#Canada #Revenue #Powersports #Valcourt #BRP

BRP First Quarter Results for Fiscal Year 2027

On May 28, 2026, BRP Inc. (TSX DOO) (NASDAQ DOO) released its financial results for the first quarter of fiscal year 2027, ending April 30. The numbers reflect significant progress and growth compared to the same period last year, showcasing BRP's strong position in the powersports market.

Revenue Growth

The company reported revenues of $2,391.8 million, marking a substantial 29.5% increase from $1,846.9 million during the same period last year. This impressive growth was predominantly driven by elevated shipments of Off-Road Vehicles (ORV) and Personal Watercraft (PWC), along with a favorable product mix within the ORV category. Additionally, the strong performance of new product introductions contributed positively to sales.

Income Analysis

Despite the positive revenue increase, net income took a hit, dropping to $127.3 million, a decline of 20.9% relative to the previous year. This can be attributed to various external factors, including global tariffs which have impacted cost structures. However, when considering normalized metrics, the normalized EBITDA surged to $334.4 million, reflecting a remarkable 66.5% increase year-over-year.

Moreover, normalized diluted earnings per share escalated to $1.83, up from $0.47 from the previous year, demonstrating the company's ability to enhance profitability despite challenges in the market.

Retail Performance

In terms of North American retail sales, BRP experienced a 7% decline, primarily due to reduced Snowmobile sales after an exceptionally strong end of the last season. On a more positive note, the company regained some market share in ORV, signaling a resilient performance in that segment.

Revised Guidance

As the fiscal year progresses, BRP has adjusted its full-year revenue guidance to between $9.1 billion and $9.4 billion, accounting for the impacts of tariff costs and mitigation strategies being implemented by the company. The normalized diluted earnings per share is projected to range between $3.00 and $3.50. This strategic revision is a testament to BRP's proactive approach in adapting to the market's challenges.

Operational Highlights

• - Gross Profit was reported at $561.6 million, increasing 42.2% and gross profit margin enhanced to 23.5%.
• - Operating expenses neared $336.1 million, an increase caused by marketing initiatives aimed at revenue enhancement and investments in research and development.
• - The liquidity response was robust, with the net cash flows from operating activities rising to $425.5 million, facilitating future growth opportunities.

Future Outlook

In light of the ongoing global challenges, BRP remains committed to its strategic goals. CEO Denis Le Vot emphasized the importance of navigating geopolitical and trade uncertainties while fostering long-term growth opportunities. The emphasis on product innovation, especially in the ORV segment, is expected to continue yielding positive results as consumer demand evolves.

Conclusion

BRP's positive fiscal results underscore its robust market position and potential for future growth. As the company adapts to the changing landscape, continued focus on product development, cost management, and strategic expansions will be key to maintaining its competitive edge in the dynamic powersports market. Stakeholders and investors retain hopeful anticipation as the company progresses through FY27.