BRP reports fiscal year 2026 first quarter results

BRP logo © BRP

Highlights

• Revenues of $1,846.9 million, a decrease of 7.7% compared to last year;
• Net income of $161.0 million, an increase of 278.8% compared to last year;
• Normalized EBITDA^[1] of $200.8 million, a decrease of 34.7% compared to last year;
• Normalized diluted earnings per share^[1][2] of $0.47, a decrease of $1.11 per share, and diluted earnings per share of $2.19, an increase of $1.63 per share, compared to last year;
• North American retail sales were flat compared to last year, resulting from strong end-of-season retail in Snowmobile, offset by a decrease in Year-Round Products retail mainly due to the industry's slowdown;
• On April 1 st, 2025, the Company announced a definitive agreement to sell Telwater Pty, Ltd., and closed the sale of Alumacraft's assets on May 1 st, 2025;
• The Company also announces CEO succession plan.

BRP Inc. (TSX:DOO; NASDAQ:DOOO) today reported its financial results for the three-month period ended April 30, 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.

"We delivered a sound first-quarter performance despite the current context, with results in line with expectations. Driven by a solid end-of-season in Snowmobile, we slightly outperformed the North American Powersports industry with retail sales holding steady compared to Q1 last year," said José Boisjoli, President and CEO of BRP.

"Looking ahead, given the uncertainty, we are still refraining from making financial projections at this time. In the short-term, although demand remains soft due to a challenging macro environment, our strong product portfolio and leaner inventory levels position us favourably for a rebound. Over the longer term, our decision to double down on our core Powersports activities, combined with our team's ingenuity and our commitment to pushing technology and innovation, provide the foundations for sustained leadership," concluded Mr. Boisjoli.

^[1] See "Non-IFRS Measures" section of this press release.
^[2] Earnings per share is defined as "EPS".

Financial highlights - photo © BRP

First quarter results

The first quarter of Fiscal 2026 was marked by continued softer consumer demand exacerbated by the uncertainty surrounding changes to global tariffs and trades regulations. As the Company continued to focus on reducing network inventory levels on Seasonal Products and managed industry slowdown on Year-Round Products, the volume of shipments and revenues decreased compared to the same period last year. The decrease in the volume of shipments, the higher sales programs due to the sustained promotional environment and the decreased leverage of fixed costs 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 production efficiencies.

The Company's North American retail sales were flat for the three-month period ended April 30, 2025. Following late snowfall, the Company delivered strong Snowmobile retail sales during the end of the season, which allowed to outpace the industry and reduce network inventory. The increase in Seasonal Products retail sales were offset by a decrease in Year-Round Products retail sales mainly due to the industry's slowdown.

Revenues

Revenues decreased by $153.0 million, or 7.7%, to $1,846.9 million for the three-month period ended April 30, 2025, compared to $1,999.9 million for the corresponding period ended April 30, 2024. The decrease in revenues was primarily due to a lower volume sold across most product lines, as a result of the industry's slowdown in Year-Round Products and continued focus on reducing network inventory levels in Seasonal Products. The decrease was also due to higher sales programs across most product lines. 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 (60% of Q1-FY26 revenues): Revenues from Year-Round Products decreased by $52.0 million, or 4.5%, to $1,105.8 million for the three-month period ended April 30, 2025, compared to $1,157.8 million for the corresponding period ended April 30, 2024. The decrease in revenues from Year-Round Products was primarily attributable to a lower volume of units sold across most product lines as a result of softer consumer demand, unfavourable product mix in 3WV and higher sales programs across most product lines. The decrease was partially offset by favourable product mix in ATV and SSV, and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $19 million.

• Seasonal Products (23% of Q1-FY26 revenues): Revenues from Seasonal Products decreased by $115.9 million, or 21.7%, to $419.2 million for the three-month period ended April 30, 2025, compared to $535.1 million for the corresponding period ended April 30, 2024. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold across most product lines as a result of continued focus on reducing network inventory levels, unfavourable product mix in Snowmobile and higher sales programs. The decrease was partially offset by favourable product mix and pricing on PWC. The decrease includes a favourable foreign exchange rate variation of $6 million.

• PA&A and OEM Engines (17% of Q1-FY26 revenues): Revenues from PA&A and OEM Engines increased by $14.9 million, or 4.9%, to $321.9 million for the three-month period ended April 30, 2025, compared to $307.0 million for the corresponding period ended April 30, 2024. The increase in revenues from PA&A and OEM engines was primarily attributable to higher demand in parts following a strong end of Snowmobile season. The increase was partially offset by lower volume of OEM engines and Marine PA&A sold. The increase includes a favourable foreign exchange rate variation of $8 million.

North American retail sales

The Company's North American retail sales were flat for the three-month period ended April 30, 2025 compared to the same period last year. Seasonal Products retail sales were up driven by strong end-of-season retail in Snowmobile following late snowfall, offset by a decrease in Year-Round Products retail sales mainly due to the industry's slowdown.

• North American Year-Round Products retail sales decreased on a percentage basis in the low-teens range compared to the three-month period ended April 30, 2024. The Year-Round Products industry sales decreased on a percentage basis in the mid-single digits over the same period.

• North American Seasonal Products retail sales increased on a percentage basis in the high-twenties range compared to the three-month period ended April 30, 2024. The Seasonal Products industry sales increased on a percentage basis in the low-teens range over the same period.

Gross profit

Gross profit decreased by $126.9 million, or 24.3%, to $394.8 million for the three-month period ended April 30, 2025, compared to $521.7 million for the three-month period ended April 30, 2024. Gross profit margin percentage decreased by 470 basis points to 21.4% for the three-month period ended April 30, 2025, compared to 26.1% for the three-month period ended April 30, 2024. The decreases in gross profit and gross profit margin percentage were the result of a lower volume of units sold, higher sales programs and decreased leverage of fixed costs due to reduced production. The decreases were partially offset by favourable pricing across most product lines and production efficiencies. The decrease in gross profit includes an unfavourable foreign exchange rate variation of $10 million.

Operating expenses

Operating expenses decreased by $30.5 million, or 9.2%, to $300.9 million for the three-month period ended April 30, 2025, compared to $331.4 million for the three-month period ended April 30, 2024. The decrease in operating expenses was mainly attributable to lower G&A expenses due to cost optimization, lower S&M expenses and lower restructuring and reorganization costs. The decrease in operating expenses includes an unfavourable foreign exchange rate variation of $13 million.

Normalized EBITDA^[1]

Normalized EBITDA decreased by $106.6 million, or 34.7%, to $200.8 million for the three-month period ended April 30, 2025, compared to $307.4 million for the three-month period ended April 30, 2024. The decrease in Normalized EBITDA was primarily due to lower gross profit.

Net income

Net income increased by $118.5 million, or 278.8%, to $161.0 million for the three-month period ended April 30, 2025, compared to $42.5 million for the three-month period ended April 30, 2024. The increase in net income was primarily due to a favourable foreign exchange rate variation on the U.S. denominated long-term debt and lower operating expenses. The increase was partially offset by lower operating income resulting from a lower gross profit and gross profit margin.

Net loss from discontinued operations

Net loss decreased by $39.0 million, or 78.2%, to $(10.9) million for the three-month period ended April 30, 2025, compared to $(49.9) million for the three-month period ended April 30, 2024. The decrease in net loss was primarily due to a higher volume of units sold, lower sales programs, and lower operating costs as a result of restructuring.

^[1] See "Non-IFRS Measures" section of this press release.

Liquidity and capital resources

Consolidated net cash flows generated from operating activities totaled $214.5 million for the three-month period ended April 30, 2025, compared to $141.4 million generated for the three-month period ended April 30, 2024. The increase was mainly due to favourable changes in working capital and lower income taxes paid, partially offset by lower profitability. The favourable changes in working capital were the result of increased trade payables and accruals due to higher average payment terms. The favourable changes in working capital were partially offset by a reduction in account receivables and provisions level, resulting from a lower volume of units sold.

The Company invested $51.4 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 three-month period ended April 30, 2025, the Company also returned $15.6 million to its shareholders through quarterly dividend payouts. The Company did not repurchase subordinate voting shares under its share repurchase programs.

Dividend

On May 28, 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 July 14, 2025 to shareholders of record at the close of business on June 30, 2025.

Conference call and webcast presentation

Today at 9 a.m. EDT, BRP Inc. will host a conference call and webcast to discuss its FY26 first quarter results. The call will be hosted by José Boisjoli, President and CEO, and Sébastien Martel, CFO. To listen to the conference call by phone (event number 47832), please dial 1 800-717-1738 (toll-free in North America). Visit here for International numbers.

The Company's first quarter FY26 webcast presentation is posted in the Quarterly Reports section of BRP's website.