Core Points - BRP Inc. will hold its third quarter FY26 financial results conference call on December 4, 2025, at 9 am (ET) [1] - The press release regarding the financial results will be distributed on December 4 at approximately 6 am (ET) [2] - Business media can join the call but will not be allowed to ask questions; an archived recording will be available for 30 days after the event [3] Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience [4] - The company reported annual sales of CA$7.8 billion and operates in over 130 countries, employing approximately 16,500 people as of January 31, 2025 [4] - BRP's product portfolio includes brands such as Ski-Doo, Lynx, Sea-Doo, Can-Am, Quintrex, and Rotax, and the company is committed to developing electric models for its existing product lines [4]

Financial Performance - Total revenues for Q3 2025 reached $365.4 million, a 7.5% increase from $338.9 million in Q3 2024[22]. - Commissions and fees contributed $362.3 million to total revenues in Q3 2025, up from $335.2 million in Q3 2024, reflecting an 8.1% growth[22]. - Operating income for Q3 2025 was $3.2 million, a significant decrease from $15.4 million in Q3 2024, indicating a decline of 79.1%[22]. - Net loss attributable to Baldwin for Q3 2025 was $18.7 million, compared to a loss of $8.4 million in Q3 2024, representing a 123.5% increase in losses[22]. - Basic and diluted loss per share for Q3 2025 was $0.27, compared to $0.13 in Q3 2024, reflecting a 107.7% increase in loss per share[22]. - Total operating expenses for Q3 2025 were $362.2 million, up from $323.5 million in Q3 2024, marking a 12.0% increase[22]. - The company reported a comprehensive loss of $29.2 million for Q3 2025, compared to a comprehensive loss of $14.5 million in Q3 2024[22]. - For the nine months ended September 30, 2025, total revenues were $1.16 billion, an increase of 9.3% from $1.06 billion in the same period of 2024[22]. - The company experienced a net loss of $10.5 million for the nine months ended September 30, 2025, compared to a loss of $6.2 million for the same period in 2024[22]. Assets and Liabilities - Total assets increased to $3.794 billion as of September 30, 2025, up from $3.535 billion at December 31, 2024, representing a growth of 7.36%[15]. - Current liabilities decreased to $959.7 million from $1.056 billion, a reduction of 9.15%[15]. - Cash and cash equivalents slightly decreased to $89.7 million from $90.0 million, a decline of 0.38%[15]. - Intangible assets increased to $1.017 billion from $953.5 million, reflecting a growth of 6.69%[15]. - Goodwill rose to $1.516 billion from $1.412 billion, an increase of 7.36%[15]. - The current portion of contingent earnout liabilities decreased significantly from $142.9 million to $17.1 million, a drop of 88.01%[15]. - Total stockholders' equity attributable to Baldwin increased to $619.7 million from $583.2 million, a growth of 6.24%[15]. - The Baldwin Insurance Group's total stockholders' equity increased to $1,036,234,000 as of September 30, 2024, from $1,018,488,000 at December 31, 2023[29]. Cash Flow and Expenditures - Cash flows from operating activities resulted in a net cash used of $39,687,000 for the nine months ended September 30, 2025, compared to net cash provided of $53,754,000 in 2024[32]. - The company incurred capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024[32]. - Cash and cash equivalents at the end of the period were $325,944,000 for September 30, 2025, down from $344,716,000 at the same time in 2024[32]. - The company reported capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024, showing a slight increase[155]. Business Combinations and Acquisitions - The Company completed two business combinations for a total purchase price of $129.1 million during the nine months ended September 30, 2025[72]. - The Company acquired assets and equity interests from MultiStrat Group to enhance its reinsurance underwriting capabilities effective April 1, 2025[75]. - The Company acquired Hippo's Homebuilder Distribution Network to improve property and casualty insurance solutions for homebuilder clients effective July 1, 2025[75]. - Total revenues from business combinations for the three months ended September 30, 2025, were $12.2 million, with net income of $2.7 million[77]. - For the nine months ended September 30, 2025, total revenues from business combinations were $14.2 million, with net income of $2.7 million[77]. - The total consideration for Hippo's Homebuilder Distribution Network acquisition was $129.078 million, including cash consideration of $87.399 million[80]. - Recognized amounts of identifiable net assets acquired totaled $122.879 million, with goodwill recognized at $104.119 million[80]. Debt and Financing - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[13]. - The company's long-term debt as of December 31, 2024 was $1.44 billion, which included a term loan facility of $840 million and a revolving credit facility of $600 million[96]. - As of September 30, 2025, the outstanding borrowings under the 2025 Term Loans were $1.004 billion with an interest rate of 6.64%[101]. - The Company provided for $75.0 million of incremental term B loans as part of the amendments to the 2024 Credit Agreement[285]. - The aggregate principal amount of the 2025 Term Loans was increased to $1.006 billion following the amendments to the 2024 Credit Agreement[288]. Shareholder Information - The company reported a total of 71,416,940 Class A common shares issued and outstanding as of September 30, 2025, compared to 67,979,419 shares at December 31, 2024[15]. - The weighted-average shares of Class A common stock outstanding increased to 68.6 million in Q3 2025 from 64.0 million in Q3 2024[22]. - Share-based compensation expense for the nine months ended September 30, 2025, was $51,772,000, up from $46,764,000 in 2024[32]. - Share-based compensation expense for the three months ended September 30, 2025 was $22.0 million, compared to $17.9 million for the same period in 2024, representing a year-over-year increase of approximately 22.9%[115]. - The total fair value of shares that vested and settled under the Plans was $52.0 million for the nine months ended September 30, 2025, compared to $36.7 million for the same period in 2024[114]. Market and Risk Management - The company is exposed to market risk through investments and borrowings, utilizing derivative instruments to mitigate risks related to rising interest rates[283]. - A floating-to-fixed interest rate swap agreement was entered into with a notional amount of $500.0 million, converting variable rate cash flows into fixed rate payments at 3.244%[286]. - The objective of the interest rate swap is to manage exposure to interest rate risk and provide predictability in interest expense[286]. - An increase of 100 basis points on the SOFR rate would have increased annual interest expense under the 2024 Credit Facility by $5.7 million[287]. - There have been no material changes in market risk from the information presented in the Annual Report on Form 10-K for the year ended December 31, 2024[288].

Revenue Growth - Total revenue for Q3 2025 increased by 8% year-over-year to $365.4 million, with organic revenue growth of 5%[1] - Year-to-date total revenue grew by 9% to $1.158 billion, with organic revenue growth also at 9%[11] - For the three months ended September 30, 2025, revenues increased to $365.4 million, up from $338.9 million in the same period of 2024, representing a growth of approximately 7.5%[37] - Organic revenue for the three months ended September 30, 2025, was $350.1 million, reflecting a growth of $15.2 million or 5% compared to the same period in 2024[39] - Organic revenue growth for the nine months ended September 30, 2025, was 9%, down from 16% in the same period of 2024, indicating a slowdown in growth[39] Net Loss and Earnings Per Share - Q3 2025 net loss was $30.2 million, resulting in a diluted loss per share of $0.27; adjusted diluted EPS was $0.31, a decrease of 6% year-over-year[5] - Year-to-date net loss amounted to $10.5 million, with a diluted loss per share of $0.12; adjusted diluted EPS increased by 11% year-over-year to $1.37[11] - The net loss for the three months ended September 30, 2025, was $30.2 million, compared to a net loss of $14.5 million in the same period of 2024, indicating a significant increase in losses[37] - Adjusted net income for the three months ended September 30, 2025, was $36.5 million, compared to $38.5 million in the same period of 2024, showing a decrease in adjusted net income[40] - The company reported an adjusted diluted EPS of $0.31 for the three months ended September 30, 2025, down from $0.33 in the same period of 2024[40] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for Q3 2025 was $72.5 million, maintaining the same level year-over-year, with an adjusted EBITDA margin of 19.8%[5] - Year-to-date adjusted EBITDA grew by 9% to $271.8 million, with an adjusted EBITDA margin of 23.5%[11] - Adjusted EBITDA for the three months ended September 30, 2025, was $72.5 million, slightly down from $72.8 million in the same period of 2024, resulting in an adjusted EBITDA margin of 19.8%[37] - The pro forma adjusted EBITDA for the nine months ended September 30, 2025, was $279.9 million, compared to $247.7 million in the same period of 2024, indicating a year-over-year increase[43] - Adjusted free cash flow for Q3 2025 increased by 26% year-over-year to $41.8 million[5] - Adjusted free cash flow for the three months ended September 30, 2025, was $41,810 thousand, compared to $33,180 thousand for the same period in 2024, reflecting a year-over-year increase of 4.9%[47] - For the nine months ended September 30, 2025, adjusted free cash flow was $76,257 thousand, down from $86,043 thousand in 2024, indicating a decrease of 11.3%[47] Financial Position and Assets - As of September 30, 2025, cash and cash equivalents were $89.7 million, with a borrowing capacity of $524 million under the revolving credit facility[6] - Total assets increased to $3,793,774, up from $3,534,731, representing a growth of 7.3%[21] - Current liabilities decreased to $959,713 from $1,056,434, a reduction of 9.2%[21] - Total stockholders' equity increased to $1,127,680 from $1,008,344, reflecting a growth of 11.8%[21] - Cash and cash equivalents at the end of the period were $325,944, down from $344,716, a decrease of 5.3%[23] Capital Expenditures and Payments - Capital expenditures for the nine months were $29,174, slightly up from $28,897 in 2024[23] - The company reported a significant payment of $85,090 for contingent earnout consideration, compared to $21,145 in the prior year[23] - The payment of contingent earnout consideration in excess of purchase price accrual for the nine months ended September 30, 2025, was $85,090 thousand, significantly higher than $21,145 thousand in 2024[47] - The payment of colleague earnout incentives for the nine months ended September 30, 2025, was $30,854 thousand, compared to $11,144 thousand in 2024, showing a substantial increase of 176.5%[47] Strategic Focus and Future Plans - The CEO highlighted ongoing optimization of the capital stack and continued de-levering as key drivers for long-term shareholder value[4] - The company continues to focus on strategic acquisitions and partnerships to enhance its market position and operational efficiency[48] - The financial results reflect the company's ongoing commitment to improving cash flow and managing operational expenses effectively[48] - The company plans to present fiduciary assets and liabilities separately on the consolidated balance sheets starting January 1, 2025, which will affect the calculation of adjusted free cash flow[35]

Core Viewpoint - BRP Inc. (DOOO) has shown a downtrend recently, losing 6.5% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to emerge [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength depends on its placement on the chart [6]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for DOOO, which is a positive fundamental indicator, as such trends are correlated with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 0.4% over the last 30 days, indicating strong agreement among analysts regarding the company's potential for better earnings [8]. - DOOO holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - QV Investors Inc. has initiated a new position in BRP, holding 482,623 shares valued at approximately $29.35 million as of September 30, 2025, representing 2.54% of the fund's U.S. equity AUM [1][2]. Company Overview - BRP, known for its powersports vehicles and marine products, reported trailing twelve-month revenue of $7.75 billion and a net loss of $37.6 million [2][3]. - The company's dividend yield stands at 0.95%, with shares priced at $64.42 as of October 29, 2025, reflecting a 25.8% increase over the past year, outperforming the S&P 500 by 7.89 percentage points [2][3]. Financial Performance - Despite macroeconomic challenges, BRP's revenue for the fiscal second quarter ending July 31 increased by 4% year-over-year to CA$1.9 billion [8]. - Net income rose by 36% year-over-year to CA$57.1 million, attributed to inventory adjustments [9]. - BRP anticipates fiscal year 2026 sales between CA$8.1 billion and CA$8.3 billion, up from CA$7.8 billion in the previous year [9]. Market Position - BRP operates a manufacturing and distribution model, leveraging a global network of independent dealers and OEM partnerships to reach a diverse customer base across North America, Europe, and Asia Pacific [4][5]. - The company is recognized as a leader in the powersports industry, indicating strong long-term investment potential [10].

Company Performance - BRP Inc. has returned 29.3% year-to-date, significantly outperforming the average gain of 13% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 26.3% over the past quarter, indicating improving analyst sentiment [3] Industry Context - BRP Inc. is part of the Auto-Tires-Trucks group, which ranks 10 within the Zacks Sector Rank, consisting of 99 companies [2] - Within the Automotive - Original Equipment industry, which includes 51 companies, BRP Inc. ranks 83 in the Zacks Industry Rank, with the average stock in this group gaining 3.7% this year [6] Competitive Landscape - Garrett Motion, another stock in the Auto-Tires-Trucks sector, has returned 93% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - Both BRP Inc. and Garrett Motion are expected to maintain solid performance in the Auto-Tires-Trucks sector [7]

Core Points - BRP Inc. has won two Gold Stevie® Awards for its innovative products, specifically the Can-Am Pulse and Can-Am Origin electric motorcycles, recognized as New Product of the Year in the Transportation category [1][3][4] - The Can-Am Maverick R also received a Gold Stevie® Award for New Product at the International Business Stevie Awards, highlighting its performance and innovation in the recreational off-road industry [1][7][10] Group 1: Awards and Recognition - The Can-Am Pulse and Can-Am Origin were awarded at the Stevie Awards for Technology Excellence on September 16, 2025, in New York City [2][6] - The Can-Am Maverick R was recognized at the International Business Stevie Awards on October 10, 2025, in Lisbon, Portugal [2][10] Group 2: Product Features and Innovations - The Can-Am Pulse and Can-Am Origin electric motorcycles feature a liquid-cooled power system, Active and Passive Regen braking systems, and zero emissions, emphasizing their innovative technology and design [4][5] - The Can-Am Maverick R boasts a 240 hp engine, the first seven-speed dual-clutch transmission in its segment, and an advanced suspension system, showcasing its performance capabilities [9][10] Group 3: Company Background - BRP Inc. is a global leader in powersports products with over 80 years of experience, focusing on innovation and consumer needs [12] - The company reported annual sales of CA$7.8 billion and employs approximately 16,500 people as of January 31, 2025 [12]

Core Viewpoint - BRP Inc. (DOOO) has shown strong year-to-date performance compared to its peers in the Auto-Tires-Trucks sector, making it an attractive investment option [1][4]. Group 1: Company Performance - BRP Inc. has achieved a year-to-date return of approximately 25.5%, significantly outperforming the Auto-Tires-Trucks sector, which has returned an average of 2.5% [4]. - The Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 26.3% over the past three months, indicating a positive trend in analyst sentiment [3]. - BRP Inc. holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3]. Group 2: Industry Context - BRP Inc. is part of the Automotive - Original Equipment industry, which consists of 51 companies and currently ranks 68 in the Zacks Industry Rank [6]. - The average return for stocks in the Automotive - Original Equipment industry this year is 1.1%, further highlighting BRP Inc.'s superior performance [6]. - Garrett Motion (GTX), another stock in the Auto-Tires-Trucks sector, has also outperformed the sector with a year-to-date return of 43% and holds a Zacks Rank of 1 (Strong Buy) [4][5].

Maritime Incident - A Chinese Coast Guard ship collided with a Philippine government vessel near Thitu Island, with Manila accusing China of deliberate ramming and water cannon use, escalating regional tensions [2][3][9] - The Philippine vessels were anchored to protect local fishermen, while China claimed the Philippines illegally entered Chinese-claimed waters [3][9] U.S.-China Trade Tensions - Fears of a renewed U.S.-China trade war intensified after former President Donald Trump threatened "massive" new tariffs on Chinese imports, citing China's export controls on rare-earth minerals as justification [4][5][9] - In retaliation, China implemented new limits on the trade of rare earth elements, contributing to a tit-for-tat dynamic [5][9] Market Reactions - The renewed trade tensions triggered a "risk-off" movement in global markets, causing U.S. equities to slide significantly, with the S&P 500 falling to a one-week low and the Nasdaq Composite dropping over 3.5% [5][6][9] - Investors shifted towards safe-haven assets, with gold prices rising to approximately $4,020, while the U.S. Dollar Index decreased by 0.48% [6][9] - The Chinese Yuan is expected to face significant downward pressure due to the economic uncertainty stemming from escalating trade hostilities [6][9]

Core Viewpoint - BRP Inc. will host its 2025 Investor and Analyst Day on October 9, 2025, where management will discuss the company's current activities and its Mission 28 (M28) Strategic Plan [1][2]. Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience and a focus on consumer needs [3]. - The company offers a diverse portfolio of brands, including Ski-Doo, Lynx, Sea-Doo, Can-Am, Quintrex, and Rotax, aimed at providing exhilarating adventures and experiences [3]. - As of January 31, 2025, BRP reported annual sales of CA$7.8 billion and employed approximately 16,500 people across more than 130 countries [3].