Tristan Thomas Martin

Tristan Thomas inquired about Dorman Products' potential product overlap or opportunities related to First Brands, given recent news. He also asked about aftermarket attachment rates for newer specialty vehicles like the Polaris XD 1500, considering OEMs' increased focus on factory accessories.

Answer

Kevin Olsen, President and CEO, clarified that Dorman does not compare itself to First Brands, emphasizing Dorman's strong balance sheet and limited, non-material product overlap. He stated Dorman is ready to support customers if needed. Regarding specialty vehicles, Mr. Olsen noted that less contented models benefit Dorman and that increased vehicle price points might lead to more entry-level models. He highlighted strong rider enthusiasm but acknowledged the discretionary side of the business felt more impact, leading Dorman to double down on non-discretionary repair parts.

Tristan Thomas asked about Dorman's product overlap with 'First Brands' and any potential opportunities arising from recent news surrounding that company. He also inquired about changes in aftermarket attachment rates for newer specialty vehicles, particularly with OEMs focusing more on factory accessories.

Answer

Kevin Olsen, President and CEO, Dorman Products, clarified that Dorman does not compare itself to First Brands, highlighting Dorman's strong balance sheet and established factoring programs. He noted some, but not material, product overlap and affirmed Dorman's readiness to support customers. Regarding specialty vehicles, Kevin Olsen suggested that less contented models and increasing price points could lead to more entry-level vehicles, which is favorable for Dorman. He also mentioned that while rider enthusiasm remains high, the discretionary side of the business has been impacted, leading Dorman to expand its non-discretionary repair parts portfolio.

Tristan Thomas inquired about Brunswick's long-term view on normalized boat industry retail demand, including how long it might take to reach that level and what factors are needed to get there.

Answer

CEO David Foulkes explained that the industry was heavily disrupted in Q2, and elevated interest rates have been a headwind. He referred to replacement rates, noting that with 7 million registered boats and a typical boat life, annual replacements should be in the 200,000-250,000 range, well above the current 130,000-135,000. He suggested that macro factors should increase boat sales over time, but Brunswick is prudently forecasting flat to slightly up for next year.

Tristan Thomas Martin of BMO Capital Markets asked about the expected channel inventory levels at year-end and how dealers are planning their orders for new products. He also sought clarification on the phrase 'investing in other sectors'.

Answer

CFO Sébastien Martel stated that year-end inventory levels are expected to be similar to current Q2 levels, with a focus on reducing snowmobile inventory. CEO José Boisjoli added that orders for snowmobiles are on hand, PWC booking is on plan, and ORV orders are taken monthly with confidence in meeting targets. Martel clarified that 'investing in other sectors' is still centered around the powersports industry.

Tristan Thomas Martin inquired about the margin profile of engineered products, the catalysts for dealer restocking, and the potential for innovation to drive industry mix shifts.

Answer

CEO Andy Nemeth stated that higher-engineered products carry better margins and help customers manage costs. He identified improved consumer affordability, interest rate relief, and higher consumer confidence as key catalysts for dealer restocking. President - RV, Jeffrey Rodino, added that a combination of macroeconomic help and OEM innovation will be needed to encourage trade-ups.

Tristan Thomas Martin from BMO Capital Markets followed up on pricing strategy, asking about the outlook for product mix and pricing in 2026. He also inquired about the conditions that would prompt the company to become more aggressive with M&A.

Answer

Chairman & CEO Marcus Lemonis emphasized a flexible strategy that adapts to consumer demand, whether that means moving up or down in price point. He expects ASPs to grow in 2026. Regarding M&A, Lemonis clarified they are never on 'pause' but are currently prioritizing capital for deleveraging and organic growth in used inventory and Good Sam, calling it a better return. However, he stated an opportunistic deal could be announced at any time. President Matthew Wagner added that a key strategy is lowering the consumer's monthly payment to expand the buyer pool.

In a follow-up question, Tristan Thomas Martin of BMO Capital Markets asked about the specific factors driving the strong performance of the Newmar brand in a challenged market and whether those strategies could be applied to the core Winnebago Motorhome brand.

Answer

CEO Michael Happe attributed Newmar's success to a strong product line, particularly in Class A diesel, successful expansion into the Super C category, and highly disciplined dealer inventory management. He noted that while Newmar is a distinct premium brand, the core principles of product value, dealer partnership, and operational discipline are lessons that can be applied across the entire portfolio.

Tristan Thomas Martin of BMO Capital Markets asked how the shift of some model year '26 launches to the fall of 2025 will impact the expected quarterly sales and shipment cadence.

Answer

CFO and President of Commercial Jonathan Root stated that the company would not provide specific cadence details, especially after withdrawing guidance. However, he emphasized that the shift is not an opportunity to 'load up dealers with inventory' and that they do not envision a 'tremendously meaningful impact' on 2025 volume. CEO Jochen Zeitz reinforced this by reiterating the company's commitment to reducing dealer inventory by year-end.