#Canada #Valcourt #BRP #ORV #SSV

BRP's Remarkable Third Quarter Results for Fiscal Year 2026

BRP Inc. has announced its third-quarter financial results for the fiscal year 2026, presenting a strong performance marked by substantial revenue growth and increased profitability. The company's revenues soared to CAD 2,250.3 million, reflecting a notable 14.0% increase compared to the same period last year. This growth is primarily attributed to higher deliveries of Off-Road Vehicles (ORVs) and a favorable product mix ensuing from the successful launch of new offerings.

Financial Highlights

The financial outcomes for the three-month period ending October 31, 2025, reveal that BRP's net income achieved CAD 76.5 million, which represents a staggering 150.0% increase from the previous year's results. Normalized EBITDA, an essential measure of operational performance, increased by 21.3% to CAD 325.6 million. Furthermore, normalized diluted earnings per share rose to CAD 1.59, an increase of CAD 0.39 per share, showcasing the financial health and market penetration of BRP's product lines.

Despite a decrease in North American retail sales by 4%, particularly for Seasonal Products, BRP managed to gain market share in the ORV category, emphasizing the company's resilience in a fluctuating market environment. This strategic positioning amid market challenges demonstrates BRP's ability to not only sustain but enhance its market presence.

Recent Events and Strategic Developments

In a noteworthy strategic move, BRP received approval from NASDAQ to rebrand its stock ticker symbol from 'DOOO' to 'DOO,' effective December 8, 2025. This alignment across stock exchanges aims to streamline investor recognition and enhance market awareness of BRP.

José Boisjoli, President and CEO of BRP, commented on the results, stating, “Our third-quarter results exceeded expectations, thanks to our successful product launches which have driven significant market share gains in the SSV and ATV categories across North America.” Boisjoli further expressed confidence in BRP's capability to navigate the industry's challenges, underlining the company's objective to reach approximately CAD 9.5 billion in revenues and CAD 8.00 in normalized earnings per share by the end of fiscal 2028 as part of its strategic plan.

Detailed Financial Analysis

Quarterly Performance Breakdown

• - Revenues: The increase of CAD 276.8 million in revenues can be dissected: Year-Round Products, which contributed 56% of Q3-FY26 revenues, saw a substantial growth of 22.1%. Conversely, Seasonal Products faced a slight decline.
• - Gross Profit: BRP's gross profit climbed by CAD 106.1 million, amounting to CAD 541.2 million, fueled by effective pricing strategies and improved production efficiency, though partially offset by external tariffs.
• - Operating Expenses: The company's operational costs rose by CAD 42.8 million due to higher incentive compensation, reflecting its commitment to driving employee motivation and performance.

Market Trends and Future Outlook

As BRP readies for an industry rebound, it maintains a lean inventory and robust dealer network, positioning itself advantageously for upcoming market opportunities. This proactive stance is central to its strategic outlook which hinges on continuous innovation and agile market responsiveness. BRP anticipates continued growth trajectories, underpinned by an expanded portfolio and new product introductions that cater to evolving consumer preferences.

Conclusion

BRP Inc. has shown exemplary performance in its recent quarterly results, setting a strong foundation for future growth while enhancing its market share in key product sectors. As the company gears up toward ambitious financial targets, it retains a promising outlook, sensitive to market conditions yet confident in its strategic initiatives.

For more detailed insights into BRP's performance and strategic direction, you can visit BRP's Official Website.