BRP REPORTS FISCAL YEAR 2027 FIRST QUARTER RESULTS

The most recent release (May 28, 2026) is BRP’s fiscal 2027 first‑quarter earnings report. Q1 revenue surged 29.5 % to C$2,391.8 million, Normalized EBITDA jumped 66.5 % to C$334.4 million, and gross margin expanded to 23.5 % from 21.4 % a year ago. Despite the strong operational performance, net income fell 20.9 % to C$127.3 million due to unfavorable FX on long‑term debt and higher taxes. Management simultaneously issued revised full‑year FY27 guidance that incorporates incremental tariff costs and mitigation measures: total revenues of C$9.1–9.4 billion, Normalized EBITDA of C$925–975 million, and normalized diluted EPS of $3.00–3.50 – a sharp cut from the initial FY27 outlook delivered with Q4 FY26 results (which had revenue of C$8.9–9.15 billion and normalized diluted EPS of $5.50–6.50). North American retail sales declined 7 % in the quarter, with Year‑Round products up mid‑single digits but Seasonal products down “low‑thirties.” The company declared its regular quarterly dividend of $0.25 per share.

The Q1 beat relative to depressed post‑tariff expectations is incrementally positive, showing that BRP’s operational levers – volume, mix, cost control, and a less promotional market – are working. However, this is not a “material‑positive” event that changes the fundamental story. The $500 million‑plus tariff blow, disclosed on April 14 when guidance was suspended, was a true material negative and had already cratered the stock from $108 to $69. The current report simply quantifies the damage: FY27 EPS guidance is roughly halved. The mitigation efforts limited the damage, but the fact remains that normalized diluted EPS is now expected to be $3.00–3.50 versus $5.50–6.50 just a few months ago. The market had likely priced in a worst‑case scenario, so the restoration of guidance – even at sharply lower levels – was enough to lift the stock to the $80 area, but the news itself is best characterized as expected, albeit reassuring, follow‑through. No new strategic transaction, game‑changing partnership, or unanticipated capital injection is present. Therefore, the most recent news is routine positive – it clarifies the tariff impact while confirming the underlying business is performing better than feared.

BRP Inc. is a global leader in powersports, designing and manufacturing Year‑Round products (Can‑Am off‑road vehicles, SSVs, 3‑wheel vehicles, motorcycles), Seasonal products (Ski‑Doo snowmobiles, Sea‑Doo personal watercraft), and propulsion systems (Rotax engines). The company’s flagship platforms include the Can‑Am Maverick R side‑by‑side – which dominated the 2026 Dakar Rally with six top‑ten finishes – and the recently expanded 3‑wheel vehicle lineup. BRP’s long‑term strategy is anchored by its “M28” plan, which originally targeted C$9.5 billion in revenue and $8.00 normalized EPS by fiscal 2028. As of Q3 FY26, management affirmed those ambitions, but the tariff shock makes achieving them far more difficult.