Good morning, ladies and gentlemen, and welcome to BRP Inc. Fiscal Year '25 Third Quarter Results Conference Call. For participants who use the phone, it is recommended to turn off the sound on your device. And I would like to turn the meeting over to Mr. Philippe Deschenes. Please go ahead, Mr. Deschenes.

Thank you, Sylvie. Good morning and welcome to BRP's conference call for the third quarter of fiscal year '25. Joining me this morning are Jose Boisjoli, President and Chief Executive Officer; and Sebastien Martel, 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 call and that the actual result 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 list of these. Additionally, note that following the announcement of the initiation of the process for the sale of our Marine businesses, these businesses are now presented as discontinued operations. Therefore, all periods presented in this release reflect continuing operation only unless otherwise noted. Also note that you can find today's 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. The third quarter was marked by disciplined execution of our plan, which allowed us to deliver results above our expectations, driven by the timing of Snowmobile shipments and tight management of operating expenses. Our retail performance was as anticipated, reflecting a challenging market dynamic due to soft industry trends and high levels of promotional activity on non-current units from other OEMs. We have remained focused on reducing network inventory, and we are pleased with the solid progress made so far. Based on retail trends, we are on track to deliver on our objective for the year. Before going further, I want to say a few words on our decision to sell our Marine businesses. After careful consideration and given the current dynamics of both the Marine and Powersports industry, we have decided to double down on our core Powersports activities. We aim to focus our efforts and investments toward this business to capitalize on growth opportunities and continue to position BRP for long-term success. Consequently, we initiated the process for the sale of our Marine businesses, namely Alumacraft, Manitou, and Telwater. We continue operating as normal; however, as Philippe mentioned, we are now reporting our results on a continuing operations basis, and our guidance reflects this new reporting structure. You will understand that since the sales process is ongoing, we cannot comment further on today's call. Now let's turn to Slide 5 for key financial highlights. Revenue reached $2 billion, normalized EBITDA was $264 million, and normalized EPS was $1.16, all above expectations. One of the key highlights of the quarter was the progress made on our network inventory reduction plan, as you can see on Slide 6. This plan was one of our priorities this year to protect our dealer value proposition. We have made significant strides toward our 15% to 20% reduction objective by the end of this fiscal year. Inventory is down 10% so far, given the timing of Snowmobile shipments this year. More importantly, in ORV, it is down 22%, achieving our objective one quarter ahead of plan. We have also seen noticeable improvements in three-wheeled vehicles, personal watercraft, and switch pontoons. This puts us in a favorable position to capture market opportunities when the industry rebounds and to foster long-term profitable growth. Turning to Slide 7 for an update on the global Powersports market. The third quarter was consistent with trends observed since the beginning of the year. In North America, our Powersports retail was down 11%, in line with expectations, with Canada continuing to outperform the US market. From an international perspective, EMEA remained generally under pressure with our retail down 19%. Latin America continued to grow at a rapid pace, with our retail up 21%, driven by a strong performance in both ORV and personal watercraft. Asia Pacific saw mixed performance depending on the country, with retail flat on average. Overall, these counter-seasonal markets have had a better start to the summer season than expected. Turning to Slide 8 for a look at North American retail performance by product line. As expected, we experienced a decline in ORV as limited availability of non-current units reduced market share, resulting in market share losses and a soft start to the Snowmobile season, which is typical after a year with unfavorable snow conditions. Meanwhile, personal watercraft had a better end of the season than anticipated. Let's turn to Slide 9 to circle back to the ORV market dynamic. As you can see, about two-thirds of side-by-side vehicles and close to 90% of the ATV industry units retail this quarter were non-current. This dynamic is the result of intense promotional activity by other OEMs who had higher levels of non-current units. In our case, we had limited non-current availability, which resulted in short-term market share loss. However, we gained share in the more profitable current units, driven by our newly introduced products and the overall strength of our lineup. We expect this dynamic to persist at least through the fourth quarter, but our strong performance with current units gives us confidence that we will regain market share when the inventory position of other OEMs normalizes. Now let's turn to Slide 10 for a look at the launch of our Can-Am electric motorcycle lineup. The team has been busy raising awareness with consumers and the media, preparing the dealer network for the official start of the 2025 retail season, and showcasing the product in key events such as EICMA, the largest motorcycle trade show in the world. I attended the show and was pleased to notice the excitement for our technology and innovative design, as well as the fit and finish of our Can-Am Pulse and Origin Motorcycle. The launch is well underway. We are approaching our targeted number of dealers globally, production is ramping up in December, and shipments will start at the beginning of fiscal 2026. We look forward to our first season in the electric motorcycle industry. Now let's turn to Slide 11 for a more detailed look at year-round products. Revenues were down 12% to $1 billion, primarily reflecting reduced shipments. At retail, Can-Am side by side was down mid-single digits, slightly lower than the industry due to the non-current dynamic. However, we continue gaining share in the utility segment, led by the ongoing success of our high-end Defender cab models. As for ATV, retail was also down mid-single digits. We have gained about four percentage points of market share so far this year in the Mid-CC segment, driven by the introduction of our new Outlander platform. As a reminder, we have also introduced this platform in the High-CC segment in August. Looking at three-wheeled vehicles, Can-Am completed its 2024 season in October, with retail down high teen percent, outpacing the industry, which was down about 20%. While the season was more challenging than initially expected, we are pleased with continued market share gains that solidified our position as the industry leader. Turning to seasonal products on Slide 12. Revenue was down 29% to $616 million, primarily reflecting lower shipments. In Snowmobile, we proactively reduced production levels, given higher inventory following last winter's unfavorable snow conditions. Our retail is performing in line with the industry early in the season, despite lower levels of non-current inventory compared to our peers. We are confident in our ability to outperform the market, given our innovative lineup, as well as our loyal and passionate customer base. As for PwC, we ended the season with retail down in the high 20% range, lagging the industry, as our competitors returned to normal production levels. Despite this situation, our retail was better than anticipated at the end of the season, which we concluded with the number one position in the industry and the market share above pre-COVID levels. However, since our retail performance for the whole season was below initial expectations, we ended with more inventory than planned, and we will reduce shipments for the upcoming season. As for the Sea-Doo Switch, we ended the season with retail down mid-40%, as we were lapping the strong success of our first full season last year and facing a soft pontoon industry this year. We're looking forward to a more normal season in '25 for Switch. Moving on to Slide 13, with Powersports, Parts, Accessories, and Apparel and OEM Engine. Revenues were down 6% to $303 million, primarily due to lower shipments of Snowmobile PA&A, given higher levels of inventory in the network after last season. Our ORV parts business continued to increase, driven by a growing vehicle fleet, while accessories sales have been softer in line with unit retail. With that, I turn the call over to Sebastien.

Thank you, Jose, and good morning, everyone. Our third quarter results once again demonstrated our commitment to support our dealers as we were disciplined in limiting our shipments to reduce our network inventory levels. From a financial perspective, our results came in ahead of plan as we continue to diligently manage our expenses and we shifted some deliveries of Snowmobiles, which were initially planned for Q4. Before jumping into the numbers, I want to remind you that the following represents the results from continuing operations, as our Marine business has been reclassified as discontinued operations. Now looking at the numbers, revenues were down 18% to $2 billion, primarily due to lower shipments and higher sales programs. We generated $430 million in gross profit, representing a margin of 22%, down from last year, primarily 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 SSV and through favorable pricing. Our normalized EBITDA ended at $264 million and our normalized earnings per share at $1.16. To help you compare these results to our initial expectations for the quarter, assuming we would have reported with Marine included in our numbers, our normalized EPS would have been $0.91. Turning to Slide 16 for an update on the guidance. As we already mentioned, the third quarter played out generally in line with our expectations. Our retail performance was consistent with our outlook, and we made good progress on a network inventory reduction plan putting us in a good position to achieve our objectives for the year. Looking ahead, while our Q3 results came in above our expectations, they benefited from the timing of shipments to Snowmobiles between the third and fourth quarters, and as such the net impact on the full year is negligible. Additionally, while there are only two months left to go in our fiscal year, we are keeping some flexibility in our guidance to account for the fact that the main Snowmobile retail season has yet to start and the potential adjustments we may make to our shipments and sales programs as we continue to prioritize the rightsizing of network inventory levels. Consequently, we are reaffirming our guidance for the year and are maintaining the same guidance range. Note, however, that our guidance is now presented on a continuing operations basis. So the changes that you are seeing in today's guidance when compared to the one we issued in September are simply driven by this reclassification. As such, we now expect our revenues to end between $7.6 billion and $7.8 billion, normalized EBITDA to end between $1,020 million and $1,070 million, and normalized EPS to end between $4.25 and $4.75. Now to give you an appreciation of the impact of the sale of our Marine business on our financial profile, let's look at Slide 17. As Jose mentioned, we took the decision to sell our Marine segment to refocus on our core Powersports business. We strongly believe that doubling down on Powersports, an industry in which we have a solid track record of success, is the right move forward for BRP, as our most attractive opportunities are in Powersports, especially in ORV. Our core Powersports business has a much more attractive financial profile, and investments in this sector have greater expected returns. To highlight the benefit of this decision on our financial profile, we have illustrated on the slide the evolution of the guidance compared to the one we issued last quarter. As you can see by comparing the two, our continuing operations are expected to generate about $130 million more of normalized EBITDA, improve our normalized EBITDA margin by 200 basis points, and increase our normalized EPS by $1.50. Additionally, excluding our discontinued operations, our expectations in terms of free cash flow generation for the year would have been about $100 million higher. While this was a difficult decision to make, we expect that our exit of Marine will improve our ability to capitalize on high return opportunities in the Powersports space through greater focus and financial capabilities. We are confident that this will enable us to strengthen our position as the leader in the industry and make BRP an even stronger company for the long term. On this, I'll turn the call back to Jose.

Thank you, Sebastien. BRP has once again proven to be an agile organization in this transition year. We were the first OEM to prioritize network inventory depletion, and we are on track to reach our objective by the end of the fiscal year. I am proud of our team's execution to protect the strength of our dealer network and the value of our brands. I thank all of our employees for their commitment. Even though it is too early to give details for next year, we will enter fiscal '26 with a strong product portfolio and an improved inventory position. Driven by our solid business fundamentals, we are uniquely placed to capture opportunities when the market rebounds. As a global organization, we constantly monitor the macroeconomic and trade environment to anticipate and address any new policy developments. We are used to dealing with evolving trade agreements and have always succeeded in finding solutions to new tariffs. Looking to the long term, we remain focused on solidifying our position as a global leader in the Powersports industry. You can expect us to continue pursuing technology and innovation. We have repeatedly proven our ability to design award-winning products, and we recently took home six new design awards in Australia, Japan, and the US. These distinctions stem from our sustained investment in R&D; count on us to continue to wow consumers with our strong product pipeline in the coming years. On that note, I turn the call over to the operator for questions.

Thank you, sir. Your first question will be from Sabahat Khan at RBC Capital Markets. Please go ahead.

Great. Thanks and good morning. Jose, I understand you're going to give official guidance at the next quarter. If I can just maybe tease out any directional perspectives on sort of your three Powersports segments and anything on seasonality as we look ahead to fiscal '26? Obviously, some clearing out to do in Q4 here, but any directional commentary you can provide on what you're seeing out there would be great? Thank you.

I mean, obviously, we don't expect we'll give you guidance for next year this morning. But we are planning for a flat industry overall with this market dynamic. And I believe we're well positioned with our product line. We have the off-road business. Right now, we're losing some market share because we have less non-current than some of our competitors. But we have a very strong product lineup with the off-road business. You can expect from us next year to introduce again new exciting models. On the seasonal product, Ski-Doo, the Snowmobile season is ongoing. The snow was a bit late, but now it's catching up, and we expect good retail this season. As for watercraft, you know, that we ended the inventory with higher inventory than planned, but we are counting on next summer season to rebalance the inventory. The parts and accessory business is quite resilient. The parts business is doing quite well. Accessory sales typically align with unit sales. But overall, we are well positioned to be very competitive within the industry.

Yes, maybe if I could add a few elements. Obviously, as Jose mentioned, we need to go through the Snowmobile season. And from a big picture point of view, obviously inflation interest rates are moving in the right direction. So that obviously is good, but it may take an impact before we see an impact on overall consumer demand. Our base case is that the Powersports industry could be flat. Some of you might say well you've done a good job this year of reducing inventory levels and so will wholesale match retail next year? Certainly more yes. But there are still some OEMs that need to flush out some inventory. We expect the market dynamic to be challenging, especially in the first half of next year. So a bit of top line growth, a bit of benefit of wholesale matching retail. But as Jose again indicated, PwC Snow inventory we need to work through. In terms of overall profitability, we took some measures to right-size our costs this year. That will certainly help OpEx as a percentage of revenue. But there are some variable compensation elements, depreciation, and financing costs that will offset some of that. So again, still a lot to go through. There’s a trade situation as well that we’re monitoring. We will certainly be in a better position to provide you detailed guidance in a few months.

Great. And then just on a follow-up, you announced the renewal of your NCIB this morning, given where the balance sheet is and your outlook for next year. Just any comments on how active you might be on the return of capital front? Thank you.

Well, if you look at our historical track record, we've been quite active in terms of buybacks. The priority always remains investing in the business. Certainly, we'll want to see how things trend in the start of next year, especially with the tariffs situation before we decide to be extremely active on buybacks. We've always been cautious in managing the balance sheet diligently, and we'll continue to do so, but prioritizing returns is certainly a focus of ours as well.

Thank you.

Thank you. Next question will be from James Hardiman at Citi. Please go ahead, James.

Good morning. I appreciate the opportunity to speak. It seems like Q3 has exceeded expectations by about $0.30 to $0.35. Could you clarify how significantly the Snowmobile timing has contributed to this? I understand it will balance out between Q3 and Q4. Additionally, it appears that inventory adjustments occurred earlier than anticipated, which may mean there won't be as much need to reduce retail in Q4. Lastly, I noticed a decrease in the tax rate. These factors indicate that earnings could land at a better level. Can you elaborate on these elements?

Maybe I will start with some comments on the inventory. We're very happy with the progress we made on off-road. Now we are at the level we believe we should be. The big question between now and when we stock in March will be Snowmobile. We're planning, obviously a retail season that is with better snow conditions than last year. But this will be key between now and the end of Q4 to see how the retail of Snowmobile will go and the depletion of inventory. Good progress, like I said in my intro on Switch, three-wheel product, very, very happy with the depletion there. In watercraft, we will discuss about next season. We are happy with our progress on inventory, because at the end of the day, the dealer and us make more money selling current than selling non-current at a discount.

Got it. And then maybe just a point of clarification on the inventory piece. I think coming out of the first half, you were saying total inventories were down 13% and your target was 15% to 20%. Now you're saying they're down 10%. Now we've pulled out marine, so I'm assuming that's part of the disconnect. But maybe, I don't know, what was the first half year-to-date inventory decline to compare to the current down 10%? And what is in the new world, the target for the year?

Yes. Well, you're absolutely right. We were down 13% year-to-date in Q2. Now we're down 10%. That's all explained by Snowmobile. When I look at all of the other product lines, they are down versus Q2. The one that's up obviously is Snowmobile, because we've shipped a lot of units in Q3 ahead of the peak retail season. So no change. If there's anything, it's an improvement versus the position we were in Q2. The overall objective of 15% to 20% still stands for the end of the year. And again, we highlighted a few times already in the call it's going to be largely driven by the snow season.

Got it. Thank you.

Thank you. Next question will be from Joe Altobello at Raymond James. Please go ahead, Joe.

Thanks. Hey guys, good morning. Just wanted to follow-up on James' line of questioning here a little bit. If you think about '26 at a high level, and again, I understand no guidance today, but if you end this year with network inventory down 15%, let's say, and we assume the industry is flattish next year. And I think you said earlier that wholesale and retail should largely be in alignment. Why wouldn't we see a pretty sizable lift in shipments next year?

There are two main reasons for this. First, the industry is still facing a surplus of inventory from other manufacturers, and they will need time to reduce it. As a result, we expect dealers to be careful about acquiring new inventory and to continue to reduce their existing stock, particularly in the first half of next year. The second factor is related to personal watercraft and snowmobiles. We anticipate that there will be inventory depletion occurring next year. While we expect a slight increase in our revenue, we believe dealers will still exercise caution during the first half. Therefore, any significant improvement in wholesale numbers is likely to happen in the latter half of next year.

Okay. And just a follow-up on that. The non-currents that are in the channel today, we're obviously going into the off-season for a lot of that. How long do you think it will take to flush out some of that inventory?

We believe that most of it should go out in Q4, maybe certain areas, center dealers, maybe some in Q1 next year. But we believe in the next two quarters, most of the non-current should be flushed out.

Yes. We ended Q3 in a good position. Our non-current inventory in ORV is actually down over 30% year-over-year. So we're very happy with the position we have. Obviously, as Jose indicated, we've got product news coming up and having floor space to introduce that product news is also positive.

Okay. Thank you. I'll see you guys next week.

Thank you.

Next question will be from Benoit Poirier at Desjardins. Please go ahead, Benoit.

Yes. Thank you very much. Good morning, everyone. Just with respect to the launch of the electric motorcycle. I was just curious to, obviously, shipments will start in fiscal year '26 early, but what kind of contribution on revenue could we expect next year? My understanding is it may not be material, but I'm also curious to gauge what could be the dilution on the margins and the impact next year?

Good morning, Benoit. First, we're very happy with the way the motorcycle is being received right now. I know it's not the best timing worldwide to introduce an electric product. But I would say what I'm pleased with is every dealer who was hesitant to be a dealer first year or every customer that we or maybe they were somewhat questioning. Now when they try the product, they are very pleased with the ride, the silence, the performance, and the overall experience of the product. So far we are on plan. We are also on plan to sign the dealer count. We said we're targeting 300 dealers first year. We will be there when we start shipment. Overall, this will be the first rollout. But again, in the first year, we are somewhat limiting the production to a level that we believe is healthy and it will be a small number to start with, and we will grow from there.

Yes. Year-over-year impact, don't forget, we are investing in EV and two-wheel this year. So the increment and then next year is still an investment year because we'll be investing marketing dollars in the launch. So it could be an incremental headwind of probably, let's say, $20 million to $30 million next year.

That's great color. And just for the follow-up, when we look at the Powersports market right now, obviously, it's crowded, especially when we count the number of side-by-side manufacturers. So there's probably some natural selection. M&A exiting the Snowmobile market. So a question mark around Arctic Cat. So any early indication that some ORV manufacturers are looking to exit? And given that some players are impacted, is there any willingness on your part to be involved in potential M&A that would complement your current product offering? Thanks.

Obviously, Benoit, we're following like all of you the dynamics in the industry and the position of each OEM in the industry. I agree with you, there is some dynamics, and I think that the industry will change over time. But obviously you cannot expect me to comment on M&A or different possibilities. There are hundreds of possibilities out there. But the industry is going to transition. There are some OEMs that have more difficulty than others. The only thing I can say, I'm very, very happy with where we are because we have a strong product lineup in each product line we operate. By refocusing on Powersports, I think we will accelerate our plan.

Thank you very much, Jose. Thanks.

Thank you.

Next question will be from Robin Farley at UBS. Please go ahead, Robin.

Great. Thank you. Can you please remind us what the change in dealer count in the US is for your ORV dealer channel?

There hasn't been much change in the overall dealer count, Robin. I mean we add a few dealers here and there every quarter, but no big evolution. Today, total dealers in the US as of yesterday was 982 dealers covering all the product lines.

Okay. Great. Thank you. And I don't know if you'll really have any color to add given the unknowns out there. But do you have any thoughts on the potential tariff situation and what kinds of mitigating actions you may be able to take or potential to shift production to some facilities that may be for sale now in the US, for other product lines, but where you could potentially move some production? Just kind of, I don't know if you, I know it's still early in the process of what may take place. And so just any thoughts there? Thank you.

Yes. As you know, Robin, we're closely monitoring the situation. At this time, there are hundreds of different possibilities. As a global company, we have optimized over the years our manufacturing footprint and our supply chain to meet customer demand and be efficient. We have a long history of managing through trade and tariff requirements between Canada, the US, and Mexico, but also between other countries around the world. We've always been able to navigate the changing geopolitical landscape, and we are a leader in the industry. The only thing I can say at this time, and I know it's top of mind for many investors, is that we have the team, we have the know-how, and we will adapt to the change. I don't think we need to overreact right now, because we can speculate on this, and we should not speculate too much because there are, like I said, hundreds of possibilities. I just want to reassure you and the investors that we're monitoring the situation, and rest assured that if needed, we will adapt and we will take action in the best interest of our customers, employees, and shareholders.

Thank you. Understood. Thanks very much.

Thank you. Next question will be from Cameron Doerksen at National Bank Financial. Please go ahead, Cameron.

Yes, thanks. Good morning. I'm wondering if you can maybe comment a little bit about what you're seeing as far as dealer behavior as it relates to interest rate reductions. And maybe the way to do that is to compare and contrast what you're seeing out of your Canadian dealers versus US dealers, because we have had I guess a more aggressive interest rate reduction in Canada versus the US. It does seem as though your retail performance in Canada is maybe doing a little better. So I'm just wondering if you can maybe talk about what you're hearing from your dealers as far as the impact of interest rate cuts and maybe the way to do that is to compare Canada versus the US?

I think the dealers recognize first that we are the first ones in the industry to lead the charge to reduce inventory, and they appreciate what we're doing. Right now, they see the progress we're doing on off-road. They see the progress that we've done on three-wheel and smaller product lines, and they see the progress that we're making there. The question is Snowmobile. We had the inventory of 2024, and we're shipping 2025. Production is almost done. The inventory of Snowmobile is high right now, but it's normal at this time of the year. At least now the snow has come in the snow belt, and it feels good overall at the beginning of the Snowmobile season. The dealers see the difference, and they recognize what we're doing. We just need to go over the hump of the Snowmobile season. If retail is decent with the normal snow conditions, I think the pressure will go down. We're planning for a reasonable watercraft season next year. We ended up with more inventory, but we're planning to reduce shipments for 2025 to ensure we end the season cleanly. The dealers see where we're going. They appreciate our direction, but we need to deliver with them in terms of retail on snow and watercraft. I don't see any big difference between Canada and the US. The only thing I would say in Canada is that every single dealer sells Snowmobiles, while in the US, the dealers in the south feel better with the reductions we have done on ORV.

Okay. No, that's helpful. And maybe just a quick modeling question for Seb. Just wondering about the G&A line item here on the cost side. Just wondering if the Q3 is a decent run rate as we look forward, now that we have the marine out of the business.

Well, obviously, it has a big impact on the total operating expenses. If we would have had Marine in our numbers, we'd probably be 50 basis points higher in terms of OpEx percentage. As we look to next year, we're still investing in some product categories we've rightsized, and so we should see an improvement year-over-year in OpEx probably in the range of another 50 basis points year-over-year from '25 to '26.

Okay. That's helpful. Thanks very much.

Thank you. Next question will be from Craig Kennison at Baird. Please go ahead, Craig.

Hey, good morning. Thanks for taking my question. You've addressed many of them, but maybe I'll just ask a follow-up on the tariff issue. Understood, none of us can really predict the future on that front. But what percentage of your cost of goods sold is sourced out of China? And what percentage of your production today is in Mexico? Just to help those of us trying to guess at that impact.

Yes. We've never been a big sourcer out of China. In fact, today, less than 10% of our sourcing comes from China. The parts that we source are less technically complex. In a situation where incremental tariffs could be imposed, there are parts that we could easily transfer to another supplier. Obviously, it would require work; I don't want to undermine it, but it's something we could do. From a Mexico point of view, over 70% of our production stems out of Mexico. We're in Mexico, yes, for the cost advantage as we took the benefit of the various free trade agreements, but also for labor availability. The workforce in Mexico is highly skilled, both from a blue-collar and a professional point of view as well. We believe we will not be the same company had we not had that footprint in Mexico.

Thank you, Seb. And then, on 2026, again, I know you're not providing guidance, but you're saving essentially $1.50 in loss avoidance related to marine in 2025. But it should be very clear that the benefit next year is much smaller than that because you weren't expecting to lose maybe the same amount.

We're not expecting to lose the same amount. That's fair.

Okay. Well, hey, thank you.

Thank you, Craig.

Next question will be from Martin Landry at Stifel. Please go ahead, Martin.

Hi, good morning, guys. I want to go back to a previous answer you gave on the non-current models. You seemed optimistic that the non-current inventory, I believe that was the industry you were talking about, would clear in the next quarter or two. I just want to understand a little bit where we are today in terms of industry units of non-current versus historical levels. If you can provide that, it would be helpful. And then why are you optimistic that all those non-current models will clear out in a short order?

Well, what we said, Martin, was that some non-current will clear now, but also in the first half of next year, and dealers will remain cautious. That's been the standard industry practice of clearing out inventory. No OEM likes to sit with inventory, and no dealer likes to sit with non-current inventory as well. Usually when you look at historical patterns, Q4 and Q1 are big quarters where non-current units get cleared out. In terms of visibility, we don't have industry information on the noncurrent inventory.

Thank you. And I will turn the call back to Mr. Deschenes to close the meeting.

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 Q4 results on March '26. Thanks, again, everyone, and have a good day.

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