Polaris Inc (PII) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Polaris Second Quarter 2025 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to JC Weigelt, Vice President, Investor Relations. Please go ahead.

早上好，歡迎參加 Polaris 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係副總裁 JC Weigelt。請繼續。

Thank you, Gary, and good morning or afternoon, everyone. I'm JC Weigelt, Vice President of Investor Relations at Polaris. Thank you for joining us for our 2025 second quarter earnings call. We will reference a slide presentation today, which is accessible on our website at ir.polaris.com.

謝謝你，加里，大家早安或下午好。我是 Polaris 投資者關係副總裁 JC Weigelt。感謝您參加我們的 2025 年第二季財報電話會議。今天我們將參考幻燈片演示，您可以在我們的網站 ir.polaris.com 上存取該演示。

Joining me on the call today are Mike Speetzen, our Chief Executive Officer and Bob Mack, our Chief Financial Officer. Both have prepared remarks summarizing our 2025 second quarter as well as our expectations for 2025. Then we'll take your questions.

今天與我一起參加電話會議的還有我們的執行長 Mike Speetzen 和財務長 Bob Mack。兩人都準備了總結我們 2025 年第二季以及對 2025 年的期望的評論。然後我們會回答您的問題。

During the call, we will be discussing various topics, which should be considered forward-looking for the purpose of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projections in the forward-looking statements. You can refer to our 2024 10-K and our other filings with the SEC for additional details regarding risks and uncertainties.

在電話會議中，我們將討論各種主題，這些主題應被視為具有前瞻性，符合 1995 年《私人證券訴訟改革法案》的規定。實際結果可能與前瞻性陳述中的預測有重大差異。您可以參考我們的 2024 年 10-K 報告以及我們向美國證券交易委員會提交的其他文件，以獲取有關風險和不確定性的更多詳細資訊。

All references to 2025 second quarter actual results and future period guidance are for our continuing operations and are reported on an adjusted non-GAAP basis, unless otherwise noted. Please refer to our Reg G reconciliation schedules at the end of the presentation for the GAAP to non-GAAP adjustments.

除非另有說明，所有對 2025 年第二季實際業績和未來期間指引的引用均針對我們的持續經營，並按照調整後的非 GAAP 基礎報告。請參閱簡報末尾的 Reg G 對帳表，以了解 GAAP 到非 GAAP 的調整。

Now I will turn it over to Mike Speetzen. Go ahead, Mike.

現在我將把時間交給 Mike Speetzen。繼續吧，麥克。

Thanks, JC Good morning, everyone, and thank you for joining us today. Before we walk through our second quarter results, I would like to begin by acknowledging the outstanding work of our team. While there is plenty of external noise, tariffs, interest rates, a dynamic and often unpredictable macro environment, I'm proud to say Polaris is winning where it counts.

謝謝，JC 大家早安，謝謝你們今天加入我們。在我們介紹第二季業績之前，我首先要對我們團隊的出色工作表示感謝。儘管存在大量外部噪音、關稅、利率以及動態且往往難以預測的宏觀環境，但我很自豪地說 Polaris 在重要的地方取得了勝利。

We've exceeded expectations for the quarter, gained share across our business, mitigated a portion of the tariff impacts, generated strong free cash flow and have dealer inventory at healthier levels across most product categories. Our plants are running leaner and more efficient than ever, surpassing even pre-pandemic benchmarks, all while maintaining the highest levels of quality that our customers and dealers come to expect, and we are bringing industry-leading products to the market.

我們本季的業績超出預期，業務份額有所增長，部分關稅影響有所減輕，產生了強勁的自由現金流，且大多數產品類別的經銷商庫存都處於更健康的水平。我們的工廠比以往任何時候都更加精簡和高效，甚至超過了疫情前的基準，同時保持了客戶和經銷商期望的最高品質水平，並且我們正在將行業領先的產品推向市場。

I'm more confident than ever that will emerge from the cycle stronger because the Polaris team is focused and executing on what we can control. Today, Bob and I will walk you through our Q2 performance and update on our tariff mitigation strategy and how we are positioning Polaris for long-term growth, stronger earnings and higher returns.

我比以往任何時候都更有信心，我們將從週期中變得更加強大，因為 Polaris 團隊專注於並執行我們能夠控制的事情。今天，鮑伯和我將向大家介紹我們第二季的業績和關稅減免策略的最新情況，以及我們如何為 Polaris 定位以實現長期增長、更強勁的盈利和更高的回報。

In Q2, sales were down 6%, reflecting the ongoing powersports industry downturn and increased promotions. For the quarter, shipments were down just 4%, which was better than our expectations in April. Additionally, retail was flat, and we had share gains across every segment. Dealer inventory has continued to be a focus for us, and we remain in a much better place compared to last year. year over year, inventory is down 17%, excluding snowmobiles. You will recall, we planned for fewer shipments of snowmobiles later in the year to help address elevated inventory in the channel due to two bad snowfall seasons.

第二季度，銷售額下降了 6%，反映出動力運動產業持續低迷和促銷活動的增加。本季出貨量僅下降 4%，優於我們 4 月的預期。此外，零售業務表現平穩，但我們在各個細分市場的份額均有所成長。經銷商庫存一直是我們關注的重點，與去年相比，我們的庫存狀況要好得多。與去年同期相比，庫存下降了 17%，不包括雪地摩托車。您可能還記得，我們計劃在今年稍後減少雪地摩托車的出貨量，以幫助解決由於兩個降雪季節不佳而導致的海峽庫存增加的問題。

Margins were pressured by negative mix, incentive comp and elevated promotions. However, we're seeing real progress from our lean and quality initiatives. The team is building on the incredible efforts that started last year. And for 2025, we are on track to deliver an incremental $40 million in operational efficiencies. Additionally, the continued focus on quality has led to lower warranty costs in the quarter, and we expect these efforts to provide a benefit for the full year.

利潤率受到負面產品組合、激勵補償和促銷增加的壓力。然而，我們看到精益和品質舉措正在取得真正的進展。該團隊正在以去年開始的驚人努力為基礎繼續前進。到 2025 年，我們預計將實現 4,000 萬美元的增量營運效率提升。此外，對品質的持續關注導致本季度的保固成本降低，我們預計這些努力將為全年帶來效益。

Adjusted EPS came in at $0.40, which was down year over year but well ahead of last year's -- of the latest consensus expectations. Our decision today to not reinstate full year guidance stems from the fact that there remains an abundance of uncertainty around tariffs, and the potential impact on consumer spending. We continue to actively monitor developments, and we'll reevaluate our decision on providing full year guidance once we have greater clarity.

調整後的每股收益為 0.40 美元，較去年同期有所下降，但遠高於去年的最新普遍預期。我們今天決定不恢復全年指引，因為關稅方面仍存在許多不確定性，並且可能對消費者支出產生影響。我們將繼續積極關注事態發展，一旦獲得更清晰的了解，我們將重新評估提供全年指導的決定。

Like last quarter, we've decided to provide more assumptions for the business in the third quarter, which Bob will walk through shortly. That said, our commitment to navigating these challenges and positioning Polaris for long-term success remains unchanged. Retail was flat year over year in Q2, driven by growth in RANGER, Crossover and India motorcycle.

與上個季度一樣，我們決定為第三季的業務提供更多假設，Bob 將很快介紹這些假設。儘管如此，我們應對這些挑戰和幫助 Polaris 取得長期成功的承諾始終沒有改變。受 RANGER、Crossover 和印度摩托車銷量成長的推動，第二季零售額較去年同期持平。

In Utility, ATV was flat, while RANGER saw mid-single-digit growth. In Recreation, crossover vehicles grew mid-single digits, although razor was down mid-single digits. In the crossover segment, the Polaris expedition has been a standout story since it launched a little over two years ago. It has helped us grow our crossover market share from under 35% pre-pandemic to about 55% today. That's one of the biggest share shifts in ORV in over five years and it underscores the power of innovation.

在多用途車領域，全地形車 (ATV) 銷量持平，而 RANGER 銷量則實現了中等個位數成長。在休閒領域，跨界車銷量實現了中等個位數成長，而刮鬍刀銷量則下降了中等個位數。在跨界車領域，北極星探險自兩年多前推出以來一直是一個引人注目的故事。它幫助我們將跨界車市場的份額從疫情前的不到 35% 提高到今天的 55% 左右。這是五年多來 ORV 最大的股票變動之一，凸顯了創新的力量。

We gained share across all segments during the quarter, including ORV, despite aggressive promotions from other OEMs. We always said these aggressive promotions would likely be a short-term issue, and we believe we remain well positioned to gain back share with our innovative product line across ORV, once industry levels normalize and industry retail stabilizes.

儘管其他 OEM 廠商大力推廣，但我們在本季在包括 ORV 在內的所有細分市場的份額均有所增長。我們一直說這些積極的促銷可能只是短期問題，我們相信，一旦行業水平恢復正常、行業零售穩定，我們仍然能夠憑藉 ORV 的創新產品線重新贏得市場份額。

In on-road, Indian Motorcycles gained multiple market share points, especially in the heavyweight category aided by the launch of our PowerPlus lineup earlier this year. Marine also gained share driven by our new entry-level Bennington pontoon, which has resonated well with noncash buyers as well as our all-new M-Series Bennington, which has performed well with more luxury-oriented buyers.

在公路上，印第安摩托車獲得了多個市場份額，特別是在重量級類別中，這要歸功於我們今年早些時候推出的 PowerPlus 系列。船舶市場的份額也得到了提升，這得益於我們新款入門級 Bennington 浮橋，這款產品在非現金買家中引起了強烈反響，而我們全新的 M 系列 Bennington 也受到了更注重奢侈品的買家的青睞。

We also wrapped up our annual dealer survey with over 800 participants. The key takeaways are dealers are largely comfortable with their Polaris inventory. They want us to stay focused on innovation as it drives traffic and share and uncertainty remains high, which is impacting their willingness to move more -- to order more inventory. We're listening or staying close to our dealers, supporting them through the downturn and preparing for an eventual market rebound.

我們也完成了年度經銷商調查，有超過 800 名參與者。關鍵的一點是經銷商對他們的 Polaris 庫存基本上感到滿意。他們希望我們繼續專注於創新，因為創新可以推動流量和份額，而且不確定性仍然很高，這影響了他們採取更多行動（訂購更多庫存）的意願。我們正在傾聽經銷商的意見或與他們保持密切聯繫，支持他們度過經濟低迷時期，並為最終的市場反彈做好準備。

Turning to tariffs. The landscape continues to change at a rapid pace. Consistent with our April call, we want to provide you with a snapshot of the impact given current tariffs in effect. The biggest change from what we spoke about in April would be the tariff on our China spend. This all-in rate is currently at approximately 55%, which is lower than the 170% that was in place in April. That alone reduces our expected 2025 tariff impact by over $150 million.

談到關稅。景觀繼續快速變化。與我們四月份的呼籲一致，我們希望向您提供當前關稅生效的影響的快照。與我們四月談到的相比，最大的變化是針對我們在中國採購的關稅。目前，全包率約為 55%，低於 4 月的 170%。僅此一項就將我們預計 2025 年的關稅影響減少了 1.5 億美元以上。

While this reduction was welcome, we still believe the current tariff structure puts us at a competitive disadvantage given our heavier US manufacturing footprint versus competitors that also source from China, but manufacture in countries like Mexico or Japan. For tariffs have been enacted, we now expect full year gross tariff costs of $180 million to $200 million with less than $100 million in incremental tariffs hitting the P&L this year after mitigation and inventory deferrals. That's $125 million lower than our April estimate.

雖然這種減稅措施受到歡迎，但我們仍然認為，鑑於我們在美國製造業務的足跡比同樣從中國採購但在墨西哥或日本等國家生產的競爭對手更重，目前的關稅結構使我們處於競爭劣勢。對於已經實施的關稅，我們現在預計全年總關稅成本為 1.8 億至 2 億美元，在減稅和庫存遞延之後，今年影響損益的增量關稅將不到 1 億美元。這比我們 4 月的估計低了 1.25 億美元。

These amounts exclude potential impacts from tariffs that have not yet been enacted. This remains a fluid situation, and we are already implementing actions that can reduce our tariff exposure over the short and long term through our four-pronged mitigation strategy, as we continue to reevaluate our supply chain manufacturing footprint, pricing and market priorities.

這些金額不包括尚未實施的關稅的潛在影響。情況仍在不斷變化，我們已經在實施行動，透過四管齊下的緩解策略，在短期和長期內減少關稅風險，同時我們將繼續重新評估我們的供應鏈製造足跡、定價和市場優先事項。

These are tough decisions, but we're making -- we're taking a data-driven approach to protect our long-term competitiveness and profitability. Our proactive approach is already proving successful as we expect to have relief from most of these new tariffs over the next couple of years. We're targeting to reduce source parts from China to the US by 35% by year-end which is slightly higher than what we had initially thought as the teams have identified even more opportunities to reduce exposure.

這些都是艱難的決定，但我們正在採取數據驅動的方法來保護我們的長期競爭力和獲利能力。我們的積極主動的做法已被證明是成功的，因為我們預計未來幾年大部分新關稅將得到減免。我們的目標是到年底將從中國到美國的零件來源減少 35%，這比我們最初的設想略高，因為團隊已經發現了更多減少風險的機會。

Of this amount, almost half is already complete with parts sourced from different regions being received at our plants. Further, the team expects to have a transition plan for 80% of our China source parts by the end of the year. The timing of the actual moves is still being determined but the progress here is real with the goal of creating a supply chain with minimal tariff exposure relative today. We have also negotiated with suppliers to mitigate pass-through costs, saving over $10 million to date through our efforts.

其中近一半已經完成，來自不同地區的零件已送達我們的工廠。此外，該團隊預計在今年年底前為 80% 的中國零件製定過渡計畫。實際舉措的時間仍有待確定，但這裡的進展是真實的，目標是創建一個相對目前關稅風險最小的供應鏈。我們還與供應商協商以降低轉嫁成本，迄今為止已透過我們的努力節省了 1000 多萬美元。

I'm confident in our tariff mitigation strategy and execution to date. I also remain confident that we're taking the appropriate actions to drive our long-term strategy to increase shareholder value. Over the short term, we will continue to take a prudent approach to our cost structure, as we position Polaris for a market recovery. Given our cash preservation playbook, we will be thoughtful about evaluating discretionary spend and CapEx over the near term, and we'll focus on maximizing our cash generation.

我對我們迄今為止的關稅減免策略和執行情況充滿信心。我仍然相信，我們正在採取適當的行動來推動我們的長期策略，以增加股東價值。短期內，我們將繼續採取審慎的成本結構，為 Polaris 迎接市場復甦做好準備。鑑於我們的現金保全策略，我們將認真評估短期內的可自由支配支出和資本支出，並專注於最大限度地提高現金產生率。

Our approach is proving to be successful as we cut inventory and generated approximately $290 million in free cash flow in the second quarter. Share gains and innovation are helping drive sales performance above industry results. Our focus on lean is driving tangible results within our plants, which should translate into greater earnings power. When the powersports cycle begins to improve, we believe Polaris will be in an even stronger position at the dealership with higher margins and greater earnings power.

事實證明，我們的做法是成功的，因為我們削減了庫存，並在第二季度產生了約 2.9 億美元的自由現金流。市場佔有率的成長和創新有助於推動銷售業績超越行業水準。我們對精實的關注正在推動我們工廠取得實際的成果，這將轉化為更大的獲利能力。當動力運動週期開始改善時，我們相信 Polaris 在經銷店中的地位將更加強大，利潤率更高，盈利能力更強。

Ultimately, the goal remains to generate above-average returns for shareholders, and we believe we are taking the appropriate steps to meet this goal. I'm now going to turn it over to Bob to provide you with more details on the financials. Bob?

最終，我們的目標仍然是為股東創造高於平均水準的回報，我們相信我們正在採取適當的措施來實現這一目標。現在我將把電話交給鮑勃，讓他向您提供有關財務的更多詳細資訊。鮑伯？

Thanks, Mike, and good morning or afternoon to everyone on the call today. Second quarter adjusted sales declined 6%, primarily due to planned shipment reductions and elevated promotional activity. However, results exceeded our expectations driven by higher than anticipated shipments in off-road. International sales were down 5%, reflecting similar dynamics.

謝謝，麥克，今天電話會議中的每個人都早上好或下午好。第二季調整後的銷售額下降了 6%，主要原因是計劃出貨量減少和促銷活動增加。然而，由於越野車出貨量高於預期，業績超出了我們的預期。國際銷售額下降了 5%，反映了類似的動態。

PG&A sales declined 1%, impacted by lower whole good shipments, partially offset by strength in parts and oil. Gross margin was pressured across all segments due to unfavourable mix in heightened promotions, particularly in off-road, so we saw some benefit from ongoing manufacturing efficiencies. We also had incremental tariff costs of $10 million hit the P&L in the quarter, which was within our anticipated range.

PG&A 銷售額下降 1%，受整機出貨量下降的影響，但零件和石油的強勁表現部分抵消了這一影響。由於促銷力度加大，產品組合不利，所有細分市場的毛利率都面臨壓力，尤其是在越野領域，因此，持續提高製造效率為我們帶來了一些好處。本季我們也產生了 1000 萬美元的增量關稅成本，這在我們的預期範圍內。

Adjusted EBITDA margin also faced headwinds from incentive compensation. As you saw in our press release this morning, we recognized a non-cash goodwill impairment charge during the quarter associated with our on-road segment, due to the continued decline in financial performance, and prolonged deterioration of industry conditions. We also had an impairment related to a strategic investment recorded in other expense.

調整後的 EBITDA 利潤率也面臨激勵薪資帶來的阻力。正如您在我們今天早上的新聞稿中看到的那樣，由於財務業績的持續下滑以及行業狀況的長期惡化，我們在本季度確認了與道路部門相關的非現金商譽減損費用。我們還在其它費用中記錄了與戰略投資相關的減值。

Within the quarter, we generated $320 million in operating cash flow supported by continued focus on reducing net working capital, especially inventory. This marks the highest second quarter of operating cash flow since the height of the pandemic in 2020. This translated into approximately $290 million in free cash flow for the quarter, a testament to the strength of our recessionary playbook.

在本季度，我們產生了 3.2 億美元的營運現金流，這得益於我們繼續專注於減少淨營運資本，尤其是庫存。這是自2020年疫情高峰以來第二季最高的營業現金流。這意味著本季的自由現金流約為 2.9 億美元，證明了我們應對經濟衰退的策略的強大力量。

Off-road sales declined 8%, driven by lower whole goods volume and increased promotions. Industry-wide dealer inventory levels improved during the quarter, suggesting a potential return to healthier inventory positions. Our data shows all OEMs, except one, now have DSOs below 140 days compared to three OEMs above that threshold last quarter. Polaris DSOs remain around 110 days well below historical norms, reinforcing our confidence in our positioning.

由於整車銷量下降和促銷活動增加，越野車銷量下降了 8%。本季度，全行業經銷商的庫存水準有所提高，顯示庫存狀況有可能恢復到更健康的狀態。我們的數據顯示，除一家 OEM 外，所有 OEM 的 DSO 均低於 140 天，而上個季度有三家 OEM 的 DSO 高於該閾值。Polaris DSO 仍保持在 110 天左右，遠低於歷史標準，這增強了我們對自身定位的信心。

Gross margin declined 55 basis points due to mix and promotions with the lower year over year mix within the side-by-side shipments. Operational efficiencies, and lean initiatives continue to support margins and warranty expense remained a tailwind, where we continue to see an improvement in model year 2025 claims as a result of our commitment to quality.

由於產品組合和促銷活動以及並排出貨量同比下降，毛利率下降了 55 個基點。營運效率和精益舉措繼續支持利潤率，保固費用仍然是順風，由於我們對品質的承諾，我們繼續看到 2025 年車型索賠的改善。

Moving to on-road, sales during the quarter were down 1%, driven by ongoing softness within our slingshot business. This was partially offset by mid-single-digit sales growth in Indian Motorcycle. Adjusted gross profit margin was down 83 basis points, driven by a year over year mix headwind within our European EXIM business.

轉向公路銷售，本季銷售額下降了 1%，因為我們的彈弓業務持續疲軟。但印度摩托車的中位數銷售成長部分抵消了這一成長。調整後的毛利率下降了 83 個基點，因為我們的歐洲進出口業務比去年同期出現不利因素。

In marine, sales were up 16%, driven by positive shipments of new boats, including the new entry-level Bennington pontoon. Recent SSI data reflects share gains for our pontoon brands in the second quarter supported by our competitive positioning in the entry level of the premium segment. However, the broader marine industry continues to face pressure from elevated interest rates and macroeconomic uncertainty. Gross profit margin declined due to unfavourable operational expenses and negative mix in the quarter.

在船舶領域，銷售額成長了 16%，這得益於新船（包括新款入門級 Bennington 浮橋船）的積極出貨。最近的 SSI 數據反映出我們的浮橋品牌在第二季度的份額成長，這得益於我們在高端市場入門級的競爭定位。然而，更廣泛的海洋產業繼續面臨利率上升和宏觀經濟不確定性的壓力。由於本季營運費用不利和產品組合不佳，毛利率下降。

Moving to our financial position. We generated approximately $320 million in operating cash flow this quarter translating into $289 million of free cash flow. Much of this was derived from a focused effort to reduce working capital, including an initiative to lower inventory at our plants given our ability to operate more efficiently today versus a year ago.

轉向我們的財務狀況。本季我們產生了約 3.2 億美元的營運現金流，轉化為 2.89 億美元的自由現金流。這很大程度上源於我們致力於減少營運資本，包括降低工廠庫存的舉措，因為我們今天的營運效率比一年前更高。

We remain committed to our recessionary strategy until economic policy and demand stabilizes. In June, we proactively amended our existing credit facility, and prepaid senior notes via revolving loans. The amendment extends the maturity of our $400 million, 364-day term loan and provides a covenant release period to allow incremental flexibility in this dynamic environment.

在經濟政策和需求穩定之前，我們將繼續堅持我們的經濟衰退策略。6月份，我們主動修改了現有的信貸安排，並透過循環貸款預付了優先票據。該修正案延長了我們 4 億美元、364 天定期貸款的期限，並提供了契約解除期，以便在這種動態環境中實現增量靈活性。

We intend to be prudent with capital and so we return to a more predictable environment. This approach includes the ability to continue the normal payout of our dividend, which the Board will review later this week. We also have approximately $1 billion of liquidity available through our revolver. Our net leverage ratio ended the quarter at 3.1 times EBITDA, and we believe the additional flexibility allowed under our amended credit facility mitigates downside risk. With the strong free cash flow generation year-to-date, and enhanced financial flexibility, we are well positioned to emerge stronger from this prolonged downturn.

我們打算謹慎使用資本，以便我們回歸到一個更可預測的環境。這種方法包括繼續正常支付股利的能力，董事會將於本週稍後對此進行審查。我們也透過循環信貸額度擁有約 10 億美元的流動資金。本季末，我們的淨槓桿比率為 EBITDA 的 3.1 倍，我們相信，修改後的信貸安排所允許的額外彈性可以減輕下行風險。憑藉年初至今強勁的自由現金流和增強的財務靈活性，我們已做好準備，從這場長期低迷中走出來。

As with our April call, we are not providing formal guidance, but we'll share key planning assumptions. First, we expect third quarter sales to be between $1.6 billion and $1.8 billion. We are planning on fewer shipments and net pricing to be neutral year over year with price offsetting promotions. Retail is expected to be flattish year over year.

就像我們四月的電話會議一樣，我們不會提供正式指導，但我們會分享關鍵的規劃假設。首先，我們預計第三季的銷售額將在 16 億美元至 18 億美元之間。我們計劃減少發貨量，並透過價格抵消促銷使淨價格與去年同期相比保持中性。預計零售業將年持平。

We estimate the P&L impact of incremental new tariffs to be between $30 million to $40 million net of inventory deferrals. We estimate this level of tariffs to be a fairly accurate run rate going forward from enacted tariffs, and deferrals from the first half of this year.

我們估計，增量新關稅對損益的影響扣除庫存遞延後將在 3,000 萬至 4,000 萬美元之間。我們估計，這一關稅水準是已頒布的關稅和今年上半年的延期關稅的相當準確的運行率。

Again, this assumes no change in current enacted tariff policy or mitigation efforts as of today. Due to tariff impacts in the incentive compensation headwind, we do expect adjusted EPS for the third quarter will be negative. We continue to believe the ultimate impact on the consumer from these tariffs is not known, and thus, we remain hesitant to provide longer-term guidance until we have a clearer picture.

再一次，這假設截至今天現行頒布的關稅政策或緩解措施沒有改變。由於激勵薪酬逆風中的關稅影響，我們預期第三季調整後的每股盈餘將為負值。我們仍然認為這些關稅對消費者的最終影響尚不清楚，因此，在我們了解更清楚的情況之前，我們仍不願意提供長期指引。

In closing, while the macroeconomic environment remains uncertain, our disciplined execution, strong cash flow generation, and proactive financial management position us well to navigate the current challenges. We remain focused on operational efficiency, maintaining a healthy balance sheet customer-driven innovation and supporting our dealer network, as we prepare for a return to more stable market conditions.

最後，儘管宏觀經濟環境仍然不確定，但我們嚴謹的執行力、強勁的現金流創造和積極主動的財務管理使我們能夠很好地應對當前的挑戰。我們將繼續專注於營運效率、維持健康的資產負債表、以客戶為導向的創新以及支持我們的經銷商網絡，為恢復更穩定的市場條件做好準備。

Our long-term strategy remains intact, and we are confident in our ability to emerge stronger and deliver value for our shareholders over time. With that, I'll turn it back over to Mike to talk about a new product launch and wrap up the call. Go ahead, Mike. Thanks.

我們的長期策略保持不變，我們有信心隨著時間的推移變得更加強大並為股東創造價值。說完這些，我將把電話轉回給麥克，讓他談論新產品的發布，然後結束通話。繼續吧，麥克。謝謝。

Thanks, Bob. Before I wrap up our prepared remarks and move to Q&A, I'm excited to share details around a new product that is launching later today. You've heard me talk about the opportunity that exists for us in the entry, and value segment for our products. We're incredibly proud of the home runs we've delivered in the premium space, vehicles like Polaris Expedition, the RANGER XP 1500, NorthStar additions in the RZR Pro R. However, we also recognize the opportunities that exist in the entry or value space and have been focused on expanding our vehicle portfolio to better meet the needs of customers we are not currently reaching.

謝謝，鮑伯。在我結束準備好的演講並進入問答環節之前，我很高興與大家分享有關今天稍後推出的新產品的詳細資訊。您已經聽我談論了我們的產品在入門級和價值領域中存在的機會。我們為我們在高端領域的成就感到無比自豪，例如 Polaris Expedition、RANGER XP 1500 和 RZR Pro R 中的 NorthStar 附加車型。然而，我們也認識到入門級或價值領域存在的機會，並一直致力於擴大我們的車輛組合，以更好地滿足我們目前尚未觸及的客戶的需求。

There's a segment of customers that want the quality, the dealership service, the brand leadership that Polaris offers, but we're not at the right price level for them. Later today, we're launching the Polaris RANGER 500. We believe this is the right product at the right price to address a customer base that makes up approximately 50% of all utility vehicle purchases.

有一部分客戶想要 Polaris 提供的品質、經銷商服務和品牌領導力，但我們的價格水準不適合他們。今天晚些時候，我們將推出 Polaris RANGER 500。我們相信，這是一款價格合適的產品，可以滿足佔所有多功能車購買量約 50% 的客戶群。

We expect the new RANGER 500 will allow Polaris to capture more volume, and share as there are many potential buyers of side-by-sides that are looking to unlock the value between fund and productivity at a lower price, and we believe we have the right product there. Starting at $9,999, the RANGER 500 is built for customers who are looking for a vehicle that has the features needed to get more done around their yard or property while being easy to use and easy to own as we expect these customers will be newer to the ORB ownership experience, and we are designing it all at a more accessible price point.

我們預計新款 RANGER 500 將使 Polaris 獲得更多銷售和市場份額，因為有許多潛在的並排式車輛買家希望以更低的價格釋放資金和生產力之間的價值，我們相信我們擁有合適的產品。RANGER 500 的起售價為 9,999 美元，專為那些正在尋找一款具備所需功能的車輛的客戶而設計，該車輛可以在他們的院子或財產周圍完成更多工作，同時易於使用和易於擁有，因為我們預計這些客戶將是 ORB 擁有體驗的新手，並且我們正在以更容易接受的價格設計它。

It comes standard with 1,500 pounds of towing capacity, a 300-pound gas assist dump box, a 2,500 winch and over 30 accessory options. Dealers who have previewed it are excited about the customer acquisition potential. We'll begin shipping in just a few weeks. This launch adds to the most innovative, and updated product portfolio on dealers' force. We made this innovation leadership commitment to you in 2022 and have continued to deliver year after year.

它標配 1,500 磅的牽引能力、300 磅的氣體輔助傾卸箱、2,500 磅的絞盤和 30 多個配件選項。已經預覽過的經銷商對於其客戶獲取潛力感到興奮。我們將在幾週內開始發貨。此次發布為經銷商隊伍增添了最具創新性和最新的產品組合。我們在 2022 年向您做出了這項創新領導承諾，並且年復一年地繼續兌現。

We plan to stay on the offense to deliver rider driven innovation, and the best customer experience in the industry. Now let me close with this. We're doing a great job controlling what we can control. Dealer inventory is largely within our control, a vast majority of our product lines are in a healthier place versus last year and aligned with demand. Innovation is alive and well as demonstrated by our share gains in the quarter. The RANGER 500 is an exciting new launch for us.

我們計劃繼續保持攻勢，提供以乘客為主導的創新，以及業界最佳的客戶體驗。現在讓我以此作為結束。我們在控制我們能夠控制的事情上做得很好。經銷商庫存基本上在我們的控制範圍內，我們的絕大多數產品線都比去年更健康，並且與需求保持一致。我們本季的市佔率成長證明了創新依然活躍。RANGER 500 對我們來說是一個令人興奮的新產品。

And if dealer feedback on the vehicle is any sign, we believe the RANGER 500 will be a big success story for us. Plus there's more to come on the innovation front. We're on track to deliver $40 million in operational efficiencies this year. Approximately half of that has already been achieved through deeper penetration of lean at our factories as well as other initiatives.

如果經銷商對該車輛的回饋有任何跡象的話，我們相信 RANGER 500 將為我們帶來巨大的成功。此外，創新方面還將有更多進展。我們今年可望實現 4,000 萬美元的營運效率提升。其中約一半已經透過精益生產在我們工廠的深入滲透以及其他舉措實現。

On tariffs, we are executing on our mitigation strategy and not only taking costs out this year but creating a transition plan for the majority of our China spend to further reduce our exposure to tariffs. When the powersports market recovers, and we believe it will, the work we've done will shine through. I've never seen our plans run this efficiently, and we know there's more improvements to be done.

在關稅方面，我們正在執行緩解策略，不僅在今年削減成本，而且還為我們在中國的大部分支出製定過渡計劃，以進一步降低關稅風險。當動力運動市場復甦時（我們相信它會復甦），我們所做的工作將會大放異彩。我從未見過我們的計劃運行得如此高效，而且我們知道還有更多的改進要做。

Our innovation calendar is packed, our dealer relationships are strong, and our culture is resilient. Altogether, unlocking long-term value for our shareholders through higher sales growth, greater earnings power and stronger returns. We appreciate your continued support.

我們的創新日程安排得滿滿噹噹，我們與經銷商的關係十分牢固，我們的企業文化也富有彈性。總而言之，透過更高的銷售成長、更強的獲利能力和更高的回報為我們的股東釋放長期價值。感謝您一直以來的支持。

And with that, I'll turn the call back over to Gary to open up the line for questions.

說完這些，我將把電話轉回給加里，讓他回答問題。

(Operator Instructions) Craig Kennison, Baird.

（操作員指示）Craig Kennison，Baird。

Hey, good morning. A question on USMCA. It feels like you're aligning for a new world order for global supply chains that is less dependent on China and more optimized for USMCA. But USMCA is subject to renegotiation too. So I'm curious how you are preparing for those scenarios and what might be the optimal scenario for Polaris?

嘿，早安。關於 USMCA 的一個問題。感覺您正在為全球供應鏈的新世界秩序做準備，這種供應鏈對中國的依賴程度較低，並且更適合 USMCA。但 USMCA 也需要重新談判。所以我很好奇您是如何為這些情況做準備的，以及對於 Polaris 來說最佳的情況是什麼？

Yeah, thanks, Craig. Yeah, look, there's still a lot of trade deals to be negotiated, and we are aware of USMCA potentially being one that could go through a phase, that I think all parties have to align on what those changes could be. At the end of the day, the China tariff rate is likely to be the highest, at least based on the rhetoric we've heard from the administration. And so while we're still incurring tariffs from other countries that we may source from China is obviously the highest.

是的，謝謝，克雷格。是的，還有很多貿易協議需要談判，我們知道 USMCA 可能會經歷一個階段，我認為各方必須就這些變化達成一致。最終，中國的關稅稅率可能是最高的，至少根據我們從政府聽到的言論來看是這樣。因此，雖然我們仍在向其他國家徵收關稅，但從中國採購的商品顯然是最高的。

And so we've ramped up our efforts to continue to pull that level of sourcing down. Sometimes, we're working with existing Chinese suppliers who are moving to different locations or just migrating to new suppliers. We do have a pretty heavy push to try and get sourcing back to either the US or Mexico because we know that under a USMCA environment, that's probably going to be the most advantageous.

因此，我們加大了努力，並繼續降低採購水準。有時，我們與現有的中國供應商合作，他們正在遷移到不同地點或只是轉向新的供應商。我們確實在竭盡全力嘗試將採購重新轉向美國或墨西哥，因為我們知道在 USMCA 環境下，這可能是最有利的。

And I would tell you that we are probably positioned better than any of our competitors with regards to that because we do have a nice manufacturing footprint in Mexico, but we also have a nice manufacturing footprint in the US with Roseau, Huntsville and Spirit Lake. And so it gives us the ability to flex volume between the two depending on the tariff regime and if they end up aligning USMCA to have an inbound tariff against China or any of the other countries or any inbound materials that would go into, say, Mexico.

我想告訴你，在這方面我們可能比任何競爭對手都處於更有利的位置，因為我們在墨西哥確實擁有良好的製造足跡，但我們在美國羅索、亨茨維爾和斯皮里特湖也有良好的製造足跡。因此，它使我們能夠根據關稅制度在兩者之間靈活調整貿易量，以及他們是否最終與 USMCA 保持一致，對中國或任何其他國家或任何進入墨西哥等地的進口材料徵收進口關稅。

I think the good news is, we've got a team that's been going through and running the scenarios. We've got alignment, as I talked about in my prepared remarks, we've taken quite a bit of exposure out. We've also been working directly with our suppliers to get short-term relief on pass-through as well as with migration of their production out of places like China.

我認為好消息是，我們有一個團隊一直在研究和運行這些場景。我們已經達成一致，正如我在準備好的發言中談到的那樣，我們已經消除了相當多的曝光。我們也一直與我們的供應商直接合作，以獲得短期減免以及將他們的生產轉移出中國等地。

And I think the real message is we're agile and we're prepared, and we can react. I think we've demonstrated that we've been able to pull our exposures down pretty quickly. Quite frankly, I'd rather have the teams focused on some of the other things that we're seeing value created from in the business. But the reality is we're able to do those and deal with these tariff exposures at the same time. So we think we're positioned well, and we're going to continue to stay close to it. We've got a great government relations team. We spend a lot of time interacting with the administration.

我認為真正的訊息是我們很敏捷，我們做好了準備，我們可以做出反應。我認為我們已經證明我們能夠相當快地降低風險敞口。坦白說，我寧願讓團隊專注於我們看到的業務中創造價值的其他一些事情。但事實上我們能夠做到這些，同時處理這些關稅風險。因此，我們認為我們處於有利地位，並且我們將繼續保持這一地位。我們擁有優秀的政府關係團隊。我們花了很多時間與政府互動。

And so as we see things developing, we can pivot pretty quickly.

因此，當我們看到事態發展時，我們可以很快做出調整。

Yeah, Craig. As we look at these parts, as Mike said, we're obviously our first focus is on the parts that come from China into the US, but a lot of those same suppliers supply parts that go to Mexico for other types of vehicles. And so as we develop that supply base to take those Chinese parts that are coming to the US, we're developing that supply base for the future also, which I think positions us well if USMCA, the targets in USMCA change or as Mike says, there's some kind of tariff regime that gets applied on Chinese parts in Mexico.

是的，克雷格。正如麥克所說，當我們查看這些零件時，我們顯然首先關注的是從中國運往美國的零件，但許多相同的供應商也為其他類型的車輛提供運往墨西哥的零件。因此，當我們開發供應基地來接收運往美國的中國零件時，我們也在為未來開發供應基地，我認為這將使我們處於有利地位，如果 USMCA 的目標發生變化，或者如 Mike 所說，墨西哥對中國零件實施某種關稅制度。

The other thing we're doing is, just given the posture of the administration, as we look at new products, we're pushing for a higher level of USMCA content than the current regulation just because if it's going to go in direction, it's likely to go up, not down. And so we're also making sure that we're planning for the future as we develop new products.

我們正在做的另一件事是，鑑於政府的立場，當我們審視新產品時，我們正在推動 USMCA 內容水平高於現行法規，因為如果要朝著這個方向發展，它可能會上升，而不是下降。因此，我們在開發新產品時也要確保為未來做好規劃。

That's really helpful. If I could sneak in a follow-up. Just looking at the RANGER 500, you just announced. I'm curious, do you think you can win at lower price points, given the current trade policy and the impact on your cost structure relative to competitors at lower prices?

這真的很有幫助。如果我可以偷偷地跟進的話。看看您剛剛宣布的 RANGER 500。我很好奇，考慮到目前的貿易政策以及較低價格對貴公司相對於競爭對手的成本結構的影響，您認為貴公司能夠以較低的價格取勝嗎？

Yeah, in fact, we are making a higher margin on this RANGER than the one that it essentially replaces the RANGER 570 just wasn't the vehicle that these customers wanted. It was too high priced. It didn't look good, didn't have the features. And so we put a small team together told them they had to innovate this quickly and they did an excellent job.

是的，事實上，這款 RANGER 的利潤率比它所取代的 RANGER 570 還要高，因為它並不是這些客戶想要的車款。價格太高了。它看起來不太好，也沒有什麼特點。因此，我們組成了一個小團隊，告訴他們必須快速創新，他們做得非常好。

And they used some technologies we've used in the past, and they found a way to get this vehicle at the price point that we think is going to be very successful at the dealership. We previewed this with our dealer council, which is essentially representatives from across the dealer network that Bob and I meet with every few months, and we brought the vehicle in, let them walk around it, and they basically said, look, you guys, this is going to be a home run. We've got a lot of customers that come in and buy cheap vehicles that really want a Polaris, but it's too high of a price point.

他們採用了我們過去使用過的一些技術，並找到了一種方法，以我們認為在經銷商處會非常成功的價格出售這款車。我們與經銷商委員會預覽了這一點，該委員會基本上是由來自整個經銷商網絡的代表組成，我和鮑勃每隔幾個月就會與他們會面一次，我們把車帶進來，讓他們四處走走，他們基本上說，看，你們，這將是一次本壘打。我們有很多顧客來購買便宜的車輛，他們確實想要一輛北極星，但價格太高了。

We're making the vehicle down at our Monterrey facility. So at this point, it really isn't carrying the drag of tariffs. And obviously, we're working that supply chain hard in the event that USMCA regulations change so that we can make sure that we continue to qualify. So it's a big market. It's 50% of the utility market.

我們正在蒙特雷工廠生產這款車輛。因此目前來看，它實際上並沒有受到關稅的拖累。顯然，如果 USMCA 法規發生變化，我們會努力維護供應鏈，以確保我們繼續符合資格。所以這是一個很大的市場。它佔了公用事業市場的50%。

And we know that not all these customers are going to migrate up, but a good portion of them are going to eventually start to move into the 1,000 -- the XP 1000 or NorthStar, and these are customers we want to bring into the family. So we're really excited about it. The PG&A offering of 30 accessories also provides margin uplift for us and for the dealers as customers get comfortable with the vehicle and start putting more accessories on it.

我們知道並非所有這些客戶都會升級，但其中很大一部分最終會開始轉向 1,000——XP 1000 或 NorthStar，而這些都是我們希望納入我們大家庭的客戶。所以我們對此感到非常興奮。隨著客戶對車輛越來越滿意並開始在車輛上安裝更多配件，PG&A 提供的 30 種配件也為我們和經銷商帶來了利潤提升。

Yeah, and Craig, if you think about it, a lot of these competitive products that fall in this category are made either in China or Vietnam. And so they're going to be subject to a fairly heavy tariff. So that's going to think change the dynamic at the lower end of the market, at least for a while. And a lot of those companies don't a lot of dealership service.

是的，克雷格，如果你想想，很多屬於這一類別的競爭產品都是在中國或越南製造的。因此他們將面臨相當高的關稅。因此，這至少在一段時間內會改變低端市場的動態。其中許多公司不提供經銷商服務。

And so I think we'll be the first OEM to deliver a really good product in this price range with backed by accessories, service, dealer, warranty, all those good things. So we're excited about the opportunity and look forward to how that rolls out.

因此我認為我們將成為第一家在這個價格範圍內提供真正優質產品的 OEM，並提供配件、服務、經銷商、保固等所有優質產品作為支援。因此，我們對這個機會感到非常興奮，並期待它的發展。

Great thank you.

非常感謝。

Noah Zatzkin, KeyBanc Capital Markets.

KeyBanc 資本市場 (KeyBanc Capital Markets) 的 Noah Zatzkin。

Hi, thanks for taking my questions. I guess first, maybe not to put too fine a point on it, but I think guidance implies roughly $50 million of tariff impact in the fourth quarter. So just trying to think through kind of the run rate as we look out to next year, is it as simple as kind of multiplying that by four? Or I know there are some deferrals as well embedded in 3Q. So -- just trying to think through how you're thinking about the annualized tariff impact next year and understand that you're still doing work around the China piece of the supply chain.

你好，謝謝你回答我的問題。我想首先，也許不必對此進行過度強調，但我認為指導意味著第四季度關稅的影響約為 5000 萬美元。因此，當我們展望明年時，試著思考一下運行率，是否就像將其乘以四一樣簡單？或者我知道第三季也存在一些延期。所以——只是想想想你是如何看待明年年度關稅影響的，並且明白你仍在圍繞中國供應鏈開展工作。

Yeah, I'll let Bob get into some of the details. We think inclusive of the 301 tariff, we think we're probably around $230 million on an annualized basis. Now I recognize that, that number would have been probably north of [300] without the mitigation efforts. And what I would tell you is that we're not done. We're still working on that $230 million to bring it down.

是的，我會讓鮑伯講一些細節。我們認為，如果包括 301 關稅，年度關稅總額大概在 2.3 億美元左右。現在我意識到，如果沒有採取緩解措施，這個數字可能已經超過 [300]。我想告訴你們的是，我們還沒完成。我們仍在努力利用這 2.3 億美元來降低這一數字。

And it's all the things that we put on the page, everything from the sourcing location to working with our suppliers, we are not giving up on our efforts with the administration, albeit we haven't made much progress, but we've met with everybody from the Department of Commerce to USTR to the economic adviser for President Trump. So we're going to continue to advocate for ourselves to see what we can do. But we're working that number hard and we're committed to getting it below that $230 million.

我們把所有的事情都寫在了紙上，從採購地點到與供應商的合作，我們不會放棄與政府的努力，儘管我們沒有取得多大進展，但我們已經與商務部、美國貿易代表辦公室和特朗普總統的經濟顧問等所有人會面。因此，我們將繼續為自己爭取權益，看看我們能做些什麼。但我們正在努力實現這一目標，並致力於將其控制在 2.3 億美元以下。

Yeah, so Noah, the way I would think about it, we talked about a run rate of $30 million to $40 million in Q3, and that's relatively accurate as an ongoing run rate. Q3 is a little bit of a tougher calculation because you've got some stuff that's at the higher tariff rates that came in, in Q2 that will roll in, in Q3 and then obviously, the tariff rates moved in the quarter.

是的，諾亞，按照我的想法，我們談到了第三季 3000 萬至 4000 萬美元的運行率，作為持續運行率，這是相對準確的。第三季的計算稍微困難一些，因為有些商品在第二季徵收了更高的關稅，而這些關稅將在第三季生效，而且顯然，關稅稅率在本季發生了變化。

So I think if you think about a run rate of $40 million you're going to be pretty close. And obviously, that's subject to new tariffs coming in. The new European tariff won't have any major impact, at least as we look at it right now. But obviously, we can't contemplate really what else is going to happen and it also doesn't include any further mitigations.

所以我認為，如果你考慮 4000 萬美元的運行率，那麼這個數字就相當接近了。顯然，這取決於新關稅的實施。至少就目前來看，新的歐洲關稅不會產生任何重大影響。但顯然，我們無法真正考慮還會發生什麼，而且它也沒有包括任何進一步的緩解措施。

The one thing I would caution you on, if you look at slide five, you can't just take the previous version of that slide and this version of that slide. And kind of back solve the volume coming out of China because in the current slide, that $60 million to $70 million includes some carryover that's from the higher tariff, that we had earlier in the quarter. So the math isn't exactly straightforward.

我要提醒你的一件事是，如果你看第五張投影片，你不能只拿該投影片的上一個版本和該投影片的這個版本。並解決來自中國的出口量問題，因為在當前的幻燈片中，6000 萬至 7000 萬美元包括我們在本季度早些時候徵收的更高關稅的部分結轉。所以數學不是很簡單。

Got it. That's really helpful. And maybe just one more. Obviously, you made some comments around maybe you guys being more impacted than some of your competitors in terms of tariffs. So -- and then maybe part of it is the RANGER 500 offering, but could you kind of talk about how you're thinking about maybe offsetting some of that pressure, whether it's price or just how you're thinking about staying competitive there? Thanks.

知道了。這真的很有幫助。也許還剩一個。顯然，您發表了一些評論，表明您在關稅方面受到的影響可能比一些競爭對手更大。那麼 —— 也許部分原因是 RANGER 500 的推出，但您能否談談您如何考慮抵消部分壓力，無論是價格還是您如何考慮保持競爭力？謝謝。

Yeah, I mean I'd say, look, it's all the things we've talked about. I mean, we know we're not in a strong industry right now. So price is not a big lever. I will tell you, some of our competitors have done things like tariff surcharges, which we are not going to do. We're likely to see price increases that would be more typical as you see model year changeover, I think low single digits, very low single digits.

是的，我的意思是我想說，看，這就是我們談論過的所有事情。我的意思是，我們知道我們現在所處的行業並不強大。因此價格並不是一個很大的槓桿。我可以告訴你們，我們的一些競爭對手已經採取了徵收關稅附加費之類的措施，而我們不會這麼做。我們可能會看到價格上漲，隨著車型年份的轉換，這將是更典型的上漲，我認為是低個位數，非常低的個位數。

And the reality is we've got the ability to flex production between the US and Mexico where we need to. And we're not going to do anything significant long term at this point because there's too much trade policy up in the [year]. So we need a little bit more stability around exactly what the ground rules are before we start making any decisions. But we'll keep working with our suppliers.

事實上，我們有能力根據需求在美國和墨西哥之間靈活調配生產。目前我們不會採取任何重大的長期行動，因為貿易政策太多了。[年]。因此，在開始做出任何決定之前，我們需要對基本規則有更清晰的了解。但我們會繼續與我們的供應商合作。

We'll obviously keep working the administration to see if we can get some relief for the largest and really only US power sports player, and ultimately, at the end of the day, what's going to win is innovation. And that's what I think we're proving right now. We've got the most innovative product lineup in powersports across the board.

我們顯然會繼續與政府合作，看看能否為美國最大、也是唯一的強力運動員提供一些幫助，最終，勝利的還是創新。我認為我們現在正在證明這一點。我們擁有動力運動領域最具創新性的產品陣容。

And even the second largest competitor in the industry is working hard to try and catch up to us. And when you look at what we've done with the XD 1500, you look at what we've done with the Pro R, you look at what we've done with Polaris Expedition. We have products in categories that our competitors aren't even present. And so they've got to spend a lot of time catching up. And so we're going to press that advantage and continue to gain share.

甚至業界第二大競爭對手也在努力追趕我們。當您查看我們對 XD 1500 所做的工作時，您會看到我們對 Pro R 所做的工作，您會看到我們對 Polaris Expedition 所做的工作。我們的產品類別是我們的競爭對手所沒有的。因此他們必須花費大量時間來追趕。因此，我們將充分利用這一優勢，並繼續擴大市場份額。

And work to make customers happy with the best product on the market.

並努力透過市面上最好的產品讓客戶滿意。

Thank you, really helpful.

謝謝，真的很有幫助。

Joe Altobello, Raymond James & Associates.

喬‧阿爾托貝洛 (Joe Altobello)，雷蒙‧詹姆斯 (Raymond James) 及合夥人。

Thanks. Hey guys, good morning. I guess, first on retail, could you speak to what you saw in terms of the cadence throughout the quarter and what you're seeing here in July. We get the sense in talking to our dealer checks that it was fairly volatile from quarter-to-quarter. So I'm curious what you guys saw from month to month.

謝謝。大家好，早安。我想，首先關於零售，您能否談談整個季度的節奏以及 7 月份的情況。我們在與經銷商的交談中發現，每季的波動都相當大。所以我很好奇你們每個月都看到了什麼。

Yeah, When we take out -- take youth and snow out of our ORV business, it was actually up all 3 months, granted, it did move around. And we've seen that performance continue into July. So the utility segment is obviously holding up the strongest -- on the REC side, as I talked about in my prepared remarks, Expedition continues to perform really well. RZR has bounced around a little bit more.

是的，當我們從 ORV 業務中剔除年輕人和雪的時候，它實際上在 3 個月內都處於上升趨勢，當然，它確實在移動。我們看到這種表現一直持續到七月。因此，公用事業領域顯然表現最為強勁——在 REC 方面，正如我在準備好的發言中提到的那樣，Expedition 繼續表現非常出色。RZR 的反彈幅度有所加大。

The good news is we continue to see the evidence that our customers are using those vehicles in terms of repair order activity, miles written consumables like oil and tires and we know from the survey that I referenced in the last earnings call that while they are using the vehicles, they are just not ready to drop back into the market yet.

好消息是，我們繼續看到證據表明我們的客戶正在使用這些車輛，體現在維修訂單活動、行駛里程以及機油和輪胎等消耗品方面。我們從我在上次收益電話會議上提到的調查中得知，雖然他們正在使用這些車輛，但他們還沒有準備好重返市場。

I think if we were to see some broader economic stability, and I think as these trade policies get set, that's helping as well as we start to see interest rates move. I think you're going to see these customers start to move off the sidelines. They've had these vehicles for a long time. And that's why we're making sure that we're prepared with the right inventory at the right location at the right time. So at this point, we feel good.

我認為，如果我們看到更廣泛的經濟穩定，並且隨著這些貿易政策的製定，這也會有所幫助，因為我們開始看到利率變動。我想你會看到這些顧客開始不再觀望。他們擁有這些車輛已經很長時間了。這就是為什麼我們要確保在正確的時間在正確的地點準備好正確的庫存。所以目前我們感覺很好。

We feel like retail has started to stabilize, I guess, would be the way I would articulate it. But there's still a lot of uncertainty in terms of what are the trade deals going to ultimately do from an economic standpoint. It certainly feels like people are getting more optimistic than pessimistic. And it's also going to be dependent on what we see happen from an interest rate perspective.

我們感覺零售業已經開始穩定，我想這就是我表達的方式。但從經濟角度來看，這些貿易協定最終將產生什麼影響仍有許多不確定性。確實感覺人們變得越來越樂觀而不是悲觀。這也將取決於我們從利率角度看到的情況。

So as both Bob and I indicated, we're not prepared to go out and give guidance at this point because we still have those two variables moving around and they're obviously very closely linked. And as -- once we start to get a little bit more clarity, I think we can start to give a little bit more forward guidance around where we see retail going.

因此，正如鮑勃和我所指出的，我們目前還沒有準備好給出指導，因為這兩個變數仍然在變化，而且它們顯然密切相關。一旦我們開始更清晰地了解情況，我認為我們就可以開始對零售業的發展方向提供更多前瞻性的指導。

Yeah, One thing to keep in mind, Joe, as you get into Q3, you're into model year changeover for most of the manufacturers too. So you've also got that dynamic of -- it makes Q3 retail tends to be a little bit lumpy. It will go up and down just because you got customers. Some customers are waiting on new model year stuff that's been announced.

是的，喬，有一件事要記住，當你進入第三季時，大多數製造商也正處於車型年份的轉換期。因此，你也會發現這種動態——它使第三季的零售趨於有點不穩定。它會因為你有了顧客而漲跌。一些客戶正在等待已發布的新車型。

Other customers are trying to get deals on old model year. So Q3 is always a little bit more volatile from a retail standpoint. But inventory is pretty clean in the channel. So that should temper that hopefully a little bit this year.

其他顧客正試圖獲得舊款車型的優惠。因此，從零售角度來看，第三季的波動性總是更大一些。但通路中的庫存相當乾淨。所以希望今年這種情況能有所緩和。

Well, that was my next question. So you've got a cleaner channel from a competitive standpoint. You've got the model year changeover, so are you starting to see some easing on the promo front or your competitor is still pretty aggressive?

好吧，這是我的下一個問題。因此從競爭的角度來看，你擁有一個更乾淨的管道。你們已經經歷了車型年份的轉換，那麼你是否開始看到促銷方面的一些放鬆，或者你的競爭對手仍然非常積極？

A little bit. But consumers are still looking for a deal. I think interest rates being high doesn't help. While we do see, promo easing a bit in the second half, I don't think it's going to be anything significant. I think aside from the fact that we've got the best product out in the market, it is helpful that many of our competitors have started to draw that dealer inventory down.

有一點點。但消費者仍在尋求優惠。我認為高利率沒有幫助。雖然我們確實看到下半年促銷活動放緩，但我認為不會有什麼重大影響。我認為，除了我們在市場上擁有最好的產品之外，我們的許多競爭對手已經開始減少經銷商的庫存，這也是有幫助的。

I would tell you that we still have one bad actor out there, that while they are better than where they have been, they are still high. Frankly, they're higher on a DSO basis than we or BRP or any of the others were at the worst point. So while they have improved, they still are high.

我想告訴你，我們仍然有一個壞演員，雖然他們比以前更好了，但他們仍然很高。坦白說，以 DSO 計算，他們的水平比我們、BRP 或任何其他公司在最糟糕的時候都要高。因此，儘管有所改善，但水平仍然很高。

And obviously, they'll have to contend with that with the dealer base. I think the dealers given that we and the other large player in the industry have gotten our dealer inventory levels down to a very respectable level. I think that's putting a lot of pressure on the -- primarily the Japanese OEMs to get their inventory levels down. give the dealers some breathing room.

顯然，他們必須與經銷商群體競爭。我認為，考慮到我們和業界的其他大型參與者，我們的經銷商庫存水準已經降至非常可觀的水準。我認為這給日本的原始設備製造商帶來了很大的壓力，迫使他們降低庫存水平，給經銷商一些喘息的空間。

Got it. Okay, thank.

知道了。好的，謝謝。

James Hardiman, Citigroup.

花旗集團的詹姆斯哈迪曼。

Hi, this is Sean Wagner on for James. I guess can you help us bridge last year's 2Q with this year's Retail was flat, but EPS down almost $1. How much of that was under shipping the channel which would in theory return next year if you guys are feeling good about where your inventory stand, which it seems like you do. And then how much is increased promo or pricing differences or other factors?

大家好，我是肖恩·瓦格納 (Sean Wagner)，代替詹姆斯。我想您能幫助我們彌補去年第二季與今年零售額持平但每股盈餘下降近 1 美元的差距嗎？其中有多少是渠道運輸不足造成的，如果你們對庫存狀況感到滿意，理論上明年渠道運輸量會恢復，看起來你們是這麼認為的。那麼促銷或定價差異或其他因素增加了多少？

Yeah, So I can give you a little bit of color, Q2 versus Q2 last year from a profitability standpoint. Mix was a headwind. Last year, we were still having channel fill on expeditions and FDs and NorthStar. So that went against us a little bit. Promo, that really the elevated promo started really in the second half of last year. So Q2, there's some promo headwind, incentive comp, which we've talked about, tariffs was $10 million in the quarter.

是的，因此我可以從盈利能力的角度，向您提供一些與去年第二季度相比的情況。混合是一種逆風。去年，我們的探險隊、FD 和 NorthStar 頻道仍然很擁擠。所以對我們有點不利。促銷，真正的升級促銷實際上是從去年下半年開始的。因此，第二季存在一些促銷阻力、激勵補償，我們已經討論過，本季的關稅為 1000 萬美元。

I said that earlier-- on the plus side, our operations performance continued to improve our warranty rates are coming down, and we're seeing really good benefit from that and also much better customer satisfaction as the focus we've put on quality in the last few years really starts to play through. And then a little bit of benefit from flooring.

我之前說過——從好的方面來說，我們的營運績效持續提高，我們的保固率正在下降，我們從中看到了非常好的效益，而且客戶滿意度也大大提高，因為我們在過去幾年中對品質的關注開始真正發揮作用。然後從地板中得到一點好處。

We were -- we had a lot more dealer inventory last year. I mean we did do some extended flooring in Q3, Q4, last year, but we'll start to lap that and the dealer inventory down to start, we got some benefit of that in Q2, and we'll have a little more as the year progresses. Those are the big pieces.

去年我們的經銷商庫存多了許多。我的意思是，我們去年在第三季、第四季確實做了一些擴展地板業務，但我們會開始進行這項業務，並且經銷商庫存會開始減少，我們在第二季度獲得了一些好處，隨著時間的推移，我們會獲得更多好處。這些都是大件物品。

I guess to piggyback off that, how should we think about 3Q margins? You've given us a tariff headwind there, but I guess how should we think about the other moving parts?

我想，順著這個思路，我們該如何看待第三季的利潤率？您給了我們一個關稅阻力，但我想我們應該如何考慮其他因素呢？

Yeah, I mean, obviously, we're not giving guidance, but I think the big things, I mean, tariff is a big driver relative to last year. Price promos relatively flat, a little bit, probably better warranty and better operations performance. So kind of a continuation of the story really from Q2.

是的，我的意思是，顯然我們沒有給出指導，但我認為大事，我的意思是，關稅是相對於去年而言的一個重要驅動因素。價格促銷相對平穩，可能有更好的保固和更好的操作性能。這實際上是第二季故事的延續。

Well, and the other thing to keep in mind, if you remember last year, we cut our -- what we call our bonus and profit share program, which goes across the entire company. And so we started picking up benefits in the third quarter of last year. And that program is being funded at full value given the execution that team's been realizing this year. So that's going to create a little bit of the headwind from a margin standpoint as well.

嗯，還有一件事要記住，如果你還記得去年，我們削減了我們的——我們所謂的獎金和利潤分享計劃，該計劃涵蓋整個公司。因此，我們從去年第三季開始獲得收益。鑑於該團隊今年的執行情況，該計劃將獲得全額資助。因此，從利潤率的角度來看，這也會帶來一些阻力。

Okay. And I guess just piggyback enough. I think you mentioned that promo should be improving in the back half. Does it -- at some point, does it become -- does it even out year over year and ultimately become a tailwind? Or I guess, when do you expect that to happen?

好的。我想只要背負就夠了。我認為您提到促銷在後半部分應該會有所改善。它是否會在某個時候變得——它是否會逐年趨於平穩並最終成為順風？或者我猜，您預計什麼時候會發生這種情況？

Well, I mean it's tough to say. I mean, it really depends on what happens with interest rates. I mean we're spending a fair amount of money doing interest rate buydowns. The flooring costs are tied to interest rates. So the flooring period that we've got product out there and then ultimately, consumer demand is obviously tracking with what's going on with trade policy and some of the broader economic stuff.

嗯，我的意思是這很難說。我的意思是，這實際上取決於利率的變化。我的意思是我們花了相當多的錢來進行利率降低。地板成本與利率掛鉤。因此，在我們推出產品的整個週期內，最終消費者需求顯然會追蹤貿易政策和一些更廣泛的經濟因素的進展。

And when you look at some of the stats, that have been coming out lately relative to home sales as well as capital goods being purchased by businesses, they would indicate a little bit of a slowdown. And we know that if the economy starts to slow, people may start to back off. But at this point, it's tough to predict where all that's going to go.

如果你看一下最近發布的有關房屋銷售以及企業購買資本貨物的一些統計數據，你會發現經濟略有放緩。我們知道，如果經濟開始放緩，人們可能會開始退縮。但目前，還很難預測這一切將會走向何方。

I'd like to be optimistic that as these trade deals get done and if the [Fed] were to make an interest rate move, I think that would bolster confidence in the broader economic, and I think that could bode well for us. But at this point, it's difficult to predict, which is why we're not guiding.

我樂觀地認為，隨著這些貿易協議的達成，如果聯準會調整利率，我認為這將增強人們對整體經濟的信心，我認為這對我們來說是個好兆頭。但目前還很難預測，這就是我們不提供指導的原因。

Yeah, I think the thing that's changed and will continue to impact the industry last year and even earlier this year, a lot of the promo spend, particularly last year, was targeted at inventory clearance. And as we move into Q3, as we said earlier, most of the manufacturers have relatively cleaned up their inventory. And so there's less inventory clearing promo out there and the promo spend that everyone has in the market is targeted more at move in retail.

是的，我認為去年甚至今年早些時候發生的變化將繼續影響該行業，許多促銷支出，特別是去年，都是為了清理庫存。隨著進入第三季度，正如我們之前所說，大多數製造商已經相對清理了庫存。因此，清倉促銷的庫存減少了，市場上每個人的促銷支出都更多用於零售。

So if retail stays solid, interest rates come down, there could be an opportunity there, but I think it's way too early to call that ball because there's a lot of factors that are in our control and are really unknown at this point.

因此，如果零售業保持穩健，利率下降，那麼就可能存在機會，但我認為現在下結論還為時過早，因為有很多因素在我們的控制範圍內，但目前還不清楚。

Okay, makes sense. Thanks guys.

好的，有道理。謝謝大家。

Tristan Thomas-Martin, BMO Capital Markets.

特里斯坦·托馬斯·馬丁 (BMO 資本市場)。

Hey, good morning. Can you -- Mike, I know you called out the RANGER 500 having a better margin profile than the 570 replaced. How should we think about the 500 margin profile relative to some of your more premium products?

嘿，早安。你能嗎——麥克，我知道你說過 RANGER 500 的利潤率比被取代的 570 更好。相對於你們的一些更優質的產品，我們應該如何看待 500 的利潤率？

Well, I mean, look, it's not going to be as high as our more premium products. I mean you think about a NorthStar addition, XD 1500 that's got every bell whistle. And quite frankly, you're not going to be able to make that kind of margin on a product at this category, but it is a very good respectable margin. And we think it's not going to be an overwhelming portion of the product portfolio.

嗯，我的意思是，它的價格不會像我們更高端的產品那麼高。我的意思是，您可以考慮 NorthStar 附加功能，XD 1500 擁有所有必備的功能。坦白說，你不可能在這個類別的產品上獲得這樣的利潤，但這是一個非常可觀的利潤。我們認為它不會佔據產品組合的絕大部分。

And quite frankly, it's customer acquisition, so we bring these people in and they create significant lifetime value over the time frame of the product. And frankly, these are sales that we weren't getting most likely before. And we think it's going to become a big competitive issue for some of the cheaper players that come out of Asia.

坦白說，這是為了獲取客戶，所以我們引進這些人，他們在產品的整個生命週期中創造了巨大的終身價值。坦白說，這些是我們以前最不可能實現的銷售。我們認為，對於一些來自亞洲的廉價企業來說，這將成為一個巨大的競爭問題。

Got it. And then just switching to Marine really quickly. Pretty big kind of delta between kind of sales and shipment performance relative to retail. And we've kind of consistently heard that entry level is still weak. So if dealers are ordering some or more entry-level product, are they seeing any signs of improvement at that price point? Or are they restocking had anticipated improvement at the entry level?

知道了。然後很快就切換到 Marine。與零售相比，銷售額和出貨量之間的差異相當大。我們一直聽說入門級水平仍然很弱。那麼，如果經銷商訂購一些或更多入門級產品，他們是否會看到該價格點有任何改善的跡象？或者他們補貨時已經預料到了入門級的改善？

Well, I mean, there's a couple of things. One is we've got that price protected lower-end boat that it is selling well, and it's enabling dealers to move it at those lower price points. And we've also got new products. We launched a number of new boats across the lineup, the Bennington M-Series, the Hurricane 3200 deck boat, the Hurricane 24-foot center console and dealers have ordered those because they see a path to be able to retail or they're retailing them as we speak.

嗯，我的意思是，有幾件事。一是，我們擁有價格保護的低端船，它賣得很好，並且使經銷商能夠以較低的價格銷售它。我們還有新產品。我們推出了一系列新船，包括 Bennington M 系列、Hurricane 3200 甲板船、Hurricane 24 英尺中央控制台，經銷商已經訂購了這些船，因為他們看到了一條能夠零售的途徑，或者他們正在零售這些船。

Thing I'd also remind you is we spent two years -- we were well ahead of the other marine players getting our dealer inventory healthy. And so some of it is just the year over year compare dynamics that you're seeing relative to our business versus the broader industry.

我還要提醒您的是，我們花了兩年時間——我們遠遠領先於其他海運公司，使我們的經銷商庫存保持健康。因此，其中一些只是相對於我們的業務和整個行業而言的逐年比較動態。

Great, thank you. Thanks.

太好了，謝謝。謝謝。

Alex Perry, Bank of America.

美國銀行的亞歷克斯·佩里。

Hi, thanks for taking my questions here. I guess first, just to start, can you talk to the share dynamics in on-road with Indian Motorcycles up low double-digit percent versus industry down low teens. What do you think is driving that? And any particular color on certain segments within the on-road business, if it's your more value or any units that are outperforming would be super helpful. Thanks.

你好，謝謝你在這裡回答我的問題。首先，您能否談談印度摩托車在公路上的份額動態，印度摩托車的份額增長了兩位數的百分比，而行業份額下降了百分之十幾。您認為是什麼原因導致這現象的發生？對於公路業務中某些特定領域，如果其具有更高的價值或任何表現優異的單位，則任何特定的顏色都會非常有幫助。謝謝。

Yeah, Look, with Indian, I think it's pretty simple. I mean, we've got an excellent product. The PowerPlus was a home run. The next -- the largest player in the industry really doesn't have that entry-level bike like we do with the Scout lineup. And those -- I think those two coupled together has really put us in a strong competitive position.

是的，看，對於印度人來說，我認為這很簡單。我的意思是，我們有一個優秀的產品。PowerPlus 是一支全壘打。接下來——業內最大的參與者實際上並沒有像我們的 Scout 系列那樣的入門級自行車。我認為這兩者結合在一起確實使我們處於強大的競爭地位。

Obviously, they are also distracted with some other issues that have been going on with our business. So that certainly doesn't help them. But I'm going to give the credit to the team. We've built the best distribution both in North America but also globally, and we have the best product on the market. Everything from the entry-level scout series to our heavy weight bikes. And I think that's what's winning in the marketplace right now.

顯然，他們也被我們業務中發生的一些其他問題所困擾。所以這肯定對他們沒有幫助。但我要把榮譽歸功於團隊。我們在北美乃至全球都建立了最好的分銷網絡，並且擁有市場上最好的產品。從入門級偵察系列到我們的重型自行車，應有盡有。我認為這就是目前市場上的成功之道。

Really helpful. And then just a follow-up on the ORV retail trends. So pretty significant improvement there, up 1% versus down 11% last quarter and pretty significant improvement in utility. Is it fair to say we're moving off the bottom of the cycle, how much of it was sort of promo versus the easier comps versus organic? And then as we look at 2H retail, any color on sort of how you're thinking about that by segment? Is it fair to assume that sort of ORV and on-road are expected to outperform. Thank you.

真的很有幫助。然後只是對 ORV 零售趨勢的後續關注。因此，這裡的改善相當顯著，上漲了 1%，而上一季則下降了 11%，實用性也得到了相當顯著的改善。是否可以說我們已經走出了週期的底部，其中有多少是促銷，有多少是比較容易的比較，有多少是有機的？然後，當我們看一下下半年零售業時，您如何按細分市場來考慮這個問題？是否可以公平地假設 ORV 和公路車輛的表現會更佳？謝謝。

Yeah, I mean, look, I don't want to necessarily get into trying to predict forward. I mean we clearly have some internal assumptions, but we're not providing forward guidance because of the uncertainty out there. It's tough to say if we're seeing things stabilize. It's certainly less volatile than it has been.

是的，我的意思是，看，我不一定想嘗試預測未來。我的意思是，我們顯然有一些內部假設，但由於存在不確定性，我們不會提供前瞻性指引。很難說情況是否正在穩定下來。它的波動性肯定比以前小了。

The Utility segment has continued to hold up quite well. We saw that pretty consistently through the second quarter. We are seeing that continue through July. And so we're happy with that. And we're really keeping an eye on the rec space, specifically around the RZR business as well as the marine portfolio.

公用事業領域繼續保持良好勢頭。我們在第二季度相當持續地看到了這一點。我們看到這種情況將持續到七月。我們對此感到高興。我們確實在關注娛樂領域，特別是 RZR 業務以及海洋投資組合。

Those are higher ticket priced items and consumers are really just reluctant to go spend right now unless they really need to or they're fortunate enough to have the financial flexibility to do that. And so I think it's going to take a few things happening over the next -- whether that's two quarters, four quarters, not entirely sure. But the good news is the utility segment holding up well. We just added, obviously, with the new RANGER 500, we just added another weapon in the arsenal for that category. And so we feel good about it.

這些都是價格較高的商品，消費者現在真的不願意花錢，除非他們真的需要，或者他們夠幸運，有足夠的財務彈性來這樣做。因此，我認為接下來的幾個季度會發生一些事情——無論是兩個季度還是四個季度，都不完全確定。但好消息是公用事業領域表現良好。顯然，我們剛剛推出了新款 RANGER 500，為該類別的武器庫增添了另一種武器。因此我們對此感到高興。

One dynamic to keep in -- for everybody to keep in mind is youth -- our youth business has been kind of volatile. We had previously made youth product in high tariff markets. And so we're in the process of moving that, which has impacted supply, which will get sorted out before we get to the holiday season. But has created a little bit of a noisy dynamic at youth depending on what inventory positions are. So that will probably continue through Q3. Not a big driver of profitability, obviously, but it's in the math.

需要牢記的一個動態是——每個人都要記住的是年輕人——我們的青年業務一直有點不穩定。我們之前曾在高關稅市場生產過青少年產品。因此，我們正在解決這個問題，這影響了供應，我們將在假期到來之前解決這個問題。但根據庫存位置的不同，在青年時期會產生一些吵雜的動態。因此這種情況可能會持續到第三季。顯然，這並不是盈利能力的重大推動力，但從數學上來說確實如此。

Perfect, that's incredibly helpful. Best of luck moving forward.

太好了，這太有幫助了。祝你未來一切順利。

Thanks.

謝謝。

David MacGregor, Longbow Research.

麥格雷戈（David MacGregor），長弓研究公司（Longbow Research）。

Hey, good morning. This is Joe Nolan on for David. You just talked about the share gains. Yeah, you just talked about the share gains in on-road, but you also saw share gains in ORV despite the heavy promotional environment. Just was hoping you could talk about some of the factors driving those gains. And you also mentioned competitors implementing some tariff surcharges. Does that also play a factor in maybe expecting some expected share gains in the second half of the year as well?

嘿，早安。喬諾蘭 (Joe Nolan) 代替大衛上場。您剛才談到了股價上漲。是的，您剛才談到了公路車輛的份額增長，但儘管促銷環境很激烈，您也看到 ORV 的份額有所增長。只是希望您能談談推動這些收益的一些因素。您也提到競爭對手實施了一些關稅附加費。這是否也是預計下半年股價將上漲的因素？

Yeah. Look, I think there were a few factors. I think, one, as I talked about in my prepared remarks, the competitive set has started to get inventory in a better spot. So that levels the playing field a little bit. But I think the reality is when you look at where we're seeing strength in our business, Polaris expedition, RANGER 1500, nobody has a product to compete with that and they're great products and customers love them.

是的。看，我認為有幾個因素。我認為，首先，正如我在準備好的演講中談到的那樣，競爭對手已經開始將庫存置於更好的位置。這樣，競爭環境就稍微公平一些了。但我認為，現實情況是，當你看到我們業務的優勢時，北極星探險隊、RANGER 1500，沒有人有產品可以競爭，它們都是很棒的產品，客戶都喜歡它們。

And so as I mentioned in my prepared remarks, we've taken that crossover segment from just under 35% share up over 55%. And so that certainly helps. But even in the RANGER core lineup where we have NorthStar, we're seeing strength there in that utility segment. And we've got a superior product customers want. And so we continue to see success from a retail standpoint.

正如我在準備好的演講中提到的那樣，我們已將跨界車市場的份額從略低於 35% 提升至 55% 以上。這肯定有幫助。但即使在擁有 NorthStar 的 RANGER 核心產品線中，我們也看到了在公用事業的實力。我們有客戶想要的優質產品。因此，從零售的角度來看，我們繼續取得成功。

I think on the tariff surcharge, that certainly isn't going to help some of our competitors who are doing that. But quite frankly, where they're doing it. I don't know that I would say they've got an overly competitive product to what we have anyway.

我認為，就關稅附加費而言，這肯定不會對我們的一些這樣做的競爭對手有幫助。但坦白說，他們正在這樣做。無論如何，我不知道我是否會說他們的產品比我們的產品更具競爭力。

Yeah. I mean it's a little bit -- the math gets complicated because people are putting tariffs surcharges on and then promoting them back out. So I'm not sure what the real impact is or what that strategy is going to get anyone. But like Mike said, I don't know that it's on products that are going to have a big impact on what we're doing. We just continue to see really good strength in the utility side of the business.

是的。我的意思是，這有點——數學變得複雜了，因為人們先是徵收關稅附加費，然後又將其取消。所以我不確定真正的影響是什麼或是這個策略會帶給人們什麼。但就像麥克所說的那樣，我不知道產品是否會對我們所做的事情產生重大影響。我們只是繼續看到業務實用方面的真正強勁實力。

And hopefully, REC is starting to -- will start to level out. We've seen a little bit better performance on REC certainly not ready to call a bottom but would be good to see that market just get flat for a few quarters and see if we can get that going again.

希望 REC 能夠開始趨於平穩。我們看到 REC 的表現略有好轉，當然還沒有到觸底的程度，但很高興看到市場在幾個季度內保持平穩，看看我們是否能夠再次恢復成長。

Yeah. Okay. That's helpful detail. And then mix was a bad guy in the quarter against a tough year ago compare facing some channel load for expedition and other products. Just how should we think about mix into the second half?

是的。好的。這是很有幫助的細節。與去年同期相比，本季 Mix 表現不佳，面臨遠徵和其他產品的一些通路負擔。我們究竟該如何考慮融入下半場呢？

Mix will be flat to up a little bit. It's a little hard to say right now. But I don't think it will continue to be as much of a headwind. We were lapping kind of filling the channel on some of those bigger products. And we continue to see good strong performance really across the line in the NorthStar versions.

混合物會變得平坦或稍微向上。現在有點難說。但我不認為它會繼續成為巨大的阻力。我們正在以某種方式填補一些較大產品的管道。我們繼續看到 NorthStar 版本的整體表現非常出色。

And so if that continues, that usually provides some positive mix. But we will be lapping the channel fill anymore because by Q3 last year, we had all those machines in the channel.

因此，如果這種情況持續下去，通常會帶來一些正面的影響。但我們將不再對通路進行填充，因為到去年第三季度，我們已經將所有機器都放入了頻道中。

Okay, great. Thank you, guys.

好的，太好了。謝謝你們。

Scott Stember, Roth.

斯科特·斯坦伯，羅斯。

Good morning and thanks for taking my questions. Yeah. On tariffs, it doesn't sound like the second quarter had all that much in there. But turning to -- you talked about the third quarter having negative EPS. Is that strictly driven by the full run rate of tariffs coming through? Or is there something else in the cost side or on the revenue side that would drive that?

早上好，感謝您回答我的問題。是的。關於關稅，第二季似乎沒有太多變化。但談到—您談到第三季的每股盈餘為負。這是否嚴格受關稅全額徵收率的影響？或者成本方面或收入方面是否有其他因素導致此現象？

Well, a couple of things. So yes, I mean we said $30 million to $40 million of impact kind of run rate for tariffs in Q2, it was [10]. So that's certainly part of it. In terms of headwinds, if you look at the center of the -- or the midpoint of the guidance for revenue, that would have us down about $150 million relative to Q2, and that's just the cycle of inventory and not want to get ahead on dealer inventory.

嗯，有幾件事。是的，我的意思是，我們說第二季關稅的影響率為 3000 萬到 4000 萬美元，這是[10]。這當然是其中的一部分。就不利因素而言，如果你看一下收入指引的中心點或中點，那麼相對於第二季度，我們的收入將下降約 1.5 億美元，這只是庫存週期，我們不想在經銷商庫存方面取得領先。

So obviously, that will have an impact depending on where that lands in that range. Most of the other factors are relatively flat, not hugely impactful. And we'll continue to see better performance on ops and warranty like we have through the quarter or through the last couple of quarters.

因此顯然，這將產生影響，具體取決於該範圍的哪個位置。其他大多數因素都相對平緩，影響不大。我們將繼續看到營運和保固方面表現得更好，就像本季或過去幾季一樣。

Got it. And then just last on the consumer credit side, are you seeing any tightening of lending or any deterioration of credit through your lending, arrangements that you have?

知道了。最後，在消費者信貸方面，您是否發現貸款緊縮或貸款安排中的信貸狀況惡化了？

No, not really. I mean credit continues to be a challenge. Consumers are they struggle a little bit in terms of debt to income and cash flow is what the lenders are really focused on. But availability of credit has been good and we're getting good penetration rates haven't really changed in terms of our financing rates relative to approvals, write-offs kind of peaked last year and have been relatively stable this year in the industry. So that feels good.

不，不是真的。我的意思是信貸仍然是一個挑戰。消費者在債務收入比方面有些掙扎，而現金流是貸方真正關注的。但信貸供應一直很好，而且我們獲得了良好的滲透率，就我們的融資利率相對於批准而言並沒有真正改變，註銷在去年達到頂峰，今年整個行業一直相對穩定。感覺很好。

What we really need is for rates to come down. And that's the biggest thing, and that will help us because it will help our buydowns, and it will help the consumer because it will just lower the overall rate of financing. One thing I wanted to add to my previous answer is you also have, if you're thinking year over year in Q3, you've got the impact of incentive comp, and there's a little more incentive comp in Q3 than there was in Q2. So that's another one of those dynamics.

我們真正需要的是利率下降。這是最重要的事情，它將對我們有幫助，因為它將有助於我們的回購，它也將幫助消費者，因為它將降低整體融資利率。我想在先前的回答中補充一點，如果你考慮第三季的同比情況，你就會感受到激勵補償的影響，而且第三季的激勵補償比第二季要多一點。這就是另一個動態。

Could you quantify how much that would be in the third and fourth quarter that come?

您能否量化一下第三季和第四季的增幅是多少？

No. But the run rate will be just a little bit higher than it was in Q2. It will be dramatic. The more dramatic is year over year.

不。但運行率將比第二季略高一點。這將是戲劇性的。更戲劇性的是，年復一年。

Got it.

知道了。

Thanks so much.

非常感謝。

This concludes our question-and-answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節到此結束，會議也結束了。感謝您參加今天的演講。您現在可以斷開連線。