Snowmobile maker BRP's Q2 revenue beats on higher ORV shipments
Snowmobile maker BRP's Q2 revenue beats on higher ORV shipments
Overview
Canada powersports vehicle maker's fiscal Q2 revenue rose 18.5% yr/yr on higher ORV shipments, beating analyst expectations
Normalized diluted loss per share for Q2 beat analyst expectations
Gross profit margin declined due to U.S. tariffs and supplier financial restructuring
Outlook
BRP raises FY27 normalized diluted EPS guidance to C$4.00-C$4.50
Company expects Q3 FY27 normalized diluted EPS to fall 50%-60% year over year
Company sees FY27 revenue at C$9.225 bln to C$9.475 bln
Result Drivers
ORV SHIPMENTS AND SSV MIX - Co said revenue growth was driven by higher ORV shipments and favorable SSV mix from new model launches
TARIFFS AND SUPPLIER RESTRUCTURING - Co said gross profit and margin declined due to U.S. tariffs and supplier financial restructuring
SEASONAL PRODUCT SHIPMENTS - Co said lower seasonal product sales reflected PWC units shipped earlier in the first quarter
Company press release: ID:nPnb0wpkLa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | C$2.24 bln | C$2.01 bln (16 Analysts) |
Q2 Adjusted Loss Per Share | Beat | C$0.18 | C$0.66 (16 Analysts) |
Q2 Loss Per Share |
| C$1.88 |
|
Q2 Adjusted EBITDA |
| C$138.80 mln |
|
Q2 Gross Profit |
| C$262.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the recreational products peer group is "buy"
Wall Street's median 12-month price target for BRP Inc. is C$99.50, about 13.6% above its September 2 closing price of C$87.60
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
Sept 1 - Bombardier to buy Canadian factory from supplier Mitsubishi Heavy Industries
Sept 1 - Canada's Couche-Tard Q1 results beat on acquisitions, higher fuel margins
Sept 2 - From street names to supply chains, Canadians pull away from US as rift grows
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)