#Canada #BRP Inc. #Valcourt #Can-Am #Sea-Doo

BRP Inc. Delivers Strong Financial Performance in Q2 2027

On September 3, 2026, BRP Inc. (TSX: DOO, NASDAQ: DOO) announced its financial results for the second quarter of Fiscal Year 2027, demonstrating significant growth and resilience amidst a dynamic market environment. The company reported revenues of CA$2,236.8 million, reflecting an impressive 18.5% increase compared to the previous year, primarily fueled by higher off-road vehicle (ORV) shipments and a favorable product mix in side-by-side vehicles (SSV).

Financial Highlights

The remarkable revenue increase comes in tandem with a net loss of CA$136.8 million, marking a substantial reduction from the previous year’s loss of CA$330.7 million. The normalized EBITDA stood at CA$138.8 million, albeit a 34.9% decrease from last year, attributed to rising operational costs and external factors affecting the industry.

Key figures from the report include:

• - Revenues: CA$2,236.8 million (up 18.5% YoY)
• - Normalized EBITDA: CA$138.8 million (down 34.9% YoY)
• - Net Loss: CA$136.8 million (an improvement from last year)
• - Diluted EPS: -CA$1.88

Revenue Breakdown

The revenue composition indicates strong performance in various segments:

• - Year-Round Products: Revenues surged by 33.3% to CA$1,485.1 million, accounting for 66% of total revenues.
• - Seasonal Products: Experienced a decline of 8.9%, totaling CA$427.7 million, chiefly due to lower personal watercraft (PWC) shipments.
• - PAA, OEM Engines and Others: Grew by 6.3%, reaching CA$324.0 million, driven by higher PAA sales and favorable pricing.

Strategic Developments

In addition to financial results, BRP has committed to a series of major product announcements every six months over the next four years, signaling their ambition to enhance their market presence as North America’s top off-road brand. This strategic initiative is expected to reinforce BRP's product pipeline and consumer engagement, ensuring continued industry leadership.

Innovative products introduced during the period include the limited-edition Sea-Doo RXP-X Senna 350, which features the most powerful PWC engine ever offered. Furthermore, the company launched its new BRP Financial Services brand, aimed at facilitating retail financing options across the U.S. market. These steps underscore BRP's commitment to not only meeting but exceeding customer expectations.

Market Position and Future Outlook

Despite the challenges posed by geopolitical tensions and tariff adjustments, BRP managed to maintain its retail sales in North America, witnessing a 1% increase. Continued market share gains in ORV sectors reflect a robust brand loyalty and demand for BRP's innovative products.

Moving forward, BRP anticipates adapting to the evolving trade landscape while focusing on its long-term growth strategy. The company has revised its overall fiscal year guidance, aiming for a total revenue range of CA$9.225 to CA$9.475 billion and normalized diluted earnings per share between CA$4.00 and CA$4.50.

In summary, BRP's second-quarter results for FY 2027 highlight a resilient business model adapting to market fluctuations while delivering significant revenue growth and exciting new product offerings. With a clear strategic focus, BRP is well-positioned to achieve its ambitious targets in the coming years.