en.Wedoany.com Reported - BRP Inc. reported revenue of CAD 2.39 billion (USD 1.7 billion) for the first quarter of fiscal year 2027 (ended April 30, 2026), a 29.5% increase from CAD 1.85 billion (USD 1.3 billion) in the same period last year. The company attributed the growth primarily to higher shipments of off-road vehicles (ORVs) and personal watercraft (PWC), as well as an optimized ORV product mix.

In 2024, BRP decided to divest its marine business to concentrate resources on its powersports segment, aiming to enhance near-term profitability.

Gross profit rose 42.2% to CAD 561.6 million (USD 404.4 million), with gross margin expanding from 21.4% to 23.5%. BRP attributed the improvement to higher volumes, reduced sales programs, and favorable pricing, though these gains were partially offset by the impact of global tariffs.

Adjusted EBITDA increased 66.5% to CAD 334.4 million (USD 240.8 million), compared to CAD 200.8 million (USD 144.6 million) in the prior year.

Net income fell 20.9% to CAD 127.3 million (USD 91.7 million), down from CAD 161 million (USD 115.9 million) a year earlier. BRP stated that the decline was primarily due to unfavorable foreign exchange impacts on U.S. dollar-denominated long-term debt and higher income tax expenses.

North American retail sales declined 7% in the quarter. BRP noted that this reflected lower snowmobile industry sales—following an exceptionally strong end to the previous quarter—and a loss of PWC market share, partially offset by growth in ORV market share.

North American full-season product retail sales grew by a mid-single-digit percentage, with industry sales in this segment rising by a low-single-digit percentage. Seasonal product retail sales declined approximately 30%, compared to an industry decline of about 15%.

Denis Le Vot, President and CEO of BRP, stated: "Driven by higher volumes, disciplined cost management, strong overall execution, and a more favorable promotional environment, our first-quarter financial results exceeded expectations. We also maintained strong retail momentum in key ORV segments, with new products launched in the second half of last year contributing additional market share gains."

He added: "Given the significant changes in tariff policy during the quarter, the team acted swiftly to develop mitigation measures to reduce their impact. Looking ahead, we are focused on navigating these headwinds while protecting our long-term growth prospects. Despite the still-volatile geopolitical and trade environment, we have issued revised full-year guidance that incorporates positive business trends and net tariff costs."

Operating cash flow increased to CAD 425.5 million (USD 306.4 million) from CAD 255.8 million (USD 184.2 million) in the same period last year. BRP invested CAD 57.1 million (USD 41.1 million) in capital expenditures, including spending on new product development and software infrastructure.

The company returned CAD 62.7 million (USD 45.1 million) to shareholders during the quarter through dividends and share buybacks. BRP's Board of Directors also declared a quarterly dividend of CAD 0.25 (USD 0.18) per share, payable on July 14, 2026, to shareholders of record on June 30, 2026.

For fiscal year 2027, BRP revised its guidance to account for the expected impact of tariffs after mitigation measures. The company forecasts revenue between CAD 9.13 billion (USD 6.57 billion) and CAD 9.38 billion (USD 6.8 billion), adjusted EBITDA between CAD 925 million (USD 666 million) and CAD 975 million (USD 702 million), and net income between CAD 215 million (USD 154.8 million) and CAD 250 million (USD 180 million).

2025 was a turbulent year for BRP. In February 2025, the company issued a recall for Sea-Doo Switches. In April, it sold the aluminum boat brand Telwater to Yamaha Motor Australia, a subsidiary of Yamaha Motor Co., Ltd., and the Alumacraft brand to North American company Bryton Marine Group. In June 2025, BRP confirmed the elimination of 61 permanent positions at its global headquarters in Sturtevant, Wisconsin, USA. In July 2025, BRP sold its Manitou business to the owner of Bentley Pontoons. In its 2025 financial results, BRP reported declines in both revenue and profit, noting that sales were affected by the volatile situation and ongoing uncertainty, including global tariff disputes, leading the company to postpone providing financial guidance for fiscal 2026.

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