BRP PRESENTS ITS THIRD QUARTER RESULTS FOR FISCAL YEAR 2026

Executive Summary

• BRP reported Q3 FY26 revenue of C$2.250 billion, up 14% YoY, and net income of C$76.5 million, a 150% increase year‑over‑year.
• Normalized EBITDA rose 21.3% to C$325.6 million; diluted EPS (non‑normalized) reached C$1.04 versus C$0.42 in Q3 2024.
• FY26 guidance was raised, now forecasting total revenue of ~C$8.3 billion and normalized diluted EPS of approximately $5.00.

Key Details

• Revenue Highlights
• Q3 FY26: C$2,250.3 M (+14% YoY); driven by higher ORV deliveries and favorable product mix after new‑product launches.
• Year‑Round Products revenue: +22.1% to C$1,265.6 M (incl. C$14 M FX benefit).
• Seasonal Products revenue: –1.6% to C$606.2 M (incl. C$13 M FX benefit).

• PA&A & OEM Engines revenue: +17.8% to C$378.5 M (incl. C$10 M FX benefit).

• Profitability

• Gross profit: C$541.2 M (+24.4% YoY); gross margin improved 210 bps to 24.1%.
• Normalized EBITDA: C$325.6 M (+21.3% YoY).
• Net income: C$76.5 M (+150% YoY).

• Diluted EPS (non‑normalized): $1.04 vs $0.42 prior year; normalized diluted EPS $1.59 vs $1.20 prior year.

• Operating Expenses

• Operating expenses rose 14.5% to C$338.6 M, mainly due to higher incentive compensation and restructuring costs.

• Nine‑Month Summary (ended Oct 31 2025)

• Revenue: C$5,985.4 M (+3.5% YoY).
• Normalized EBITDA: C$739.6 M (‑8.8% YoY).

• Net income: C$294.6 M (+156% YoY).

• Liquidity & Capital Resources

• Operating cash flow (9 mo): C$784.3 M vs C$402.5 M prior year.
• Capex: C$196.9 M invested in new products and software modernization; also closed sales of Alumacraft and Manitou assets.

• Dividend declared: $0.215 per share (payable Jan 14 2026).

• FY26 Guidance (Updated)

• Total revenue: ~C$8,300 M (up from prior ~$7,900 M).
• Normalized EBITDA: ~C$1,100 M.
• Normalized diluted EPS: ≈ $5.00.
• Net income target: ~C$440 M.

• Adjusted depreciation: ~C$445 M; net financing costs: ~C$190 M; effective tax rate: ~21.0%; capex: ~C$380 M; tariff impact: ~C$90 M.

• Other Notable Items

• NASDAQ ticker change approved from “DOOO” to “DOO”, effective Dec 8 2025.
• Conference call scheduled for same day at 9 a.m. ET, hosted by President & CEO José Boisjoli and CFO Sébastien Martel.

Notable Quotes

• José Boisjoli, President & CEO: “Third‑quarter results came in ahead of expectations… we are increasing our guidance for fiscal year 2026.”
• José Boisjoli: “We have set objectives of achieving $9.5 billion in revenues and $8.00 in normalized EPS by FY28 as part of our M28 strategic plan.”