BRP presents its fourth quarter and full-year 2025 results
by BRP 26 Mar 07:24 PDT

BRP logo © BRP
BRP Inc. (TSX:DOO; NASDAQ:DOOO) today reported its financial results for the three- and twelve-month periods ended January 31, 2025. 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.
Highlights for FY25 Q4
- As expected, revenues of $2,097.6 million, a decrease of 19.7% compared to last year, resulting from continued softer demand and the Company's objective to reduce network inventory;
- Net loss of $44.5 million, a decrease of 114.7% compared to last year;
- Normalized EBITDA [1] of $239.8 million, a decrease of 44.6% compared to last year;
- Normalized diluted earnings per share [1] [2] of $0.98 in line with expectations, a decrease of $1.80 per share, and diluted earnings per share of $(0.60), a decrease of $4.55 per share, compared to last year;
- North American retail sales decreased by 21% compared to last year, resulting from lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs;
- The Company increased its quarterly dividend to $0.215 per share.
Highlights for FY25
- Revenues of $7,829.7 million, a decrease of 21.4% compared to last year;
- Achieved revised FY25 guidance adjusted for Marine businesses discontinued operations with Normalized diluted earnings per share[1][2] of $4.68;
- Provided shareholder returns through $277.0 million deployed in share repurchases and dividend payments;
- North American network inventory decreased by 13% compared to last year, or 18% when excluding snowmobiles for which network inventory increased due to lower industry retail caused by late snowfall.
Fiscal 2026 full-year guidance
- Given the ongoing global tariff disputes and the uncertainty surrounding any potential changes to trade regulations, the Company has decided to defer providing financial guidance for FY26. This uncertainty has also had a negative impact on consumer demand, making it difficult to offer reliable projections at this time.
"BRP demonstrated its agility throughout fiscal 2025 by rapidly adapting to softer market conditions. We were the first OEM to proactively adjust shipments to reduce network inventory and we have achieved our objective. As anticipated, our leaner inventory position compared to competitors resulted in short-term market share loss but protected our dealer network and the value of our brands. In this volatile context, we have outpaced the off-road industry with our current models, which speaks highly about the attractiveness of our lineups," said José Boisjoli, President and CEO of BRP.
"Looking ahead to fiscal 2026, the ongoing global tariff disputes have created economic uncertainty, making financial projections more challenging at this time. Over the longer term, our strategic decision to double down on Powersports should allow us to solidify our industry leadership by pushing innovation further and capitalizing on growth opportunities. With a product portfolio that is second-to-none, a strong dealer network and a healthy balance sheet, we are well positioned to sustain profitable growth," concluded Mr. Boisjoli.
[1] See "Non-IFRS Measures" section of this press release.
[2] Earnings per share is defined as "EPS".
Fourth quarter results
In the context of continued softer demand and the Company's objective to reduce network inventory, its three-month period ended January 31, 2025 was marked by a decrease in the volume of shipments and revenues compared to the same period last year. The decrease in the volume of shipments, the higher sales programs due to increased promotional intensity and the decreased leverage of fixed costs as a result of reduced production have led to a decrease in the gross profit and gross profit margin compared to the same period last year. This decrease was partially offset by favourable pricing and production efficiencies.
The Company's North American retail sales were down 21% for the three-month period ended January 31, 2025. The decrease is mainly explained by lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs.
Revenues
Revenues decreased by $513.9 million, or 19.7%, to $2,097.6 million for the three-month period ended January 31, 2025, compared to $2,611.5 million for the corresponding period ended January 31, 2024.
The decrease in revenues was primarily due to a lower volume sold across all product lines, as a result of softer demand, as well as higher sales programs. The decrease was partially offset by favourable pricing across most product lines. The decrease includes a favourable foreign exchange rate variation of $33 million.
- Year-Round Products (54% of Q4-FY25 revenues): Revenues from Year-Round Products decreased by $236.8 million, or 17.4%, to $1,127.1 million for the three-month period ended January 31, 2025, compared to $1,363.9 million for the corresponding period ended January 31, 2024. The decrease in revenues from Year-Round Products was primarily attributable to a lower volume of units sold across all product lines as a result of softer demand, unfavourable product mix in SSV and higher sales programs. The decrease was partially offset by favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $26 million.
- Seasonal Products (32% of Q4-FY25 revenues): Revenues from Seasonal Products decreased by $275.0 million, or 28.9%, to $677.6 million for the three-month period ended January 31, 2025, compared to $952.6 million for the corresponding period ended January 31, 2024. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold across all product lines as a result of softer demand, unfavourable product mix in Snowmobile and higher sales programs. The decrease was partially offset by favourable product mix on PWC and Sea-Doo pontoon, as well as favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $2 million.
PA&A and OEM Engines (14% of Q4-FY25 revenues): Revenues from PA&A and OEM Engines decreased by $2.1 million, or 0.7%, to $292.9 million for the three-month period ended January 31, 2025, compared to $295.0 million for the corresponding period ended January 31, 2024. The decrease in revenues from PA&A and OEM engines was primarily attributable to softer demand in PA&A. The decrease was partially offset by favourable product mix on OEM engines and favourable pricing on most product lines. The decrease also includes a favourable foreign exchange rate variation of $5 million.
North American Retail Sales
The Company's North American retail sales decreased by 21% for the three-month period ended January 31, 2025 compared to the same period last year. The decrease is mainly explained by lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs.
- North American Year-Round Products retail sales decreased on a percentage basis in the low-teens range compared to the three-month period ended January 31, 2024. The North American Year-Round Products industry sales decreased on a percentage basis in the low- single digits over the same period.
- North American Seasonal Products retail sales decreased on a percentage basis in the low- thirties range compared to the three-month period ended January 31, 2024. The North American Seasonal Products industry sales decreased on a percentage basis in the mid-twenties range over the same period.
Gross profit
Gross profit decreased by $231.1 million, or 35.0%, to $429.4 million for the three-month period ended January 31, 2025, compared to $660.5 million for the three-month period ended January 31, 2024. Gross profit margin percentage decreased by 480 basis points to 20.5% for the three-month period ended January 31, 2025, compared to 25.3% for the three-month period ended January 31, 2024. The decreases in gross profit and gross profit margin percentage were the result of a lower volume of units sold, higher sales programs, decreased leverage of fixed costs as a result of reduced production, and higher warranty costs. The decreases were partially offset by favourable pricing across most product lines and production efficiencies. The decrease in gross profit includes a favourable foreign exchange rate variation of $2 million.
Operating Expenses
Operating expenses decreased by $12.8 million, or 3.9%, to $317.4 million for the three-month period ended January 31, 2025, compared to $330.2 million for the three-month period ended January 31, 2024.
The decrease in operating expenses was mainly attributable to lower G&A expenses due to cost optimization and lower R&D expenses. The decrease was partially offset by higher restructuring and reorganization costs. The decrease in operating expenses includes an unfavourable foreign exchange rate variation of $9 million.
Normalized EBITDA[1]
Normalized EBITDA [1] decreased by $192.8 million, or 44.6%, to $239.8 million for the three-month period ended January 31, 2025, compared to $432.6 million for the three-month period ended January 31, 2024. The decrease in normalized EBITDA [1] was primarily due to lower gross profit.
Net Income (Loss)
Net income (loss) decreased by $347.3 million, or 114.7%, to $(44.5) million for the three-month period ended January 31, 2025, compared to $302.8 million for the three-month period ended January 31, 2024.
The decrease in net income was primarily due to a lower operating income, resulting from a lower gross profit and an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt. The decrease was partially offset by a lower income tax expense.
Net Loss from discontinued operations
Net loss increased by $60.2 million, or 52.4%, to $(175.1) million for the three-month period ended January 31, 2025, compared to $(114.9) million for the three-month period ended January 31, 2024. The increase in net loss was primarily due to an impairment charge taken on the Marine businesses assets held for sale during the three-month period ended January 31, 2025.
[1] See "Non-IFRS Measures" section of this press release.
Twelve-month period ended January 31, 2025
Revenues
Revenues decreased by $2,133.3 million, or 21.4%, to $7,829.7 million for the twelve-month period ended January 31, 2025, compared to $9,963.0 million for the corresponding period ended January 31, 2024. The decrease in revenues was primarily due to a lower volume sold across all product lines, as a result of softer demand, the Company's focus on reducing network inventory levels, as well as higher sales programs. The decrease was partially offset by favourable product mix across most product lines and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $94 million.
Normalized EBITDA[1]
Normalized EBITDA [1] decreased by $753.2 million, or 42.0%, to $1,040.0 million for the twelve-month period ended January 31, 2025, compared to $1,793.2 million for the twelve-month period ended January 31, 2024. The decrease in Normalized EBITDA [1] was primarily due to a lower gross profit.
Net Income
Net income decreased by $869.0 million, or 93.3%, to $62.7 million for the twelve-month period ended January 31, 2025, compared to $931.7 million for the twelve-month period ended January 31, 2024. The decrease in net income was primarily due to lower operating income, resulting from a lower gross profit and an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt. The decrease was partially offset by a lower income tax expense.
Net Loss from discontinued operations
Net loss increased by $88.5 million, or 47.3%, to $(275.7) million for the twelve-month period ended January 31, 2025, compared to $(187.2) million for the twelve-month period ended January 31, 2024. The increase in net loss was primarily due to higher operating loss resulting from a lower volume of units sold due to high network inventory and softer consumer demand in the industry. Higher sales programs, production inefficiencies and an impairment charge on the Marine businesses assets held for sale also contributed to the increase in net loss.
Liquidity and capital resources
Consolidated net cash flows generated from operating activities totaled $740.1 million for the twelve-month period ended January 31, 2025 compared to $1,658.1 million generated for the twelve-month period ended January 31, 2024. The decrease was mainly due to lower profitability and unfavourable changes in working capital, partially offset by lower income taxes paid. Changes in working capital were the result of maintaining higher provisions, compared to last year where more provisions were created due to a slowdown in demand and a sustained promotional intensity in the industry. The unfavourable changes in working capital were also the result of a reduction in trade payables and accruals, which reflected reduced production. The unfavourable changes in working capital were partially offset by a reduction in inventory levels.
The Company invested $425.5 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 twelve-month period ended January 31, 2025, the Company also returned $277.0 million to its shareholders through quarterly dividend payouts and its share repurchase programs.
Dividend
On March 25, 2025, the Company's Board of Directors declared a quarterly dividend of $0.215 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on April 18, 2025 to shareholders of record at the close of business on April 4, 2025.
[1] See "Non-IFRS Measures" section of this press release.