By Adriano Marchese

BRP's stock rose Thursday morning after the Canadian leisurecraft maker said it made headway in reducing inventory levels and is preparing a wave of new product launches for the second half of the year.

Shares traded 12% higher at 55.77 Canadian dollars ($40.31).

Chief Executive Jose Boisjoli told analysts on an earnings call that the company has whittled down its inventory 21% compared with last year, with double-digit declines across all its product lines. While excessive stock continues to remain a challenge, Boisjoli said "most of the heavy lifting across the portfolio will be done by the end of the summer."

A slate of new products is also in the works for later in the year, which the company expects will generate double-digit top line growth.

On the tariff front, the company expects a hit of C$60 million to C$70 million for fiscal year 2026. However, BRP said that the impacts should be manageable and that it is working with suppliers to limit the effects.

For the three months ended April 30, net income came to C$161 million, or C$2.19 a share, up from C$42.5 million, or C$0.56 a share, in the comparable quarter a year ago.

Normalized earnings, an adjusted figure, came to C$0.47 a share. According to FactSet, analysts were expecting C$0.34 a share.

First-quarter revenue fell 7.7% to C$1.85 billion, more than the C$1.74 billion forecasted by analysts.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 29, 2025 11:00 ET (15:00 GMT)

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