00:00I don't think we'll join the lawsuit, but, of course, if they are found illegal, there will be a benefit to us.
00:06Something in the range of 20 to 25 million in 2026 is what we estimate.
00:13So that will be some relief.
00:15We do have incremental tariff costs in 26 because in 25, the tariffs weren't really implemented until the second quarter.
00:23But despite that, we're pretty excited about 2026.
00:27We plan to grow revenue about 9 percent and grow earnings or EPS about 25 percent.
00:33So despite those headwinds, we have a lot to look forward to in 2026.
00:37What are investors then missing here, Dave, because they're reacting pretty negatively to the earnings statement.
00:44I guess it's the outlook. Maybe they expected more.
00:47What do you want to tell investors to set them straight?
00:50Yeah, I think really what happened, Matt, was if you look over the last six months, our stock is up about 35 to 40 percent.
01:00And so there was I think people are very excited about the prospects for 2026.
01:05That was certainly reinforced by a very strong revenue and earnings in the fourth quarter of 2025.
01:12I think there was probably a little bit of profit taking. But last time I looked, we were up a little bit today.
01:18So I would expect that continue to to march.
01:21And if you looked at the analyst reports, you see a number now with target stock price for us in the hundreds versus our current price, which is probably around 80, 81.
01:33Dave, you also talked about in your outlook how Fed rate cuts late this past year are going to help you if we get more rate cuts.
01:42Just how sensitive is your customer to that?
01:44How big of a difference does it make if you get just one or two additional cuts in 2026?
01:49Yeah, it can make a difference, Danny.
01:52One thing about 25 is the rate cuts came very late in the year.
01:56The 75 basis points of cumulative cuts really came September through the end of the year, which is after our main selling season, which is typically April to September.
02:07So even without additional cuts, we have some tailwinds from that effect.
02:12And there are two big effects from those rate cuts.
02:15One, of course, is it cuts retail financing rates for our consumers.
02:18And that particularly affects buyers of more value product.
02:22They tend to want to finance the product more at the point of sale.
02:25But it also helps our dealers because it cuts their floor plan financing costs.
02:31So their margins expand.
02:33They have lower carrying costs.
02:35They're inclined to acquire more inventory from us because we're a wholesaler mainly.
02:40So there are a couple of tailwinds there.
02:43One, a consumer tailwind because of retail financing rates.
02:46And they have dropped from a peak of about 9% to 10% to about 7.5% right now.
02:52But then the other big effect is on our dealers.
02:55It's lower cost for dealers.
02:56So they tend to buy more inventory.
02:58You have meaningful international sales, Dave.
03:02And at a time when the dollar is weak, I wonder if that's a tailwind as well.
03:06It is.
03:07We expect currency certainly to be a tailwind this year.
03:11You know, of course, it's a balance.
03:12We do incur some costs that will be relatively higher in some of those foreign countries.
03:19But net-net, currency will definitely be a significant tailwind for us with this weaker dollar in 2026.
03:27You've got some travels coming up after already having some.
03:29You're at CES.
03:31You're at the Duffeldorf Boat Show.
03:33You have Miami coming up next.
03:34Dave, what are you hearing from the clients themselves?
03:36What do they want?
03:37Well, they always want new products.
03:41So we always invest a lot in new products.
03:44And at the Consumer Electronics Show, where we had a big presence, we launched a great new boat from C-Ray, the SLX 360, which is very well received.
03:52At Duffeldorf, incredibly, we won both Power Boat of the Year and Motor Boat of the Year with a C-Ray product and a Navan product.
04:00And when we get to Miami, we have a whole portfolio of new products from across our businesses that we're launching.
04:08So exciting new product with relevant technology is always an attraction for the consumer.
04:14Hey, I wonder how much it matters because this happens or should happen every year, right, that it's so snowy and cold in most of America.
04:23How do you smooth out your business so that it doesn't depress you drastically when we get these kinds of winter storms?
04:31Yeah, you're right.
04:32You know, early season boat shows have certainly been affected by the winter weather, particularly in the Midwest and Northeast.
04:42But actually, show performance is pretty good.
04:46Shows are interesting to us and very important.
04:48But they're only about 7% of our total annual sales.
04:53And actually, this year, overall, retail sales are up, including boat shows, double digits.
04:59So, you know, it's not – the sales are relatively low in this portion of the year anyway.
05:05But overall, nice tailwind in retail so far this year, including boat shows.
05:10It's always about 15% of our customers.
05:11And finally, we have to give you the camouflage use of people to work.
05:11And if we're pushing all of that, you can—
05:12It's always about $50.
05:16And it's just because we're pushing powers over there.
05:16So, we'll be pushing yourself through a little bit, so.
05:17AndGuidey is...
05:18...
05:19But anyway, there are a wholelarınge in retail sales in eastern provided.
05:19And if youre鹿y is helping us out here to take away the side of the marked use so that it saves you've constructed�.
05:21We fail to keep this in place during the same time of the season.
05:21Okay.
05:22So, it's hard to get, okay, it's hard to do things.
05:23Design matters of how you do things that you can manage to move to do.
05:24So thank you now.
Comments