BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2027
BRP grew revenue but swung to a quarterly loss as tariffs and a supplier issue compressed margins, while full-year guidance was raised but remains below FY2026 earnings levels.
Rhea-AI Summary
BRP (DOO) reported Q2 FY2027 revenues of $2,236.8 million, up 18.5% year over year, but posted a net loss of $136.8 million.
Growth was driven mainly by higher off-road vehicle (ORV) shipments and favourable side-by-side (SSV) mix, while lower personal watercraft (PWC) volumes weighed on Seasonal Products. Gross margin fell to 11.7% from 21.1%, hurt by U.S. Section 232 tariffs and a supplier financial restructuring that reduced gross profit by $74.8 million and 330 basis points. Normalized EBITDA dropped 34.9% to $138.8 million and normalized diluted EPS declined to a loss of $0.18.
For FY2027, BRP now guides to total revenues of $9.225–$9.475 billion, normalized EBITDA of $1.025–$1.075 billion, normalized diluted EPS of $4.00–$4.50, and net income of $160–$195 million. Q3 normalized EPS is expected to be down about 50%–60% versus last year.
Positive
- Q2 revenues rose 18.5% year over year to $2,236.8 million, driven by higher ORV shipments and favourable SSV mix.
- Year-Round Products revenue increased 33.3% to $1,485.1 million in Q2 FY2027, helped by higher ORV volumes and lower sales programs.
- Six-month revenues grew 23.9% to $4,628.6 million, with Normalized EBITDA up 14.3% to $473.2 million versus the prior-year period.
- Six-month normalized net income increased 19.7% to $121.5 million compared with $101.5 million a year earlier.
- FY2027 revenue guidance of $9.225–$9.475 billion is above FY2026 revenues of $8,442.7 million.
- North American Powersports retail sales rose 1% in Q2 with market share gains in ORV.
- Normalized diluted EPS guidance for FY2027 is raised to $4.00–$4.50, reflecting improved outlook versus prior company guidance.
- BRP Financial Services launched as a new branded retail financing program in the United States, expanding the company’s commercial offering.
- Commitment to frequent product launches, with major off-road announcements planned every six months for four years, aims to support long-term growth.
Negative
- Q2 net result swung to a loss of $136.8 million from income of $57.1 million a year earlier.
- Q2 gross profit fell 34.0% to $262.5 million, with gross margin down 940 basis points to 11.7%.
- Supplier financial restructuring reduced gross profit by $74.8 million and gross margin by 330 basis points in Q2 FY2027.
- Q2 Normalized EBITDA declined 34.9% to $138.8 million compared with $213.2 million in the prior-year quarter.
- Seasonal Products revenue decreased 8.9% to $427.7 million in Q2, mainly due to lower PWC volumes.
- FY2027 normalized diluted EPS guidance of $4.00–$4.50 is below FY2026 normalized diluted EPS of $5.21.
- FY2027 net income guidance of $160–$195 million is below FY2026 net income of $340.4 million.
- Q3 FY2027 normalized diluted EPS is expected to decline approximately 50%–60% year over year, mainly due to higher tariff impact.
- Effective tax rate on a normalized basis is expected to rise to about 26.5% in FY2027, compared with 17.6% in FY2026, pressuring net earnings.
News Explained
The new holder-facing commitment is a declared $0.25 quarterly dividend, payable October 13 to shareholders on the September 29 record date.
BRP reported its second-quarter results for the period ended
For the six months ended
The dividend is declared and scheduled, rather than already distributed: shareholders of record at the close of business on
Market Reaction – DOO
Following this news, DOO has declined 1.77%, reflecting a mild negative market reaction. The stock is currently trading at $62.18. Trading volume is exceptionally heavy at 9.1x the average, suggesting significant selling pressure.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Sep 01 | Partnership announcement | Positive | -0.2% | Can-Am announced a three-year partnership with Farm Rescue. |
| Aug 27 | Earnings scheduling | Neutral | +3.1% | BRP scheduled its second-quarter fiscal 2027 results presentation. |
| Aug 18 | Financing launch | Positive | +7.5% | BRP launched a branded retail financing program in the United States. |
| Aug 18 | Product lineup update | Positive | +7.5% | Can-Am announced updates across its 2027 three-wheel vehicle lineup. |
| Aug 18 | Vehicle lineup update | Positive | +7.5% | Can-Am unveiled its 2027 side-by-side and all-terrain vehicle lineup. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed positive reactions to product and financing announcements, while the partnership and earnings-scheduling items diverged from their directional signals.
Key Terms
normalized ebitda financial
normalized diluted eps financial
section 232 tariffs regulatory
non-ifrs measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Highlights
- Revenues of
$2,236.8 million 18.5% compared to last year, primarily driven by higher ORV shipments and favourable SSV mix; - Net loss of
$136.8 million $193.9 million - Normalized EBITDA [1] of
$138.8 million 34.9% compared to last year; - Normalized diluted loss per share [1][2]of
$0.18 $1.10 $1.88 $2.67 - North American Powersports retail sales increased by
1% compared to last year; - Market share gains for ORV in
North America ; - Increasing full year-end guidance for Normalized diluted earnings per share [1][2] at
$4.00 $4.50 - The Company announces planned financial leadership transition.
Recent events – Highlights from Club BRP 2027
- Demonstrating its ambition to become
North America's leading off-road brand, the Company committed to major product announcements every six months for the next four years. - The Company continued to bolster its offering with several industry-firsts and innovative products, namely the all-new limited-edition Sea-Doo RXP-X Senna 350 equipped with the most powerful PWC engine from the factory, an upgraded Spark lineup delivering more horsepower and the addition of the new Spark X model with premium features, the second-generation Can-Am Defender HD10 as well as the most significant evolution of the Can-Am Ryker platform since its initial launch.
- The Company also launched BRP Financial Services, its new branded retail financing program in
the United States .
"Our second-quarter financial results exceeded expectations, reflecting disciplined execution and increased ORV shipments to support sustained retail momentum. Given our strong performance in ORV leading to additional market share gains, and reduced net tariff costs, we are raising our full-year guidance," said Denis Le Vot, President and CEO of BRP.
"Looking ahead, we remain focused on navigating through the volatile geopolitical and trade environment and advancing our long-term growth prospects. Our recent Club BRP dealer event allowed us to showcase innovative initiatives that strengthen our competitive position, including a commitment to releasing major off-road product news every six months for the next four years. This will be instrumental in achieving our goal of making Can-Am the number one ORV brand in
[1] | See "Non-IFRS Measures" section of this press release. |
[2] | Earnings (loss) per share is defined as "EPS". |
Financial Highlights [3] | |||||||
(in millions of Canadian dollars, except per share data and margin) | Three-month periods ended | Six-month periods ended | |||||
July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 | ||||
Revenues | |||||||
Gross Profit | 262.5 | 397.7 | 824.1 | 792.5 | |||
Gross Profit Margin (%) | 11.7 % | 21.1 % | 17.8 % | 21.2 % | |||
Operating Income (Loss) | (50.0) | 90.4 | 175.5 | 184.3 | |||
Normalized EBITDA [1] | 138.8 | 213.2 | 473.2 | 414.0 | |||
Net (Loss) Income | (136.8) | 57.1 | (9.5) | 218.1 | |||
Normalized Net Income (Loss) [1] | (13.0) | 66.9 | 121.5 | 101.5 | |||
Diluted EPS [2] | (1.88) | 0.79 | (0.12) | 2.98 | |||
Normalized Diluted EPS [1] [2] | (0.18) | 0.92 | 1.66 | 1.39 | |||
Net Income (Loss) from Discontinued Operations | 2.7 | (33.6) | 4.3 | (44.5) | |||
Basic Weighted Average Number of Shares | 72,756,365 | 73,040,187 | 72,950,539 | 73,036,072 | |||
Diluted Weighted Average Number of Shares [4] | 72,756,365 | 73,616,757 | 72,950,539 | 73,569,234 | |||
FISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK
The Company has increased its FY27 guidance as follows, which supersedes all prior financial guidance statements made by the Company:
Financial Metric | FY26 | FY27 Guidance [6] |
Revenues | ||
Year-Round Products | ||
Seasonal Products | 2,291.5 | 2,375 to 2,450 |
PA&A, OEM Engines and Others | 1,348.8 | 1,375 to 1,425 |
Total Company Revenues | 8,442.7 | 9,225 to 9,475 |
Normalized EBITDA [1] | 1,103.4 | 1,025 to 1,075 |
Normalized Earnings per Share - Diluted [1][2] | 5.21 | |
Net Income |
Other assumptions for FY27 Guidance
• Depreciation Expenses Adjusted: | |
• Net Financing Costs Adjusted: | |
• Effective tax rate [1] [5]: | ~ |
• Weighted average number of shares – diluted: | ~73M shares (Compared to 73.1M in FY26) |
• Capital Expenditures: |
FY27 Quarterly Outlook [6]
The Company expects Q3 Fiscal 2027 Normalized diluted earnings per share [1] to be down approximately
[1] | See "Non-IFRS Measures" section of this press release. |
[2] | Earnings (loss) per share is defined as "EPS". |
[3] | Figures are on a continuing basis. |
[4] | The weighted average number of diluted shares outstanding used in calculating Normalized diluted EPS [1][2] for the six-month period ended July 31, 2026 was 73,529,444. The difference in the weighted average number of diluted shares outstanding used in calculating diluted EPS is explained by a reported net loss under IFRS Measures for the same period. |
[5] | Effective tax rate based on Normalized Earnings before Normalized Income Tax. |
[6] | 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. |
SECOND QUARTER RESULTS
The three-month period ended July 31, 2026 marked the second consecutive quarter of Fiscal 2027 with double-digit revenue growth compared to the same period last year. The increase in revenues was primarily driven by higher ORV shipments to support retail demand and a favourable SSV mix resulting from the introduction of new models. Revenue growth was partially offset by lower PWC deliveries, mostly reflecting units that were shipped earlier in the first quarter. Gross profit and gross profit margin decreased compared to last year, primarily due to the impacts of Section 232 tariffs on Steel, Aluminum and Copper imports into
The Company's North American retail sales were up
Revenues
Revenues increased by
- Year-Round Products (
66% of Q2-FY27 revenues): Revenues from Year-Round Products increased by$371.3 million 33.3% , to$1,485.1 million $1,113 $37 million - Seasonal Products (
19% of Q2-FY27 revenues): Revenues from Seasonal Products decreased by$42.0 million 8.9% , to$427.7 million $469.7 million $5 million - PA&A, OEM Engines and Others (
15% of Q2-FY27 revenues): Revenues from PA&A, OEM Engines and Others increased by$19.3 million 6.3% , to$324.0 million $304 $4 million
North American Retail Sales
The Company's North American retail sales increased by
- North American Year-Round Products retail sales increased on a percentage basis in the low-single digits compared to the three-month period ended July 31, 2025. The Year-Round Products industry sales increased in the low-single digits over the same period.
- North American Seasonal Products retail sales decreased on a percentage basis in the low-single digits compared to the three-month period ended July 31, 2025. The Seasonal Products industry sales increased on a percentage basis in the low-single digits over the same period.
Gross profit
Gross profit decreased by
Operating Expenses
Operating expenses increased by
Normalized EBITDA [1]
Normalized EBITDA [1] decreased by
Net (Loss) Income
Net income decreased by
Normalized Net (Loss) Income [1]
Normalized net income [1] decreased by
[1] | See "Non-IFRS Measures" section of this press release. |
Net Income (Loss) from Discontinued Operations
Net income from discontinued operations increased by
SIX-MONTH PERIOD ENDED JULY 31, 2026
Revenues
Revenues increased by
Normalized EBITDA [1]
Normalized EBITDA [1] increased by
Net (Loss) Income
Net income decreased by
Normalized Net Income [1]
Normalized net income [1] increased by
Net Income (Loss) from Discontinued Operations
Net income from discontinued operations increased by
[1] | See "Non-IFRS Measures" section of this press release. |
LIQUIDITY AND CAPITAL RESOURCES
Consolidated net cash flows generated from operating activities totaled
The Company invested
During the six-month period ended July 31, 2026, the Company also returned
Dividend
On September 2, 2026, the Company's Board of Directors declared a quarterly dividend of
CONFERENCE CALL AND WEBCAST PRESENTATION
Today at 9 a.m. ET, BRP Inc. will host a conference call and webcast to discuss its FY27 second 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 36525), please dial 1 800 717-1738 (toll-free in
The Company's second quarter FY27 webcast presentation is posted in the Quarterly Reports section of BRP's website.
About BRP
BRP Inc. is a global leader in the world of powersports products and powertrains, built on over 80 years of ingenuity, innovation, and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on- and off-road vehicles, Quintrex boats as well as Rotax engines for karts, recreational aircraft and jet boats, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The Company completes its product lines with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Headquartered in
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Quintrex and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements in this press release, including, but not limited to, statements relating to the Company's revised Fiscal Year 2027 Guidance and related assumptions (including without limitation Revenues, Normalized EBITDA, Normalized Earnings per Share – Diluted, Net Income, Depreciation Expenses Adjusted, Net Financing Costs Adjusted, Effective Tax Rates, Weighted Average Number of Shares – diluted, and Capital Expenditures), statements relating to the declaration and payment of dividends, statements relating to its prospects, expectations, anticipations, estimates and intentions, results, levels of activity, performance, objectives, targets, goals, achievements, priorities and strategies, financial position, market position, including its ambition to become
Forward-looking statements are presented for the purpose of assisting readers in understanding certain key elements of the Company's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements contained herein. Forward-looking statements, by their very nature, involve inherent risks and uncertainties and are based on a number of assumptions, both general and specific. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the industry to be materially different from the outlook or any future results or performance implied by such statements.
In addition, many factors could cause the Company's actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail under the heading "Risk Factors" of the Company's management's discussion and analysis for Fiscal 2026 (the "2026 MD&A") for the fiscal year ended on January 31, 2026 and in other continuous disclosure materials filed from time to time with Canadian securities regulatory authorities and the Securities and Exchange Commission: economic conditions that impact consumer spending; inability to attract, hire and retain the services of key employees, including members of its management team, or qualified employees, including employees who possess specialized market knowledge and technical skills; failure of the Company's information technology systems, difficulties in the continued implementation of its ERP system or a security breach or cyber-attack; international sales and operations subject it to additional risks; inability to successfully execute its strategic plan; any decline in the social acceptability of the Company or of the Company's products or any increased restrictions on the access or the use of the Company's products in certain locations; supply problems, termination or interruption of supply arrangements or increases in the cost of materials; indebtedness with no assurance that the Company will be able to pay its indebtedness as it becomes due; any unavailability of additional capital; fluctuations in foreign currency exchange rates; unfavourable weather conditions, and climate change, seasonal nature of the Company's business and some of its products; reliance on a network of independent dealers and distributors to manage the retail distribution of its products and failure to establish or maintain the appropriate level of dealers and distributors; inability of dealers and distributors to secure adequate access to capital; inability to comply with laws, rules and regulations regarding product safety, health, environmental, noise pollution, privacy matters and other issues; potential vulnerability of connected products to cyber-attacks; the Company's large fixed cost base; intense competition in all product lines and any failure to compete effectively against competitors or any failure to meet consumers' evolving expectations; any failure to maintain an effective system of internal control over financial reporting; reliance upon the continued strength of its reputation and brands; adverse determination in any significant product liability claim against the Company; significant product repair and/or replacement due to product warranty claims or product recalls; failure to carry adequate insurance coverage; failure to successfully manage inventory levels, both at the Company's and the dealers' and distributors' levels, inability to protect the Company's intellectual property; the Company's inability to successfully execute its manufacturing strategy or to adjust to fluctuating customer demand as a result of manufacturing capacity constraints; increased freight and shipping costs or disruptions in transportation and shipping infrastructure; covenants contained in agreements to which the Company is a party affecting and, in some cases, significantly limiting or prohibiting the manner in which the Company operates its businesses; impact of tax matters and changes in tax laws; impairment of the carrying value of goodwill and intangibles with indefinite useful life; deterioration in relationships with the Company's non-unionized and unionized employees; pension plan liability; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, boycotts and geo-political events; volatility in the market price for the Subordinate Voting Shares; dependence on the earnings of its subsidiaries and the distribution of those earnings to BRP Inc.; the significant influence of Beaudier Group and Bain Capital; and future sales of Subordinate Voting Shares by Beaudier Group, Bain Capital, directors, officers or senior management of the Company. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities regulations. In the event that the Company does update any forward-looking statements contained in this press release, no inference should be made that the Company will make additional updates with respect to that statement, related matters or any other forward-looking statement. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
KEY ASSUMPTIONS
The Company made a number of economic, market and operational assumptions in preparing and making certain forward-looking statements contained in this Press Release, including without limitation the following assumptions: industries in both Seasonal and Year-Round Products consistent with current trends and continuously challenging macroeconomic and geopolitical environments; expected market share volatility; main currencies in which the Company operates will remain at near current levels; there will be no significant changes in tax laws or treaties applicable to the Company; the supply base will remain able to support product development and planned production rates on commercially acceptable terms in a timely manner; the absence of unusually adverse weather conditions, especially in peak seasons. BRP cautions that its assumptions may not materialize, and that the currently challenging macroeconomic and geopolitical environments in which it evolves, including specifically the uncertainty around the potential evolution of tariffs, duties and other trade restrictions (and any retaliatory measures), as well as the ongoing instability in the
NON-IFRS MEASURES
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company uses non-IFRS measures including the following:
Non-IFRS measures | Definition | Reason for use | ||
Normalized EBITDA | Net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements. | Assist investors in determining the financial performance of the Company's operating activities on a consistent basis by excluding certain non-cash elements such as depreciation expense, impairment charge, foreign exchange gain or loss on the Company's long-term debt denominated in | ||
Normalized net income | Net income before normalized elements adjusted to reflect the tax effect on these elements | In addition to the financial performance of operating activities, this measure considers the impact of investing activities, financing activities and income taxes on the Company's financial results. | ||
Normalized income tax expense | Income tax expense adjusted to reflect the tax effect on normalized elements and to normalize specific tax elements | Assist investors in determining the tax expense relating to the normalized items explained above, as they are considered not being reflective of the operational performance of the Company. | ||
Normalized effective tax rate | Based on Normalized net income before Normalized income tax expense | Assist investors in determining the effective tax rate including the normalized items explained above, as they are considered not being reflective of the operational performance of the Company. | ||
Normalized earnings per share – basic and diluted | Calculated by dividing the Normalized net income by the weighted average number of shares – basic and diluted | Assist investors in determining the normalized financial performance of the Company's activities on a per share basis. | ||
Free cash flow | Cash flows from operating activities less additions to PP&E and intangible assets | Assist investors in assessing the Company's liquidity generation abilities that could be available for shareholders, debt repayment and business combination, after capital expenditure |
The Company believes non-IFRS measures are important supplemental measures of financial performance because they eliminate items that have less bearing on the Company's financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. Management also uses non-IFRS measures in order to facilitate financial performance comparisons from period to period, prepare annual operating budgets, assess the Company's ability to meet its future debt service, capital expenditure and working capital requirements and also as a component in the determination of the short-term incentive compensation for the Company's employees. Because other companies may calculate these non-IFRS measures differently than the Company does, these metrics are not comparable to similarly titled measures reported by other companies.
The Company refers the reader to the tables below for the reconciliations of the non-IFRS measures presented by the Company to the most directly comparable IFRS measure.
Reconciliation Tables [2]
The following tables present the reconciliation of non-IFRS measures compared to their respective IFRS measures:
Three-month periods | Six-month periods ended | |||
(in millions of Canadian dollars) | July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 |
Net (loss) income | ||||
Normalized elements | ||||
Foreign exchange loss (gain) on long-term debt and lease liabilities | 73.7 | 7.0 | 82.7 | (121.6) |
Costs related to business combinations [3] | 1.0 | 3.3 | 2.1 | 6.4 |
Special long-term incentive program [4] | — | 4.4 | — | 4.4 |
Executive management transition cost [5] | — | 2.5 | — | 2.5 |
Supplier financial restructuring [6] | 74.8 | — | 74.8 | — |
Other elements [7] | — | 1.0 | — | 1.9 |
Income tax adjustment [1] [8] | (25.7) | (8.4) | (28.6) | (10.2) |
Normalized net income (loss) [1] | (13.0) | 66.9 | 121.5 | 101.5 |
Normalized income tax expense (recovery) [1] | (5.3) | (12.4) | 45.1 | 3.4 |
Financing costs adjusted [1] | 50.3 | 50.5 | 94.9 | 97.1 |
Financing income | (5.4) | (3.3) | (8.5) | (4.6) |
Depreciation expense adjusted [1] | 112.2 | 111.5 | 220.2 | 216.6 |
Normalized EBITDA [1] | ||||
[1] | See "Non-IFRS Measures" section. |
[2] | Figures are on a continuing basis. |
[3] | Transaction costs and depreciation of intangible assets related to business combinations. |
[4] | Incremental fair value recorded as a result of a special long-term incentive program. |
[5] | Includes the impact of accelerated vesting of executive management stock options. |
[6] | Includes the costs associated to a supplier financial restructuring. |
[7] | Other elements include transaction costs associated with the sale of the Marine businesses and restructuring costs. |
[8] | Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized and to the adjustment related to the impact of foreign currency translation from Mexican operations. |
The following table [2] presents the reconciliation of items as included in the Normalized net income [1] and Normalized EBITDA [1] compared to respective IFRS measures as well as the Normalized EPS – basic and diluted [1] calculation.
(in millions of Canadian dollars, except per share data) | Three-month periods ended | Six-month periods ended | |||
July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 | ||
Depreciation expense reconciliation | |||||
Depreciation expense | |||||
Depreciation of intangible assets related to business combinations | (0.7) | (1.5) | (1.4) | (2.9) | |
Depreciation expense adjusted [1] | |||||
Income tax expense reconciliation | |||||
Income tax expense (recovery) | |||||
Income tax adjustment [3] | 25.7 | 8.4 | 28.6 | 10.2 | |
Normalized income tax expense (recovery) [1] | |||||
Financing costs reconciliation | |||||
Financing costs | |||||
Other | (0.3) | — | (0.7) | — | |
Financing costs adjusted [1] | |||||
Normalized EPS - basic [1] calculation | |||||
Normalized net income (loss) [1] | |||||
Non-controlling interests | 0.2 | 0.8 | 0.8 | 0.9 | |
Weighted average number of shares - basic | 72,756,365 | 73,040,187 | 72,950,539 | 73,036,072 | |
Normalized EPS - basic [1] | |||||
Normalized EPS - diluted [1] calculation | |||||
Normalized net income (loss) [1] | |||||
Non-controlling interests | 0.2 | 0.8 | 0.8 | 0.9 | |
Weighted average number of shares - diluted [4] | 72,756,365 | 73,616,757 | 73,529,444 | 73,569,234 | |
Normalized EPS - diluted [1] | |||||
[1] | See "Non-IFRS Measures" section. |
[2] | Figures are on a continuing basis. |
[3] | Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized and to the adjustment related to the impact of foreign currency translation from Mexican operations. |
[4] | The weighted average number of diluted shares outstanding used in calculating Normalized diluted EPS [1] for the six-month period ended July 31, 2026 was 73,529,444. The difference in the weighted average number of diluted shares outstanding used in calculating diluted EPS is explained by a reported net loss under IFRS Measures for the same period. |
The following table presents the reconciliation of consolidated net cash flows generated from operating activities to free cash flow [1].
(in millions of Canadian dollars) | Six-month periods ended | |
July 31, 2026 | July 31, 2025 | |
Net cash flows generated from operating activities | ||
Additions to property, plant and equipment | (105.5) | (115.5) |
Additions to intangible assets | (21.9) | (18.4) |
Free cash flow [1] | ||
Free cash flow from continuing operations [1] | ||
Free cash flow from discontinued operations [1] | ||
[1] | See "Non-IFRS Measures" section. |
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SOURCE BRP Inc.