Can-Am Introduces BRP GO! On-Road Navigation, Expanding the Connected Riding Experience

• BRP Inc. (via its Can-Am brand) launched BRP GO! On-Road Navigation, a software update for electric motorcycles and 3-wheel vehicles equipped with the 10.25” touch display.
• The update removes the previous dependency on Apple CarPlay, now supporting both Android and iOS smartphones via USB connection.
• Core features include on-road navigation, turn-by-turn directions, real-time group rider location sharing, itinerary sharing, ride statistics, and live vehicle telemetry (battery level, range, charge time).
• The feature is available immediately for all compatible 2024 and 2025 model year vehicles.
• Management emphasized listening to rider feedback to eliminate smartphone discrimination and enhance connectivity without requiring headsets.

• The June 2 software update is an incremental product enhancement that aligns with industry-wide connectivity trends. It does not introduce new hardware, change pricing, or alter the company's financial trajectory.
• Historical context reveals a starkly different operational backdrop: On April 14, BRP suspended FY27 guidance due to U.S. Section 232 tariff amendments, which shifted taxation from metal content to total product value, creating an estimated $500M+ incremental cost burden.
• In Q1 FY27 (reported May 28), revenues surged 29.5% YoY to $2.39B, but normalized EBITDA growth (66.5%) and net income (down 20.9%) were heavily weighed down by unfavorable FX on USD-denominated debt and higher tax expenses.
• Crucially, FY27 EPS guidance was slashed from $5.50–$6.50 to $3.00–$3.50, a ~45% reduction driven by tariff mitigation costs and softer seasonal retail volumes.
• The software update is a standard lifecycle R&D rollout. It does not offset the tariff headwinds, nor does it address the 7% decline in North American retail sales (driven by snowmobile industry weakness and PWC market share erosion).
• The market has already priced in the tariff shock and guidance cut. This announcement is expected, incremental, and lacks the catalyst weight to move the stock materially.

• BRP Inc. designs, manufactures, and markets powersports vehicles and marine products globally.
• Flagship brands include Can-Am (motorcycles, 3-wheelers, side-by-sides), Ski-Doo (snowmobiles), Sea-Doo (personal watercraft), Lynx, and Evinrude/Johnson outboard motors.
• The company operates under the M28 strategic plan, targeting $9.5B in revenues and $8.00 in normalized EPS by FY28.
• Recent operational highlights include strong racing performance (Dakar Rally podium finishes with the Maverick R platform) and a push into electric mobility, though the EV segment has faced significant impairment charges.