Brandon Rollé

Brandon Rolle asked for early insights into the impact of recent weather in the Northeast on lost unit sales or location closures. He also inquired about year-to-date retail trends outside of RV shows and weather impacts, and whether the observed strength in fifth wheels is primarily centered around private label/exclusive brands.

Answer

Matthew Wagner, CEO and President, noted widespread weather impacts across the Atlantic region, Midwest, and Texas, leading to missed sales, though the exact recovery for March is uncertain. He observed that RV shows saw good volume but lower gross profit year-over-year, with new and used travel trailer sales underperforming. New fifth wheels and entry-level motorized sales were strong, particularly for exclusive brands, suggesting material market share gains due to a creative strategy.

Brandon Rolle asked about early impacts of recent weather in the Northeast, year-to-date retail trends outside of shows and weather, and the strength of fifth wheels, particularly private label products.

Answer

Matthew Wagner, CEO and President, noted widespread weather impacts across the Atlantic region, Midwest, and Texas, causing significant disruptions and missed sales. He observed that while RV shows performed well in volume, gross profit was down year-over-year, especially for travel trailers. New fifth wheels and entry-level motorized sales are performing strongly, with new fifth wheels up over 25% on a same-store basis year-to-date, largely driven by the company's exclusive brands.

Brandon Rollé asked for expectations for fourth-quarter SG&A as a percentage of gross profit and any potential guidance on adjusted EBITDA for the quarter.

Answer

CEO Marcus Lemonis declined to provide specific quarterly guidance but acknowledged Q4 is seasonally the toughest for SG&A as a percentage of gross profit. He reiterated the full-year 2025 goal of improving the metric by 600-700 basis points from an expected 2024 finish of ~85%, targeting a 77-78% range. This improvement is primarily driven by the planned recovery of the used vehicle business. The long-term goal is the low 70%s.

Brandon Roll`e asked about RV industry affordability entering 2026 versus last year, its impact on recovery, and pricing given rising aluminum costs and lack of significant rate relief.

Answer

President and CEO Jason Lippert discussed OEMs' focus on driving down average selling prices (ASPs) through content realignment, noting aluminum costs as a current headwind. He mentioned working with customers on 'good, better, best' product philosophies and the role of OEM/dealer discounting to manage pricing, contrasting RVs' better position compared to the boat industry's engine price challenges.

Brandon Roll`e asked about RV industry affordability entering 2026 compared to last year, its impact on recovery, and how pricing and rate relief might play a role, especially given rising aluminum costs.

Answer

President and CEO Jason Lippert explained that OEMs are focused on driving down ASPs through content realignment, despite aluminum costs being a current headwind. He mentioned working with customers on 'good, better, best' philosophies to align pricing for consumers and noted that the RV industry manages these factors better than the boat industry, which is constrained by engine prices.

Brandon Rollé of D.A. Davidson asked for a breakdown of the company's import mix by country, questioned the source of the OEM segment's EBIT improvement on lower revenue, and sought to reconcile a small increase in towable revenues with a large expected increase in shipment volumes.

Answer

CFO Lillian Etzkorn declined to provide a country-specific import breakdown but noted a slight uptick in imports was due to supply chain timing, not resourcing. CEO Jason Lippert confirmed they did some pre-buying of certain products in Q4 ahead of anticipated tariffs. Etzkorn and Lippert explained the revenue-volume disconnect by emphasizing the significant negative impact of product mix, as lower-content single-axle units have a much lower price point, which offsets volume gains.

Brandon Rollé asked if 30% is still the correct figure for globally imported components and whether passing on potential tariff costs is feasible in the current price-sensitive market. He also requested more color on chassis market share gains, referencing that some OEMs have explored other suppliers.

Answer

CEO Jason Lippert stated that the percentage of imported components is likely decreasing due to reshoring initiatives and that passing on costs is a last resort. He explained that chassis market share gains are driven by increasing content—such as beefier frames, leveling systems, and new suspensions like TCS—and by supplying the highest-volume RV brands. While some business is traded each year, he asserted that the net result has been positive revenue growth and a dominant 98% share in the fifth-wheel chassis market.

Brandon Rolle asked about the current state of the used versus new pricing spread, and whether promotional activities are expected to tighten this spread or if it will continue to expand.

Answer

Jonathan Root, Chief Financial and Commercial Officer, stated that the Q4 2025 charge taken for Q1 2026 promotions aims to clear touring inventory, and current programs are helping to reduce the gap between new and used motorcycle prices, offering good value. He also noted stabilization and improvement in used values at both auction and retail. Artie Starrs, Chief Executive Officer, added that strong used values for certain parts of the portfolio, particularly those previously de-emphasized, are informing future product development and innovation.

Brandon Rolle asked about the current state of the used versus new pricing spread, whether it is expected to tighten with reduced promotional activity, or expand further given current economic realities and customer demand for lower-priced options.

Answer

CFO Jonathan Root stated that current promotional programs, including the Q4 2025 charge for Q1 2026 Touring clearance, are helping to reduce the gap between new and used motorcycle prices, offering good value to customers. He also highlighted stabilization and improvement in used values at auction and retail. CEO Artie Starrs added that strong used values for certain parts of their portfolio are informing future product development.

Brandon Rollé from D.A. Davidson asked about LiveWire's path to profitability and questioned Harley-Davidson's level of commitment to the business, given its history of being a headwind to earnings.

Answer

LiveWire CEO Karim Donnez outlined an aggressive internal program to reduce bill of materials and conversion costs, aiming for a positive contribution margin by year-end as a first step toward profitability. Harley-Davidson CEO Jochen Zeitz reiterated that while they are committed to the business, LiveWire must perform and show improvement. He stressed that they are watching the situation very carefully and will have to look at other options if performance targets are not met.

Brandon Rollé from D.A. Davidson asked about the expected timeline for LiveWire to achieve profitability and questioned Harley-Davidson's commitment to the venture given its persistent financial headwinds.

Answer

LiveWire CEO Karim Donnez stated the company is aggressively working to accelerate its path to profitability, with a goal of achieving a positive contribution margin by the end of the year. Harley-Davidson CEO Jochen Zeitz reiterated that while H-D is currently committed, LiveWire's performance is being evaluated very carefully. He stressed that performance needs to improve and sales need to materialize, or the company will have to explore other options.

Brandon Rolle inquired about the current state of the used versus new pricing spread, whether it is expected to tighten with promotional activity, or expand due to higher new prices and continued demand for used deals.

Answer

Jonathan Root, CFO, stated that promotional activity in Q4 2025 (which incurred a charge) is helping to reduce the gap between new and used motorcycle prices, creating a nice value equation for customers. He also highlighted the stabilization and improvement in used values observed at auction and retail. Artie Starrs, CEO, added that strong used values for certain core portfolio segments are informing future product development and innovation.

Brandon Rolle inquired about the current state of the used versus new motorcycle pricing spread, asking if it is expected to tighten with promotional activity or continue expanding as customers seek lower used values.

Answer

CFO Jonathan Root noted that current promotional programs, including interest rate assistance and customer cash, are helping to reduce the gap between new and used motorcycle prices, creating a good value proposition for customers. He also highlighted the stabilization and improvement in used values observed at auction and retail. CEO Artie Starrs added that strong used values in certain parts of the portfolio, particularly core equities, are informing future product development.

Brandon Rollé of D.A. Davidson inquired about LiveWire's path to profitability, asking for a timeline and what factors might cause Harley-Davidson to reconsider its commitment to the electric motorcycle business.

Answer

LiveWire CEO Karim Donnez stated that the company is on an accelerated path to profitability, targeting a positive contribution margin by the end of the year through aggressive cost reductions. Harley-Davidson CEO Jochen Zeitz added that while the company is committed to LiveWire 'at this point,' its performance is being watched very carefully. He stressed that sales adoption needs to materialize, and if performance does not improve, the company will have to evaluate its 'optionalities.'

Brandon Rollé questioned the outlook for labor costs and potential relief, as well as any signs of a bounce back in the ski and wake category and Malibu Boats' efforts to reinvigorate it.

Answer

CFO David Black stated that the company's focus on operational effectiveness and centralized sourcing is expected to yield benefits in labor per unit cost and overall margin for the remainder of the year. CEO Steve Menneto noted that the ski and wake category is still seeing 'more of the same' trends, but Malibu Boats and its competitors are actively working to drive growth in the segment through individual and collaborative efforts.

Brandon Rollé (Loop Capital) asked about the outlook for labor costs and potential relief, and whether the ski and wake category is experiencing a bounce back compared to the broader industry, along with OEM efforts to reinvigorate the segment.

Answer

CFO David Black stated that Malibu Boats expects benefits from operational effectiveness, including labor per unit cost and centralized sourcing, to flow into margins in the remainder of the year. CEO Steve Menneto noted that the ski and wake category is seeing "more of the same" trends, with ongoing collaborative efforts among Malibu Boats and competitors to drive growth in the segment.

Brandon Rollé requested more detail on boat show demand by segment, the expected duration of the inventory destocking phase, and whether the observed saltwater market weakness was industry-wide.

Answer

CEO Steven Menneto described boat show results as "decent" but mixed, with strong performance in some areas and segments but not universally. He stated that dealers will likely remain in a destocking mindset until the retail market shows clear signs of improvement. He also confirmed that the weakness in the saltwater market is an industry-wide phenomenon, not specific to their products.

Brandon Rollé inquired about changes in the competitive environment and asked for commentary on dealer ordering activity post-RV show season, particularly between large and small dealers.

Answer

President, RV, Jeffrey Rodino stated that the competitive environment remains stable, with no marked changes over the last year. Regarding ordering, he noted that while they see production levels, they don't have specific dealer-level data. However, there has been a production uptick across categories, though the mix still favors smaller, entry-level units.

Brandon Rollé from D.A. Davidson asked if the 'flattish' retail sales expectation for the year baked in any market share gains and inquired about specific pressure points in MarineMax's inventory compared to the broader industry.

Answer

Executive Michael McLamb clarified that the 'flattish' sales guidance is consistent with their view of the overall industry and is intentionally cautious due to the significant impact of the hurricanes on their Florida operations, a market where they hold a large presence. Executive Bill McGill addressed inventory, stating that while levels are elevated, the company's inventory is much fresher and more current than the industry average, which reportedly has a more significant aging problem. The focus is on moving any aged product during the winter boat show season.

Brandon Rollé asked about a potential change in chassis provider for the Transcend product line and whether this provided pricing benefits or was part of a broader supplier diversification effort.

Answer

President and CEO Michael Happe declined to comment on specific supplier relationships or the bill of materials for any product. He stated that for price-sensitive, opening price point products like Transcend, all supplier options are kept open to hit targeted price ranges, and that all suppliers must consistently earn their business.

Brandon Rollé of D.A. Davidson asked if BRP anticipates a near-term market share headwind in off-road vehicles due to competitors' aggressive shipping while BRP pulls back. He also inquired about the rationale for introducing an electric motorcycle at this time.

Answer

CEO Jose Boisjoli stated that despite reducing shipments, BRP believes it will have enough inventory to meet retail demand and still expects to gain market share in off-road for the year. Regarding the electric motorcycle, he explained it's a long-term play that leverages a modular electric power pack, which will also be used in other product lines like snowmobiles. He noted that while the EV trend has slowed, it's here to stay, and early feedback on the new product is optimistic.