BRP Inc.

Good morning, ladies and gentlemen. Welcome to the BRP Inc's FY26 third quarter results conference call. For participants who use the telephone line, it is recommended to turn off the sound on your device. I would now like to turn the meeting over to Mr. Philippe Deschain. Please go ahead, Mr. Deschain.

Thank you, Joelle. Good morning and welcome to BRP's conference call for the third quarter of fiscal 2016. Joining me this morning are José Boisjoli, President and Chief Executive Officer, and Sébastien Martel, Chief Financial Officer. Before I move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the call and that the actual results could differ from those implied in these statements. The forward-looking information is based on certain assumptions and is subject to risk and uncertainty, and I invite you to consult BRC'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. So with that, I'll turn the call over to Jose.

Thank you, Philippe. Good morning, everyone, and thank you for joining us. We are pleased with our third quarter financial results, which came in ahead of expectation. While we continue operating in a dynamic macroeconomic environment, our teams remain focused on discipline execution and our hard work paid off. We also gained market share in ORV, fueled by the success of our newly introduced models, notably the Canon Defender HD11. Let's turn to slide four for key financial highlights. We ended the quarter with revenue of 2.3 billion, normalized EBITDA of 326 million, normalized EPS of $1.59, and free cash flow of 220 million, all significant increase over last year. On the back of this solid performance, we are increasing our guidance and are now expecting to deliver approximately $5 of normalized EPS for the year. Moving on to slide five for global industry trends. In North America, our retail sales decreased by 4% or 1% excluding snowmobile in line with the market. Our retail in Canada was flat excluding snowmobile with a solid performance in the side-by-side category. In the US, We're down 3% in line with our plan, and we expect the trend to improve in Q4. In international markets, Latin America continues to experience solid momentum, with retail up 13%, led by a strong ORV performance in Mexico, and by our highly engaged and growing dealer network. Demand remains generally soft in EME, with retail down 4%, while Asia Pacific, our retail decreased 11%. Global industry trends have remained mostly consistent with previous quarters. In general, demand remains stronger for high-end products compared to entry-level. We view this favorably as we have introduced several new high-end model this year that are well received. Turning to slide six for a look at our retail performance by product line in North America. As anticipated, we have lost market share in all product lines except ORV due to the industry dynamic in the low volume period of the retail season. That said, the highlight of the quarter was the strong reception of our 2026 ORV lineup, which drove market share gain for both side-by-side and ETV, despite continued promotional activity from other OEMs. As you can see on slide 7, the momentum created by the new generation of the Defender, the Outlander backcountry 4x4 and 6x6, and enhancements to our Maverick lineup led to a record month of October at retail for both side-by-side and ETV. Our new model captured consumer attention and earned rave reviews from media representatives who tried them. The coverage highlighted our product as the market benchmark in the industry. Building on this momentum, we've launched additional ORV models at the end of November, namely the Defender CAD HD10, the most affordable HVAC equipped side-by-side in the industry. Now let's turn to slide eight for a more detailed look at year-round products. Revenue were up 22% to 1.3 billion, driven by higher ORV shipments following new product launches. At retail, side-by-side was up, high single-digit outpacing the industry. In fact, we delivered our strongest third quarter ever at retail for side-by-side. We continue to strongly outperform in current units, gaining four points of market share in the utility category. In ATV, retail was down mid-single-digit, outperforming the industry, which was down high single-digit. In current units, we've gained double-digit market share points driven by our Outlander platform and newly introduced models. As for three-wheel vehicles, we closed the 2025 season lagging the industry. We continue to experience softer retail for our entry-level Riker lineup, which is consistent with overall market trends. This said, our high-end Spyder lineup performed better, allowing us to remain number one in the three-wheel vehicle business with a market share over 50%. Turning to seasonal products on slide nine. Revenue were down 2% to $606 million, mainly due to a planned reduction of snowmobile shipments to right size network inventory. Looking at retail, the snowmobile industry saw a very high level of discounted non-current units from other OEMs. In fact, about two-thirds of units retailed during the quarter were non-current, a level we had not seen for many years. As expected, we lagged the industry given our lower non-current inventory and strong retail performance at the end of last season. This dynamic should continue throughout the winter. However, we are performing current unit as a result of the overall strength of our lineup and elevated level of pre-sold unit. Turning to on-water product trend remained relatively soft in North America. For the season ended in September, personal watercraft sales were down low 10%, slightly lagging the industry. but we maintained our number one position in North America. As for PON2, retail was down mid-20% as the industry is still going through a correction period. We had a better quarter in Hunter Seasonal Market, which are entering their peak retail season, with SIDU retail up mid-single digit in both Asia-Pacific and Latin America. Moving to slide 10 for parts, accessories, and apparel in OEM Engine. Revenue were up 18% to 379 million due to a higher volume of parts and accessory sales as dealers replenish their inventory. The increase in parts and oil sales show that consumers are riding our product, which is positive, while higher accessory sales reflect the success of our new product introduction. The revenue increase is also due to a more favorable mix of OEM engine sales. Before turning the call over to Sébastien, I want to give you an update on the sales of our marine business. In Q3, we've closed the sales of Manitou. As for Tellwater in Australia, the transaction remains subject to regulatory approvals. The process is taking longer than initially anticipated, and we expect a decision over the coming weeks. With that, I turn the call over to Sébastien.