BRP reports its fourth quarter and full-year 2026 results

BRP logo © BRP

Highlights for FY26 Q4

• Revenues of $2,457.3 million, an increase of 16.0% compared to last year, driven by a favourable ORV product mix, as well as higher ORV and PWC shipments;
• Net income of $45.8 million, an increase of 190.7% compared to last year;
• Normalized EBITDA^[1] of $363.8 million, an increase of 47.3% compared to last year;
• Normalized diluted earnings per share^[1][2] of $2.21, an increase of $1.16 per share, and diluted earnings per share of $0.63, an increase of $1.31 per share, compared to last year;
• North American Powersports retail sales increased by 12% compared to last year;
• Market share gains in North America for ORV and Snowmobile;
• Normalized impairment charges of $232.5 million on assets related to electric vehicles ("EV") and light mobility, of which $28.5 million impacts gross profit;
• Provided shareholder returns through share buybacks for a total consideration of $50.3 million;
• The Company increased its quarterly dividend to $0.25 per share.

Highlights for FY26

• Revenues of $8,442.7 million, an increase of 6.8% compared to last year;
• Exceeded revised FY26 guidance with Normalized diluted earnings per share^[1][2] of $5.21;
• North American network inventory decreased by 17% compared to last year.

BRP Inc. (TSX/NASDAQ: DOO) today reported its financial results for the three- and twelve-month periods ended January 31, 2026. 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.

"In just two months as CEO, I've already witnessed first-hand how BRP's exceptional talent, combined with our engaged dealer network and powerful brands, holds immense potential," said Denis Le Vot, President and CEO of BRP. "I'm pleased to share that our teams rose to the year's challenges with conviction, navigating through a volatile tariff environment and a demanding competitive landscape to deliver FY26 financial results above expectations. In the fourth quarter, we recorded a strong retail performance in ORV and snowmobiles in North America, fueled by the success of our new product introductions."

"Looking ahead, our priority is to continue advancing our M28 strategic plan. Thanks to our healthy inventory position and steadfast focus on product innovations, we are poised for solid revenue and profit growth in FY27. Although the geopolitical environment remains uncertain, we are confident in our ability to adapt and execute on what we can control. BRP is well positioned to drive long-term growth and sustainable value for shareholders," concluded Mr. Le Vot.

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

Financial highlights - photo © BRP

Fiscal Year 2027 Guidance

The Company has established its FY27 guidance as follows:

Other assumptions for FY27 Guidance

• Depreciation Expenses Adjusted: ~$450M (Compared to $448M in FY26)
• Net Financing Costs Adjusted: ~$180M (Compared to $188M in FY26)
• Effective tax rate [1][4]: ~25% (Compared to 17.6% in FY26)
• Weighted average number of shares - diluted: ~74M shares (Compared to 73.1M in FY26)
• Capital Expenditures: ~$420M (Compared to $341M in FY26

FY27 Quarterly Outlook [5]

The Company expects Q1 Fiscal 2027 Normalized EBITDA^[1] to be up approximatively 40% versus the same three-month period in Fiscal 2026.

^[1] See "Non-IFRS Measures" section of this press release.
^[2] Earnings per share is defined as "EPS".
^[3] Figures are on a continuing basis and prior periods reclassified accordingly
^[4] Effective tax rate based on Normalized Earnings before Normalized Income Tax.
^[5] Please refer to the "Caution Concerning Forward-Looking Statements" and "Key Assumptions" sections of this press release for a summary of important risk factors that could affect the above guidance and of the assumptions underlying this Fiscal Year 2027 guidance.

Fourth Quarter Results

During the three-month period ended January 31, 2026, the Company delivered double-digit revenue growth compared to the same period last year. The increase in revenues was primarily due to a favourable ORV product mix driven by the introduction of new models and features, as well as higher shipments in this product category. Revenue growth also resulted from higher PWC shipments compared to the same period last year, which had been impacted by network inventory reduction. Gross profit and gross profit margin increased compared to last year, driven by the favourable impacts of volume and pricing net of sales programs, which were partially offset by the impacts of global tariffs mainly on PA&A, provisions related to EV products, increased warranty expenses and higher incentive compensation costs. The provisions related to EV products represented an unfavourable impact of $28.5 million or 116 basis points on gross profit and gross profit margin respectively. Additionally, the Company recorded an impairment charge of $229.8 million on the EV assets and light mobility cash generating unit ("CGU"), reflecting the challenges in the EV industry and the dynamics within the light mobility market.

The Company's North American retail sales were up 12% for the three-month period ended January 31, 2026 compared to the same period last year. The increase in retail sales is driven by stronger Snowmobile industry volumes compared to last year, which had been affected by late snowfalls, and by market share gains in ORV and Snowmobile.

Revenues

Revenues increased by $339.0 million, or 16.0%, to $2,457.3 million for the three-month period ended January 31, 2026, compared to $2,118.3 million for the corresponding period ended January 31, 2025. The increase in revenues was primarily due to a favourable ORV product mix driven by the introduction of new models and features, as well as higher shipments in this product category. The increase also resulted from higher PWC shipments compared to the same period last year, which had been impacted by network inventory reduction. The increase includes a favourable foreign exchange rate variation of $18 million.

• Year-Round Products (54% of Q4-FY26 revenues): Revenues from Year-Round Products increased by $189.2 million, or 16.8%, to $1,317.2 million for the three-month period ended January 31, 2026, compared to $1,128.0 million for the corresponding period ended January 31, 2025. The increase in revenues from Year-Round Products was primarily attributable to a favourable product mix and to a higher volume of units sold in ORV driven by the introduction of new models and features. The increase was also attributable to favourable pricing net of sales programs across most product lines, partially offset by lower volume of units sold in 3WV. The increase includes a favourable foreign exchange rate variation of $8 million.

• Seasonal Products (32% of Q4-FY26 revenues): Revenues from Seasonal Products increased by $118.8 million, or 17.5%, to $796.4 million for the three-month period ended January 31, 2026, compared to $677.6 million for the corresponding period ended January 31, 2025. The increase in revenues from Seasonal Products was primarily attributable to a higher volume of units sold in PWC compared to the same period last year, which had been impacted by network inventory reduction. The increase was also attributable to a higher volume of units sold and favourable product mix in Snowmobile, as well as favourable pricing net of sales programs across most product lines. The increase was partially offset by a lower volume of units sold in Pontoon. The increase includes a favourable foreign exchange rate variation of $7 million.

• PA&A, OEM Engines and Others (14% of Q4-FY26 revenues): Revenues from PA&A, OEM Engines and Others increased by $31.0 million, or 9.9%, to $343.7 million for the three-month period ended January 31, 2026, compared to $312.7 million for the corresponding period ended January 31, 2025. The increase in revenues from PA&A, OEM Engines and Others was primarily attributable to a higher volume of PA&A sold and favourable pricing net of sales programs, partially offset by unfavourable product mix in OEM Engines. The increase also includes a favourable foreign exchange rate variation of $3 million.

North American Retail Sales

The Company's North American retail sales increased by 12% for the three-month period ended January 31, 2026 compared to the same period last year. The increase in retail sales is driven by stronger Snowmobile industry volumes compared to last year, which had been affected by late snowfalls, and by market share gains in ORV and Snowmobile.

• North American Year-Round Products retail sales increased on a percentage basis in the high-single digits compared to the three-month period ended January 31, 2025. The Year-Round Products industry sales were flat over the same period.

• North American Seasonal Products retail sales increased on a percentage basis in the mid-teens range compared to the three-month period ended January 31, 2025. The Seasonal Products industry sales increased on a percentage basis in the high-single digits over the same period.

Gross profit

Gross profit increased by $131.8 million, or 31.2%, to $553.6 million for the three-month period ended January 31, 2026, compared to $421.8 million for the three-month period ended January 31, 2025. Gross profit margin percentage increased by 260 basis points to 22.5% for the three-month period ended January 31, 2026, compared to 19.9% for the three-month period ended January 31, 2025. The increases in gross profit and gross profit margin were driven by the favourable impacts of volume and pricing net of sales programs, which were partially offset by the impacts of global tariffs mainly on PA&A, provisions related to EV products, increased warranty expenses and higher incentive compensation costs. The increase in gross profit includes a favourable foreign exchange rate variation of $14 million.

Operating Expenses

Operating expenses increased by $223.4 million, or 70.3%, to $541.1 million for the three-month period ended January 31, 2026, compared to $317.7 million for the three-month period ended January 31, 2025.

The increase in operating expenses was mainly attributable to the impairment charges taken on the EV assets and light mobility CGU, as well as higher incentive compensation costs. The increase was partially offset by the reversal of the non-controlling interest liability during the three-month period ended January 31, 2026. The increase in operating expenses includes an unfavourable foreign exchange rate variation of $2 million.

Normalized EBITDA^[1]

Normalized EBITDA^[1] increased by $116.8 million, or 47.3%, to $363.8 million for the three-month period ended January 31, 2026, compared to $247.0 million for the three-month period ended January 31, 2025.

The increase in normalized EBITDA^[1] was primarily due to higher gross profit, partially offset by increased operating expenses.

Net Income (Loss)

Net income increased by $96.3 million, or 190.7%, to $45.8 million for the three-month period ended January 31, 2026, compared to $(50.5) million for the three-month period ended January 31, 2025. The increase in net income was primarily due to a favourable foreign exchange rate variation on the U.S. denominated long-term debt and to higher gross profit, partially offset by increased operating expenses due to the impairment charges taken on the EV assets and light mobility CGU.

Normalized Net Income^[1]

Normalized net income^[1] increased by $86.5 million, or 112.6%, to $163.3 million for the three-month period ended January 31, 2026, compared to $76.8 million for the three-month period ended January 31, 2025. The increase in normalized net income^[1] was primarily due to higher gross profit, partially offset by increased operating expenses.

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

Net Income (Loss) from Discontinued Operations

Net income from discontinued operations increased by $170.2 million, or 100.7%, to $1.1 million for the three-month period ended January 31, 2026, compared to a net loss of $(169.1) million for the three- month period ended January 31, 2025. The increase in net income from discontinued operations was primarily due to the impairment charges recorded on the Marine businesses' assets held for sale during the three-month period ended January 31, 2025, as well as the closing of the sales of Alumacraft's and Manitou's assets during the three-month periods ended July 31, 2025 and October 31, 2025 respectively.

Twelve-month period ended January 31, 2026

Revenues

Revenues increased by $539.8 million, or 6.8%, to $8,442.7 million for the twelve-month period ended January 31, 2026, compared to $7,902.9 million for the corresponding period ended January 31, 2025. The increase in revenues was primarily due to a favourable ORV product mix following the introduction of new models and features, as well as higher shipments in this product category. The increase was partially offset by lower shipments and higher sales programs across most Seasonal Products. The increase includes a favourable foreign exchange rate variation of $103 million.

Normalized EBITDA^[1]

Normalized EBITDA^[1] increased by $45.6 million, or 4.3%, to $1,103.4 million for the twelve-month period ended January 31, 2026, compared to $1,057.8 million for the twelve-month period ended January 31, 2025. The increase in Normalized EBITDA^[1] was primarily due to higher gross profit, partially offset by increased operating expenses.

Net Income

Net income increased by $275.8 million, or 426.9%, to $340.4 million for the twelve-month period ended January 31, 2026, compared to $64.6 million for the twelve-month period ended January 31, 2025. The increase in net income was primarily due to a favourable foreign exchange rate variation on the U.S. denominated long-term debt and to a lower income tax expense. The increase was partially offset by lower operating income and higher net financing costs.

Normalized Net Income^[1]

Normalized net income^[1] increased by $20.2 million, or 5.6%, to $382.5 million for the twelve-month period ended January 31, 2026, compared to $362.3 million for the twelve-month period ended January 31, 2025. The increase in normalized net income^[1] was primarily due to higher gross profit, partially offset by increased operating expenses.

Net Loss from Discontinued Operations

Net loss from discontinued operations decreased by $226.5 million, or 81.6%, to $(51.1) million for the twelve-month period ended January 31, 2026, compared to $(277.6) million for the twelve-month period ended January 31, 2025. The decrease in net loss from discontinued operations was primarily due to the impairment charges recorded on the Marine businesses' assets held for sale during the three-month period ended January 31, 2025, as well as the closing of the sales of Alumacraft's and Manitou's assets during the three-month periods ended July 31, 2025 and October 31, 2025 respectively.

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

Liquidity and capital resources

Consolidated net cash flows generated from operating activities totaled $1,212.5 million for the twelve-month period ended January 31, 2026, compared to $688.2 million generated for the twelve-month period ended January 31, 2025. The increase was mainly due to favourable changes in working capital, higher profitability and lower income taxes paid. The favourable changes in working capital were the result of increased trade payables and accruals due to higher average payment terms, as well as decreased trade and other receivables. The favourable changes in working capital were partially offset by a smaller decrease in inventories and unfavourable changes in provisions.

The Company invested $318.4 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, as well as closed the sales of Alumacraft's and Manitou's assets.

During the twelve-month period ended January 31, 2026, the Company also returned $113.2 million to its shareholders through quarterly dividend payouts and share repurchase programs. The Company also repaid U.S. $200.8 million of its Term Facility concurrent to its amendment.

Dividend

On March 25, 2026, the Company's Board of Directors declared a quarterly dividend of $0.25 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on April 24, 2026 to shareholders of record at the close of business on April 10, 2026.

Conference call and web presentation

Today at 9 a.m. ET, BRP Inc. will host a conference call and webcast to discuss its FY26 fourth quarter results. The call will be hosted by Denis Le Vot, President and CEO, and Sébastien Martel, CFO. To listen to the conference call by phone (event number 87313), please dial 1 800 717-1738 (toll-free in North America). View the international numbers. The Company's fourth quarter FY26 webcast presentation is posted in the Quarterly Reports section of BRP's website.