BRP Inc.

Good morning, ladies and gentlemen. Welcome to the BRP Inc's fiscal year 2026 fourth quarter results conference call. For participants, 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. Philip Deschain. Please go ahead, Mr. Deschain.

Thank you, Judy. Good morning and welcome to BRP's conference call for the fourth quarter of fiscal year 2026. Joining me this morning are Denis Levat, President and Chief Executive Officer, and Sébastien Marcel, Chief Financial Officer. Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the calls 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 uncertainties, and I invite you to consult BRP's MD&A for a complete lease update. Also during the call, reference will be made to the supporting slide, 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 Denis.

Well, thank you, Philippe. Good morning, everyone, and thank you for joining us. I'm truly honored to be here today as the new CEO of BRP. Although I've only been here in my role for two months, I can see how José Boisjoli and the team contributed to building an exceptional company and move our industry forward in meaningful ways. I am excited to lead the next chapter of this great organization based on solid foundation and deep-rooted values. Since joining BRP, I have spent my time diving into the business, meeting our talented employees, visiting our sites, and engaging with our dealers, distributors, and partners. Last week, I had the chance to ride our side-by-side vehicle and personal watercraft in Palm Bay, and believe me, that was quite an experience. My views will continue to evolve as I refine my understanding of the business, but so far I am energized by the passion I've seen and the immense potential ahead of us. It is already clear to me that BRP has a proud legacy, a culture of innovation and excellence, and a unique position as a leading power sports OEM poised for continued growth. I'm happy to share with you the solid results our team delivered, starting with a look at fiscal 26 highlights on slide number four. Looking at the past year, I am impressed with how the company managed through a volatile tariff environment and challenging competitive landscape as the other OEMs were still working through excess inventory. Despite these headwinds, we delivered financial results above our initial expectation for the year and continued prioritizing our business relationships with dealers by making great strides in right-sizing our network inventory. Additionally, several steps have been taken to strengthen the long-term prospects of our business, such as the introduction of several new key models, the divestiture of two of our marine businesses, and the introduction of our M28 strategic plan. BRP is in a solid position heading into fiscal 27. Now, let's take a look at the year's financial results on slide number five. We ended fiscal 26 with revenues of $8.4 billion, normalized EBITDA of $1.1 billion, and normalized EPS of $521, all coming in above guidance. Additionally, we generated solid free cash flow of more than $900 million, ending the year with a strong balance sheet. Turning to more operational elements, we concluded the year with a healthy network inventory position, as you can see on slide number six. In North America, our dealer's inventory was down 17% from a year ago and down 28% over two years. we reached optimal levels for ORV and snowmobile following a good quarter at retail. And we are progressing toward these levels for the other product lines. We are now positioned to better align wholesale with retail in fiscal 27 and to capture market demand when the industry returns to growth. Now, turning to our retail performance by looking at global trends on slide number seven. We had a solid quarter with our North American power support retail increasing 12%, fueled by positive industry trends and market share gains in ORV and snowmobiles. Actually, we delivered a record Q4 performance in ORV in Canada. Let's look at the other regions. Markets in EMEA remain relatively muted with a slight growth in ORV and PwC, but offset by snowmobile trends in Scandinavia due to unfavorable snow conditions. As a result, we lack the broader industry given our important snowmobile business in the region. Meanwhile, our retail was up 1% in both Latin America and Asia Pacific, primarily driven by a strong end of season for PwC in these markets. This notably led our strongest retail quarter ever in Brazil. Overall, we saw global trends continuing to improve in Q4 with industry growth in all regions. Now, turning to slide number eight for a look at our North American retail performance by product line. I've mentioned we had a very strong quarter with our retail at 12% and market share gains across the portfolio. The side-by-side industry remains healthy, up low single digits and a quarter, driven by the utility segment reflecting the growing adoption of cab units. Can-Am performed remarkably well, with retail up high single digits thanks to the success of the new Defender HD11. For ATV, the industry was down mid-single digits, but up when excluding used models. Canon significantly outpaced the industry again with retail at low 10% driven by market share gains in the high CC segment following recent product introductions. As for the snowmobiles, the industry was at mid-teen from a weak Q4 last year. Even though we were competing against high level of discounted and aged network inventory from other OEMs, we again outpaced the industry in the quarter. Moreover, a few weeks ago we launched our new Ski-Doo and Lynx lineups for the upcoming season. Once again, we are by far offering our riders and dealers the most innovation in the industry with improved performance, comfort and features. With our strong retail momentum, healthy end of season inventory levels and exciting new lineups, we are well positioned to further extend our leadership in the snowmobile industry. Finally, Q4 was off-season for three-wheel vehicles, personal watercraft, and pontoons. Retail trends were softer than last year, notably due to an extended winter season. We'll get a better picture of market demand when core retail season begins in late April. Before concluding on retail, I want to further emphasize the strong impact of our new RV models on our retail momentum on slide number nine. As I said earlier, we significantly outpaced the OEV industry in the fourth quarter, a trend that began in October when our new models were reaching dealer's showroom. Since then, our SSD retail has been up about 10%. In fact, we have achieved our highest third and fourth quarter market share ever in utility, the largest and fastest growing side-by-side segment. We had also announced the repricing of certain Model E and 26 SSV, and this decision is paying off so far, resulting in a market share gain of almost four points for this model in Q4. For ATV, the revamped Outlander platform and recently introduced HiCC models led to a market share gain of almost nine points in this category. These achievements show the importance of innovation, which has always been part of BRP's DNA and the driving force behind its continued success. On that, I turn the call over to Sébastien.