Highlights
-- Revenues of $2,236.8 million, an increase of 18.5% compared to last year,
primarily driven by higher ORV shipments and favourable SSV mix;
-- Net loss of $136.8 million, a decrease of $193.9 million compared to last
year;
-- Normalized EBITDA [1] of $138.8 million, a decrease of 34.9% compared to
last year;
-- Normalized diluted loss per share [1][2]of $0.18, a decrease of $1.10 per
share, and diluted loss per share of $1.88, a decrease of $2.67 per share,
compared to last year;
-- North American Powersports retail sales increased by 1% compared to last
year;
-- Market share gains for ORV in North America;
-- Increasing full year-end guidance for Normalized diluted earnings per
share [1][2] at $4.00 to $4.50;
-- The Company announces planned financial leadership transition.
Recent events -- Highlights from Club BRP 2027
-- Demonstrating its ambition to become North America's leading off-road
brand, the Company committed to major product announcements every six
months for the next four years.
-- The Company continued to bolster its offering with several
industry-firsts and innovative products, namely the all-new
limited-edition Sea-Doo RXP-X Senna 350 equipped with the most powerful
PWC engine from the factory, an upgraded Spark lineup delivering more
horsepower and the addition of the new Spark X model with premium
features, the second-generation Can-Am Defender HD10 as well as the most
significant evolution of the Can-Am Ryker platform since its initial
launch.
-- The Company also launched BRP Financial Services, its new branded retail
financing program in the United States.
VALCOURT, QC, Sept. 3, 2026 /PRNewswire/ -- BRP Inc. (TSX: DOO) $(DOO)$ today reported its financial results for the three- and six-month periods ended July 31, 2026. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on SEDAR+ and EDGAR as well as in the section Quarterly Reports of BRP's website.
"Our second-quarter financial results exceeded expectations, reflecting disciplined execution and increased ORV shipments to support sustained retail momentum. Given our strong performance in ORV leading to additional market share gains, and reduced net tariff costs, we are raising our full-year guidance," said Denis Le Vot, President and CEO of BRP.
"Looking ahead, we remain focused on navigating through the volatile geopolitical and trade environment and advancing our long-term growth prospects. Our recent Club BRP dealer event allowed us to showcase innovative initiatives that strengthen our competitive position, including a commitment to releasing major off-road product news every six months for the next four years. This will be instrumental in achieving our goal of making Can-Am the number one ORV brand in North America and being the undeniable OEM of choice for dealers and riders," concluded Mr. Le Vot.
([1]) See "Non-IFRS Measures" section of this press release.
([2]) Earnings (loss) per share is defined as "EPS".
Financial
Highlights
([3])
Three-month periods ended Six-month periods ended
--------------------------- -------------------------
(in millions of
Canadian
dollars, except
per share data July 31, July 31, July 31, July 31,
and margin) 2026 2025 2026 2025
Revenues $2,236.8 $1,888.2 $4,628.6 $3,735.1
Gross Profit 262.5 397.7 824.1 792.5
Gross Profit
Margin (%) 11.7 % 21.1 % 17.8 % 21.2 %
Operating Income
(Loss) (50.0) 90.4 175.5 184.3
Normalized
EBITDA ([1]) 138.8 213.2 473.2 414.0
Net (Loss)
Income (136.8) 57.1 (9.5) 218.1
Normalized Net
Income (Loss)
([1]) (13.0) 66.9 121.5 101.5
Diluted EPS
([2]) (1.88) 0.79 (0.12) 2.98
Normalized
Diluted EPS
([1] [2]) (0.18) 0.92 1.66 1.39
Net Income
(Loss) from
Discontinued
Operations 2.7 (33.6) 4.3 (44.5)
Basic Weighted
Average Number
of Shares 72,756,365 73,040,187 72,950,539 73,036,072
Diluted Weighted
Average Number
of Shares
([4]) 72,756,365 73,616,757 72,950,539 73,569,234
---------------- -------------- ----------- ------------ -----------
FISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK
The Company has increased its FY27 guidance as follows, which supersedes all prior financial guidance statements made by the Company:
Financial Metric FY26 FY27 Guidance ([6]) ----------------------------------------------- -------- ------------------- Revenues ----------------------------------------------- -------- ------------------- Year-Round Products $4,802.4 $5,475 to $5,600 ----------------------------------------------- -------- ------------------- Seasonal Products 2,291.5 2,375 to 2,450 ----------------------------------------------- -------- ------------------- PA&A, OEM Engines and Others 1,348.8 1,375 to 1,425 ----------------------------------------------- -------- ------------------- Total Company Revenues 8,442.7 9,225 to 9,475 ----------------------------------------------- -------- ------------------- Normalized EBITDA ([1]) 1,103.4 1,025 to 1,075 ----------------------------------------------- -------- ------------------- Normalized Earnings per Share - Diluted ([1][2]) 5.21 $4.00 to $4.50 ----------------------------------------------- -------- ------------------- Net Income $340.4 $160 to $195 ----------------------------------------------- -------- -------------------
Other assumptions for FY27 Guidance
-- Depreciation Expenses Adjusted: $450M (Compared to $448M in FY26) -- Net Financing Costs Adjusted: $180M (Compared to $188M in FY26) -- Effective tax rate ([1] [5]) : 26.5% (Compared to 17.6% in FY26) -- Weighted average number of shares 73M shares (Compared to 73.1M in -- diluted: FY26) -- Capital Expenditures: $390M (Compared to $341M in FY26)
FY27 Quarterly Outlook ([6])
The Company expects Q3 Fiscal 2027 Normalized diluted earnings per share ([1]) to be down approximately 50% to 60% versus the same three-month period in Fiscal 2026, mainly due to the increased tariff impact.
([1]) See "Non-IFRS Measures" section of this press release.
([2]) Earnings (loss) per share is defined as "EPS".
([3]) Figures are on a continuing basis.
([4]) The weighted average number of diluted shares outstanding used in
calculating Normalized diluted EPS ([1][2]) for the six-month period
ended July 31, 2026 was 73,529,444. The difference in the weighted
average number of diluted shares outstanding used in calculating
diluted EPS is explained by a reported net loss under IFRS Measures for
the same period.
([5]) Effective tax rate based on Normalized Earnings before Normalized
Income Tax.
([6]) Please refer to the "Caution Concerning Forward-Looking Statements" and
"Key Assumptions" sections of this press release for a summary of
important risk factors that could affect the above guidance and of the
assumptions underlying this Fiscal Year 2027 guidance.
SECOND QUARTER RESULTS
The three-month period ended July 31, 2026 marked the second consecutive quarter of Fiscal 2027 with double-digit revenue growth compared to the same period last year. The increase in revenues was primarily driven by higher ORV shipments to support retail demand and a favourable SSV mix resulting from the introduction of new models. Revenue growth was partially offset by lower PWC deliveries, mostly reflecting units that were shipped earlier in the first quarter. Gross profit and gross profit margin decreased compared to last year, primarily due to the impacts of Section 232 tariffs on Steel, Aluminum and Copper imports into the United States, as well as the effect of a supplier financial restructuring. The supplier financial restructuring represented an unfavourable impact of $74.8 million or 330 bps on gross profit and gross profit margin respectively. These impacts were partially offset by the positive effects of higher volumes and lower sales programs mainly in ORV.
The Company's North American retail sales were up 1% for the three-month period ended July 31, 2026 compared to the same period last year. The increase in retail sales was driven by positive industry trends in SSV and market share gains in ORV, which were partially offset by lower retail sales in Seasonal Products.
Revenues
Revenues increased by $348.6 million, or 18.5%, to $2,236.8 million for the three-month period ended July 31, 2026, compared to $1,888.2 million for the corresponding period ended July 31, 2025. The increase in revenues was primarily due to a higher volume of units sold in ORV to support retail demand and a favourable SSV product mix resulting from the introduction of new models. The increase was partially offset by a lower volume of units sold in PWC, mostly reflecting units that were shipped earlier in the first quarter. The increase includes a favourable foreign exchange rate variation of $46 million.
-- Year-Round Products (66% of Q2-FY27 revenues): Revenues from Year-Round
Products increased by $371.3 million, or 33.3%, to $1,485.1 million for
the three-month period ended July 31, 2026, compared to $1,113.8 million
for the corresponding period ended July 31, 2025. The increase in
revenues from Year-Round Products was primarily attributable to a higher
volume of units sold in ORV to support retail demand and a favourable SSV
product mix resulting from the introduction of new models. The increase
was also attributable to lower sales programs across all product lines.
The increase includes a favourable foreign exchange rate variation of $37
million.
-- Seasonal Products (19% of Q2-FY27 revenues): Revenues from Seasonal
Products decreased by $42.0 million, or 8.9%, to $427.7 million for the
three-month period ended July 31, 2026, compared to $469.7 million for
the corresponding period ended July 31, 2025. The decrease in revenues
from Seasonal Products was primarily attributable to a lower volume of
units sold in PWC, mostly reflecting units that were shipped earlier in
the first quarter. The decrease was partially offset by lower sales
programs in Snowmobile. The decrease includes a favourable foreign
exchange rate variation of $5 million.
-- PA&A, OEM Engines and Others (15% of Q2-FY27 revenues): Revenues from
PA&A, OEM Engines and Others increased by $19.3 million, or 6.3%, to
$324.0 million for the three-month period ended July 31, 2026, compared
to $304.7 million for the corresponding period ended July 31, 2025. The
increase in revenues from PA&A, OEM Engines and Others was primarily
attributable to a higher volume of PA&A sold, coupled with favourable
pricing. The increase was partially offset by unfavourable product mix in
OEM Engines. The increase includes a favourable foreign exchange rate
variation of $4 million.
North American Retail Sales
The Company's North American retail sales increased by 1% for the three-month period ended July 31, 2026 compared to the same period last year. The increase in retail sales was driven by positive industry trends in SSV and market share gains in ORV, which were partially offset by lower retail sales in Seasonal Products.
-- North American Year-Round Products retail sales increased on a percentage
basis in the low-single digits compared to the three-month period ended
July 31, 2025. The Year-Round Products industry sales increased in the
low-single digits over the same period.
-- North American Seasonal Products retail sales decreased on a percentage
basis in the low-single digits compared to the three-month period ended
July 31, 2025. The Seasonal Products industry sales increased on a
percentage basis in the low-single digits over the same period.
Gross profit
Gross profit decreased by $135.2 million, or 34.0%, to $262.5 million for the three-month period ended July 31, 2026, compared to $397.7 million for the three-month period ended July 31, 2025. Gross profit margin percentage decreased by 940 basis points to 11.7% for the three-month period ended July 31, 2026, compared to 21.1% for the three-month period ended July 31, 2025. Gross profit and gross profit margin decreased compared to last year, primarily due to the impacts of Section 232 tariffs on Steel, Aluminum and Copper imports into the United States, as well as the effect of a supplier financial restructuring. These impacts were partially offset by the positive effects of higher volumes and lower sales programs mainly in ORV. The decrease in gross profit includes a favourable foreign exchange rate variation of $17 million.
Operating Expenses
Operating expenses increased by $5.2 million, or 1.7%, to $312.5 million for the three-month period ended July 31, 2026, compared to $307.3 million for the three-month period ended July 31, 2025. The increase in operating expenses was mainly attributable to higher investments in R&D to support product development, partially offset by lower G&A expenses due to a special long-term incentive program and the costs associated with executive management transition during the three-month period ended July 31, 2025. The increase in operating expenses includes an unfavourable foreign exchange rate variation of $1 million.
Normalized EBITDA ([1])
Normalized EBITDA ([1]) decreased by $74.4 million, or 34.9%, to $138.8 million for the three-month period ended July 31, 2026, compared to $213.2 million for the three-month period ended July 31, 2025. The decrease in Normalized EBITDA ([1]) was primarily due to lower gross profit combined with increased operating expenses.
Net (Loss) Income
Net income decreased by $193.9 million, or 339.6%, to $(136.8) million for the three-month period ended July 31, 2026, compared to $57.1 million for the three-month period ended July 31, 2025. The decrease in net income was primarily due to lower gross profit, an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt and increased operating expenses.
Normalized Net (Loss) Income ([1])
Normalized net income ([1]) decreased by $79.9 million, or 119.4%, to $(13.0) million for the three-month period ended July 31, 2026, compared to $66.9 million for the three-month period ended July 31, 2025. The decrease in Normalized net income ([1]) was due to lower gross profit combined with increased operating expenses.
([1]) See "Non-IFRS Measures" section of this press release.
Net Income (Loss) from Discontinued Operations
Net income from discontinued operations increased by $36.3 million, or 108.0%, to $2.7 million for the three-month period ended July 31, 2026, compared to a net loss of $(33.6) million for the three-month period ended July 31, 2025. The increase in net income from discontinued operations was primarily due to the closing of the sales of Alumacraft's and Manitou's assets during the three-month periods ended July 31, 2025 and October 31, 2025 respectively.
SIX-MONTH PERIOD ENDED JULY 31, 2026
Revenues
Revenues increased by $893.5 million, or 23.9%, to $4,628.6 million for the six-month period ended July 31, 2026, compared to $3,735.1 million for the corresponding period ended July 31, 2025. The increase in revenues was primarily due to a higher volume of units sold across most product lines and favourable product mix in ORV. The increase was also attributable to lower sales programs and favourable pricing across most product lines. The increase includes a favourable foreign exchange rate variation of $31 million.
Normalized EBITDA ([1])
Normalized EBITDA ([1]) increased by $59.2 million, or 14.3%, to $473.2 million for the six-month period ended July 31, 2026, compared to $414.0 million for the six-month period ended July 31, 2025. The increase in Normalized EBITDA ([1]) was primarily due to higher gross profit, partially offset by increased operating expenses.
Net (Loss) Income
Net income decreased by $227.6 million, or 104.4%, to $(9.5) million for the six-month period ended July 31, 2026, compared to $218.1 million for the six-month period ended July 31, 2025. The decrease in net income was primarily due to an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt and to a higher income tax expense.
Normalized Net Income ([1])
Normalized net income ([1]) increased by $20.0 million, or 19.7%, to $121.5 million for the six-month period ended July 31, 2026, compared to $101.5 million for the six-month period ended July 31, 2025. The increase in Normalized net income ([1]) was primarily due to higher gross profit, partially offset by increased operating expenses.
Net Income (Loss) from Discontinued Operations
Net income from discontinued operations increased by $48.8 million, or 109.7%, to $4.3 million for the six-month period ended July 31, 2026, compared to $(44.5) million for the six-month period ended July 31, 2025. The increase in net income from discontinued operations was primarily due to the closing of the sales of Alumacraft's and Manitou's assets during the three-month periods ended July 31, 2025 and October 31, 2025 respectively.
([1]) See "Non-IFRS Measures" section of this press release.
LIQUIDITY AND CAPITAL RESOURCES
Consolidated net cash flows generated from operating activities totaled $686.8 million for the six-month period ended July 31, 2026, compared to $373.1 million generated for the six-month period ended July 31, 2025. The increase was mainly due to favourable changes in working capital and lower income taxes paid, partially offset by lower profitability. The favourable changes in working capital were driven by higher provisions and a decrease in trade receivables, partially offset by an increase in inventories.
The Company invested $126.2 million of its liquidity in capital expenditures for the introduction of new products and modernization of the Company's software infrastructure to support future growth.
During the six-month period ended July 31, 2026, the Company also returned $231.7 million to its shareholders through quarterly dividend payouts and share repurchase programs.
Dividend