BRP Inc Reports Strong Earnings but Cautious Outlook Amid Tariff Uncertainty
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
0mins
Source: Yahoo Finance
- Strong Financial Performance: BRP Inc reported revenue of $2.4 billion, a 30% year-over-year increase, with normalized EBITDA of $334 million, up 67%, and normalized EPS of $1.83, nearly tripling from last year, indicating robust market performance and significant profitability enhancement.
- International Market Growth: Retail growth in the EMEA region increased by 10%, and Latin America sales grew by 7%, particularly strong in Brazil and Mexico, demonstrating the success of the company's international expansion strategy and enhancing its competitive position in global markets.
- Robust Cash Flow: The company generated over $350 million in free cash flow, surpassing last year's level, reflecting strong cash management and operational efficiency, providing a solid financial foundation for future investments and expansion.
- Tariff Uncertainty Impact: Despite strong financial results, BRP Inc has suspended its fiscal '27 guidance due to uncertainties in the North American tariff landscape, with an expected incremental tariff impact of $500 million to $550 million, posing potential challenges to future profitability.
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Analyst Views on DOO
Wall Street analysts forecast DOO stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 58.570
Low
75.00
Averages
86.04
High
94.30
Current: 58.570
Low
75.00
Averages
86.04
High
94.30
About DOO
BRP Inc. is a Canada-based company that specializes in powersports products, propulsion systems and boats. The Company's segments include Powersports and Marine. The Powersports segment comprises Year-Round Products (all-terrain vehicles, side-by-side vehicles, three-wheeled vehicles, and two-wheeled vehicles), Seasonal Products (snowmobiles, personal watercraft and pontoons) and Powersports PA&A and Original Equipment Manufacturer (OEM) Engines (parts, accessories and apparel (PA&A), engines for karts, recreational aircraft, and other services). The Marine segment includes boats, pontoons, outboard engines and related PA&A, and other services. Its brands include Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou, pontoons and Rotax marine propulsion systems and Rotax engines for karts and recreational aircraft and Pinion gearboxes. It is developing electric models for its existing product lines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BRP Inc Reports Strong Earnings but Cautious Outlook Amid Tariff Uncertainty
- Strong Financial Performance: BRP Inc reported revenue of $2.4 billion, a 30% year-over-year increase, with normalized EBITDA of $334 million, up 67%, and normalized EPS of $1.83, nearly tripling from last year, indicating robust market performance and significant profitability enhancement.
- International Market Growth: Retail growth in the EMEA region increased by 10%, and Latin America sales grew by 7%, particularly strong in Brazil and Mexico, demonstrating the success of the company's international expansion strategy and enhancing its competitive position in global markets.
- Robust Cash Flow: The company generated over $350 million in free cash flow, surpassing last year's level, reflecting strong cash management and operational efficiency, providing a solid financial foundation for future investments and expansion.
- Tariff Uncertainty Impact: Despite strong financial results, BRP Inc has suspended its fiscal '27 guidance due to uncertainties in the North American tariff landscape, with an expected incremental tariff impact of $500 million to $550 million, posing potential challenges to future profitability.
See More
BRP Holds Annual Shareholders Meeting; All Board Nominees Elected
- Annual Meeting Held: BRP conducted its annual shareholders meeting virtually on May 28, 2026, where all nominated directors were elected by a majority vote, demonstrating shareholder trust and support for the company's governance.
- Impressive Voting Results: Notably, nominees Ernesto M. Hernández and Katherine Kountze received 99.96% approval, reflecting strong shareholder confidence in their leadership, which enhances the stability of the company's governance structure.
- Board Committee Composition: The composition of the newly elected board committees has been updated, with Pierre Beaudoin serving as Chair of the Audit Committee, and Michael Ross and Barbara Samardzich leading the Investment and Risk Committee and Human Resources and Compensation Committee respectively, ensuring effective committee operations.
- Company Background: BRP is a global leader in powersports products and powertrains, achieving CA$8.4 billion in sales in 2026 and employing nearly 17,000 people, showcasing its strong market competitiveness and innovative capabilities.
See More
BRP Annual Meeting Elects Board Members
- Board Election Results: During the annual shareholder meeting on May 28, 2026, all nominated directors of BRP were elected with majority shareholder support, demonstrating trust in the company's governance and reinforcing management stability.
- Voting Ratio Analysis: For instance, director Pierre Beaudoin received 98.31% support, while Ernesto M. Hernández and Katherine Kountze were elected with a high 99.96% approval, reflecting shareholders' strong recognition of their leadership capabilities, which enhances the company's credibility in the market.
- Committee Composition Update: The composition of the newly elected board committees has been updated to ensure professionalism and diversity, particularly in leadership roles within the audit and human resources committees, aimed at improving governance efficiency and decision-making quality.
- Company Background Information: As a global leader in powersports products, BRP achieved annual sales of CA$8.4 billion in 2026 and employed nearly 17,000 people, showcasing its strong competitive position and market influence within the industry.
See More
BRP Declares Quarterly Dividend of CAD 0.25 per Share
- Quarterly Dividend Declaration: BRP has declared a quarterly dividend of CAD 0.25 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy, which is expected to bolster investor confidence.
- Record Date for Shareholders: The dividend will be payable to shareholders of record on June 30, indicating the company's ongoing commitment to shareholder interests while also providing an attractive proposition for future investors.
- Ex-Dividend Date Arrangement: The ex-dividend date is set for June 30, meaning investors purchasing shares before this date will qualify for the dividend, which could drive short-term stock price increases.
- Future Outlook: While BRP's Q4 2026 results exceeded expectations, the suspension of FY27 guidance and new U.S. tariffs signal a potential profit headwind exceeding CAD 500 million, highlighting uncertainties in the market environment.
See More
BRP Reports Q1 2026 Financial Results Exceeding Expectations
- Significant Revenue Growth: BRP's Q1 2026 revenue reached CAD 2.3918 billion, a 29.5% increase year-over-year, primarily driven by higher ORV and PWC shipments, indicating strong market performance and optimized product mix.
- Gross Margin Improvement: Gross profit rose 42.2% to CAD 561.6 million, with a gross margin increase to 23.5%, reflecting positive impacts from higher volumes and favorable pricing strategies, although partially offset by global tariff impacts.
- Net Income Fluctuation: Net income decreased by 20.9% to CAD 127.3 million, mainly due to foreign exchange fluctuations and increased tax expenses; however, normalized net income surged 288.7% to CAD 134.5 million, showcasing robust profitability in core operations.
- Revised Future Outlook: BRP adjusted its FY27 revenue guidance to CAD 9.125 billion to CAD 9.375 billion, factoring in tariff costs and market dynamics, indicating confidence in long-term growth prospects despite external challenges.
See More
BRP Q1 Earnings Exceed Expectations
- Strong Performance: BRP's Q1 Non-GAAP EPS of C$1.83 beats expectations by C$0.72, showcasing significant profitability improvements and reflecting robust market performance.
- Revenue Growth: The company reported revenues of C$2.39 billion, a 29.2% year-over-year increase, exceeding market expectations by C$230 million, indicating strong product demand, particularly in North America.
- EBITDA Increase: Normalized EBITDA reached C$334.4 million, up 66.5% year-over-year, which not only enhances the company's profitability but also strengthens its competitive position in the industry.
- Revised Full-Year Guidance: BRP has adjusted its full-year guidance, projecting revenues between C$9.1 billion and C$9.4 billion, with normalized diluted EPS between C$3.00 and C$3.50, reflecting a cautiously optimistic outlook on future market conditions.
See More
BRP Inc Reports Strong Earnings but Cautious Outlook Amid Tariff Uncertainty
- Strong Financial Performance: BRP Inc reported revenue of $2.4 billion, a 30% year-over-year increase, with normalized EBITDA of $334 million, up 67%, and normalized EPS of $1.83, nearly tripling from last year, indicating robust market performance and significant profitability enhancement.
- International Market Growth: Retail growth in the EMEA region increased by 10%, and Latin America sales grew by 7%, particularly strong in Brazil and Mexico, demonstrating the success of the company's international expansion strategy and enhancing its competitive position in global markets.
- Robust Cash Flow: The company generated over $350 million in free cash flow, surpassing last year's level, reflecting strong cash management and operational efficiency, providing a solid financial foundation for future investments and expansion.
- Tariff Uncertainty Impact: Despite strong financial results, BRP Inc has suspended its fiscal '27 guidance due to uncertainties in the North American tariff landscape, with an expected incremental tariff impact of $500 million to $550 million, posing potential challenges to future profitability.
See More
BRP Holds Annual Shareholders Meeting; All Board Nominees Elected
- Annual Meeting Held: BRP conducted its annual shareholders meeting virtually on May 28, 2026, where all nominated directors were elected by a majority vote, demonstrating shareholder trust and support for the company's governance.
- Impressive Voting Results: Notably, nominees Ernesto M. Hernández and Katherine Kountze received 99.96% approval, reflecting strong shareholder confidence in their leadership, which enhances the stability of the company's governance structure.
- Board Committee Composition: The composition of the newly elected board committees has been updated, with Pierre Beaudoin serving as Chair of the Audit Committee, and Michael Ross and Barbara Samardzich leading the Investment and Risk Committee and Human Resources and Compensation Committee respectively, ensuring effective committee operations.
- Company Background: BRP is a global leader in powersports products and powertrains, achieving CA$8.4 billion in sales in 2026 and employing nearly 17,000 people, showcasing its strong market competitiveness and innovative capabilities.
See More
BRP Annual Meeting Elects Board Members
- Board Election Results: During the annual shareholder meeting on May 28, 2026, all nominated directors of BRP were elected with majority shareholder support, demonstrating trust in the company's governance and reinforcing management stability.
- Voting Ratio Analysis: For instance, director Pierre Beaudoin received 98.31% support, while Ernesto M. Hernández and Katherine Kountze were elected with a high 99.96% approval, reflecting shareholders' strong recognition of their leadership capabilities, which enhances the company's credibility in the market.
- Committee Composition Update: The composition of the newly elected board committees has been updated to ensure professionalism and diversity, particularly in leadership roles within the audit and human resources committees, aimed at improving governance efficiency and decision-making quality.
- Company Background Information: As a global leader in powersports products, BRP achieved annual sales of CA$8.4 billion in 2026 and employed nearly 17,000 people, showcasing its strong competitive position and market influence within the industry.
See More
BRP Declares Quarterly Dividend of CAD 0.25 per Share
- Quarterly Dividend Declaration: BRP has declared a quarterly dividend of CAD 0.25 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy, which is expected to bolster investor confidence.
- Record Date for Shareholders: The dividend will be payable to shareholders of record on June 30, indicating the company's ongoing commitment to shareholder interests while also providing an attractive proposition for future investors.
- Ex-Dividend Date Arrangement: The ex-dividend date is set for June 30, meaning investors purchasing shares before this date will qualify for the dividend, which could drive short-term stock price increases.
- Future Outlook: While BRP's Q4 2026 results exceeded expectations, the suspension of FY27 guidance and new U.S. tariffs signal a potential profit headwind exceeding CAD 500 million, highlighting uncertainties in the market environment.
See More
BRP Reports Q1 2026 Financial Results Exceeding Expectations
- Significant Revenue Growth: BRP's Q1 2026 revenue reached CAD 2.3918 billion, a 29.5% increase year-over-year, primarily driven by higher ORV and PWC shipments, indicating strong market performance and optimized product mix.
- Gross Margin Improvement: Gross profit rose 42.2% to CAD 561.6 million, with a gross margin increase to 23.5%, reflecting positive impacts from higher volumes and favorable pricing strategies, although partially offset by global tariff impacts.
- Net Income Fluctuation: Net income decreased by 20.9% to CAD 127.3 million, mainly due to foreign exchange fluctuations and increased tax expenses; however, normalized net income surged 288.7% to CAD 134.5 million, showcasing robust profitability in core operations.
- Revised Future Outlook: BRP adjusted its FY27 revenue guidance to CAD 9.125 billion to CAD 9.375 billion, factoring in tariff costs and market dynamics, indicating confidence in long-term growth prospects despite external challenges.
See More
BRP Q1 Earnings Exceed Expectations
- Strong Performance: BRP's Q1 Non-GAAP EPS of C$1.83 beats expectations by C$0.72, showcasing significant profitability improvements and reflecting robust market performance.
- Revenue Growth: The company reported revenues of C$2.39 billion, a 29.2% year-over-year increase, exceeding market expectations by C$230 million, indicating strong product demand, particularly in North America.
- EBITDA Increase: Normalized EBITDA reached C$334.4 million, up 66.5% year-over-year, which not only enhances the company's profitability but also strengthens its competitive position in the industry.
- Revised Full-Year Guidance: BRP has adjusted its full-year guidance, projecting revenues between C$9.1 billion and C$9.4 billion, with normalized diluted EPS between C$3.00 and C$3.50, reflecting a cautiously optimistic outlook on future market conditions.
See More
