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• Key financials: Ended the quarter with revenue of $1.9 billion, normalized EBITDA of $213 million, normalized EPS of $0.92, and solid free cash flow of almost $100 million.
• Inventory: Dealer inventory down 20% YOY, except snowmobile; rightsizing mostly complete.
• Product launches: Introduced new Can-Am Defender, Outlander electric, model upgrades, Sea-Doo connectivity features, Switch pontoon 300-horsepower engine.
• Electric vehicle: Retail sales of electric motorcycle not as expected due to global EV slowdown, but price reductions announced.

BRP's guidance calls for revenues of $8.15 billion to $8.3 billion, normalized EBITDA of $1.04 billion to $1.09 billion, and normalized EPS of $4.25 to $4.75 for FY '26. The second half is expected to have 8%-12% revenue growth, normalized EBITDA up 22%-31% YOY, and EPS growth 28%-51%.

Revenue for the quarter was $1.9 billion. North American Powersport retail decreased 11%, with Canada up 4% (driven by ORV) and U.S. down 15%. International market: Latin America retail up 22% (ORV), Asia Pacific up 5% (China momentum), EMEA down 13%. Year-round products revenue was $1.1 billion, up 13% (driven by ORV shipments). Seasonal products revenue was $470 million, down 13% (personal watercraft shipments reduced). Parts, accessories, apparel, and OEM engine revenue was $305 million, up 7% (dealers replenishing inventories).

• Tariffs: $90M gross tariff impact, with potential further expansion of steel/aluminum tariffs affecting products.
• Macroeconomic uncertainty: Impact on consumer confidence, interest rates, and retail demand.
• Inventory management: Continued need to manage snowmobile inventory and seasonal product trends.

Q: For the updated guidance, I wanted to ask about trade policy. What are the tariff scenarios that you're contemplating?

A: Yes, obviously, over the years, and you know that we optimized our manufacturing footprint and our supply chain and all our products made in Canada and Mexico meet the USMCA. Today, about 2/3 of our content come from North America. I won't give you the detail between Canada, U.S. and Mexico for competitive reasons. But 2/3 of our content come from North America. Obviously, we are in constant dialogue with Canadian and Mexican government and authorities to try to follow very closely what's going on. And I believe that beyond BRP, the USMC agreement is critical for North American company to be able to compete worldwide. Then to be honest, we're not working right now on any scenarios. Like I said many times, we always found ways to adapt to any regulation if they -- if the norm or the new USMC rules are clear, and we have lead time, I'm very confident we will adapt to any situation. But we're following that closely, and we're ready to fire up when we know better.

Q: So would love to sort of have a conversation about the current versus noncurrent setup in the industry right now. Obviously, that was worth calling out, right, that your overall retail, particularly in ORV was down. But if we split it up into current versus noncurrent tells a very different story. I guess, as we roll that forward, what does that look like in the third quarter?

A: Then obviously, we are in the quarter. Q2 is a quarter where many OEM transition from model year '25 to '26, then there is some estimation in our forecast. But basically, we saw in Q2 that most of the OEMs are more cautious versus shipment. And we saw inventory -- in our case, we are happy where we are versus except snowmobile that we intend to deplete in the upcoming season, but we saw positive signs like in the ORV. The ATV inventory was down by 20% in Q2, side-by-side 10%, the industry, not us. Watercraft is a bit on the high side. One OEM have shipped quite a lot of '25 late into the season. But overall, the noncurrent versus current inventory ratio has improved over the quarters. Then this is our situation. Why we are encouraged for H2, and we are comfortable to issue the guidance is we have a good visibility on what we will be shipping and also we see that we are in a position where our inventory is low. We have very good product news. The reception of the dealer were very upbeat at Club. And we were the first one, like I said in my script, to take the bullet and support them in the last 18 months. And now it's time that we take advantage of this. Then that is why we are in a unique situation, and we're comfortable and we believe we can grow market share in the H2, and we're comfortable with our guidance.