Valcourt, QC – September 08, 2026 -- BRP Inc. (TSX: DOO; NASDAQ: DOO) reported second-quarter revenue of $2,236.8 million, up 18.5% from $1,888.2 million a year earlier, even as the company swung to a net loss of $136.8 million after tariff costs and a supplier restructuring charge hit margins.
BRP raises full-year EPS guidance to $4.00-$4.50 despite margin pressure
The company increased its Fiscal 2027 outlook, now projecting Normalized diluted earnings per share of $4.00 to $4.50, citing strong ORV performance, additional market share gains and reduced net tariff costs. North American Powersports retail sales rose 1% year-over-year, driven by positive SSV industry trends and ORV share gains, partially offset by weaker Seasonal Products sales.
Section 232 tariffs and a supplier restructuring cut gross margin by 940 basis points
Gross profit fell 34.0% to $262.5 million, with gross margin dropping to 11.7% from 21.1% a year earlier. A supplier financial restructuring alone accounted for a $74.8 million, or 330 basis point, hit to gross profit and margin, compounding the impact of Section 232 tariffs on steel, aluminum and copper imports into the United States. Normalized EBITDA declined 34.9% to $138.8 million from $213.2 million. Normalized diluted loss per share came in at $0.18, a $1.10 decline, while diluted loss per share reached $1.88, down $2.67 from the prior year.
ORV shipments and SSV mix offset weaker personal watercraft deliveries
Year-Round Products revenue, 66% of quarterly sales, rose 33.3% to $1,485.1 million on higher ORV volumes and a favourable SSV mix from new model launches. Seasonal Products revenue fell 8.9% to $427.7 million, mainly reflecting lower PWC deliveries pulled forward into the first quarter. Revenue from PA&A, OEM Engines and Others grew 6.3% to $324.0 million on higher aftermarket parts volume and favourable pricing.
BRP commits to biannual off-road product launches through 2030, flags leadership change
At its Club BRP 2027 dealer event, BRP pledged major off-road product announcements every six months for the next four years as part of its push to make Can-Am North America's leading ORV brand. New products unveiled include the limited-edition Sea-Doo RXP-X Senna 350, an upgraded Spark PWC lineup with a new Spark X model, the second-generation Can-Am Defender HD10, and a reworked Can-Am Ryker platform. The company also launched BRP Financial Services, a branded U.S. retail financing program, and announced a planned transition in its financial leadership. For the third quarter, BRP expects Normalized diluted EPS to fall approximately 50% to 60% year-over-year due to increased tariff impact.
"Our second-quarter financial results exceeded expectations, reflecting disciplined execution and increased ORV shipments to support sustained retail momentum," said Denis Le Vot, President and CEO of BRP.