BRP Inc. (DOOO) shares surged 6.63% in pre-market trading on Thursday following the release of its fiscal year 2026 first-quarter results, which exceeded analyst expectations despite challenging market conditions. The company also announced a CEO succession plan, adding to investor optimism.

The Canadian powersports vehicle manufacturer reported normalized earnings per share of CA$0.47, surpassing the analyst consensus estimate of CA$0.40. While this represents a 32.86% decrease from the same period last year, it demonstrates BRP's resilience in a tough macroeconomic environment. Revenue for the quarter came in at CA$1.85 billion, beating the analyst forecast of CA$1.75 billion and showing a 5.69% increase year-over-year.

BRP's strong performance was particularly notable in its Seasonal Products segment, driven by robust end-of-season snowmobile sales. CEO José Boisjoli commented, "We delivered a sound first-quarter performance despite the current context, with results in line with expectations. Driven by a solid end-of-season in Snowmobile, we slightly outperformed the North American Powersports industry with retail sales holding steady compared to Q1 last year." Additionally, the company announced that Boisjoli plans to retire by the end of the current fiscal year, with the board conducting a search for his successor. This leadership transition appears to have been well-received by investors, contributing to the stock's pre-market rally.