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Powersports Business • November 2024 • 9 reducing network inventory levels and higher sales programs . The decrease was partially offset by favorable product mix of SSV and 3WV . The decrease includes a favorable foreign exchange rate variation of $ 18 million .

Seasonal products ( 29 % of Q2−FY25 revenues ): Revenues from seasonal products decreased by $ 355.7 million , or 39.6 %, to $ 541.8 million for the three-month period ended July 31 , 2024 , compared to $ 897.5 million for the corresponding period ended July 31 , 2023 . The decrease in revenues from seasonal products was primarily attributable to a lower volume sold across all product lines , as the company maintained its focus on reducing network inventory levels , and higher sales programs . The decrease was partially offset by favorable product mix across all product lines . The decrease includes a favorable foreign exchange rate variation of $ 8 million .

Powersports P & A and OEM engines ( 14 % of Q2−FY25 revenues ): Revenues from powersports P & A and OEM engines decreased by $ 35.9 million , or 12.2 %, to $ 258.3 million for the three months , compared to $ 294.2 million in 2023 . The decrease was primarily due to a lower volume sold and a high network inventory level in snowmobile followed by a decrease in retail in other product lines . The decrease also includes a favorable foreign exchange rate variation of $ 3 million .

Marine ( 3 % of Q2−FY25 revenues ): Revenues from the marine segment decreased by $ 67.5 million , or 53.2 %, to $ 59.4 million for the three months , compared to $ 126.9 million in 2023 . The revenue decrease from the marine segment was mainly attributable to a lower volume sold due to high dealer inventory , softer consumer demand in the industry , and higher sales programs .

BRP ’ s financial results for the three- and six-month periods ended July 31 , 2024 . Source : BRP

NORTH AMERICAN RETAIL SALES BRP ’ s North American retail sales for powersports products decreased by 18 % for the three months , compared to the same period last year . The decrease is mainly explained by softer industry demand for both seasonal and year-round products .

North American year-round products retail sales decreased on a percentage basis in the low teens range compared to the threemonth period ended July 31 , 2023 . In comparison , the year-round products industry decreased on a percentage basis in the midsingle digits over the same period .

North American seasonal products retail sales decreased on a percentage basis in the high-twenties range compared to 2023 .

The seasonal products industry decreased

in percentage terms in the high teens over the same period . Given a low retail volume period as a comparison , the company ’ s North American retail sales for marine products increased by 35 % compared to 2023 .

Octane has executed a $ 500 million forward-flow facility with funds managed by AB CarVal , an established global alternative investment manager . Under the terms of the agreement , AB CarVal has agreed to purchase fixed-rate installment powersports loans originated by Octane ’ s in-house lender , Roadrunner Financial , and for Octane ’ s inhouse loan servicer , Roadrunner Account

Services , LLC , to service the loans .

Octane will leverage this funding to capitalize on the significant momentum it has been seeing in its business . This transaction continues to diversify Octane ’ s large existing base of capital providers and is a testament to the company ’ s strong credit performance .

“ We ’ re thrilled to partner with AB CarVal to connect even more powersports enthusiasts with their passion through our state-ofthe-art , tech-forward , full-spectrum financing experience ,” says Steve Fernald , president and CFO of Octane . “ By collaborating with one of the world ’ s preeminent global asset managers , we can deepen the ways in which we faithfully serve our OEM and dealer partners and we look forward to growing our relationship with AB CarVal in the future .”

“ As Octane looks to diversify its funding sources and grow its market share , AB Car- Val is pleased to be a partner of choice to such a fast-growing , differentiated player ,” says P . J . Collins , managing director of AB CarVal .

Octane has also entered the marine market . Marine , recreational , and powersports dealers selling pontoons and motorboats can offer competitive rates and flexible terms to prime and non-prime customers through

Roadrunner Financial .

Octane ’ s digital experience allows dealers to move quickly and seamlessly through the financing process , from initial customer inquiry through deal close , saving time for both dealers and consumers .

“ We ’ re thrilled to bring our innovative , end-to-end financing experience to the marine market ,” said Mark Davidson , chief growth officer of Octane . “ We look forward to supporting dealers and OEMs in this growing market while offering full-spectrum financing that fuels our customers ’ lifestyles .”

CGI , one of the largest independent IT and business consulting services firms , has been selected by Harley-Davidson Financial Services ( HDFS ) to modernize its loan origination system . By replacing disparate IT platforms with the unified CGI Credit Studio , the IT company says Harley-Davidson will gain a streamlined , AI-enabled financing process that introduces greater flexibility for dealers and delivers an intuitive buying experience .

“ At the heart of this exciting collaboration with CGI lies a commitment to empowering riders to realize their dreams of owning a Harley-Davidson motorcycle ,” says Charles Do , senior vice-president of Harley-Davidson Financial Services . “ By simplifying the financing process and providing transparent , accessible information , the new system will enable customers to make informed decisions and embark on their next adventure with confidence .”

The new CGI financing platform supports the complete credit lifecycle , enabling Harley-Davidson to simplify the financing process for buyers by seamlessly connecting financing steps and reducing duplicative activities in the loan application journey .

The platform will shorten dealers ’ buy windows and enhance deal flexibility , resulting in improved collaboration between dealers and customers . The system will also enable buyers to explore the rider lifestyle with offers featuring Harley-Davidson merchandise and riding experiences at the point of purchase .

“ Built on the shared values of innovation and an unrelenting focus on the customer experience , our partnership with Harley- Davidson Financial Services will produce a new loan origination system that reimagines the financing journey for Harley-Davidson customers and creates value for one of the world ’ s most iconic brands ,” comments Tim Hurlebaus , president , U . S . commercial and state government operations at CGI .

Ironhorse Funding LLC has surpassed a significant milestone of $ 250 million in assets under management , reflecting the company ’ s growth and commitment to providing financing solutions in the motorcycle , powersports , RV and marine industries .

Over the past five years , Ironhorse Funding launched its indirect lending program and introduced its full-spectrum motorcycle refinancing program . Building on this momentum , Ironhorse Funding expanded its financing and refinancing programs to include powersports , RVs and marine units . The company ’ s achievements are underscored by the origination of over half a billion dollars during this period .

“ Reaching $ 250 million in assets under management is a testament to the hard work and dedication of our team , as well as the trust our partners and customers place in us ,” says Jon Krumdick , CEO of Ironhorse Funding . “ We have continually strived to innovate and expand our offerings to meet the evolving needs of our customers , and this milestone highlights our success in doing so . We look forward to building on this foundation as we continue to grow and lead in the industry .”

“ Ironhorse Funding ’ s growth is not only impressive but also indicative of the strategic vision and execution that the leadership team has consistently demonstrated ,” says Joel Wheeler , chairman of Ironhorse Funding ’ s Board of Directors . “ The company is wellpositioned for continued success , and I am confident that Ironhorse Funding will continue to set new benchmarks in the industry .”

As Ironhorse Funding celebrates this achievement , the company remains focused on developing long-term relationships with its business partners , dealer partners , and borrowers by creating innovative credit solutions that generate quality receivables while providing best-in-class service .