BRP REPORTS FISCAL YEAR 2027 FIRST QUARTER RESULTS
Rhea-AI Summary
BRP (TSX/NASDAQ: DOO) reported Q1 FY27 revenues of $2,391.8M, up 29.5%, with gross margin rising to 23.5%. Normalized EBITDA grew 66.5% to $334.4M, while net income fell 20.9% to $127.3M. BRP cut FY27 Normalized diluted EPS guidance to $3.00–$3.50 and total revenues to $9.125–$9.375B, reflecting net tariff impacts. North American Powersports retail sales declined 7%. The board declared a quarterly dividend of $0.25 per share, payable July 14, 2026, to shareholders of record on June 30, 2026.
AI-generated analysis. Not financial advice.
Positive
- Q1 FY27 revenues up 29.5% to $2,391.8M
- Gross profit up 42.2% to $561.6M; margin +210 bps to 23.5%
- Normalized EBITDA +66.5% to $334.4M
- Diluted Normalized EPS rose to $1.83 from $0.47
- Operating cash flow increased to $425.5M from $255.8M
- Quarterly dividend of $0.25 per share declared for July 14, 2026
Negative
- Q1 net income declined 20.9% to $127.3M
- North American retail sales down 7% year-over-year
- North American Seasonal Products retail sales down low-thirties percentage range
- FY27 Normalized diluted EPS guidance cut to $3.00–$3.50 from $5.21 in FY26
- FY27 Normalized EBITDA guidance $925–$975M vs $1,103.4M in FY26
- Q2 FY27 Normalized diluted EPS expected down ~$1.60–$1.65 vs prior year
Key Figures
Market Reality Check
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 21 | Earnings scheduling | Neutral | -0.3% | Announcement of Q1 FY27 results release and annual meeting timing. |
| May 07 | Earnings scheduling | Neutral | -0.6% | Details on Q1 FY27 results call and virtual annual meeting logistics. |
| Apr 30 | Marketing initiative | Positive | +4.3% | Launch of Can-Am Ride Days program to expand rider access and trials. |
| Apr 23 | Community platform | Positive | -1.0% | Introduction of 3 Wheel Collective global platform for 3-wheel riders. |
| Apr 22 | Governance / meeting | Neutral | -4.3% | Announcement of fully virtual annual shareholder meeting date and format. |
Recent headlines have mostly produced modest moves, with one notable divergence on positive marketing news.
Over the last few months, BRP’s news flow has focused on operational and investor-relations items. Two prior releases announced scheduling details for the May 28, 2026 first-quarter FY27 results and annual meeting. Marketing initiatives for Can-Am, including Ride Days and the 3 Wheel Collective launch, aimed to build brand engagement and rider communities. Another release detailed the fully virtual annual meeting on May 28, 2026. Against this backdrop, today’s detailed FY27 Q1 results and revised guidance provide the first hard financial update after this communication-heavy period.
Market Pulse Summary
This announcement details strong Q1 FY27 revenue of $2,391.8M, a 29.5% year-over-year increase, and a 66.5% rise in Normalized EBITDA to $334.4M, alongside lower reported net income and diluted EPS of $1.73. Management also issued FY27 guidance with revenues of $9.125–$9.375B and Normalized EPS of $3.00–$3.50, below FY26’s $5.21. Investors may monitor how tariff-related costs, revised tax assumptions and capital spending near $390M affect margins and cash flow over coming quarters.
Key Terms
normalized ebitda financial
non-ifrs measures financial
discontinued operations financial
normalized net income financial
effective tax rate financial
capital expenditures financial
AI-generated analysis. Not financial advice.
Highlights
- Revenues of
$2,391.8 million 29.5% compared to last year, driven by higher ORV and PWC shipments, as well as favourable ORV product mix; - Net income of
$127.3 million 20.9% compared to last year; - Normalized EBITDA [1] of
$334.4 million 66.5% compared to last year; - Normalized diluted earnings per share [1][2] of
$1.83 $1.36 $1.73 $0.46 - North American Powersports retail sales decreased by
7% compared to last year, mainly due to a strong end-of-season in Snowmobile last year; - Market share gains in
North America for ORV; - Issuing a revised full-year guidance, incorporating incremental tariff cost net of mitigation measures, with revenues between
$9.1 $9.4 billion $3.00 $3.50
"We delivered Q1 financial results above expectations, driven by higher volumes, disciplined cost management, strong overall execution and a more favourable promotional environment. We also sustained our solid retail momentum across key ORV segments, as new product introductions in the second half of last year contributed to additional market share gains," said Denis Le Vot, President and CEO of BRP.
"As tariff policies shifted significantly during the quarter, our teams moved quickly to define mitigation measures to reduce their impact. Looking ahead, we are focused on navigating these headwinds while also protecting our long-term growth prospects. Although the geopolitical and trade environment remains volatile, we are issuing a revised full-year guidance that incorporates both positive trends in our business and net tariff costs. Thanks to our engaged dealer network, valued suppliers and leading-edge product lineups, we are confident in our ability to further strengthen our position in the future," concluded Mr. Le Vot.
[1] | See "Non-IFRS Measures" section of this press release. |
[2] | Earnings per share is defined as "EPS". |
Financial Highlights [3] | ||
Three-month periods ended | ||
(in millions of Canadian dollars, except per share data and margin) | April 30, 2026 | April 30, 2025 |
Revenues | ||
Gross Profit | 561.6 | 394.8 |
Gross Profit Margin (%) | 23.5 % | 21.4 % |
Operating Income | 225.5 | 93.9 |
Normalized EBITDA [1] | 334.4 | 200.8 |
Net Income | 127.3 | 161.0 |
Net Income (Loss) from Discontinued Operations | 1.6 | (10.9) |
Normalized Net Income [1] | 134.5 | 34.6 |
Diluted Earnings per Share [2] | 1.73 | 2.19 |
Diluted Normalized Earnings per Share [1] [2] | 1.83 | 0.47 |
Basic Weighted Average Number of Shares | 73,151,257 | 73,031,821 |
Diluted Weighted Average Number of Shares | 73,931,682 | 73,513,777 |
FISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK
The Company issued a revised FY27 guidance as follows, incorporating incremental tariff cost net of mitigation measures, and superseding prior full-year financial guidance statements issued by the Company:
Financial Metric | FY26 | FY27 Guidance [5] |
Revenues | ||
Year-Round Products | ||
Seasonal Products | 2,291.5 | 2,425 to 2,500 |
PA&A and OEM Engines | 1,348.8 | 1,375 to 1,425 |
Total Company Revenues | 8,442.7 | 9,125 to 9,375 |
Normalized EBITDA [1] | 1,103.4 | 925 to 975 |
Normalized Earnings per Share - Diluted [1][2] | ||
Net Income |
Other assumptions for FY27 Guidance | |
• Depreciation Expenses Adjusted: | |
• Net Financing Costs Adjusted: | |
• Effective tax rate [1] [4]: | ~ |
• Weighted average number of shares – diluted: | ~74M shares (Compared to 73.1M in FY26) |
• Capital Expenditures: | |
FY27 Quarterly Outlook [5]
The Company expects Q2 Fiscal 2027 Normalized diluted earnings per share [1] to be down approximately
[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. |
[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. |
FIRST QUARTER RESULTS
The first quarter of Fiscal 2027 was marked by double-digit revenue growth compared to the same period last year. The increase in revenues was primarily driven by higher ORV shipments and favourable product mix resulting from the introduction of new models and features in this product category. Revenue growth was also attributable to higher PWC shipments compared to the same period last year, during which shipments occurred later in the season. Gross profit and gross profit margin increased compared to last year, reflecting the positive impacts of higher volumes, lower sales programs and favourable pricing, partially offset by the impacts of global tariffs.
The Company's North American retail sales were down
Revenues
Revenues increased by
- Year-Round Products (
61% of Q1-FY27 revenues): Revenues from Year-Round Products increased by$342.9 million 31.0% , to$1,448.7 million $1,105 $14 million - Seasonal Products (
24% of Q1-FY27 revenues): Revenues from Seasonal Products increased by$149.2 million 35.6% , to$568.4 million $419.2 million - PA&A, OEM Engines and Others (
15% of Q1-FY27 revenues): Revenues from PA&A, OEM Engines and Others increased by$52.8 million 16.4% , to$374.7 million $321
North American Retail Sales
The Company's North American retail sales decreased by
- North American Year-Round Products retail sales increased on a percentage basis in the mid-single digits compared to the three-month period ended April 30, 2025. The Year-Round Products industry sales increased 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 April 30, 2025. The Seasonal Products industry sales decreased on a percentage basis in the mid-teens range over the same period.
Gross profit
Gross profit increased by
Operating Expenses
Operating expenses increased by
Normalized EBITDA [1]
Normalized EBITDA [1] increased by
Net Income
Net income decreased by
Normalized Net Income [1]
Normalized net income [1] increased by
[1] | See "Non-IFRS Measures" section of this press release. |
Net Income (Loss) from Discontinued Operations
Net income increased by
LIQUIDITY AND CAPITAL RESOURCES
Consolidated net cash flows generated from operating activities totaled
The Company invested
During the three-month period ended April 30, 2026, the Company also returned
Dividend
On May 27, 2026, the Company's Board of Directors declared a quarterly dividend of
CONFERENCE CALL AND WEBCAST PRESENTATION
Today at 9 a.m. EDT, BRP Inc. will host a conference call and webcast to discuss its FY27 first 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 62629), please dial 1 800-717-1738 (toll-free in
The Company's first 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 strategic plan referred to as "M28", prospects, expectations, anticipations, estimates and intentions, results, levels of activity, performance, objectives, targets, goals, achievements, including the Company's environmental, social and governance targets, goals and initiatives set forth under the Company's new sustainability plan, Beyond the Ride – Sustainability 2030, priorities and strategies, financial position, market position, capabilities, competitive strengths and beliefs, the prospects and trends of the industries in which the Company operates, the expected demand for products and services in the markets in which the Company competes, including softer industry demand trends and sustained promotional intensity and pricing actions, research and product development activities, including projected design, characteristics, capacity or performance of future products and their expected scheduled entry to market, expected financial requirements and the availability of capital resources and liquidity, the Company's ability to complete its process for the sale of Telwater as expected and to manage and mitigate the risks associated therewith, at expected cost levels and expected proceeds, the impact of the sale of the Marine businesses, ongoing geopolitical instability in the
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. The Company 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 geopolitical instability in the
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 a continuously challenging macroeconomic environment; expected market share volatility; main currencies in which the Company operates will remain at near current levels; levels of inflation, which are expected to continue to ease; there will be no significant changes in tax laws or treaties applicable to the Company; the Company's margins are expected to continue to be pressured by lower volumes; 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 environment in which it evolves may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty. Specifically, these assumptions reflect certain
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 –diluted | Calculated by dividing the Normalized net income by the weighted average number of shares – 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 ended | ||
(in millions of Canadian dollars) | April 30, 2026 | April 30, 2025 |
Net income | ||
Normalized elements | ||
Foreign exchange loss (gain) on long-term debt and lease liabilities | 9.0 | (128.6) |
Costs related to business combinations [3] | 1.1 | 3.1 |
Other elements [4] | — | 0.9 |
Income tax adjustment [1] [5] | (2.9) | (1.8) |
Normalized net income [1] | 134.5 | 34.6 |
Normalized income tax expense [1] | 50.4 | 15.8 |
Financing costs adjusted [1] | 44.6 | 46.6 |
Financing income | (3.1) | (1.3) |
Depreciation expense adjusted [1] | 108.0 | 105.1 |
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] | Other elements include transaction costs associated with the sale of the Marine businesses and restructuring costs. |
[5] | 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 | |
April 30, 2026 | April 30, 2025 | |
Depreciation expense reconciliation | ||
Depreciation expense | ||
Depreciation of intangible assets related to business combinations | (0.7) | (1.4) |
Depreciation expense adjusted | ||
Income tax expense reconciliation | ||
Income tax expense | ||
Income tax adjustment [3] | 2.9 | 1.8 |
Normalized income tax expense [1] | ||
Financing costs reconciliation | ||
Financing costs | ||
Other | (0.4) | — |
Financing costs adjusted | ||
Normalized EPS - basic [1] calculation | ||
Normalized net income [1] | ||
Non-controlling interests | 0.6 | 0.1 |
Weighted average number of shares - basic | 73,151,257 | 73,031,821 |
Normalized EPS - basic [1] | ||
Normalized EPS - diluted [1] calculation | ||
Normalized net income [1] | ||
Non-controlling interests | 0.6 | 0.1 |
Weighted average number of shares - diluted | 73,931,682 | 73,513,777 |
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. |
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) | Three-month periods ended | |
April 30, 2026 | April 30, 2025 | |
Net cash flows generated from operating activities | ||
Additions to property, plant and equipment | (46.1) | (45.1) |
Additions to intangible assets | (12.1) | (9.4) |
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.