Good morning, ladies and gentlemen. Welcome to the BRP Inc.'s FY 2026 third quarter results conference call. For participants who use the telephone line, it is recommended to turn off the sound on your device. I would now like to turn the meeting over to Mr. Philippe Deschênes. Please go ahead, Mr. Deschênes. Thank you, Joelle. Good morning and welcome to BRP's conference call for the third quarter of fiscal 2026. Joining me this morning are José Boisjoli, President and Chief Executive Officer, and Sébastien Martel, Chief Financial Officer. Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the call and that the actual results could differ from those implied in these statements. The forward-looking information is based on certain assumptions and is subject to risk and uncertainties, and I invite you to consult BRP's MD&A for a complete list of these. Also, during the call, reference will be made to supporting slides, and you can find the presentation on our website at brp.com under the Investor Relations section. So, with that, I'll turn the call over to José. Thank you, Philippe. Good morning, everyone, and thank you for joining us. We are pleased with our third quarter financial results, which came in ahead of expectations. While we continue operating in a dynamic macroeconomic environment, our teams remain focused on disciplined execution, and our hard work paid off. We also gained market share in ORV, fueled by the success of our newly introduced models, notably the Can-Am Defender HD11. Let's turn to slide four for key financial highlights. We ended the quarter with revenue of CAD 2.3 billion, normalized EBITDA of CAD 326 million, normalized EPS of CAD 1.59, and free cash flow of CAD 320 million, all significant increases over last year. On the back of this solid performance, we are increasing our guidance and are now expecting to deliver approximately CAD 5 of normalized EPS for the year. Moving on to slide five for global industry trends. In North America, our retail sales decreased by 4%, or 1% excluding snowmobile, in line with the market. Our retail in Canada was flat, excluding snowmobile, with a solid performance in the side-by-side category. In the U.S., we were down 3% in line with our plan, and we expect the trend to improve in Q4. In international markets, Latin America continued to experience solid momentum, with retail up 13%, led by a strong ORV performance in Mexico and by our highly engaged and growing dealer network. Demand remained generally soft in EMEA, with retail down 4%, while in Asia-Pacific, our retail decreased 11%. Global industry trends have remained mostly consistent with previous quarters. In general, demand remained stronger for high-end products compared to entry-level. We view this favorably as we have introduced several new high-end models this year that are well received. Turning to slide six for a look at our retail performance by product line in North America. As anticipated, we have lost market share in all product lines except ORV due to the industry dynamic in the low-volume period of the retail season. That said, the highlight of the quarter was the strong reception of our 2026 ORV lineup, which drove market share gain for both side-by-side and ATV, despite continued promotional activity from other OEMs. As you can see on slide seven, the momentum created by the new generation of the Defender, the Outlander Backcountry 4x4 and 6x6, and enhancements to our Maverick lineup led to a record month of October at retail for both side-by-side and ATV. Our new model captured consumer attention and earned rave reviews from media representatives who tried them. The coverage highlighted our product as the market benchmark in the industry. Building on this momentum, we've launched additional ORV models at the end of November, namely the Defender Cab HD10, the most affordable HVAC-equipped side-by-side in the industry. Now, let's turn to slide eight for a more detailed look at year-round products. Revenue were up 22% to CAD 1.3 billion, driven by higher ORV shipments following new product launches. At retail, side-by-side was up, high single digits, outpacing the industry. In fact, we delivered our strongest third quarter ever at retail for side-by-side. We continue to strongly outperform in current unit, gaining four points of market share in the utility category. In ATV, retail was down mid-single digits, outperforming the industry, which was down high single digits. In current unit, we gained double-digit market share points, driven by our Outlander platform and newly introduced models. As for three-wheel vehicles, we closed the 2025 season lagging the industry. We continue to experience softer retail for our entry-level Ryker lineup, which is consistent with overall market trends. This said, our high-end Spyder lineup performed better, allowing us to remain number one in the three-wheel vehicle business with a market share over 50%. Turning to seasonal products on slide nine, revenue were down 2% to CAD 606 million, mainly due to a planned reduction of snowmobile shipments to right-sized network inventory. Looking at retail, the snowmobile industry saw a very high level of discounted non-current units from other OEMs. In fact, about two-thirds of units retailed during the quarter were non-current, a level we had not seen for many years. As expected, we lagged the industry given our lower non-current inventory and strong retail performance at the end of last season. This dynamic should continue throughout the winter. However, we outperformed in current units as a result of the overall strength of our lineup and elevated level of pre-sold units. Turning to on-water product trends, we remained relatively soft in North America. For the season ended in September, personal watercraft sales were down 14%, slightly lagging the industry, but we maintained our number one position in North America. As for pontoon, retail was down mid-20% as the industry is still going through a correction period. We had a better quarter in counter-seasonal markets, which are entering their peak retail season, with Sea-Doo retail up mid-single digits in both Asia-Pacific and Latin America. Moving to slide 10 for parts, accessories, and apparel in OEM engines, revenue were up 18% to CAD 379 million due to a higher volume of parts and accessory sales as dealers replenished their inventory. The increase in parts and oil sales showed that consumers are riding our product, which is positive, while higher accessory sales reflect the success of our new product introduction. The revenue increase is also due to a more favorable mix of OEM engine sales. Before turning the call over to Sébastien, I want to give you an update on the sales of our marine business. In Q3, we've closed the sales of Manitou. As for Telwater in Australia, the transaction remains subject to regulatory approvals. The process is taking longer than initially anticipated, and we expect a decision over the coming weeks. With that, I turn the call over to Sébastien. Thank you, José. And good morning, everyone. Thanks to our team's disciplined execution, continued focus on operational efficiency, and the strong reception of our newly introduced models, we delivered a solid Q3 with retail and financial results above expectations. Now, looking at the numbers, revenues increased 14% to CAD 2.3 billion, driven by stronger ORV shipments, partly offset by lower snowmobile deliveries. Gross profit reached CAD 541 million, representing a margin of 24.1%, up 210 basis points, mainly driven by better capacity utilization, cost improvement initiatives, lower sales programs, and favorable pricing. These gains were partly offset by the impact of tariffs, the return of variable compensation, and unfavorable foreign exchange rate variations. Normalized EBITDA grew 21% to CAD 326 million, and our normalized earnings per share rose 33% to CAD 1.59. Free cash flow from continued operations was CAD 320 million, and we closed the quarter with CAD 250 million of cash on hand. Also, during the quarter, we seized the opportunity to further strengthen our balance sheet by extending the maturity of a portion of our long-term debt, lowering the average interest rate of our term facility, and repaying about $200 million of debt. These actions are expected to generate financing cost savings of about $10 million in fiscal 2026 and $30 million annually from fiscal 2027 onward. Given our solid balance sheet and robust free cash flow generation, we are well positioned to enhance the return of capital to shareholders by reactivating our share buyback program. Accordingly, we have renewed our NCIB, allowing us to repurchase up to 3.1 million shares over the next 12 months. Now, turning to slide 13 for an update on our network inventory. We maintained a disciplined approach to network inventory management throughout the quarter, ending Q3 with inventory down 17% versus last year and down 6% below pre-COVID levels. Importantly, we have made strong progress in key areas of focus, with three-wheel, personal watercraft, Switch, and snowmobile all showing strong double-digit reductions. Meanwhile, our ORV network inventory remains healthy, down 8% year- over- year, with SSV sequentially declining from Q2 levels, notably driven by our solid retail performance. This positions our dealers with significant capacity to take on our newly introduced products as we ramp up production. Looking ahead, aside from snowmobiles, for which the season is still unfolding, the right-sizing of our network inventory is largely complete. This will allow us to better align wholesale with retail moving forward. With our robust product lineup and healthy network inventory levels, we believe we are best positioned in the industry to capture demand upside while market conditions improve. With this, let's turn to slide 14 for an update on fiscal 2026. As I mentioned earlier, we are pleased with our execution and results so far this year. Assuming macroeconomic conditions and tariffs remain stable, we have good visibility on dealer orders for the rest of the year, positioning us to deliver revenues at the higher end of our initial guidance ranges. Additionally, with the continued tight management of our expenses, efficiency gains we are generating across the organization, and the benefits of our recent debt transaction, we now expect to deliver better normalized EBITDA and normalized EPS than previously anticipated. As such, we now expect to deliver about $8.3 billion of revenue, $1.1 billion of normalized EBITDA, and about $5 of normalized EPS for the year. Looking ahead, with our successful product introductions, lean network inventory levels, and improving dealer sentiment, we expect to carry our strong momentum into fiscal 2027, positioning us to deliver double-digit normalized EPS growth while having the financial flexibility to enhance return of capital to shareholders. On that, I turn the call over to José. Thank you, Sébastien. Before closing my remark, I would like to talk about our fourth Yellow Day held on November 20th. As an organization, we are committed to making a positive social impact. I was pleased to see a growing number of employees, dealers, and ambassadors worldwide actively engaging with our cause to Ride Out Intimidation. It is rewarding to know that we are making a real difference. In conclusion, I am proud of our accomplishments so far this year. Our strong Q3 performance has resulted in higher guidance for fiscal 2026. In the short term, all our teams are aligned internally and focused on delivering against our new M28 Strategic Plan to capture our full powersport potential. As part of this plan, we introduced a financial objective of CAD 9.5 billion in revenue and CAD 8 in normalized EPS by the end of fiscal 2028. We are confident in our ability to reach these objectives. Looking ahead, we are the best-positioned OEM to benefit from an industry rebound given our lean inventory position, engaged dealer network, and strong lineup. We had the most product introductions for model year 2026, and we will not stop here. Our goal is to consistently wow consumers with innovative products and unbeatable experience. With the solid foundation we have built over time, we can create a bright future for BRP and drive long-term profitability. Lastly, about the nomination of the new CEO, the process is ongoing, and the board is still targeting the end of January. I will work closely with the executive team to ensure a smooth transition for my successor. I am proud of what BRP has become. We have built a strong organization, and I have no doubt that we are the best OEM in the industry. This is my last earnings call. It was a pleasure working with all of you. With that, I turn the call over to the operator for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star, followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. We request that our callers limit their questions to one question and one follow-up. One moment, please. Your first question comes from James Hardiman with Citigroup. Your line is now open. Hi. This is Sean Wagner on for James Hardiman. You gained share in the quarter in ORV despite, once again, calling out the high levels of non-current inventory and elevated promotions from the other OEMs. I guess I'm just wondering if you can give any color on how things looked if we split it up into current versus non-current, and if you have any thoughts on sort of how that looks in the fourth quarter. I think you mentioned that that should continue through the winter, but I guess maybe do you see that sort of normalizing or maybe even improving next year? Good morning. As you know, we came out of Club with great engagement from the dealers. The dealers were extremely in the media, were extremely pleased with the ATV lineup and also the side-by-side lineup, notably the HD11. The review is very good, and we started production and shipment beginning of Q3, and we had the benefit, mainly in the second half of Q3, to have very good retail because the product was at the dealership, and they were selling every day. Then, obviously, like I said in my remark, we've gained in the current, we've lost in non-current, which was on plan. But this is basically what I can say. The momentum for side-by-side is very strong, and it was our highest quarter ever in terms of retail. Now, for November, obviously, I cannot go into detail. We have our numbers, but we don't have any industry data. But I can say that, again, the retail is quite positive. The HD11 and the ATV Backcountry series, the 4x4 and 6x6, are extremely well received. Then, off-road, we are very happy with the trend in October, but also the trend in one month in November. On the snow side, obviously, we're benefiting of an early snowfall in many regions, and right now, the momentum is improving. Then, this is basically what I can say on what happened on off-road and our situation in November. But overall, we are very happy with our position in the industry. Okay. That's very helpful. I guess just following up on that, to your point, you've had a great start to model year 2026, it sounds like, for ORVs through November. Your fiscal 2028 targets assumed low single-digit growth in side-by-sides. Has your thinking changed at all there of the potential for that segment, or is this kind of still in line with your expectations, or is it just too early to say? No, obviously, we introduced M28 about two months ago then. But as you remember, we reached close to 30% in a few years. We've lost market share in the last 18 months because of our desire to reduce the inventory, and we had less new product than the competition. But as we said when we introduced the M28, the plan is to go back to 30% by the end of fiscal year 2028. Thank you very much, guys. Thank you. Your next question comes from Mark Petrie with CIBC. Your line is now open. Yeah, thanks. And first, just let me repeat my congratulations to you, José. It's been a pleasure working with you over the last decade plus and wish you all the best in your next chapter. Obviously, product innovation is a key short-term variable, but I want to hear your comments or if you could just expand on your comments so far about dealer appetite to invest in their business and sort of step up inventory levels just given macro conditions and uncertainty. Yeah, good morning, Mark. Obviously, when we went to Club in August, we couldn't ask for it to be in a better position because we had invested in reducing network inventory, and now we were coming with great products, and so when dealers are sitting down and looking at their business, obviously, they are more willing to take on the new models, the new innovations, and that's what we're seeing from dealer orders. The reception is good. Dealers are obviously always concerned with the macroeconomy. Have we reached the trough? Some speculate that we are, but obviously, as we see rates come down, as we see inventories being leaned by all the OEMs, the level of appetite from dealers is also increasing to take on more inventory, especially of the new stuff. So we're in a very good position and couldn't ask for a better outlook in terms of dealer engagement. Okay, thanks. And if I could follow up on that topic, at the Investor Day, I think you talked about some OpEx being allocated, notwithstanding your lean initiative, some OpEx being allocated to support dealer engagement. Hoping you could just talk more about those plans and the timing of that and how you see that affecting your business. Like we said, we intend to be the best, obviously, with our we have the best product lineup, but also we want to be the best for experience, and that includes our dealers. Then we will invest to better support our dealers in terms of parts and accessories, training them, and also leading them with all the leads we get from the website. Then this is part of the plan. But like we said, we are full throttle with the M28 plan right now. The plan has been cascaded down. And also, we will increase the number of dealers. We had an objective of 30 dealers addition net this year, and we already have achieved that number. Then it's quite positive. And the team is not stopping because we have achieved our number for this year. They are already working on next year's achievement. But what I want to say is what you saw in Valcourt with the M28, everything is in motion, and we're very happy where we are. Okay. Appreciate all those comments and happy holidays. All the best. Thank you. Your next question comes from Robin Farley with UBS. Your line is now open. Great. Thank you. Just thinking about your commentary on ORV, and you mentioned that other OEMs have elevated inventory still and promos and non-current. It seems like yourselves and some of the larger OEMs and even CFMOTO have felt good about their inventory position for a while. So isn't it fair to think that at this point, the only other OEMs out there with this kind of excess non-current and being promotional, at this point, that's got to be a fairly small percent of what's out there? I guess I'm just curious on your thoughts on why that would be if it's a sort of a single-digit percent of product out there. Is that still pressuring things overall? And how much longer do you think at the rate that you're seeing that sell-through? Do you expect this to continue? Thanks. Good morning, Robin. We expect Q4 to still be a non-current market. Obviously, we just transitioned into a new model year, and so as OEMs introduce new models, dealers are selling through their non-current. Obviously, Q3 is a big non-current quarter where the bulk of the retail is non-current, Q4 as well. But we've seen OEMs being still promotional. Even on model year 2026 products, we saw OEMs for side-by-side already advertising discounts. So our view is that this environment will be here for maybe another few quarters, and that obviously impacts the profitability of everybody's business. From a consumer point of view, the high-end products are selling well, but the lower-end models, the more entry-level models, traffic is lighter, and therefore, we see some OEMs pushing harder on discounts. That's helpful. Thank you. And maybe just as a follow-up, do you have a view on sort of where the industry may shake out for ORV retail in the next 12 months, kind of based on everything you're seeing? Yeah. Our going-in assumption for next year is a flat industry, and if I look year to date, the industry is down 1%, so we could call it flat-ish, so our base case for next year is for the industry to remain where it is. Great. Thank you very much. Your next question comes from Benoit Poirier with Desjardins. Your line is now open. Yes, thank you very much, and congrats, José. It's been a pleasure working with you over the years. Thank you. Yeah, and maybe first question for Sébastien. When I look at the working cap, you've benefited from a strong working capital release in the quarter. Just wondering if this was more of a one-time item, and how should we expect working capital to play in the coming quarters? Yeah. Obviously, we're really happy with our free cash flow generation year- to- date. We're at about CAD 650 million for the first three quarters of the year. My outlook for the year is we'll probably end about, let's say, CAD 650 million-CAD 700 million free cash flow generation. Working capital has been a big focus of the organization, especially off COVID, where we did build up some safety stock, etc., now with better visibility on the supply chain. Obviously, everyone has been hands-on this element, and we see the benefits today. So I'm expecting overall for the full year, maybe a slight tailwind on overall working cap, but obviously, very happy with the work that the team is doing in freeing up some cash by reducing our investments in working cap. Okay. Thanks. And this morning, there are some headlines about the fact that Trump could decide to withdraw from the USMCA. Obviously, you're very well positioned right now, but just wondering, any actions that you can take to mitigate the risk, and how do you deal with this uncertainty? As we said, Benoit, we're very involved into following the negotiation and even giving our point of view or giving data on our situation with industry association, but also with some government. And the progress of reanalyzing and trying to renew the USMCA is ongoing. We're not reacting to news every day because it would be too painful. Then we're just focusing to better support the industry and the government with data and our point of view on different things, and we will see what will be the outcome. But so far, the people are working hard to renew it with minimum changes. Okay. That's great. Thank you for the time. Thank you. Your next question comes from Craig Kennison with Baird. Your line is now open. Hey, good morning. Thanks for taking my question. Seb, I wanted to follow up on your response to Robin. When you talked about flat retail for the year, were you talking about calendar 2026? Yes, calendar 2026. Thank you for clarifying. And then you were also talking about the low-end consumer still struggling relative to the more affluent consumer. Do you have an assessment of the rate sensitivity of that low-end consumer and the impact of meaningfully lower rates next year? Yeah. Obviously, it's difficult to triangulate how a movement of, let's say, 25 basis points in rate will impact consumers. But what I can tell you is if I look at Canada versus the U.S., rates are probably about 175 basis points lower in Canada than the U.S., and we've seen good demand and better retail in Canada. So certainly, as rates will come down in the U.S., we do hope that we'll see the same impact that it had on Canadian demand. Thanks. And finally, it sounds like HD11 has done really well, and dealers are selling through that quickly. I'm curious, how quickly are you getting retail signals such that you can adjust production to make sure you have the right inventory? Because we do hear that, "Hey, we'd love more HD11s, but we've got too many of the other units that are turning more slowly." I'm curious if you've had the ability to process those signals. Yeah. To give you a sense, we're still producing the old platform and the new one, but in Q3, we produced about three-quarters of the new one and one-quarter of the old one. Then we're definitely transitioning fast. We're taking orders every month, Craig, as you know. And right now, beginning of December, we're taking deliveries. We're taking orders for what will be delivered in February. Then we have quite a good ability to adjust to the most popular model at retail. Then we're very confident with it. It's a fast turnover. The dealer receives the unit, they PDI it, and don't sit on the floor very often. Then we could not be happier with the reception of the new Defender. Great. Thank you. Congratulations, José. Thank you. Your next question comes from Martin Landry with Stifel. Your line is now open. Hi, good morning. I would like to focus a little bit on snowmobiles. Wondering if you can just refresh or remind us what's your inventory level versus your comfort level in terms of snowmobiles right now? Then, just to give you a sense, we finished last season, last spring, with about 60% market share in North America. I'm talking, and 30% of the inventory, the non-current inventory. Then obviously, we're planning to lose market share this year because of this unbalanced current/non-current ratio from other OEM. But this was all planned, all included in our guidance. What is good right now in the Northeast, including Quebec: the snow is quite good, good in Upper Peninsula. In the West, Canada, U.S., it's a bit patchy. Then in Scandinavia, it's good. Then overall, it's a good start of the season. We gain market share in the current, and we have a lot of pre-sold units. We've lessened the non-current as planned, and it will be a year of correction, and this was all planned. Okay. So can we expect you to have fully cleared your older models by the end of the snowmobile season? We were a bit on the high side, but we were in relatively good shape at the end of the season 2025. Then we still need to deplete some of that inventory to be at, I would say, normal level. But we believe that, and partially with the good snow, we believe that all of this should be, for us, realigned at the end of the season 2026. Perfect. Thank you. And best of luck, José, in your future projects. Thank you. Your next question comes from Joe Altobello with Raymond James. Your line is now open. Thank you. Hey, guys. Good morning. I wanted to go back to the promotional environment. I think in your press release, you mentioned that you saw favorable variations in your sales programs, but this morning, you're talking about still very elevated levels of promotion in the industry. So is it that the industry is still very promotional, but you guys were a little bit lower in terms of sales programs versus last year? Yeah. Well, if you recall last year, Joe, we wanted to address inventory in the network and the non-current inventory as well. And so we did put a lot of dollars last year to work in order to flush that inventory, which we were able to do. And so this year, we're probably trending about, let's say, 70-80 basis points lower in terms of retail promotion versus last year. So that's the main reason. But nonetheless, I mean, there's still some high levels of promotions that are being advertised out there in the market. Got it. Okay. And in terms of fiscal 2027, you mentioned that wholesale and retail should be largely in alignment. And I think, Séb, in the past, you've said that just lapping this year's destocking probably gives you CAD 400 million-CAD 500 million of revenue. Is that still the case? And should we think about that as a base and then layer on whatever assumptions we have on pricing and market share gains? Yeah. Obviously, we are in the middle of our planning for next year, but it's certainly too early to provide a detailed guidance to all of you, and as you mentioned, there are some elements we already know, and that should serve as your best case for your models there for next year. The big tailwind is the element that you mentioned. There's just the right sizing of the inventory that is behind us last year and this year, and so that is a tailwind of about CAD 400 million-CAD 500 million of revenue and probably roughly about the $1.25 of EPS. Obviously, there are some headwinds. We're transitioning the production of Ryker to Vietnam, and so with that transition, there'll be less Ryker deliveries next year, so that's one of the headwinds. Some of the cost drivers as well, depreciation expense will go up probably about CAD 30 million next year, and I'm also expecting my tax rate to go up to historical levels, call it 25%-26%. So if you factor these elements in your base case, Joelle, you'll probably end up in an EPS probably up in the mid- to high-teen percentages for next year and probably a bit of margin, ballpark 14-ish%. This is a base case, and obviously, over the next few months, we'll see how the business trends. Snowmobile season is an important business for us, and so if the snow sticks, maybe it'll be good. The macro environment is also evolving every day. As Benoit mentioned this morning, we have new data on tariffs. We'll see how that unfolds, and obviously, there's a competition as well. How are other OEMs going to behave? Are they going to be more aggressive in terms of putting units in the industry and also discounting? So obviously, there's a lot of variables that we're monitoring in order for us to make an educated guess on the industry. But again, with still a few months to go before we issue guidance, we'll be able to give you the full download in March. But again, we're optimistic, especially with the strong lineup that we have in all of the product categories. Very helpful. Thank you. And also, let me offer José my good luck in future endeavors. Thank you. Thank you. Your next question comes from Brian Morrison with TD Cowen. Your line is now open. Yeah. Thanks very much. And José, it's certainly been a pleasure working together all these years. I want to go back to the inventory, and you've done a very good job explaining ORV and snowmobiles. Can you just maybe let us know how Sea-Doo sits as we enter into the season? And with respect to ORVs, how has the initial reception been with respect to the discounting of your entry-level product lines? Yeah. I'll take on the first question, personal watercraft. If you look at slide 13 on the deck, personal watercraft is actually down 22% versus last year. Obviously, very happy with where we sit. As I've shared with you in the past, other OEMs do have more inventory in the network, and so we believe it'll be a similar, I guess, a similar dynamic than we see in snowmobile for the next season with some non-current units impacting overall market share performance. But from a current point of view, the lineup we have is obviously very strong, and the orders that we got from the dealers at our Club in August also provide us a good outlook for next year. We were sitting in a very good position, much better than where we were last year. On the entry-level product, it was an overall reception. Yeah. Basically, consumer trend, no big change since the beginning of the year. Just to give you some statistic, new entry in Q3 was 21%, about in line with the pre-COVID level. And premium sells better than value. Just to give you a sense, on side by side, our premium unit was up mid double digit when this is the industry, by the way. The premium was up mid double digit when the value was down low double digit. And for the utility, selling better, up low double digit when the export was down mid single digit. And you can see the trend don't change. Our household income of our customer high at $175,000, then the same trend continue. The beauty of all this, obviously, we don't like when we talk about Spark Ryker, our entry-level product, but overall, our lineups are more high-end than low-end, and it's very good for us. Right. Hey, Séb, one follow-up question if I can. You renewed your NCIB here this morning. I wonder if you can just reiterate what your target leverage is and if you expect to be active with the NCIB in the near term. Yeah. Our target leverage for the end of the year is probably in the range of 2x net debt to EBITDA. We've always said our overall target is between 1x and 2x, so we're really happy with how the business has progressed and the refinancing that we did just a few months ago with the repayment of $200 million US of debt and also the repricing where it provides us a big tailwind of 30 cents next year. So I couldn't ask for a better result from our treasurer and our legal team. Really happy with the outcome. On the NCIB, we've been on the sidelines now, being more cautious over the last 15 months, waiting to see where the overall economy is going to go, trade, etc. Now that we are seeing our leverage come down, we're strong free cash flow generation. Our intention is to be active on the NCIB in the next few weeks. Have a great holiday season. Thank you. Thank you. Your next question comes from Sabahat Khan with RBC Capital Markets. Your line is now open. Great. Thanks and good morning. I guess just some of the directional comments you gave on calendar 2026, something around a 14% type base case for EBITDA margin. Just curious, based on your current visibility, what sort of production levels are you at? Just trying to think, operating leverage is obviously a potential part of the story going forward. So just are you back to something resembling normal production, or whereabouts will your factories be for the next year based on? We'll still be below average asset utilization rates. Again, I talked about a tailwind of, let's say, CAD 400 million-CAD 500 million of revenue, and so it still would bring us in the probably lowest of any asset utilization. Great. And then I noted the tariff impact to the dollar amount in the calendar release here or sorry, in the presentation. Can you just talk about the tariffs might evolve, but is this more the idea that, look, anything additional might just have to be sort of worked through via efficiencies, or is pricing on the table as well depending on how tariffs evolve? Thanks very much. It really all depends. It's tough to speculate. It'll depend on the materiality, on what components it impacts, on the flexibility we have with suppliers, can relocate parts, etc. But what I can say is that our teams, our customs brokers are getting smarter, more sophisticated. We have now more granular data that allows us to be a lot more targeted when we do file customs declaration forms. And so that headwind that we have this year is expected to be actually very similar next year as well because of the better processes we have and better collaboration we have with the various partners. But again, we'll monitor and we'll act accordingly as we usually do. We've always been very proactive in adapting to new situations. Great. Thanks very much and all the best, José. Thank you. Thank you. Your next question comes from Luke Hannan with Canaccord Genuity. Your line is now open. Thanks. Good morning. I wanted to follow up on that last line of questioning, Séb. Just to be absolutely clear, if we went back to last quarter, I think the gross headwind that you were expecting for fiscal 2027 was in the neighborhood of CAD 120 million-CAD 130 million. So it should now be closer to, pardon me, CAD 90 million when it comes to the gross tariff headwind. Yeah. That's correct. As I mentioned, again, the teams obviously is a huge focus of us, and we worked on finding ways to reduce the overall exposure, and it's a very positive outcome. And so my expectation is that we should be flattish next year. Got it. Very helpful. Thanks. And then from my follow-up here, the higher level, when we think about the bridge between the new raised guidance that you just put out there and then the Mission 2028 target of CAD 8 EPS, and then we also factor in the mid- to high-teens EPS growth, roughly speaking, that we should expect for next year. It does imply more contribution, I suppose, during the year of fiscal 2028 as well. Can you just help us think from a high level what should be the bigger drivers of EPS growth during fiscal 2027 versus 2026? For next year, I gave you. Are you talking calendar or you're talking fiscal? Fiscal year. Yeah. I gave you the fiscal details. The drivers obviously are in the base case is mainly the tailwind coming from retail equal wholesale. But then when you look at 2028, obviously, there's a lot of elements, market share gains from the ORV business, the dealer network expansion. All of that will be drivers of growth in 2028. The base case for 2027 remains as I highlighted and the drivers between 2026 and 2027. But 2028, obviously, there's the product introductions that we'll be doing and the focus on the dealer experience and the dealer network. Very helpful. Thanks and all the best, José. Thank you. Your next question comes from Xian Siew with BNP Paribas. Your line is now open. Thanks, guys. Could you talk maybe a little bit about how retail and market share gains evolved over the quarter? It sounded like maybe the first couple of months of the quarter were a little bit more promotional and maybe there's some acceleration in October and into November, and if that's the case, I guess with the exit rate improving, does that give you kind of more confidence in potential market share gains for the next year or so? I mean, we don't want to start to split quarters because it will be complicated, but we were talking more about off-road. Basically, we introduced very good novelty for model year 2026, and those products were introduced in August at the Club. We started production the day after. Basically, the time that you produce, you ship the dealer PDI, transportation dealer PDI. That's why our second half of Q3 in terms of retail for off-road was stronger than the first half because the new model hit the ground at the dealership when they had low inventory. Then it's more a timing of new model hitting the dealership. What I'm happy with is in November, the trend continued, and this is promising for the remaining of the fiscal year. Okay. Very helpful. And then maybe on yeah. Sorry. Go ahead. On the utilization rate, I think you mentioned in the 70% next year. Can you maybe just remind us this year what is the utilization rate and how that we can kind of calibrate as utilization steps up, how we think about margin benefits? Yeah. We're in the average of a 65% utilization rate this year. Okay. Great. Thank you. Good luck. Your next question comes from Cameron Doerksen with National Bank. Your line is now open. Yeah. Thanks, good morning, and let me echo my congratulations to José. I'm sure you're looking forward to the end of January. I wanted to come back to the, I guess, the snowmobile market discussion. So if you and the industry end this season with very healthy dealer inventories and we have a pretty decent snow season, it's off to a decent start so far, it feels like this could be a very nice tailwind for you in fiscal 2027. I'm just wondering if that's potential upside to kind of that $400 million-$500 million revenue from the alignment of retail and wholesale, or is that kind of incorporated into that assumption? Oh, no. Obviously, if we have a, again, a super good season, we have a lot of enthusiast customers in the snowmobile industry. And so if you have a lot of snow and people get a lot of riding in, we obviously will have great product news next year as well. You can expect strong customer orders in the spring, and that obviously is going to be a good tailwind for the back half of fiscal year 2027. But we always like to plan snowmobile conservatively because it's very dependent on snowfall. And so again, every inch of snow is more units that get retailed, so we'll take it. Okay. No, that's good. That's helpful. And Séb, just I guess just a clarification, I guess, on the remaining marine sale, the Telwater, I think José mentioned hopefully coming in the next few weeks. Just what's the cash inflow? I mean, I think the number, it looks like it's probably something like CAD 200 million that you would expect from that. Have I got that right? And if not, what is the expected cash inflow from that? Obviously, we have a good offer from Yamaha for that asset, and the ballpark, it's around that amount of expected cash inflow from the proceeds that is expected. Okay. So that would come in Q4, assuming that the regulator approves it? Yes, it would come into Q4 or early Q4. Okay. Perfect. Thanks very much. Your next question comes from Jaime Katz with Morningstar. Your line is now open. Hey, good morning, guys. I have just a quick one on CapEx. I know it was shifted down a little bit. Were there any particular investments that we should be aware were sort of either pushed out or delayed? And then should we be thinking of CapEx as a percentage of sales still around that 4.5% level longer term? Yeah. Nothing special to call out for this year. Obviously, we are diligent in our CapEx spend, and the teams know that if we push a project out, it doesn't mean that they lose it, and so everyone's being responsible in how they deploy CapEx, and for next year, probably in the range of, let's say, CAD 420 million is a fair number in terms of CapEx and for the out years as well. As you might know, we've invested quite a bit in the last few years in capacity, and so we don't necessarily need to build any more capacity out for our plants. That's the good news, and most of the investments are around product and technology. Okay. And then I don't know that this was called out, but for new-to-brand consumers, is there anything noteworthy on what is getting them to convert sales? Is it promotions, innovation, financing deals, some mix of that all? Just curious what's motivating consumers the most right now. I'd say innovation is what's motivating customers the most, obviously, with products that have been out there in the market for quite a bit of time. Discounts can drive consumers, but for new-to-BRP, obviously, when they see the innovation that we have on most of the product line, on all the lineup, that is what's driving the conversion from other brands. Excellent. Thanks. Your next question comes from Ellie Latt with BMO Capital Markets. Your line is now open. Oh, thank you. Two for me. I just wanted to follow up on the potential sale to Yamaha and what you would potentially do with those proceeds, the $200 million. And then just kind of in the same vein, you mentioned $210 million of debt reduction. Could you tell us where your debt stood, where your total debt stood at the end of the quarter? Thank you. Yeah. Well, our capital deployment priorities are not changing. The first one is to invest in the business, and that will remain. Then the other capital deployment priority is obviously modestly increase our dividend and then any excess free cash flow. When the shares trade below what the implied value is, we like to return capital to shareholders. So the good news is we have flexibility. I feel that our cap structure is adequate today with the refinancing that we did just a few months ago. The overall debt stands at $1.7 billion today. And so overall leverage is very comfortable, and I don't feel that we need to reduce the overall debt level. So just as a follow-up, you had mentioned during the call, I think, that if you correct me if I'm mistaken, but I think you said your long-term guidance was 1x-2x? 1.5x-2x leverage. 1.5x-2x. Okay. All right. Thank you. Thank you. Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Jonathan Goldman with Scotiabank. Your line is now open. Hi, good morning, and thanks for taking my questions. Most of them have been asked, but maybe just a clarifying one to begin with. I'm sorry if I missed this, but Séb, did you talk about the base case for next year, including share gains? Again, our plan, if you look at the M28 target, we said modest share gains in the ORV segment. Yeah, it does factor a bit of share gains next year, but it would be a modest impact. Okay. Perfect. Thanks for that. And then on the gross margin, I believe Séb, on the last call, you said you could possibly see a tailwind next year in the 50 basis points range. Given where the inventory is in the industry right now and your comments about promo still being somewhat elevated, how are you thinking about potential gross margin expansion next year? The big driver of gross margin, obviously, is some of the volume that we're going to be bringing back from just matching retail with wholesale. The other element is obviously cost initiatives that we have in all of our plants, all of our product lines. From asset utilization and cost efficiency, that should drive margins up. We are expecting as well to continue investing in the business or in the marketing. I do not expect huge operational leverage coming from OpEx, maybe let's say 50 basis points, which could bring us to a 14% dividend margin on the base case. Okay. Perfect. I appreciate the color. Thanks. There are no further questions at this time. I will now turn the call over to Mr. Deschênes for closing remarks. Thank you, Joelle, and thanks everyone for joining us this morning and for your interest in BRP. We look forward to speaking with you again for Q4 earnings in March. Thanks again, everyone, and have a good day. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.