Our retail and personal watercraft declined in the mid 20%, due to weak industry trends and reduced market share as explained a few minutes ago. Entry-level products were more impacted, but we perform well in the high-end category.

前往投影片 11 上的季節性產品。營收較去年同期下降 40% 至 5.42 億美元。正如幾分鐘前所解釋的，由於行業趨勢疲軟和市場份額下降，我們的零售和個人水上摩托車銷售下降了 20% 左右。入門級產品受到的影響較大，但我們在高階產品方面表現良好。

At this stage, we expect to finish the season with more inventory than planned. The switch was down high-30%, suffering from generally weaker trends in marine, and lapping a strong quarter last year supported by [early introduction] momentum.

目前，我們預計本季結束時的庫存將超過計劃。受海洋產業整體疲軟趨勢的影響，此次轉換下降了 30% 以上，並在 [早期引入] 勢頭的支撐下，去年一個季度表現強勁。

Moving on to slide 12 with Powersports Parts, Accessories & Apparel and OEM engines. Revenue were down 12% to $258 million due to lower sales volume. PA&A sales continue to benefit from our growing fleet, especially in ORV, offset by weaker demand for snow-related products and lower accessory sales due to softer retail.

轉到幻燈片 12，其中有動力運動零件、配件和服裝以及 OEM 引擎。由於銷售量下降，收入下降 12% 至 2.58 億美元。PA&A 的銷售繼續受益於我們不斷增長的車隊，尤其是 ORV，但零售業疲軟導致的雪上產品需求疲軟和配件銷售下降抵消了這一增長。

Turning to marine, revenue were down 54% to $57 million, reflecting lower boat shipment volume. Looking at retail sales, Alumacraft was up about 40%, while Manitou was up high 20%, as we were lapping a low retail volume period. As for Quintrex, retail was down mid single-digit in line with the industry.

談到海運，營收下降 54% 至 5,700 萬美元，反映船舶出貨量下降。從零售額來看，Alumacraft 上漲了約 40%，而 Manitou 上漲了 20% 以上，因為我們正處於零售量低迷的時期。至於 Quintrex，零售額與行業平均水平一致，下降了 5% 左右。

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 Q2 financial results came in essentially in line with our expectations and demonstrated our commitment to support our dealers as we proactively slowed our shipments in the quarter to accelerate the reduction of our network inventory levels.

謝謝你，何塞，大家早安。我們第二季的財務表現基本上符合我們的預期，並表明了我們支持經銷商的承諾，因為我們在本季度主動減緩了出貨量，以加速降低我們的網路庫存水準。

Looking at the numbers, revenues were down 34% to $1.8 billion, primarily due to lower shipments. We generated $377 million in gross profit representing a margin of 20.4%, down from last year due to the less efficient use of our assets given the lower production volumes and higher sales programs. These were partly offset by a richer product mix especially in side-by-side and personal watercraft and favorable pricing.

從數字來看，營收下降 34% 至 18 億美元，主要原因是出貨量下降。我們的毛利為 3.77 億美元，利潤率為 20.4%，較去年同期下降，原因是產量較低和銷售計劃增加導致資產使用效率較低。但這些不利因素被更豐富的產品組合（尤其是並排式摩托艇和個人水上摩托車）以及優惠的價格部分抵消。

In this context, we continued to diligently manage our expenses and also benefited from the recognition of R&D subsidies in the court. Combined, OpEx was down 10% compared to Q2 last year, alleviating some of the pressure from reduced shipments. Including all of the above, our normalized EBITDA ended at $199 million and our normalized earnings per share at $0.61.

在此背景下，我們繼續努力管理我們的開支，同時也受益於法院對研發補貼的認可。總體而言，營運支出與去年第二季相比下降了 10%，緩解了出貨量減少帶來的部分壓力。綜合以上各項，我們的標準化 EBITDA 最終達到 1.99 億美元，標準化每股盈餘達到 0.61 美元。

Turning to slide 15 for an update on our network inventory. As discussed since the beginning of the year, a key driver of our plan for fiscal '25 is the reduction of our network inventory to support our dealers, whose margins are pressured by the uncertain economic environment, high interest rates, and increased competitive dynamics.

翻到第 15 張投影片來了解我們的網路庫存的最新情況。正如今年年初所討論的那樣，我們 25 財年計劃的一個關鍵驅動力是減少網絡庫存以支持我們的經銷商，經銷商的利潤率受到不確定的經濟環境、高利率和競爭加劇的壓力。

Being the first OEM to commit to supporting our dealers through this challenging environment by proactively reducing our shipments earlier in the year allowed us to make solid progress on our network inventory reduction target.

作為第一家承諾在當前充滿挑戰的環境中支援經銷商的原始設備製造商，我們在今年稍早主動減少了出貨量，這讓我們在網路庫存減少目標方面取得了堅實的進展。

In fact, as of the end of Q2, our network inventory is down 13% from Q4 levels, while on our way towards our objective for a reduction of 15% to 20% by year-end. Furthermore, we continue to improve the quality of our inventory with most of the reduction in the quarter coming from non-current units.

事實上，截至第二季末，我們的網路庫存比第四季下降了 13%，而我們正朝著年底減少 15% 至 20% 的目標邁進。此外，我們持續提高庫存質量，本季庫存減少主要來自非流通庫存。

While the actions we took to reduce our network inventory during the second quarter impacted our financial performance, we strongly believe that supporting our dealers in this difficult environment is essential to ensure our long-term mutual success.

雖然我們在第二季採取的減少網路庫存的措施影響了我們的財務業績，但我們堅信，在這種困難的環境中支持我們的經銷商對於確保我們長期的共同成功至關重要。

With this in mind let's turn to slide 16 for an update on our guidance for the year. As Jose mentioned, due to weaker industry trends, especially for side-by-side and personal watercraft, and increased promotional activity from competitors in the form of consumer rebates, dealer incentives and even MSRP reductions.

考慮到這一點，讓我們翻到第 16 張幻燈片來了解我們今年的指導更新。正如 Jose 所提到的，由於行業趨勢較弱，尤其是並排式和個人水上摩托車，以及競爭對手以消費者回扣、經銷商獎勵甚至建議零售價降低等形式增加促銷活動。

Moreover, the difficult macro environment which had started affecting many of our key international markets in fiscal '24, now seems to also be impacting the very important US powersport market. As such we are approaching the second half of the year with caution assuming that the softness we saw in Q2 will persist through H2 and will likely continue through at least the first half of next year.

此外，艱難的宏觀環境在 24 財年開始影響我們的許多主要國際市場，現在似乎也影響到非常重要的美國動力運動市場。因此，我們謹慎地看待下半年，認為第二季的疲軟態勢將持續到下半年，並且可能至少持續到明年上半年。

Consequently, we have adjusted our shipment plan for the rest of the year as we continue to aim to right-size our network inventory levels in a weaker industry environment. Additionally, our revised guidance also incorporates planned incremental sales program expenses as we will continue to support our brands and our dealers in this increasingly promotional environment.

因此，我們調整了今年剩餘時間的出貨計劃，因為我們將繼續致力於在較弱的行業環境中調整我們的網路庫存水準。此外，我們修訂後的指南還納入了計劃中的增量銷售計劃費用，因為我們將在日益激烈的促銷環境中繼續支持我們的品牌和經銷商。

Following these adjustments, depth of the benefit of additional cost-saving initiatives as we right size our expenses for the current environment, we now expect our revenues to end between $7.8 billion and $8 billion, normalized EBITDA to end between $890 million and $940 million, and normalized EPS to end between $2.75 and $3.25.

經過這些調整，隨著我們根據當前環境適當調整支出，額外成本節約舉措的效益將進一步顯現，我們預計最終收入將在 78 億美元至 80 億美元之間，標準化 EBITDA 將在 8.9 億美元至 9.4 億美元之間，標準化 EPS 將在 2.75 美元至 3.25 美元之間。

With these revised assumptions, coupled with the working capital headwind resulting from the change in production schedule, we now expect a lower level of free cashflow generation for the year, somewhere north of $200 million.

有了這些修正後的假設，再加上生產計畫變化導致的營運資本逆風，我們現在預計今年的自由現金流產生水準將較低，約為 2 億美元。

As for how we anticipate the rest of the year to unfold, we expect a sequential improvement in Q3 in terms of revenue, normalized EBITDA, and normalized EPS, with the former expected to be up in the range of high-single-digits to low-teen percentage from the $0.61 we just delivered in Q2.

至於我們對今年剩餘時間的預期，我們預計第三季度的收入、標準化 EBITDA 和標準化 EPS 將環比改善，其中前者預計將比我們在第二季度剛剛實現的 0.61 美元增長高個位數到低十位數百分比。

While fiscal '25 is not unfolding as we had initially planned, we strongly believe that we are taking the right actions to protect our business and our dealers in this challenging environment, all the while positioning our business to lead the industry when markets return to growth.

雖然 25 財年並未按照我們最初的計劃展開，但我們堅信，我們正在採取正確的行動，在這種充滿挑戰的環境中保護我們的業務和經銷商，同時在市場恢復增長時將我們的業務定位為引領行業。

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

關於這一點，我將把電話轉給何塞。

Thank you, Sebastien. The first half of the year was challenging, but we believe we made the right decision at the right time. Our plan has been well executed and I thank our teams for their dedication through this difficult period.

謝謝你，賽巴斯蒂安。今年上半年充滿挑戰，但我們相信我們在正確的時間做出了正確的決定。我們的計劃執行得很好，我感謝我們的團隊在這段困難時期的奉獻。

Over the years, our decision has always been guided by our commitment to balance the interests of all our stakeholders. In this spirit, we were the first OEM to proactively reducing shipment. We want to protect our dealer business, the value of our brands and our long-term profitable growth.

多年來，我們的決策始終以平衡所有利害關係人的利益為指導。本著這種精神，我們是第一家主動減少出貨量的OEM。我們希望保護我們的經銷商業務、我們的品牌價值以及我們的長期獲利成長。

Dealer have recognized that our actions are those of true business partners. We had the opportunity to connect with them at our dealer event. They are enthusiastic about our recent product launches and pleased to see that we remain committed to actively investing in R&D. Despite the current context, they know we are doing what's needed to remain their OEM of choice.

經銷商已經認識到我們的行為是真正的商業夥伴的行為。我們有機會在經銷商活動中與他們建立聯繫。他們對我們最近推出的產品充滿熱情，並很高興看到我們仍然致力於積極投資研發。儘管目前情況如此，但他們知道我們正在盡一切努力繼續成為他們首選的 OEM。

Over the short-term, proactively managing production and network inventory is a priority. As we look to the long-term, we remain confident in our strategy driven by our focus on innovation, extensive portfolio, and strong dealer network, we are well positioned for continued success.

短期內，主動管理生產和網路庫存是當務之急。放眼長遠，我們對我們的策略充滿信心，該策略以創新、廣泛的產品組合和強大的經銷商網路為重點，我們已做好準備，繼續取得成功。

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

針對這一點，我將電話轉給接線員以回答問題。

(Operator Instructions) Craig Kennison, Baird.

（操作員指示）Craig Kennison，Baird。

Hey, good morning. Thanks for taking my question. I guess, I appreciate what you're doing with respect to dealers and making sure they're as healthy as can be. How do you know you've done enough cutting? Those of us on the outside are all trying to figure that out and I'm curious what you'd use internally to know that this cut is deficient?

嘿，早安。感謝您回答我的問題。我想，我很欣賞您為經銷商所做的一切，並確保他們盡可能健康。您怎麼知道已經剪得夠多了？我們這些局外人都在試圖弄清楚這一點，我很好奇你們內部會用什麼來知道這種削減是有缺陷的？

Yeah. Good morning, Craig. When we look at the macroeconomics, the pressure on the consumers and the overall context, we're approaching the balance of the year on a cautious stance. And basically, we saw the Q2 retail trending down in -- we saw the trend of retail going down in Q2 and it's continuing in August.

是的。早安，克雷格。當我們審視宏觀經濟、消費者面臨的壓力和整體情況時，我們會以謹慎的態度對待今年的平衡。基本上，我們看到第二季度零售額呈下降趨勢 - 我們看到第二季度零售額呈下降趨勢，並且這種趨勢在 8 月仍在繼續。

And what we expect for H2 is ORV to be down mid to high-single-digit, snowmobile to be down low to [mid-teen], and watercraft and three-wheel, there is only a few months to retail, but they will be down by slightly above 20%. Then we believe when we see the trend in Q2, we believe that projecting this in H2 (technical difficulty) quarter is the right approach.

我們預計下半年 ORV 的銷量將下降中高個位數，雪地摩托車的銷量將下降至 [十幾位] 左右，而水上摩托車和三輪車的銷量雖然只剩下幾個月的零售期，但降幅將略高於 20%。然後，我們相信，當我們看到第二季的趨勢時，我們相信在下半年（技術難度）預測這一趨勢是正確的方法。

On our side, obviously, we are in a better position than some of OEM with our inventory. Some OEM who have more inventories are very aggressive on the promotional side for the consumers for the dealers and even one in the off-road business reduced is MSRP and we are a follower.

就我們而言，顯然，憑藉我們的庫存，我們比一些 OEM 處於更有利的地位。一些擁有更多庫存的 OEM 在針對經銷商的消費者促銷方面非常積極，甚至越野業務中的一家公司也降低了建議零售價，我們也是追隨者。

We will not follow those actions, because we want to protect again our profitable business. We want to protect the dealers and we want to protect our long-term growth. And this is basically how we plan H2, and we feel that where we are, we are at the right level for the balance of H2.

我們不會採取這些行動，因為我們想再次保護我們的獲利業務。我們希望保護經銷商，我們希望保護我們的長期成長。這基本上就是我們對 H2 的規劃，我們認為我們現在所處的水平已經達到了 H2 平衡的正確水平。

Thank you. And as a follow-up, to what extent do your efforts to cut broad inventory help you convince dealers to stock e-bikes and some of the newer products that you have in order to win showroom space with your dealer?

謝謝。另外，您削減庫存的努力在多大程度上幫助您說服經銷商儲備電動自行車和一些較新的產品，從而贏得經銷商的展廳空間？

Yeah. On this -- it's not black and white, but we were -- I was for three days with the dealer at our dealer show and obviously, they are happy about that we were the first OEM to committed to reduce inventory. They see that we are true partners. They see that we're trying to protect our profitability, theirs and ours. And we're working hand on hand with them. And they came out of the [club] first positive with the new product. This is always what they're looking for.

是的。在這一點上——這不是黑白分明的，但我們——我在我們的經銷商展會上與經銷商一起待了三天，顯然，他們很高興我們是第一個承諾減少庫存的 OEM。他們認為我們是真正的合作夥伴。他們看到我們正在努力保護我們的獲利能力、他們的獲利能力和我們的獲利能力。我們正在與他們攜手合作。他們對新產品的第一印象非常好。這始終是他們所尋找的。

But second, we believe that doing what we're doing -- we're doing the right thing for the long-term. And this is basically the mindset that we saw at club. On the two-wheel, I don't see the correlation between what we're doing for two-wheels. We will have 300 dealers year one.

其次，我們相信，我們正在做的事情——從長遠來看，是正確的。這基本上就是我們在俱樂部看到的心態。在兩輪車上，我看不出我們所做的事情與兩輪車之間有什麼關聯。第一年我們將擁有 300 家經銷商。

We sell the two-wheels, and our requirement is some space in the dealer showroom, but our commitment for units is quite low. And we want to make sure we don't build inventory. Basically, it's taking a minimum inventory to display the product for the demo rides after that as much as the retail (technical difficulty) will replenish. And it will be a very low commitment from the dealer. And so far, it was well received.

我們銷售兩輪車，我們的要求是在經銷商展廳中佔有一定空間，但我們對車輛的承諾相當低。我們希望確保不會累積庫存。基本上，它需要最低限度的庫存來展示用於試乘的產品，之後將根據零售（技術難度）進行補貨。這對經銷商來說是一個很低的承諾。到目前為止，它受到了好評。

Martin Landry, Stifel.

馬丁·蘭德里 (Martin Landry)，Stifel。

Hi, good morning. I was wondering if you could share your expectations for industry sales in North America for this year.

嗨，早安。我想知道您是否可以分享您對今年北美行業銷售的預期。

Like I just said, Martin, on the previous call and I will repeat. Right now for ORV, we expect the industry to be down mid to high-single-digits. For snowmobile, down to low to mid-teen. Obviously, the snow will play a factor there. At watercraft and three-wheel, and there is only a few months to go and it's low retail month, they will close the year probably down 20%, and this is for the industry in North America.

就像我剛才說的，馬丁，在之前的電話中，我會重複一次。目前，對於 ORV 而言，我們預計該行業的銷售額將下降中高個位數。對於雪地摩托車，降至低至中十幾歲。顯然，雪將起到一定作用。對於船舶和三輪車來說，只剩下幾個月的時間了，而且是零售額較低的月份，今年的銷售額可能會下降 20%，這是北美行業的情況。

Under our retail side, because of the high promotion activity that we will not necessarily be a leader, but a follower. And we're planning to lose some market share during that correction supply-demand period. We could lose some market share in some product line, but we are convinced it's the right thing to do for the long term.

在我們的零售方面，由於促銷活動頻繁，我們不一定會成為領導者，而只是追隨者。我們預計在供需調整期間會失去一些市場份額。我們可能會在某些產品線上失去一些市場份額，但我們確信，從長遠來看，這是正確的做法。

Okay, and just to be clear, are those units or dollars?

好的，請明確一點，這些是單位還是美元？

Units.

單位。

Units, sorry.

單位，抱歉。

Yeah. So can you give us your assumptions for dollars?

是的。那你能告訴我們你對美元的假設嗎？

Right now, no, in terms of industry dollars, no. But obviously, when you look at our guidance, we made a sizable adjustment to the year-round business. The majority of it comes from side-by-side given the softer trends we're seeing.

目前，就行業規模而言，沒有。但顯然，當你查看我們的指導時，我們會對全年業務做出相當大的調整。鑑於我們看到的較弱的趨勢，其中大部分來自並排。

Okay. And just to better clarify what would be a good assumption to use in terms of average unit price sale fiscal '25 versus '24 in terms of decline?

好的。為了更好地澄清這一點，在 25 財年與 24 財年相比，平均單價銷售下降的假設是什麼？

Well, in terms of MSRP, well, the expectation is that we've done quite sizable MSRP increases over COVID. Inflation is tapering down. So the expectation is that we'll come back probably to normal pricing increases next year as we've done pre-COVID.

嗯，就建議零售價而言，我們預計在 COVID 期間我們的建議零售價會有相當大的上漲。通貨膨脹正在逐漸下降。因此，我們預計明年我們可能會恢復正常的價格上漲，就像疫情之前一樣。

So we usually -- we try to price in the new features that we put in, some inflation on salary, et cetera. But we're mindful that price point is a significant headwind for some consumers. So usually, we do a price increase of 1%. Could we be in that range next year, that would be a fair assumption, Martin.

因此，我們通常會嘗試將我們引入的新功能、薪資上漲等因素納入定價中。但我們注意到，價格對某些消費者來說是一個重大障礙。因此通常我們會將價格提高 1%。馬丁，我們明年能達到這個範圍嗎？這是一個合理的假設。

Okay. That's obviously MSRP and sometimes actual with discounts are going to be lower, right?

好的。這顯然是製造商建議零售價，有時折扣後的實際價格會更低，對嗎？

Yeah. Well, the promotional environment is still quite high. We expect the promotional environment to be sustained at these levels, at least for the first part of next year.

是的。嗯，促銷環境還蠻高的。我們預計促銷環境將維持在目前的水平，至少在明年上半年是如此。

Robin Farley, UBS.

瑞銀的羅賓法利。

Great, thanks. I just wanted to clarify, you mentioned the retail declines you're expecting for the industry. And I think you were mentioning that you might lose some share because others are being more promotional.

太好了，謝謝。我只是想澄清一下，您提到了您預計該行業的零售額將出現下滑。我認為您提到過，由於其他人的促銷力度加大，您可能會失去一些份額。

But in your introductory remarks, it sounded like you were saying you expect to gain share in ORV for the coming season. So I just want to make sure I understand whether that would be next year's calendar year. In other words, lose share between now and calendar end '24, but then gain share in '25 or just to square that? And then I did have a follow-up, let me just ask that first.

但在您的開場白中，您似乎在說您希望在下個季度獲得 ORV 的份額。所以我只是想確保我了解這是否是明年的日曆年。換句話說，從現在到 24 日曆年末，市佔率會下降，但在 25 年，市佔率會增加，還是只是平衡一下？然後我確實有一個後續問題，讓我先問一下。

On my prepared remarks, we gained share in season '24 that ended at the end of July. And now we're starting the new season, and we might lose some share, let's say, in H2. But we -- with the product lineup that we have with some inventory correction, we believe we will be gaining share over the full season from August 1 to July next year.

正如我準備好的發言中所述，我們在 7 月底結束的 24 賽季中獲得了份額。現在我們即將開始新的賽季，我們可能會在下半年失去一些份額。但是，憑藉我們現有的產品陣容和一些庫存調整，我們相信，從 8 月 1 日到明年 7 月的整個季度，我們的份額將會增加。

Okay. Great. Thank you for that clarification. And then my follow-up question is actually just on the electric, like you're making a big push in here. I guess others expectation for electric motorcycle has come down significantly over time? And just wondering if you see that space differently than others or what leads you to be more optimistic about the electric two-wheel market? Thanks.

好的。偉大的。感謝您的澄清。然後我的後續問題實際上只是關於電力，就像你在這裡做出巨大推動一樣。我猜隨著時間的推移，其他人對電動摩托車的期望已經大大下降了？我只是想知道您是否對該領域的看法與其他人不同，或者是什麼讓您對電動兩輪車市場更樂觀？謝謝。

Yeah. That decision to enter the two-wheel market electric was done four years ago and we did great progress over that period. We're totally realistic that there is like a slowdown right now in electric car sales. But we believe, it will take a few years to adjust and the trend is there, it will remain, that's for sure.

是的。我們四年前就決定進軍電動兩輪車市場，在此期間我們取得了巨大的進展。我們完全意識到目前電動車的銷售正在放緩。但我們相信，這需要幾年的時間來調整，而且這種趨勢是存在的，它會持續下去，這是肯定的。

But why we're confident, Robin, I believe we have the right product. And what I'm very happy with in the last -- since June, we had a lot of media, a lot of dealers who have try our product, and they are very happy with the product.

但是為什麼我們有信心，羅賓，我相信我們有正確的產品。令我非常高興的是，自六月以來，許多媒體、許多經銷商都試用了我們的產品，他們對產品非常滿意。

And it's a product because there is no clutching. It's not a product for a long-distance rider, but it's a product for commuting or short distance. But the product is very easy to ride. It has innovation, incredible connectivity.

因為沒有抓握，所以它是一種產品。它不是一款適合長途騎乘的產品，而是一款適合通勤或短途騎乘的產品。但該產品騎起來非常容易。它具有創新性和令人難以置信的連結性。

And if you look at the price that we price with the range we have like the base price is $13,999 for the entry-level model. You have 160 kilometer, about 100 miles of range. But our vehicle is equipped with fast charging. You can recharge from 20 to 80 in 50 minutes. Then this is on the product side.

如果你看我們以現有範圍定價的價格，你會發現入門車型的基本價格為 13,999 美元。您的續航里程為 160 公里，約 100 英里。但我們的車輛配備了快速充電功能。您可以在 50 分鐘內將電量從 20 充至 80。這是產品方面。

The Can-Am brand is well-known worldwide now. We have a very good dealer network. We're planning 300 dealers in Canada, US and 11 countries in Europe for the first year, going to 450 next year. The price range, again, we feel we are well positioned, and we have a very good marketing plan to make the product with a demo drive and VIP event to make sure that people know about it.

Can-Am品牌如今已享譽全球。我們擁有非常好的經銷商網路。我們計劃第一年在加拿大、美國和歐洲 11 個國家設立 300 家經銷商，明年將達到 450 家。再次強調，我們覺得我們處於非常有利的價格範圍，並且我們有一個非常好的行銷計劃，透過示範駕駛和 VIP 活動來製作產品，以確保人們了解它。

And I was myself in France in July, there is 150 city in Europe that are closing downtown to combustion engine vehicle and a lot of consumers turn to buy electric motorcycle. Is this something that will be instant, this is difficult to say. I think we are better positioned than all the competition we have in that category, but it's a mid to long-term play.

今年 7 月我自己在法國，歐洲有 150 個城市禁止內燃機汽車進入市中心，許多消費者改買電動摩托車。這是不是瞬間就能實現的，這很難說。我認為我們比該類別的所有競爭對手都處於更有利的地位，但這是一個中長期的策略。

Benoit Poirier, Desjardins Capital Markets.

Benoit Poirier，德斯雅爾丹資本市場。

Good morning, everyone. So my first question, could you maybe provide some color about the level of promotional activities we see these days versus the 200 bps impact in a normal environment. And also the puts and takes with respect to fiscal year '26, how we should be looking at fiscal year '26 given your revised outlook for fiscal year '25? Thank you.

大家早安。所以我的第一個問題是，您能否提供一些關於我們目前看到的促銷活動的水平與正常環境下 200 個基點的影響的詳細資訊。另外，考慮到您對 25 財年的修訂展望，我們該如何看待 26 財年？謝謝。

Good morning, Benoit. Yeah, obviously, on the sales program front, some OEMs are more promotional recently than we've seen during pre-COVID. We saw this from a retail perspective. Our consumer promotions were back to where we were in pre-COVID in terms of percentage of sales, but in absolute dollars higher because obviously, there's been MSRP increases.

早上好，Benoit。是的，顯然，在銷售計劃方面，一些 OEM 最近的促銷力度比我們在 COVID 之前看到的要大。我們從零售的角度看到了這一點。就銷售百分比而言，我們的消費者促銷活動已恢復到疫情之前的水平，但絕對金額有所增加，因為顯然建議零售價有所上漲。

In terms of incentives directly to the dealers as well, we see a lot of floorplan subsidies happening in back-end money and some OEMs have been later in adjusting deliveries to their dealers and so are probably finding themselves in a higher inventory position and so they need to clear it out. And we expect that to continue through the rest of the year and probably in the first half of next year.

在直接激勵經銷商方面，我們看到許多庫存補貼都以後端資金的形式出現，而一些原始設備製造商在調整對經銷商的交付時已經比較晚了，因此他們可能會發現自己的庫存狀況較高，所以他們需要清理庫存。我們預計這種趨勢將持續到今年剩餘時間，甚至明年上半年。

Obviously, when rates come down because it looks like the outlook is favorable for that. That will certainly help, especially on the buy down, especially on the floorplan for us and for the dealers. But as I said, we expect it to remain high back half of this year and the beginning of next year.

顯然，當利率下降時，前景看起來是有利的。這肯定會有所幫助，特別是在購買方面，特別是對我們和經銷商的佈局規劃。但正如我所說，我們預計今年上半年和明年年初該價格仍將保持高位。

On your second question, what do we expect for next year? It's a good one. Obviously, the environment is fluid very recently. It's tough to come out today with a target for next year. I'm sure you can appreciate that, especially with the softer trends we're seeing across the industries and the uncertainty about the macroeconomic environment and where rates will be going next year.

關於你的第二個問題，我們對明年有何期待？這是個好主意。顯然，最近的環境非常不穩定。今天要訂定明年的目標是很困難的。我相信您能夠理解這一點，尤其是我們看到各行業呈現疲軟趨勢，而且宏觀經濟環境和明年利率走向存在不確定性。

What's going to be the environment next year? Tough to call, but we are approaching the year with a few key assumptions. One that the softness we're seeing across the different industries is likely to persist throughout at least the first half of next year, which means continued pressure on shipments and sustained high level of promotional activity.

明年的環境會怎麼樣？很難說，但我們對今年的到來抱持著幾個關鍵的假設。我們看到的各個行業疲軟的勢頭可能會持續至少到明年上半年，這意味著出貨量將繼續承受壓力，促銷活動也將持續保持在高水準。

For us, we're likely to end the personal watercraft season with more elevated levels of inventory in the network because of the industry slowdown that we saw similar to what we saw in marine. So shipments for that product line are likely to be down next year.

對我們來說，由於行業放緩，我們可能會在個人水上摩托車季節結束時網路中的庫存水平更高，因為我們看到的行業放緩與我們在海運業看到的類似。因此該產品線的出貨量明年可能會下降。

And obviously, we'll offset some of that pressure by taking the necessary actions to right-size our cost structure. But if we look beyond next year, we are optimistic about the business. We're well positioned to continue to grow our market share, especially in ORV, exploring new markets and obviously, we still have further efficiencies to generate across the portfolio and across the business.

顯然，我們將採取必要措施調整成本結構，以抵銷部分壓力。但如果我們展望明年以後，我們對業務持樂觀態度。我們已準備好繼續擴大我們的市場份額，特別是在 ORV 領域，探索新市場，而且顯然，我們仍需在整個產品組合和整個業務中進一步提高效率。

And what we can achieve in terms of financial performance is really dependent on the industry. And so, we do believe that in a normalized environment, Benoit, that the earnings power of the business is significantly greater than what we're going to see this year and what we could potentially see next year as well.

我們在財務表現方面能夠取得什麼成就實際上取決於行業。因此，Benoit，我們確實相信，在正常化的環境下，該業務的盈利能力將遠高於我們今年所看到的以及明年可能看到的水平。

Okay. That's great. And just in terms of quick follow-up, you ended the leverage at 2.1 times and you mentioned some color about free cash flow. So I would be just curious to see what is your comfort level in terms of leverage and your ability to pursue buyback activity in light of the revised outlook?

好的。那太棒了。就快速跟進而言，您將槓桿率定為 2.1 倍，並提到了一些有關自由現金流的細節。因此，我只是好奇地想了解一下，在修訂後的前景下，您對槓桿的承受能力如何，以及您進行回購活動的能力如何？

Yeah. Overall, very comfortable with the balance sheet. I've often said that coming out of the great financial crisis, we had two key learnings. One is make sure we have a covenant-light debt structure, making sure we have long-term maturities on our debt instruments, making sure we have ample flexibility and availability on the revolver. And these are things that we've done.

是的。整體而言，對資產負債表非常滿意。我常說，走出金融危機後，我們有兩個重要的教訓。一是確保我們擁有輕契約的債務結構，確保我們的債務工具具有長期到期日，確保我們的循環信貸具有足夠的靈活性和可用性。這些都是我們已經在做的事情。

Our debt is covenant light that are not restricted from any increases in leverage that we might be experiencing in the short to mid-term. We've recently renegotiated the maturity of [$1 billion] Term B, pushing it through 2031. We've recently extended the maturity this past May of the revolver to 2030. So we're very comfortable from a balance sheet point of view.

我們的債務是輕契約債務，不受短期至中期可能經歷的槓桿增加的限制。我們最近重新協商了 B 期（10 億美元）貸款的到期日，將其推遲至 2031 年。我們最近將今年 5 月的循環信貸期限延長至 2030 年。因此，從資產負債表的角度來看，我們感到非常滿意。

And from a capital deployment, we've just recently completed the NCIB. We repurchased 3.2 million shares completed in July. The next window is going to open up in December, and obviously, we'll continue having discussions with the Board.

從資本部署來看，我們最近剛完成了 NCIB。我們在7月完成了320萬股的回購。下一個窗口將於 12 月開放，顯然，我們將繼續與董事會進行討論。

But we'll want to make sure that we protect our flexibility in a context that is probably more uncertain these days than certain. And so, we prefer to be prudent, but there's a few months to go before we need to make that decision.

但我們希望確保在當今可能更加不確定的環境中保持我們的靈活性。因此，我們寧願謹慎行事，但距離我們做出決定還有幾個月的時間。

Joe Altobello, Raymond James.

喬·阿爾托貝洛、雷蒙·詹姆斯。

Hi, good morning. This is Martin on for Joe. Just assuming that the retail environment holds up at the city basis right now or the base it is right now, would you expect wholesale and retail to be alignment next year? Or do you anticipate further destocking?

嗨，早安。這是馬丁代替喬上場。假設零售環境目前在城市基礎上或目前的基礎上保持不變，您是否預計明年批發和零售會保持一致？或者您預計庫存還會進一步減少？

Right now -- again, for H2, we will continue to deplete inventory. We are at 13% at the end of Q2, and our goal is to be 15% to 20%. And Obviously, snowmobile will be critical because we had more non-current than desired since last winter. In terms of balancing retail and wholesale next year, I think it's too early to call at this point. There is so much volatility out there that it's very difficult to predict. And I would not this morning, comment on anything on that one.

現在——再次強調，對於 H2，我們將繼續消耗庫存。我們在第二季末的比例為 13%，我們的目標是達到 15% 至 20%。顯然，雪地摩托車至關重要，因為自去年冬天以來，我們遇到的非當前情況比預期的要多。關於明年零售和批發的平衡，我認為現在下結論還為時過早。市場波動性太大，很難預測。今天早上我不會對此事發表任何評論。

Okay. Understood. And just looking at this quarter, one of your competitors launched several model year '25 earlier than normal. How that impacted your shipments in retail sort of in this quarter and generally?

好的。明白了。僅從本季來看，你們的一家競爭對手比往常更早推出了幾款 25 款車型。這對本季及整體的零售出貨量有何影響？

Listen, it didn't impact our shipment. I mean, the shipment are planned a few months in advance. We have a dealer order on hand, and we ship according to plan for -- everything is scheduled for the next two to three months. But for sure, introducing '25 [surely] they had discount on their '24 that, for sure, affected some retail.

聽著，這並沒有影響我們的出貨。我的意思是，貨物的運輸是提前幾個月就計劃好的。我們手頭上有經銷商的訂單，我們正在按照計劃發貨——一切都安排在未來兩到三個月內。但可以肯定的是，推出 25 款後，他們肯定會對 24 款打折，這肯定會對一些零售產生影響。

But we were surprised with the MSRP reduction, which we believe is not good for the brand, and we decided not to follow because obviously, we are in this business for long term. And I think it would be wrong to follow for our brand, for the dealer business and our business and for our long-term profitability. Then it's a short-term blip. And we believe what we're doing is the right thing to do for the mid to long term.

但我們對建議零售價的下調感到驚訝，我們認為這對品牌不利，因此我們決定不跟進，因為顯然我們要長期從事這項業務。我認為，對於我們的品牌、經銷商業務、我們的業務以及我們的長期獲利能力來說，這種做法都是錯誤的。那麼這只是一個短期的曇花一現。我們相信，從中長期來看，我們所做的事情是正確的。

Xian Siew, BNP Paribas.

法國巴黎銀行的 Xian Siew。

Hi guys, thanks for the question. You kind of mentioned that other competition were a bit slower to reduce shipments. I guess like how do you think the industry will look exiting the year? Like are the competition also kind of taking the right steps in your view? Or such that you think like the whole industry could be -- inventories could be down to [15% or so percent]? Or how do you think about where the whole industry exits inventories? Thanks.

大家好，感謝您的提問。您提到其他競爭對手減少出貨量的速度有點慢。我想您認為今年年底該產業將會是什麼樣子？在您看來，競爭對手是否也採取了正確的措施？或者你認為整個產業可能會——庫存可能會下降到[15%左右]？或者您怎麼看待整個行業退出庫存的情況？謝謝。

Yeah, you're right. Obviously, part of what's happening right now is that many OEMs started the year with probably better industry and volume assumptions and some are late to adapt to the softer trends that we've been experiencing and that resulted in more inventory out there and more aggressive promotions. Hopefully, that inventory gets liquidated in the near-term.

是的，你說得對。顯然，目前發生的情況是，許多原始設備製造商在年初可能對行業和銷量做出了更好的假設，而有些製造商未能及時適應我們所經歷的疲軟趨勢，這導致了更多的庫存和更積極的促銷活動。希望這些庫存能夠在短期內被清盤。

Even with softer trends, if they were to persist next year, we believe that OEMs and dealers will be better aligned in terms of wholesale coming in and retail coming out, and that should help.

即使趨勢較為疲軟，但如果明年能夠持續下去，我們相信原始設備製造商和經銷商在批發進貨和零售出貨方面將會更加協調，這應該會有所幫助。

As for ourselves, we expect to be in a better position and on the offense. This year, we're making a big correction to ORV inventory in the network. And we're well on track. You saw inventories are down [13%] since Q4. So we're making very good progress. And so, if that trend continues, we should be in a better position next year where we'll be more balanced in terms of wholesale and retail.

就我們自己而言，我們希望處於更好的位置並採取更好的進攻策略。今年，我們對網路中的 ORV 庫存進行了重大調整。我們目前進展順利。您會看到，自第四季以來，庫存下降了 [13%]。因此，我們取得了非常好的進展。因此，如果這種趨勢持續下去，明年我們的處境會更好，批發和零售方面將更加平衡。

Mark Petrie, CIBC.

加拿大帝國商業銀行的馬克‧皮特里。

Hey, good morning. I guess just following up on that inventory question. I think you called out it's up 3% year-over-year. But just looking back at the last quarter, it looked like you guys have planned for it to be down, call it, mid-single-digits or maybe high-single-digits by the end of Q2.

嘿，早安。我想這只是對庫存問題的後續討論。我認為您提到它同比增長了 3%。但回顧上個季度，看起來你們已經計劃在第二季末將其降至中等個位數或高個位數。

So obviously, you have different levers in terms of addressing that. The lower shipments clearly is what is in guidance, but you also have the lever of higher incentives. So I'm just wondering like what would it take for you to move into or a step function higher in terms of promotional investment to clear inventory?

顯然，在解決這個問題上你有不同的手段。較低的出貨量顯然是指導價值，但你也有更高激勵的槓桿。所以我只是想知道，在促銷投資清理庫存方面，您需要採取什麼措施才能進入或更上一層樓？

The main element in the second quarter, Mark, is the personal watercraft industry, which was softer than what we have expected. So the miss versus where we were expecting to end in Q2 is related to personal watercraft.

馬克，第二季的主要因素是個人水上摩托車產業，該產業的表現比我們預期的要疲軟。因此，與我們預期的第二季度相比，這一差距與個人水上摩托車有關。

And as I said in my -- in one of the questions that I answered, we expect personal watercraft shipments to be softer next year as we work through that inventory. Some of it is happening in the back half of this year and some of it is going to happen as well next year.

正如我在回答的一個問題中所說的那樣，隨著庫存的減少，我們預計明年個人水上摩托車的出貨量將會放緩。有些事情將在今年下半年發生，有些事情明年也會發生。

But from a promotional side, we believe we're competitive. And we have enough tools out there to make sure that we support our brand, support our dealers and allow them to match other OEMs and what they offer.

但從促銷角度來看，我們相信我們具有競爭力。我們擁有足夠的工具來確保支持我們的品牌、支持我們的經銷商並使他們能夠與其他 OEM 及其提供的產品相匹配。

Okay. Appreciate that color. And I guess maybe a related question. Can you just help us understand how you arrive at the target of 15% to 20% inventory reduction by year-end?

好的。欣賞那種顏色。我想這可能是個相關的問題。您能否幫助我們了解一下您是如何實現年底前減少 15% 至 20% 庫存的目標的？

And then also, like what would that -- like versus sort of historical slower demand periods, what would that imply in terms of units per dealer or maybe units as related to market share or however you think about that inventory penetration?

然後，與歷史上需求較慢的時期相比，這對每個經銷商的單位數或與市場份額相關的單位數意味著什麼，或者您對庫存滲透率的看法是什麼？

Yeah. First, you need to make a difference between the seasonal product and the year-round product. The seasonal product, let's say, watercraft and snowmobile, we had a target of about 10% of the next year retail. Then basically, we believe, and this is a discussion we have a dealer. If a dealer sell 100 snowmobile, it's normal to hand the season with 10 units for the following season. That's the ballpark that we're looking as a proxy.

是的。首先，你需要區分季節性產品和全年產品。對於季節性產品，例如船舶和雪地摩托車，我們的目標是佔明年零售額的 10% 左右。那麼基本上，我們相信，這是我們與經銷商的討論。如果經銷商銷售了 100 輛雪地摩托車，那麼在當季通常會提供 10 輛用於下個季度。這就是我們作為代理所尋找的大致範圍。

And for seasonal product, watercraft and snow is very different, and I would include in there the boat industry -- the marine industry. For a year-round product like three-wheel side-by-side and ATV, we're looking at it on days of inventory, forward days of inventory.

對於季節性產品，船舶和雪是非常不同的，我會將船舶產業——海洋產業——也包括在內。對於三輪並排車和全地形車等全年產品，我們會根據庫存天數和未來庫存天數進行查看。

Then the dealer, it's retail is going every month. And there is like too high season, the spring and the fall. And we're looking to be around 90-days of inventory forward retail. And there is some fluctuation depending on the region, but every dealer has that objective of being around 90 to 100 days of forward retail depending on this region, but it's dynamic.

然後是經銷商，它的零售每個月都在進行。而且還有旺季，春季和秋季。我們希望零售庫存能維持在 90 天左右。根據地區的不同，會出現一些波動，但每個經銷商的目標都是根據所在地區實現大約 90 到 100 天的遠期零售，但這是動態的。

We have this map for all the dealer depending of more sport, more utility, and this is the way we'll look at it. And this is a roll-up to the target that we had -- this is how we came out with the 15%, 20% to come back for seasonal and year-round product in those proxy.

我們為所有經銷商提供了這張地圖，取決於更多的運動、更多的實用性，這就是我們看待它的方式。這是我們設定的目標的總結——這就是我們如何在這些代理商中得出 15%、20% 的季節性和全年產品回報。

Okay. That's excellent color, Jose. I appreciate that. I guess maybe just my question would be then, like would that 15% to 20%, would that not have changed just given the deterioration in demand that you saw through Q2 and into the first part of Q3, like I would have thought that number might have come down just based on the parameters that you just provided?

好的。多麼漂亮的顏色啊，何塞。我很感激。我想也許我的問題是，那麼 15% 到 20% 的數字會不會改變？考慮到您在第二季和第三季初期看到的需求惡化，我原以為根據您剛才提供的參數，這個數字可能會下降？

Well, we still want a good unit representation in the network. And so, even though we are planning for software industry, the number that -- the 15% to 20% also factored in higher interest rates where dealers are feeling some pressure, higher MSRPs as well. And so, in relative terms, we;ll still be lower despite market share gains than where we were pre-COVID.

好吧，我們仍然希望在網路中找到一個好的單位代表。因此，儘管我們正在為軟體產業制定計劃，但 15% 到 20% 的數字也考慮到了更高的利率，經銷商感受到了一些壓力，而且製造商建議零售價也更高。因此，相對而言，儘管市場份額有所增長，但與疫情之前相比，我們的市場份額仍然較低。

And so, as Jose said, the 90 is a target, but could be at 90, 100 days, we're still comfortable with those levels. And so that's why staying at the 15%, 20% target is something that we believe was the right thing to do for the business despite softer industry forecast.

因此，正如何塞所說，90 天是一個目標，但也可能是 90 天、100 天，我們對這些水平仍然感到滿意。因此，儘管產業預測較為疲軟，但我們認為維持 15% 或 20% 的目標對企業來說是正確的做法。

James Hardiman, Citi.

花旗銀行的詹姆斯哈迪曼。

Hey, good morning. Thanks for taking my question. So I wanted to circle back on the question about an early look at fiscal '26 as difficult as that may be. Obviously, you guys had the guidance bridge the last couple of quarters. We scrapped that and I can certainly appreciate why, that's getting a little bit too convoluted.

嘿，早安。感謝您回答我的問題。因此，我想回到關於對 26 財年進行早期展望的問題上，儘管這可能很困難。顯然，過去幾季你們都有指導橋樑。我們放棄了這個主意，我當然明白為什麼，因為這變得有點太複雜了。

But I guess, maybe most significantly, is there a way to put a dollar value around the magnitude of the inventory reduction i.e. I know it's too early to tell, but if wholesale equaled retail next year and retail was pretty flat, like what how much earnings power would you get back in that scenario?

但我想，也許最重要的是，有沒有辦法用美元來衡量庫存減少的幅度，我知道現在下結論還為時過早，但如果明年批發量等於零售量，而零售量基本持平，那麼在這種情況下，您的盈利能力能恢復多少？

Like when we started the year, our first call in March, we said that it was a correction year. 2024 was a correction year. We had the bad winter, but 2024, we all believe was a correction year. Now with the trend that we have in Q2 and what we're planning in H2, it will be more probably a correction period for sure, the next 12 months, probably next 18 months will be still a correction period.

就像我們今年年初時一樣，我們在三月的第一次電話會議上說，這是調整之年。 2024 年是調整之年。我們經歷了寒冷的冬天，但我們都相信 2024 年是調整之年。現在，根據我們在第二季度的趨勢以及我們在下半年的計劃，這很可能是一個調整期，接下來的 12 個月，甚至接下來的 18 個月可能仍將是一個調整期。

As I just said, we want to deplete inventory this year to be at the right level for seasonal and year-round product. And next year, it's too early to call. I mean, with all the macroeconomic situation, the interest rates are starting to go down, but it's not -- it would be interesting what the US Fed will do in September.

正如我剛才所說，我們希望今年減少庫存，以達到適合季節性和全年產品的水平。而明年，現在下結論還為時過早。我的意思是，考慮到所有的宏觀經濟形勢，利率開始下降，但事實並非如此——聯準會 9 月的舉動很有趣。

This is definitely positive, but it will take a while before we're coming back to a reasonable level. And I think there is too much factor out there to comment on anything for fiscal year 2026.

這無疑是積極的，但我們還需要一段時間才能恢復到合理水平。我認為有太多因素需要考慮，因此無法對 2026 財年的任何事情進行評論。

In terms of quantifying the impact, in the Q1 -- Q4 call that when we launched an interim guidance for this year. I referred to the inventory correction that we were doing about an impact of $3 to $4. And so, again, in a situation where industries are normalized as no inventory depletion is that a potential tailwind that we have to our earnings, that would be how I would still frame it.

在量化影響方面，我們在第一季至第四季的電話會議上發布了今年的臨時指導。我提到我們正在進行的庫存調整影響約為 3 至 4 美元。因此，再次強調，在行業正常化的情況下，沒有庫存消耗，這對我們的盈利來說是一個潛在的順風，我仍然會這樣看待它。

Okay. And I guess, a follow-up to that. Any other big offsets we should be thinking about in terms of that bridge? And then I guess my -- I guess my follow-up question would be the interest rate piece.

好的。我想，這是對此的後續行動。就那座橋而言，我們還應該考慮其他什麼大的偏移嗎？然後我想我的後續問題是關於利率的部分。

Obviously, the Fed is set to pivot here in a meaningful way. It doesn't seem like you're assuming that will help your business much particularly as we think about the commentary for the first half of next year, not really getting any better.

顯然，聯準會將採取有意義的方式轉變這項政策。您似乎不認為這對您的業務有太大幫助，尤其是當我們考慮明年上半年的評論時，情況並沒有真正好轉。

And so, is that you're just not building any of those interest rate cuts in or you are making some assumptions about interest rate cuts, you just don't think that's going to make much of a difference in the sort of medium-term?

那麼，您是否沒有將任何降息考慮在內，或者您對降息做出了一些假設，您只是認為這不會在中期內產生太大影響？

Well, for our financials, interest rate cuts are going to help -- they're going to help the floorplan costs. And we are -- obviously, if we look at what's expected in the market, yes, that's going to help on the floorplan side.

嗯，對於我們的財務狀況來說，降低利率將會有所幫助——它們將有助於降低平面圖成本。顯然，如果我們看一下市場預期，那麼這肯定會對平面圖方面有所幫助。

On our financing costs, it's going to help, but we have interest rate caps that are falling off next year. So even if we build in rate reductions, we'll probably have a headwind coming from interest rates next year, because these caps are rolling off, probably, let's say, $10 million to $15 million.

對我們的融資成本來說，它會有所幫助，但我們的利率上限明年將會下降。因此，即使我們降低利率，明年我們可能仍會面臨利率方面的阻力，因為這些上限可能會減少 1000 萬美元到 1500 萬美元。

From a dealer point of view, it's going to help as well. I mean the floorplan expenses are going to be lower. Buydowns of interest rates for us are going to be lower as well on the retail financing side.

從經銷商的角度來看，這也會有所幫助。我的意思是平面圖費用將會更低。在零售融資方面，我們的利率下調幅度也將降低。

And for sure, from a consumer point of view, if we get double rate cuts this year and next year, that's going to help as well. But is it going to move the needle? Is it going to remove some of the macro concerns that we're seeing today? It would be too early to call.

當然，從消費者的角度來看，如果今年和明年我們實現雙倍降息，那也會有所幫助。但它能起到作用嗎？它是否會消除我們今天看到的一些宏觀擔憂？現在下結論還為時過早。

Cameron Doerksen, National Bank Financial.

卡梅倫‧多爾克森 (Cameron Doerksen)，國家銀行金融。

Hey, thanks. Good morning. I just wondered if you could frame how should we think about some of the operating expense line items for the rest of the year.

嘿，謝謝。早安.我只是想知道您是否可以闡述我們應該如何考慮今年剩餘時間的一些營運費用項目。

Obviously, your R&D was lower in Q2. You've cited, I guess, R&D subsidies hitting the quarter there. So can you just talk a little bit about what you see in the back half of the year on those operating expenses and G&A?

顯然，你們第二季的研發費用較低。我想，您提到了本季的研發補貼。那麼，您能否簡單談談您對今年下半年營運費用和一般及行政費用的看法？

Yeah. Obviously, a bit of movement. But again, if I go down the P&L, our gross profit wise, I'd expect probably gross profit to be flat to maybe down in the second-half of the year versus what we saw in the beginning of the year.

是的。顯然，有點動靜。但是，如果我看一下損益表，從毛利來看，我預計下半年的毛利可能會與年初的水平持平甚至下降。

First six months of the year, gross profit margin was up 22.1%. And in terms of OpEx, obviously, there's going to be some OpEx movement, but relatively flat year-over-year as well from an OpEx side.

今年上半年毛利率上漲22.1%。就營運支出而言，顯然會有一些營運支出變動，但從營運支出來看，年比也相對持平。

Okay. And as you look ahead to next year, I mean, one of the things you mentioned earlier in the call was around adjustments to the cost base to kind of offset further weakness here. I guess what can you do across the business to reduce cost to try to offset some of the weakness on the demand side of the equation?

好的。展望明年，您之前在電話會議中提到的一件事就是調整成本基礎，以抵消進一步的疲軟。我想問一下，在整個企業中您可以做些什麼來降低成本，以抵消需求方面的一些疲軟因素？

Okay. Without going into detail, there is always in a company like us, a lot of projects going on in different country, different area. And obviously, we will relook at the whole list and reprioritize the next 18 months going to a more slowdown than what we had anticipated.

好的。無需贅述，像我們這樣的公司總是在不同的國家、不同的地區進行許多專案。顯然，我們將重新審視整個清單，並重新確定未來 18 個月的優先順序，使其成長比我們預期的更加放緩。

And the other element is from the operations. Again, we're planning more conservatively for next year with softer industry trends. That means our operations people will plan accordingly. This year, it's been challenging for them, but they've actually done a very good job.

另一個要素來自操作。再次，由於產業趨勢較為疲軟，我們對明年的規劃將更加保守。這意味著我們的營運人員將制定相應的計劃。今年對他們來說充滿挑戰，但他們實際上做得非常好。

But when you do a sequential adjustments to production, it's tough for them to run their shops as efficiently as possible. And so, that is certainly another lever that we have. And also, as you know, there's been a lot of inflation.

但是，當你對生產進行連續調整時，他們很難盡可能有效率地經營他們的商店。所以，這無疑是我們的另一個槓桿。而且，正如你所知，通貨膨脹已經很嚴重了。

A lot of management of COVID needed to happen in the last three, four years. Now we can focus on reducing bill of materials through cost improvement initiatives. And that's going to be another important driver of efficiency.

過去三、四年需要對 COVID 進行大量管理。現在我們可以專注於透過成本改進措施來減少物料清單。這將成為提高效率的另一個重要驅動力。

Okay. So that, I guess, the process is, obviously, you're ongoing, but maybe we'll see some of the benefits more so in fiscal '26 as opposed to this year?

好的。所以，我想，這個過程顯然還在進行中，但也許我們會在 26 財年而不是今年看到更多的好處？

Yeah. Absolutely.

是的。絕對地。

Jonathan Goldman, Scotiabank.

加拿大豐業銀行的喬納森‧戈德曼。

Hi, good morning. Thanks for taking my questions. On the consumer side, the weaker demand trends that you're seeing, do you think that's more a function of consumers delaying or deferring a purchase? Or is it lacking the ability to make a purchase in the first place. And in either case, what rate relief would you need to see to spur consumer demand?

嗨，早安。感謝您回答我的問題。從消費者方面來看，您看到的需求趨勢較弱，您認為這更多的是由於消費者推遲或推遲購買嗎？或者它首先就缺乏購買能力。無論哪種情況，需要降低多少利率才能刺激消費需求？

Just to give you some consumer behavior or trend, you know pre-COVID, 20% of our units were sold to new entrant. In the peak of the COVID time, it did go up above 30%. And now, we're back to the 20% ratio. Then we're back to pre-COVID level, 20% of our units basically are sold to a new entrant.

只是為了給你一些消費者行為或趨勢，你知道在 COVID 之前，我們 20% 的單位都賣給了新進者。在新冠疫情高峰期，這一比例確實上升了 30% 以上。現在，我們又回到了20%的比例。然後我們回到了疫情之前的水平，我們 20% 的單位基本上都賣給了新進者。

What is interesting is the split between high-end technology innovation product versus entry level, we see -- and I will just give you some data for watercraft. Our entry-level retail in Q2 was down high double-digit when our high end was down high single digits.

有趣的是，我們看到了高端技術創新產品與入門級產品之間的差距——我只會給你一些船舶的數據。我們第二季的入門級零售額下降了兩位數，而高端零售額則下降了個位數。

And you can see that on watercraft, all the Spark category in the GTI category was hit harder versus the high end. And side-by-side, same thing. If you look premium versus value, the premium was up mid single-digit when the value was down mid double-digit, then the trend is that you see that -- the trend that we saw in the last few quarters is continuing.

您可以看到，在水上交通工具方面，GTI 類別中的所有 Spark 類別都比高端類別受到的打擊更大。並排而立，同樣的事情。如果您看一下溢價與價值，當價值下降到兩位數中段時，溢價上漲了個位數中段，那麼趨勢就是您會看到——我們在過去幾個季度看到的趨勢正在繼續。

I would say now what new is the new entrant level. And there is more customer -- new entrant customers who finance their product that are refused to credit. We hear that more often, and this will come back when the interest rate will go down.

我現在要說的是新進入者等級有什麼新之處。還有更多的客戶——新進的客戶，他們為自己的產品提供融資，但卻被拒絕信貸。我們經常聽到這種說法，當利率下降時，這種情況就會再次出現。

That's great color. And then, Jose, you talked about potentially gaining share in ORV in season '25. Is your expectation you can gain similar levels as you did this year?

顏色真棒。然後，何塞，您談到了在 25 賽季可能獲得 ORV 的份額。您是否期望自己能達到與今年類似的水準？

Yeah. I would not adventure committing on any numbers. But the point is, right now, we are in a period where it's transitioning from model year '24 to '25. We start producing '25 ATV side-by-side this month in end of July, beginning of August. And we are in that transition where depending on the inventory, depending on the program and the non-current, there is a play there.

是的。我不會冒險承諾任何數字。但重點是，現在我們正處於從 24 年車型過渡到 25 年車型的時期。我們將於本月（七月底、八月初）開始生產 25 年 ATV 並排車。我們正處於這種轉變之中，取決於庫存、取決於程序和非當前情況，其中存在著一種運作。

But that's why when this transition is done, typically, take a quarter or two. After that, we will compete again model year to model year and we believe we have the right product to start with. And we have, obviously, the right program to continue our momentum.

但這就是為什麼完成這一轉變通常需要一到兩個季度的時間。此後，我們將逐年進行車型競爭，我們相信我們擁有合適的產品作為起點。顯然，我們有正確的計劃來保持我們的發展勢頭。

And just to highlight on ATV, if you look at our ATV lineup, we've completely refreshed the whole line up in the last 18 months, the introduction of a mid-level platform 18 months ago, and now we have the high-CC platform that we recently introduced as well.

僅強調 ATV，如果您看一下我們的 ATV 陣容，我們會發現我們在過去 18 個月內徹底更新了整個陣容，18 個月前推出了中級平台，現在我們又推出了最近推出的高 CC 平台。

So from a product point of view, we're extremely, extremely competitive. With a lot of new features and there's been very little innovation in the last 10 years on the ATV industry. So that obviously bodes well for the next season.

因此，從產品的角度來看，我們的競爭力極為強。雖然有許多新功能，但過去 10 年 ATV 產業的創新卻很少。這顯然預示著下個賽季會很好。

Jaime Katz, Morningstar.

晨星公司的 Jaime Katz。

Hi, good morning. So could you guys give us some insight as to how dealer financing rates have changed. I'm wondering if they've moved down similarly to mortgage rates and if the demand is still languished while those rates are moving down? Or is that rate generally a little bit stickier to [SOFR]?

嗨，早安。那麼你們能否向我們介紹一下經銷商融資利率是如何變動的呢？我想知道它們是否與抵押貸款利率一樣下降，以及在利率下降的同時需求是否仍然低迷？或者說這個利率通常對[SOFR]？

Yeah. The rates are actually pegged to SOFR. So they haven't yet moved down. Obviously, there should be some positive news in the next few weeks, hopefully, that is going to be announced. That is certainly going to help the US dealers. But as of recently, they've been stable at the level in the last few quarters.

是的。該利率實際上與 SOFR 掛鉤。所以他們還沒有下降。顯然，未來幾週應該會有一些積極的消息，希望能夠宣布。這肯定會對美國經銷商有所幫助。但截至最近，它們一直穩定在前幾個季度的水平。

Okay. And then when we think about assessing secular demand changes, I think it would be interesting to hear how maybe something like unchartered society demand has changed in the recent period. Has that sort of kept up given the limited requirement for ownership in it? And otherwise, have you seen any other patterns coming out of that business?

好的。然後，當我們考慮評估長期需求變化時，我認為聽聽未知社會需求在近期是如何變化的將會很有趣。鑑於對所有權的要求有限，這種情況是否能持續下去？除此之外，您是否看過該業務的其他模式？

I don't have the latest data to be honest this morning, but I didn't heard anything. The goal of Uncharted Society is to team up with the best rental operator around the world to make sure we're offering a top-notch experience for our consumers.

說實話，今天早上我沒有最新數據，但我沒有聽到任何消息。Uncharted Society 的目標是與世界各地最好的租賃業者合作，以確保我們為消費者提供一流的體驗。

And like we say internally, let's put button seat because every time you try our product, we believe we have a great success to converting in sales. But I didn't have new numbers to see if -- I didn't heard anything that their business slowed down drastically lately.

就像我們內部說的那樣，讓我們把按鈕放在座位上，因為每次您嘗試我們的產品時，我們都相信我們在銷售轉換方面取得了巨大的成功。但我沒有新的數據來查看——我沒有聽說他們的業務最近急劇放緩的消息。

Luke Hannan, Canaccord.

盧克漢南 (Luke Hannan)，Canaccord。

Thanks. Good morning. Just one question on my end here. If we go back to last quarter, if I remember correctly, Jose, I think it was roughly two-thirds of the units that you had retailed during the quarter were current versus non-current. Where did that stand this quarter? And how does that compare to the industry?

謝謝。早安.我這裡只有一個問題。如果我們回顧上個季度，如果我沒記錯的話，Jose，我認為您在本季度零售的單位中大約有三分之二是當前的，而不是非當前的。本季的情況如何？與業界相比如何？

Yeah. As I said in my prepared remarks, we are actually successful in retailing non-current units in the quarter. At the end of the quarter, what I can tell you is the overall inventory in the network about [75%] of the inventory was current. It was a bit lower because no mobile.

是的。正如我在準備好的發言中所說，我們在本季度零售非流動單位方面實際上取得了成功。在本季末，我可以告訴你的是，網路中的整體庫存中約有 [75%] 是當前的庫存。由於沒有手機，所以價格有點低。

As you know, we finished the season last year with higher snowball inventory that becomes non-current. As for ORV, the inventory in the network was 90% current at the end of July. So we're in a very good position there.

如你所知，去年我們結束這個季節時，雪球庫存較高，但現在已經不再是現有庫存了。至於 ORV，截至 7 月底，網路中的庫存為 90%。因此我們在這方面處於非常有利的地位。

Brian Morrison, Cowen.

布萊恩·莫里森，考恩。

Good morning. Thank you very much. I appreciate the color on Mark's question on the 15% to 20% inventory reduction. Can you just take it one step further if you target 90 days of inventory, where are you now? Because I have you around 135 days. And if I add back the destock to forward revenue, they still have you about 120. Can you just share with us where you are now?

早安.非常感謝。我很欣賞馬克關於庫存減少 15% 至 20% 的問題的詳細解釋。如果您的目標是 90 天的庫存，您能否更進一步，您現在在哪裡？因為我有你陪伴135天了。如果我將去庫存化添加到預期收入中，他們仍然擁有大約 120 美元。能和我們分享一下您現在在哪裡嗎？

No, we're lower than the 135. And again, I'd have to check where you get your numbers. We are lower than the 135. If you look at -- if you compare to our wholesale, obviously, our wholesale is lower than what's happening in retail. So that's probably why you're getting higher numbers.

不，我們低於 135。再次，我必須檢查你的號碼是從哪裡獲得的。我們低於135。如果你看一下——如果你與我們的批發進行比較，顯然，我們的批發量低於零售量。所以這可能是為什麼你得到更高的數字的原因。

As I mentioned, we made good progress. Our inventory is already down 13% since the beginning of the year. And so, we're in very good shape to deliver our 15% to 20% for the end of the year, Brian.

正如我所提到的，我們取得了良好的進展。自今年年初以來，我們的庫存已經下降了 13%。因此，布萊恩，我們完全有能力在年底前實現 15% 到 20% 的銷售額。

Okay. I understand. Can you give us a ballpark of where you are or no?

好的。我明白。您能告訴我們您所在的大概位置嗎？

Well, the ballpark is [30%] down. So that's pretty precise in terms of number.

嗯，大概下降了[30%]。從數字上來說，這是相當精確的。

Okay. I'm talking in terms of days. But next question in terms of your liquidity, I understand it's very good, but is there a target leverage that you don't want to exceed, I think you had a target of 1.5 times to 2 times previously?

好的。我是以天數來談論的。但下一個問題是關於你們的流動性，我知道它非常好，但是是否有一個你們不想超過的目標槓桿率，我認為你們之前的目標是 1.5 倍到 2 倍？

Yeah. We want to keep a normal circumstances, so want to have 1.5 to 2 times because we want to have that flexibility. And we know that in a situation where there is a slowdown, and we need to correct delivery that the leverage is going to go up.

是的。我們希望保持正常情況，因此希望有 1.5 到 2 倍，因為我們希望有這種靈活性。我們知道，在經濟放緩的情況下，我們需要糾正交付，槓桿率將會上升。

But when we IPOed, we were 3 times levered, and we operate at that level, and we were very comfortable operating at that level because our debt is coming at light and the maturities have been extended. And so, we have no short-term financial commitment that is going to distract the organization from focusing on operations versus managing cash flow.

但是當我們首次公開募股時，我們的槓桿率是三倍，我們在這個水平上運營，我們對在這個水平上運營感到非常舒服，因為我們的債務正在減少，期限也得到了延長。因此，我們沒有短期財務承諾，這會使組織無法集中精力於營運而不是管理現金流。

And so, we could run at 3 times, 3.5 times in the current context where with our treasury team earlier this year, we extended the maturity of the revolver in the Term B. I'm super comfortable operating at those levels.

因此，在當前情況下，我們可以以 3 倍、3.5 倍的速度運行，今年早些時候，我們與財務團隊一起延長了 B 期限循環信貸的期限。我非常樂意在這些水平上進行操作。

Okay. And then last question, maybe, Jose, do you have any insight right now into the used market?

好的。最後一個問題，Jose，您現在對二手市場有什麼見解嗎？

We don't have much data on this on the used market. But obviously, I think during the COVID a lot of consumer purchase product at, I mean, above MSRP price. And this is cleaning out slowly. It takes a while for our customers to accept a loss -- a bigger loss than he was expecting on his used unit. But this is, I would say, stabilizing right now. But I don't have specific data to share with you this morning.

我們沒有太多關於二手市場的數據。但顯然，我認為在 COVID 期間，許多消費者購買產品的價格高於製造商建議零售價。而這正在慢慢地被清除。我們的客戶需要一段時間才能接受損失——比他預期的二手設備的損失還要大。但我想說，現在情況正在穩定下來。但今天早上我沒有特定的數據可以跟大家分享。

Fred Wightman, Wolfe Research.

弗雷德‧懷特曼，沃爾夫研究公司。

Hey guys, good morning. I was just hoping you could unpack the changes to the year-round guidance. I mean, to your point, that's sort of where the biggest chunk of the full year outlook adjustment comes, but there are some different subcategories down within that. So could you give us magnitude where you're making the biggest changes?

大家好，早安。我只是希望您能解釋一下全年指導的變化。我的意思是，就你的觀點而言，這就是全年展望調整中最大的一部分，但其中也包含一些不同的子類別。那麼，您能否告訴我們您在哪些方面做出了最大的改變？

We made an adjustment to our product revenue guidance, if I look at the midpoint by about $165 million. The year-end products is a big business, about 50% of revenues in the second half of the year. And the ORV industry is where we've made the biggest adjustment because that's where we're seeing more softness. And we want to be cautious, obviously, on our shipment plan.

我們對產品收入預期進行了調整，中間值約為 1.65 億美元。年終產品是一筆大生意，下半年約有50%的收入。ORV 產業是我們對它做出最大調整的領域，因為我們發現這個領域的市場更加疲軟。顯然，我們希望謹慎制定裝運計劃。

About 80% of the adjustment we did is on side-by-side, and the rest equally distributed between ATV and three-wheel. But again, as I mentioned, we want to be cautious. But yeah, we're still very bullish on the prospects of ORV. As I mentioned earlier, coming out of the club, the new ATV platform, very well received, the Maverick MAX as well, which is 60% of the supersport industry for side-by-side.

我們所做的調整大約有 80% 是針對並排式車輛的，其餘部分則平均分配在 ATV 和三輪車之間。但正如我所提到的，我們要謹慎行事。但是，是的，我們仍然非常看好 ORV 的前景。正如我之前提到的，俱樂部推出的全新 ATV 平台非常受歡迎，Maverick MAX 也是如此，它佔據了超級運動型並排車行業的 60%。

That was super well received and also the new Defender with the upgrades that we did on the Defender cab. Plus, we have also great product news coming out next year for the ORV business, but we're anxious to announce that. And so, we're still very bullish despite making a sizable adjustment on ORV this quarter.

這款新 Defender 獲得了極高的評價，我們對 Defender 駕駛艙進行了升級。此外，我們還將在明年推出有關 ORV 業務的精彩產品新聞，但我們急於宣布這一消息。因此，儘管本季對 ORV 進行了大幅調整，我們仍然非常看好。

Tristan Thomas-Martin, BMO Capital Markets.

特里斯坦·托馬斯·馬丁 (BMO 資本市場)。

Good morning. Just one question on PWC. You said you're going to end the season with some carryover inventory. The selling season self is ending. So I'm assuming there's a lot of floorplan support kind of baked into your guidance and potentially early next year. Is that right? And then is there any way to quantify how much that is?

早安.關於 PWC 只有一個問題。您說過您將以一些結轉庫存結束這個季節。銷售季節即將結束。因此，我假設您的指導中包含了很多平面圖支持，並且可能在明年年初實現。是嗎？那麼有沒有什麼方法可以量化這個數字呢？

Watercraft, just to explain the dynamic that happened season '24, there is two elements. First, we're surprised by the magnitude of the industry decline. Again, at the end of May, we were on our plan, a low number, but the trending was as planned. And I think when we had the call, we mentioned that Memorial weekend at the end of May was softer than typical.

水上交通工具，只是為了解釋 24 賽季發生的動態，有兩個要素。首先，我們對產業下滑的幅度感到驚訝。再次，在五月底，我們按照計劃行事，數量較少，但趨勢符合計劃。我認為，當我們接到電話時，我們提到五月底的陣亡將士紀念日週末的銷售情況比往常要差。

But following that, June, July was very, very soft summer retail. In fact, it was the lowest Q2 industry retail in eight years, then it's -- you can see how magnitude was bad for June and July. And this is the industry. And on top of that, and it was anticipated, but it was worse than anticipated.

但此後，六月和七月夏季零售業非常非常疲軟。事實上，這是八年來第二季度行業零售額最低的一次，然後你可以看到六月和七月的幅度有多糟糕。這就是這個行業。除此之外，這也是意料之中的事，但事實比預期的還要糟糕。

As you remember, in 2023, our main competitor on watercraft shipped very late is new product. We gained significant market share in that product category. We handed up with more non-current than what we had planned. And this year, when we had a lot of non-current and he had more non-current than us, we've lost more share than in the non-current category than what we had anticipated.

您記得，2023 年，我們在船舶上的主要競爭對手是新產品。我們在該產品類別中獲得了相當大的市場份額。我們交出的非現行版本比我們計劃的要多。今年，我們有很多非活期存款，而他的非活期存款也比我們多，我們在非活期存款類別中損失的份額比我們預期的要多。

To be honest, our planning was probably too optimistic. And this is the two elements that affected our watercraft retail this season. That being said, we're ending the season with close to 60% market share. I mean, we cannot be happy about this. We just need next summer to readapt our shipment and rebalance the inventory out there to continue on this very good business.

說實話，我們的計劃可能過於樂觀了。這是本季影響我們船舶零售的兩個因素。話雖如此，本賽季結束時我們的市佔率接近 60%。我的意思是，我們對此並不高興。我們只需要在明年夏天重新調整我們的出貨量並重新平衡庫存，以繼續保持良好的業務。

Okay. I understand that. I guess what I was asking was with kind of the winter coming, dealers maybe having a little too much PWC inventory, is there incremental floorplan support. Can you be able to quantify how much?

好的。我明白。我想我問的是隨著冬季的到來，經銷商可能有太多的 PWC 庫存，是否有增量佈局支援。你能量化一下有多少嗎？

Yeah. We do provide additional floorplan support depending on the dealers depending on how much more inventory they have in the yard. And we do provide support until early next year, but you'll appreciate that for competitive reasons, I'll hold back from disclosing any amount, but it's all provided for in the guidance.

是的。我們確實會根據經銷商在院子裡有多少庫存來提供額外的平面圖支援。我們確實會提供支援直到明年年初，但您會理解，出於競爭原因，我不會透露任何金額，但這一切都在指導中有所規定。

Thank you. At this time, we have no other questions. I will turn the call to Mr. Deschenes to close the meeting.

謝謝。目前我們沒有其他問題。我將請德斯凱內斯先生結束會議。

Great. 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 third quarter conference call on December 6. Thanks again, everyone, and have a good day.

偉大的。謝謝你，西爾維，也謝謝大家今天早上加入我們並對 BRP 感興趣。我們期待在 12 月 6 日的第三季電話會議上再次與您交談。再次感謝大家，祝福大家有愉快的一天。

Thank you. 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.

謝謝。女士們、先生們，今天的電話會議到此結束。再次感謝大家的出席。此時，我們確實請求您斷開線路。