BRP – maker of Sea-Doo watercraft – reported revenues of CA$2.39bn (US$1.7bn) for the first quarter of fiscal 2027, ended 30 April 2026, up 29.5 per cent from CA$1.85bn (US$1.3bn) in the same period last year. The company says the increase was mainly driven by higher shipments of off-road vehicles (ORV) and personal watercraft (PWC), along with a more favourable ORV product mix.
In 2024, BRP decided to sell its marine businesses and to double down on its powersports activities, in a bid to boost near-term profitability.
Gross profit increased 42.2 per cent to CA$561.6m (US$404.4m), while gross margin rose from 21.4 per cent to 23.5 per cent. BRP attributes the improvement to higher volumes, lower sales programmes and favourable pricing, although these gains were partly offset by the impact of global tariffs.
Normalised EBITDA rose 66.5 per cent to CA$334.4m (US$240.8m) from CA$200.8m (US$144.6m) a year earlier.
Net income declined 20.9 per cent to CA$127.3m (US$91.7m), compared with CA$161m (US$115.9m) in the prior-year period. According to BRP, the decrease was largely the result of an unfavourable foreign-exchange impact on US dollar-denominated long-term debt and higher income tax expense.
North American retail sales decreased by 7 per cent during the quarter. BRP says the decline reflected lower snowmobile industry volumes following a particularly strong end to the previous season, as well as market share losses in PWC. Market share gains in off-road vehicles partly offset the reduction.
Retail sales of year-round products in North America increased in the mid-single digits, while industry sales in the segment rose in the low-single digits. Seasonal product retail sales fell in the low-thirties range, compared with an industry decline in the mid-teens range.
Denis Le Vot, president and CEO of BRP, says: “We delivered Q1 financial results above expectations, driven by higher volumes, disciplined cost management, strong overall execution and a more favourable promotional environment. We also sustained our solid retail momentum across key ORV segments, as new product introductions in the second half of last year contributed to additional market share gains.”
He adds: “As tariff policies shifted significantly during the quarter, our teams moved quickly to define mitigation measures to reduce their impact. Looking ahead, we are focused on navigating these headwinds while also protecting our long-term growth prospects. Although the geopolitical and trade environment remains volatile, we are issuing a revised full-year guidance that incorporates both positive trends in our business and net tariff costs. Thanks to our engaged dealer network, valued suppliers and leading-edge product lineups, we are confident in our ability to further strengthen our position in the future.”
Operating cash flow rose to CA$425.5m (US$306.4m) from CA$255.8m (US$184.2m) in the same quarter last year. BRP invested CA$57.1m (US$41.1m) in capital expenditure, including spending on new product development and software infrastructure.
The company returned CA$62.7m (US$45.1m) to shareholders through dividends and share repurchases during the quarter. BRP’s board also declared a quarterly dividend of CA$0.25 (US$0.18) per share, payable on 14 July 2026 to shareholders of record on 30 June 2026.
For fiscal 2027, BRP revised its guidance to account for the expected effect of tariffs after mitigation measures. The company forecasts revenue of between CA$9.13bn (US$6.57bn) and CA$9.38bn (US$6.8bn), normalised EBITDA of between CA$925m (US$666m) and CA$975m (US$702m), and net income of between CA$215m (US$154.8m) and CA$250m (US$180m).
Tumultuous 2025 for BRP
2025 was a tumultuous year for BRP, which issued a recall for Sea-Doo Switches in February 2025.
In April 2025, BRP sold its aluminium boat brand Telwater to Yamaha Motor Australia, a subsidiary of Yamaha Motor, and sold the Alumacraft brand to North American firm Bryton Marine Group.
In June 2025, BRP confirmed 61 permanent layoffs at its global headquarters in Sturtevant, in the US state of Wisconsin.
In July 2025, BRP sold its Manitou business to the owners of Bentley Pontoons.
In its financial results for 2025, BRP reported a decline in both revenue and profits, noting that sales had been impacted by volatile conditions and ongoing uncertainty, including global tariff disputes. As a result, the firm decided to defer providing financial guidance for fiscal year 2026.
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