BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2026

Executive Summary

• BRP Inc. reported its financial results for the second quarter and first half of Fiscal Year 2026 (ended July 31, 2025), showing a 4.3% increase in Q2 revenues to $1,888.2 million and a 36.0% increase in Q2 net income to $57.1 million.
• The company issued full-year FY26 guidance, projecting total revenues between $8.1 billion and $8.3 billion and normalized diluted EPS between $4.25 and $4.75.
• North American retail sales declined 11% in Q2 due to market share losses in Personal Watercraft (PWC) and Side-by-Side (SSV) segments, while Normalized EBITDA decreased 9.2% to $213.2 million.

Key Details

• Q2 FY26 Financial Performance:
  • Revenues: $1,888.2 million (up 4.3% YoY).
  • Net Income: $57.1 million (up 36.0% YoY).
  • Normalized EBITDA: $213.2 million (down 9.2% YoY).
  • Normalized Diluted EPS: $0.92 (down $0.10 YoY).
  • Diluted EPS: $0.79 (up $0.24 YoY).
  • Gross Profit: $397.7 million (down 0.4% YoY); Margin: 21.1% (down 90 bps YoY).
  • Operating Expenses: $307.3 million (up 10.3% YoY), driven by higher R&D subsidies recognition and G&A incentives.
• Six-Month Period (H1 FY26) Performance:
  • Revenues: $3,735.1 million (down 2.0% YoY).
  • Normalized EBITDA: $414.0 million (down 23.7% YoY).
  • Net Income: $218.1 million (up 158.1% YoY).
  • Net Loss from Discontinued Operations: $(44.5) million (down 47.5% YoY).
  • Free Cash Flow: $239.2 million (up from $51.2 million in H1 FY25).
• Segment Revenue Breakdown (Q2):
  • Year-Round Products: $1,113.8 million (up 13.1% YoY), representing 59% of Q2 revenues.
  • Seasonal Products: $469.7 million (down 13.3% YoY), representing 25% of Q2 revenues.
  • PA&A and OEM Engines: $304.7 million (up 7.2% YoY), representing 16% of Q2 revenues.
• FY26 Guidance:
  • Total Company Revenues: $8.15 billion to $8.30 billion.
    • Year-Round Products: $4.75 billion to $4.80 billion.
    • Seasonal Products: $2.15 billion to $2.20 billion.
    • PA&A and OEM Engines: $1.25 billion to $1.30 billion.
  • Normalized EBITDA: $1.04 billion to $1.09 billion.
  • Normalized Diluted EPS: $4.25 to $4.75.
  • Net Income: $430 million to $470 million.
  • Capital Expenditures: ~$420 million.
  • Impacts of global tariffs: ~$90 million.
• Dividends:
  • Board declared a quarterly dividend of $0.215 per share.
  • Record Date: September 30, 2025.
  • Payment Date: October 14, 2025.
• Liquidity and Capital Resources:
  • Cash flows from operating activities (6-month): $373.1 million.
  • Capital expenditures: $119.1 million.
  • Shareholder returns via dividends: $31.3 million.
  • No share repurchases occurred during the period.
• Operational Updates:
  • North American retail sales decreased 11% in Q2.
  • Year-Round Products retail sales decreased in the high-single digits.
  • Seasonal Products retail sales decreased in the high-teens range.
  • Product launches included the new Can-Am Defender SSV, Can-Am Outlander Electric ATV, Can-Am Outlander MAX 6x6, and 300 hp Rotax engine for Sea-Doo Switch models.

Notable Quotes

• "We are pleased with our second-quarter results which, in the macroeconomic context, were better than expected. We are coming off a successful dealer event, during which we unveiled a significant number of industry-leading products and witnessed a strong upswing in dealer sentiment. The timing of these new introductions could not be better given our healthier inventory levels," said José Boisjoli, President and CEO of BRP.
• "In the short term, we anticipate a solid second half of the year, as reflected in the FY26 guidance we have issued. Looking ahead, with our comprehensive product portfolio, leaner inventory position, and solid dealer network, we are the best-positioned to benefit from the industry rebound. We remain focused on building a strong future and driving long-term profitable growth for BRP and our dealers," concluded Mr. Boisjoli.