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Torstein Hagen, Founder, Chairman & CEO, asserted that Ocean growth is a result of an outstanding product, not a drag on pricing, highlighting strong demand from guests seeking a "quiet serene experience." He noted that new, high-demand destinations like Egypt and India are small components and don't significantly impact the overall average but demonstrate the brand's strength in launching new products. He emphasized the brand's core promise of "no children, no casinos, no nickel and diming" as a key differentiator.

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EVP of Finance Linh Banh highlighted strong booking momentum in April and May and the advanced state of their 2026 bookings (37% sold) as evidence of consumer and brand strength. She emphasized that their sticky bookings provide significant revenue visibility. Regarding travel to Europe, Banh stated they are seeing no issues; on the contrary, with approximately 70% of itineraries in Europe, their strong booking curves indicate robust demand.

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EVP of Finance Linh Banh pointed to the strong booking momentum in April and May and the highly advanced booking curve (37% sold for 2026) as evidence of their brand and consumer strength. Regarding travel to Europe, she stated that with approximately 70% of itineraries there and 2025 nearly sold out, Viking is seeing the opposite of hesitation, observing strong consumer demand.

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CEO Marc Swanson declined to provide park-specific per capita data but noted that revenue at SeaWorld Orlando was positive for the quarter. He attributed the broader pressure on admissions per capita to necessary promotional activity in response to significant weather headwinds across the company. Swanson also clarified that the benefit from the Easter holiday shift was almost entirely offset by the negative impact of poor weather during the quarter.

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CEO Marc Swanson explained the EBITDA decline was due to cost pressures, primarily in labor, but emphasized that overall costs were well-managed. Regarding real estate, Swanson clarified that while there's nothing specific to announce, the company and its board are actively exploring various ways to monetize its valuable land holdings, not limited to just hotel development.

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CEO Marc Swanson confirmed that in-park per capita spending was positive in April and that they had not seen a pullback in guest spending. CFO James Mikolaichik added that while there are minor quarterly trades, the full-year operating day count is expected to be relatively flat, noting they expect to regain days lost to significant hurricane closures in late 2023.

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CFO Brian Witherow attributed the guidance cut primarily to lower-than-expected attendance volume, driven by a significant shortfall in the active pass base from weather disruptions in May and June. Regarding costs, he explained the decision to pull forward advertising was made before the worst weather hit. He noted cost savings were always planned to be back-half loaded, where the largest opportunities exist with the least disruption to the guest experience.

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CEO Richard Zimmerman explained that portfolio optimization aims to reduce complexity and focus on core assets, citing the marketing of undeveloped land as an example. CFO Brian Witherow noted that revenue synergy realization is about a year behind due to system integration needs but emphasized the attendance growth opportunity is much larger. He stated that only a modest contribution from the new all-park pass is included in the 2025 guidance.

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CEO Richard Zimmerman countered the narrative, stating the business is resilient and consumer demand is strong, as shown by a 20% attendance increase in October. CFO Brian Witherow added that margin improvement is a key focus, driven by attendance leverage and operational efficiencies like better labor management. He declined to provide specific EBITDA guidance but reiterated the components of the free cash flow calculation, including elevated near-term CapEx.

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CEO Jochen Zeitz confirmed the positive H2 retail sales outlook for North America, citing improving trends and easier comps. Regarding the new bike, he stated it has been in development since 2021 and is engineered to be profitable, representing a significant unlock for the company, but he declined to share specific details on the engineering or cost structure.

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CEO Jochen Zeitz explained that the largest tariff impact comes from China sourcing (estimated $75M-$100M of the total $130M-$175M impact) due to 145% duties, despite China sourcing being less than 6% of total spend. He expressed cautious optimism about a favorable EU trade deal and noted no significant anti-American sentiment impacting sales. Zeitz also revealed that North American retail saw sequential improvement from February through April. CFO Jonathan Root added that the situation remains fluid, which is why the guidance was withdrawn.

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Chief Financial Officer Jonathan Root provided a margin walk from the 2024 result of 6.7%. He outlined key drivers for the guided 7% to 8% range, including: slightly favorable pricing, negative impacts from foreign exchange and product mix (due to more Softails), reduced manufacturing unfavorability compared to 2024, and favorability from lower operating expenses.

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CFO Jonathan Root stated the plan is to reduce dealer inventory by another 20% from Q3 levels, bringing it to a similar level as the start of 2024. He stressed the importance of prioritizing inventory for core categories like Touring and CVO to protect market share gains. CEO Jochen Zeitz added that management is confident this is the correct inventory level and represents a significant adjustment for the year.

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CFO Mike McLamb attributed the April pause to a confluence of tariff headlines, global tensions, and tax law uncertainty, noting these factors have since eased, contributing to a better July. CEO Brett McGill added that April was a 'cliff' effect, whereas July's start was more stable. For Q4, McLamb expects continued challenges but noted positive same-store sales are possible, though not factored into guidance. For fiscal 2026, they see a favorable setup for margin improvement if inventory normalizes, but the macro outlook remains uncertain.

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Michael McLamb, an executive, clarified that unit volumes were down mid-single digits in the quarter, meaning the 11% growth was driven by a significant ASP increase due to a premium product mix shift, partly from delayed Florida sales. He cautioned that the April slowdown reflects a tough comparison to the prior year and broad consumer uncertainty caused by tariffs, and that a similar ASP lift should not be expected.

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Executive Michael McLamb stated there were no anomalies in the year-over-year inventory comparison; levels were simply higher than planned due to lighter sales. He reiterated the target for full-year inventory orders to be around or slightly below the prior year. Regarding sales cadence, Executive Bill McGill credited technology and improved consumer sentiment for the January uptick. McLamb added that the path to flattish full-year comps is supported by easier comparisons in the back half of the year, particularly in the September quarter.

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CFO Michael McLamb quantified Hurricane Helene's impact as approximately $30 million on revenue and over $6 million on the bottom line for Q4. He advised caution in modeling Q1 2025 due to the storms' disruption in Florida, which constitutes about 25% of the company's business. McLamb noted that retail financing rates are down about 100 basis points year-over-year and that Q4 unit volume declined only slightly, outperforming the broader industry's ~20% drop. CEO Bill McGill added that the hurricane timing created a tough start for Q1.

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CFO Paul Ruh stated that pricing actions were minimal and necessary, while CEO Ynon Kreiz noted Mattel is competitively well-positioned due to its supply chain flexibility. Ruh clarified the guidance change was driven primarily by widening the top-line growth range to 1-3% (from 2-3%) to reflect consumer uncertainty, which then flows through to EPS.

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CFO Anthony DiSilvestro stated it was too early to comment on 2025 but noted the year-to-date deflation benefit has been shrinking each quarter and is expected to flip to slight inflation in Q4. Regarding inventory, he suggested there is potential for a slight tailwind from wholesale outpacing retail in Q4 compared to the prior year, as inventory was slightly elevated coming into 2024.

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CFO & COO Gina Goetter explained the CP guide reflects the Q2 revenue shortfall being treated as a permanent loss, deleverage impacts, and retailers pushing back holiday resets. CEO Chris Cocks described a 'tale of two categories,' with bullishness on games but 'cautious optimism' for toys due to tariff uncertainty and potential stockouts of hot items. Goetter clarified the Q2 CP issue was primarily a timing shift from direct import to domestic fulfillment.

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CFO & COO Gina Goetter confirmed the guidance embeds the 145% China tariff and a retail sales decline scenario similar to 2008-2009. CEO Chris Cocks stated their base outlook assumes a 10% reciprocal tariff for the rest of the world and that any increase would be a headwind. Goetter emphasized that the company is making 'no regret moves' on supply chain diversification regardless of the tariff outcome.

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CFO and COO Gina Goetter hinted that 2027 EBITDA would be closer to the high end of the analyst's estimated range. For the 2025 margin bridge, she explained that volume and mix provide a one-point benefit, supply chain impacts (including tariffs offset by productivity) are net neutral, and the remaining accretion comes from savings in managed operating expenses.

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CEO Chris Cocks stated the toy industry is expected to be down modestly and highlighted Play-Doh, Beyblade X, TRANSFORMERS, and the board game portfolio as key holiday drivers. CFO Gina Goetter characterized retailer sentiment as unchanged and supportive. Regarding cost savings, she noted the split would likely be 50-50 between supply chain and managed expenses next year, with 'design to value' savings beginning to contribute.

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CEO Michael Happe stated that two turns is a long-term goal aligned with dealer health, acknowledging it may sacrifice short-term share but is the right long-term strategy. CFO Bryan Hughes clarified the retail assumption is close to wholesale, implying a slight destock, and quantified the unmitigated tariff risk as roughly $30-40 million in costs that would need to be offset.

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SVP and CFO Bryan Hughes projected modest ASP increases for Motorhomes but headwinds for Towables and Marine, with continued destocking in Motorized. President and CEO Michael Happe affirmed a strong commitment to the Marine business, framing the Chris-Craft impairment as a cyclical issue and highlighting Barletta's strength. He declined to comment on specific M&A but reiterated the goal to grow the non-RV business.

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CEO Josh Weinstein affirmed the strategy of not panicking or making reactive pricing decisions during periods of volatility, given their long booking curve. Regarding the Middle East, he stated that any potential impact is limited to a couple of ships based out of Dubai late in the year and into 2026. He reassured that the company already avoids the Red Sea and has no significant exposure to the immediate conflict area through the end of 2026, with guest and crew safety being paramount.

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CEO Josh Weinstein generally agreed with the assessment, stating that the company doesn't need to panic or make reactive pricing decisions during periods of volatility, as the teams are focused on managing the yield curve for the long term. Regarding the Middle East, he noted that only a couple of ships based out of Dubai at the end of the year would be potentially impacted and that mitigation plans are in place, with no other significant exposure in the region through 2026.

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CEO Josh Weinstein reported no unusual signals from other indicators like cancellations. He stated that the 12% ROIC target is not an endpoint and that mid-teens is a realistic goal, driven by commercial execution and investments like Celebration Key. He anticipates discussing new long-term targets in early 2026, after the current ones are achieved.

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CEO Josh Weinstein acknowledged industry strength but emphasized significant self-help, pointing to nearly 10% same-ship yield growth and closing the historical performance gap with peers. He attributed this to improved execution and the large value proposition versus land-based vacations. Regarding per diem trends, he reiterated that the guidance reflects current information ahead of the critical wave booking season.

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CFO David Bernstein noted that while it's difficult to predict inflation, the company continues to work on cost-saving opportunities to provide an offset, with more detailed guidance to come in December. CEO Josh Weinstein addressed the geopolitical question, stating the Middle East is not a major source market and the company is not sailing in the region. He added that unless the conflict escalates significantly, the impact is minimal as their ships are mobile.

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CEO Jose Boisjoli noted that underlying retail trends have not significantly changed, with premium vehicles continuing to outperform entry-level models. He stated that while BRP's tariff situation is manageable, he believes all OEMs will eventually find ways to mitigate tariff impacts. He identified the primary risk as the uncertainty tariffs create for consumer confidence, which is causing some customers to delay purchases.

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CFO Sebastien Martel referenced a prior comment that the inventory correction represented a $3 to $4 per share impact, which could be a tailwind in a normalized year. Regarding interest rates, he explained that while cuts would help, BRP faces a headwind from expiring interest rate caps. He also expressed uncertainty that rate cuts alone would be enough to offset broader consumer macroeconomic concerns.

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CEO Jose Boisjoli explained that the guidance change was driven by higher-than-expected snowmobile inventory, softer Marine trends, and a softer U.S. market, which prompted a more cautious dealer reaction than anticipated. He reiterated that supporting dealers is a core, long-term strategy. CFO Sebastien Martel quantified the headwinds, noting that the snow season, the Marine business drag ($1.50/share), and the one-time inventory reduction represent a $3 to $4 EPS impact that should normalize in the future, reaffirming the business's higher underlying earnings potential.

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CEO Harry Sommer confirmed that if the current booking pace and pricing levels are sustained, the company will achieve its full-year guidance, though he cautioned against extrapolating from a single week. Regarding 2026, management expressed that it is too early for detailed adjustments but reaffirmed strong confidence in achieving the long-term 'Charting the Course' targets, supported by a book position that is well ahead of historical pre-pandemic levels.

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CEO Harry Sommer suggested a 'mild tailwind' on occupancy for 2026 is a fair expectation due to itinerary mix changes, but declined to quantify it. To bridge the earnings gap, he clarified that on an FX-adjusted basis, 2025 EPS growth is actually 29%, making the 2026 target a lower bar. He reiterated that the company's algorithm of moderate capacity growth, single-digit yield growth, and sub-inflationary cost growth will enable them to achieve their 2026 targets.

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CFO Mark Kempa attributed the strong Q4 pricing outlook (around 5%) to robust near-term Caribbean demand, despite challenging comps from 2023 and headwinds from Middle East rerouting. CEO Harry Sommer and CFO Mark Kempa emphasized their focus on achieving the absolute 2026 targets (EPS, margin, leverage, ROIC) rather than a specific annual spread, expressing increased confidence in hitting those goals due to strong 2024 performance and a commitment to sub-inflationary cost growth.

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CFO Naftali Holtz noted a significant opportunity to increase occupancy on both new and existing ships, which contributes to maximizing overall yield. He declined to provide a specific occupancy target for 2025 but said it is trending consistently. He also stated that the equity income line is expected to be consistent throughout the year with no specific factors to call out.

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CEO Jason Liberty stated the initial 10-ship river order will deliver two ships in 2027 and four per year thereafter, emphasizing it is 'not a hobby.' CFO Naftali Holtz addressed CapEx, attributing the $5 billion to new ship deliveries (Star of the Seas, Celebrity Xcel) and major investments in private destinations like the Costa Maya port and the Nassau Beach Club, all supported by growing cash flow.

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CEO Jason Liberty attributed the higher returns to long-term investments in brand leadership, innovative ships, destination experiences like Perfect Day, and technology. He stated the ultimate strategic goal is to keep customers within the Royal Caribbean 'ecosystem' by delivering a 'lifetime of vacations.' This involves creating more experiences—through building, buying, or partnering—to increase engagement and loyalty with their customer base.

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CEO Mike Speetzen explained that the original guidance and the tariff impact cannot be viewed independently, as high tariffs would likely slow consumer spending further, making the original forecast moot. He emphasized the focus is on navigating the current situation. Regarding incentive compensation, Speetzen stated that the majority is profit sharing for employees. While it's a Board discussion, his desire is not to negatively impact that compensation for employees dealing with factors outside their control.

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CEO Mike Speetzen confirmed ORV dealer inventory was around 100 days of supply and that while the bulk of the reduction is complete, further adjustments are needed in the recreational sub-segment, snow, and marine. CFO Bob Mack assured that debt covenants were proactively renegotiated in Q4 2024, providing sufficient headroom for 2025, and that the company is prioritizing debt paydown.

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CEO Mike Speetzen explained the negative surprise was driven by the depth of competitor promotions on noncurrent inventory and a progressive weakening of the consumer backdrop after July. He reiterated high confidence in hitting year-end inventory targets, with units substantially below 2019 levels and DSO just over 100 days. He clarified his 'flat EPS' comment for 2025 assumes shipments could also be flat, reflecting a cautious view that retail may remain challenged next year.

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CFO Gabe Bruno provided a detailed end-market outlook, anticipating continued pressure in Heavy Industries and Construction, with Energy expected to be positive for the full year. CEO Steven Hedlund addressed OEM cautiousness, citing significant uncertainty around potential trade tariffs as a primary factor, emphasizing the need for organizational agility.

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