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CEO Steve Menneto described Malibu's dealer network as healthy, though inventory is about one to two weeks heavier than desired. He believes the overall industry's inventory situation has improved. CFO Bruce Beckman added that Malibu's non-current inventory is in a good position. Regarding tariffs, Beckman explained that mitigation efforts began last year with approximately $10 million in advanced raw material purchases and that the current guidance factors in supply chain efficiencies and necessary price increases.

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CEO Steven Menneto characterized dealer sentiment as "cautiously optimistic," stating they appreciate the company's disciplined production approach which helps them manage inventory. Regarding tariffs, he mentioned that a preliminary analysis suggests they will not have a material impact on the current fiscal year, but it could be a topic for fiscal 2026.

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CEO Steven Menneto confirmed that their M&A approach is unchanged and pontoons remain a potential value-creating option. CFO Bruce Beckman stated they expect their retail markets to be down mid-single-digits and clarified that their forecast does not build in speculation on future interest rate cuts.

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CFO Bruce Beckman explained that the company strives for efficiency to keep pricing competitive, noting their boats are often priced $20,000-$30,000 below competitors in certain segments. For 2025, they have minimized pricing actions, with some product lines holding flat or seeing slight decreases. CEO Steve Menneto added that the aggregate price increase is in the low single-digits, which is lower than typical.

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CFO Scott Kent stated that MasterCraft's dealer channel is healthier due to significant inventory reduction, though dealers remain cautious. CEO Brad Nelson added that they see low risk of widespread dealer failures and noted that industry-wide, the pontoon market's inventory health lags the ski/wake category. Regarding M&A, Nelson affirmed the company's approach remains 'careful, selective, and opportunistic,' supported by a strong balance sheet while prioritizing organic growth.

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Executive Timothy Oxley reiterated that the company's guidance assumes a full-year retail decline of 5% to 10%, which aligns with year-to-date trends. He pointed to the surprisingly strong demand for the premium XStar boat, even in Europe, as a positive signal. CEO Bradley Nelson added that there is 'cautious optimism' among dealers, citing a 'halo effect' from the new XStar that drove strong performance at the Salt Lake City, Dusseldorf, and Minneapolis shows. He also noted favorable feedback on the new BALISE pontoon line.

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Executive Timothy Oxley stated that dealer health and optimism are improving as they successfully move through noncurrent inventory, which carries a higher cost burden. He believes their dealers are incrementally healthier than they were at the end of June. CEO Bradley Nelson added that the company has improved its full-year retail outlook to down mid-to-high single digits, an improvement from the prior forecast of down 5% to 15%, based on the promising retail results in Q1.

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Topgolf CEO Artie Starrs credited methodical improvements, a new labor model, and the ongoing Toast POS system rollout for stabilizing margins while maintaining the player experience. President & CEO Chip Brewer addressed TravisMathew, stating the brand remains strong but its revenue trajectory has been impacted by a soft athleisure market, which is down mid-to-high single digits, though the women's category continues to grow.

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President and CEO Chip Brewer attributed the 200 basis point gross margin improvement in Golf Equipment to operational initiatives related to yields, freight, and efficiency. He cautioned that the impact of tariffs will become more apparent in subsequent quarters. Brewer also confirmed the golf consumer remained solid in April, with a normal or slightly better promotional landscape.

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CEO Andy Nemeth acknowledged UTV retail resilience but stated the company's production outlook remains unchanged, with a significant ramp not expected until the 2027 model year. He provided a rough 60/40 split for UTV vs. Rec and highlighted the golf cart and audio categories as having significant growth potential.

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CEO Andy L. Nemeth detailed that the company is flexing its highly variable cost structure, making thoughtful fixed-cost reductions, and has a playbook for further scaling while preserving capacity for a potential rebound. President, RV, Jeff Rodino reported that RecPro is progressing as expected, entering its seasonally strong period, and successfully integrating more Patrick products from the RV and Marine divisions onto its e-commerce platform.

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CEO Andy L. Nemeth clarified that the margin improvement is expected to be primarily volume-driven, as the company can leverage its existing overhead structure. President, RV, Jeffrey Rodino expressed excitement about RecPro, noting they have already added over 60 Patrick product categories to the platform and are beginning to integrate marine products.

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CEO Andy L. Nemeth indicated the mix shift to smaller units will likely continue until consumer confidence improves, which would trigger an upgrade cycle. He noted Patrick's content per unit has been resilient due to market share gains. Both Nemeth and President, RV Jeffrey Rodino confirmed that RecPro integration is happening immediately, with a tangible impact expected in 2025.

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CEO Michael Speetzen estimated the annualized tariff impact at approximately $230 million after mitigation efforts, which are ongoing. CFO Robert Mack advised that the Q3 run-rate of $30-40 million is a reasonable proxy. Speetzen emphasized that Polaris will focus on product innovation and operational flexibility rather than significant price hikes or tariff surcharges to stay competitive.

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CFO Bob Mack stated the plan is to ship below retail to further reduce dealer inventory, with targets for ORV down mid-to-high single digits. CEO Mike Speetzen reiterated that if retail softens, shipments will be adjusted to protect dealers. Mack explained the recession playbook prioritizes cash and liquidity via working capital and CapEx management, disciplined hiring, and winding down unprofitable lines like FTR and Timbersled. He stressed that innovation spending on core products remains protected and the actions are reversible quickly if conditions improve.

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CFO Robert Mack detailed that the increased savings came from plant efficiencies, materials, and logistics. He stated that approximately 70-75% of the savings are permanent, while 25% is tied to production volume. CEO Mike Speetzen added that Polaris has extensive data showing its inventory is significantly more current and has a lower DSO than key competitors, who are dealing with aged inventory (e.g., model year '22) and resorting to aggressive, unsustainable promotions.

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CEO David Foulkes explained that the model rationalization aims to reduce complexity in a lower volume market, while still considering the total margin stack including engines and electronics on those boats. CFO Ryan Gwillim stated the P&L tariff impact for the quarter was in the mid-teens millions, with approximately 75-80% affecting the Propulsion segment. He also noted the potential competitive advantage from new tariffs on Japanese engine imports.

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CEO David Foulkes stated that Navico's growth and margin expansion in 2025 will be driven by a cadence of new product launches. CFO Ryan Gwillim clarified the Q4 charge was a non-cash goodwill impairment triggered by a higher discount rate used in valuation testing, not a change in the fundamental outlook for the business.

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CFO Sean Sullivan clarified the FX impact would be a net $8 million tailwind for the full year versus the prior year. President and CEO David Maher explained the mitigation strategy is not a complete exit from China but rather a strategic rerouting of its supply chain to minimize U.S. tariff exposure. Sean Sullivan added that if the current tariff environment persists, the company expects to be able to mitigate 100% of the impact in 2026.

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CEO David Maher characterized the market as typically competitive, noting that promotional activity was in check in January. He explained that Acushnet's focus on the dedicated golfer can insulate it from broader market pressures. Regarding Korea, he stated the market is resilient but consumer duress and a correction in the premium apparel space have been sources of caution. He is more bullish on equipment than wearables in that region for 2025.

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CEO Jochen Zeitz reiterated LiveWire's reduced operating loss and cash burn targets, attributing the strategic re-evaluation to slower-than-expected EV adoption due to a lack of incentives, a less favorable regulatory environment, and slow charging infrastructure expansion. LiveWire CEO Karim Donnez added that the company is focused on reducing cash burn to achieve a sustainable model with existing funds and is exploring new addressable markets where EV technology can better shine.

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CFO Jonathan Root (speaking for HOG) reiterated LiveWire's reduced operating loss and cash burn guidance, highlighting significant cost reductions. He stated that EV adoption is much slower than anticipated due to a lack of incentives and slow charging infrastructure expansion. LiveWire CEO Karim Donnez added that the company is focused on reducing BOM costs and operating losses to create a sustainable model with existing funds, while also exploring new addressable markets.

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For LiveWire, a significant reduction in operating loss is expected in 2025, driven by cost actions, though cash burn and operating loss are not a direct 1-to-1 translation. For HDFS, the consumer is stressed but the book is being managed well, leading to a raised 2024 outlook. However, 2025 is expected to be more challenging and likely not as strong as 2024.

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CEO Jochen Zeitz highlighted that LiveWire's projected operating loss and cash burn for the year have been significantly reduced. He stated the strategic view has evolved due to slower-than-expected EV adoption, driven by a lack of incentives, a less favorable regulatory environment, and slow charging infrastructure expansion. LiveWire CEO Karim Donnez added that the focus is on reducing cash burn to create a sustainable model with existing funds and exploring specific market segments where EV can shine.

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Chief Financial Officer Jonathan Root explained that the HDFS book's health is solid, with stabilized used vehicle values and high-quality recent originations. The guided income decline is primarily driven by lower asset levels, stemming from reduced dealer wholesale financing and the paydown of retail loans from prior peak sales years. He also noted that while dealers benefit from lower variable rates on wholesale financing, this pressures HDFS income, along with the impact of refinancing maturing debt at higher rates.

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CFO Jonathan Root described the HDFS book as healthy, with recent originations being of very high credit quality. He explained the guided income decline is driven by lower wholesale asset levels due to dealer inventory reduction, lower retail asset levels from a slower sales environment, and the impact of replacing older, lower-rate debt with new, higher-rate funding. He noted that while dealers benefit from lower variable wholesale financing rates, this pressures HDFS income.

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CFO Jonathan Root explained that the HDFS book's health is strong, with recent originations being of very high credit quality. The guided income decline is driven by lower wholesale financing assets due to reduced dealer inventory, lower retail assets from a slower sales environment, and the impact of refinancing debt at higher rates. He noted that while consumer stress exists, used bike values have begun to stabilize, and the company has slightly increased its loss reserves to be well-positioned.

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CFO Jonathan Root clarified that while cash burn reduction impacts operating loss, there are differences due to depreciation and compensation. LiveWire CEO Karim Donnez confirmed a significant reduction in operating loss is expected for 2025, driven by lab relocations and a 30% workforce reduction. On HDFS, Root noted the consumer is stressed but the book is well-managed, leading to an increased outlook. He anticipates a more challenging 2025 for HDFS as debt costs may reset before retail loan yields.

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CFO Jonathan Root clarified that the cash burn reduction does not translate 1:1 to operating loss due to non-cash items like depreciation. LiveWire CEO Karim Donnez confirmed a significant operating loss reduction is expected, driven by cost-saving measures. Regarding HDFS, Root noted the consumer is stressed but well-managed, leading to an upgraded 2024 outlook, but cautioned that 2025 could be more challenging.

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CFO Jonathan Root and LiveWire CEO Karim Donnez confirmed a significant operating loss reduction for LiveWire in 2025, driven by major cost actions, though it's not a direct 1-for-1 with cash burn due to non-cash items. For HDFS, Root noted the loan book is well-managed, but 2025 performance may be challenged as funding costs could rise before retail loan yields adjust.

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CEO Cliff Pemble explained the Marine outlook reflects a conservative view based on customer feedback and the possibility that tariff uncertainty could cause a temporary pause in high-end purchases. For Auto OEM, he stated that the high Q1 growth was due to the annualization of new BMW models launched last year. This growth will moderate as the company anniversaries those launches. The outlook also incorporates automakers' own softening production forecasts due to tariffs.

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CEO Clifton Pemble confirmed the Marine business is 'more than half' retail aftermarket and that Garmin continues to gain share. He characterized the market as having 'stabilized' but doesn't anticipate a rapid snapback to double-digit growth without a new catalyst. He stated the guidance is based on this stable outlook, and Garmin would expect to outperform if the broader market performs better.

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President and CEO Clifton Pemble described the Lumishore acquisition as an important, incremental business that enhances integration with Garmin's chartplotter systems. He suggested the marine market is likely stable, with potential improvement tied to a better interest rate environment. While noting that gaining more share becomes increasingly difficult, he affirmed Garmin's focus remains on creating great products to serve the market.

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CFO Thomas Kirn confirmed that store consolidations are accretive, as they reduce the overall cost structure while retaining gross profit in the market. Chairman and CEO Marcus Lemonis added that while M&A remains opportunistic, the primary focus is on deleveraging and improving returns from recent acquisitions, such as the now-profitable Lazydays locations.

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Executive Thomas Kirn stated that for 2025, they are targeting a new vehicle gross margin of 13.5% to 14%. Executive Matt Wagner added that for used vehicles, they expect to average north of 19% for the full year, with sequential improvement expected after Q1. Regarding dealership additions, Wagner noted they expect to add a minimum of 6 to 7 locations but are being "exponentially more rigorous" with capital allocation, prioritizing improved performance from existing stores.

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Executive Matt Wagner stated that while the model year mix is similar to last year, they have greater confidence in pricing stability from manufacturers, reducing the deflationary risk on prior model year units. CEO Marcus Lemonis added that a more analytical, finance-driven approach to inventory has revealed specific segment opportunities, bolstering their confidence in the 2025 growth plan.

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CEO Philip Singleton emphasized that the primary 'green shoot' remains the industry-wide inventory cleanup, which he believes will lead to higher new boat margins, increased inventory turns, and eventual production increases from manufacturers, benefiting OneWater's parts business. Regarding the pre-owned market, Singleton described it as a 'broken record,' stating that supply remains extremely limited with no signs of that changing soon.

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CEO Austin Singleton stated that the pre-owned market dynamic remains unchanged, characterized by a persistent lack of supply. He emphasized that demand is strong and the company could sell three times as many used boats as it currently has available. This segment continues to be an important focus for the business due to the high demand and limited inventory.

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CFO Bryan Hughes expects ASP pressure to continue in Towables through Q2 due to a mix shift to affordable models but sees less pressure in Marine or Motorhomes. CEO Michael Happe stated the Marine market remains challenging, with no significant signs of change yet, and that the upcoming boat show season will provide a clearer picture for 2025.

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SVP and CFO Bryan Hughes reported no significant changes in dealer health. He noted that the primary focus for dealers is currently on cash flow management due to the high interest rate environment's impact on floor plan financing, but stated there was no notable change in the overall state of the dealer network from the prior quarter.

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