Powersports maker BRP's Q1 results beat despite tariff impact

BRP

28/05/2026 11:11

Overview
Canada powersports maker's fiscal Q1 revenue rose 29.5% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Net income for fiscal Q1 declined 20.9% yr/yr due to FX and higher tax expense

Outlook
BRP sees FY27 revenue between C$9.125 bln and C$9.375 bln
Company expects FY27 normalized diluted EPS of C$3.00 to C$3.50
BRP expects Q2 normalized diluted EPS to be down C$1.60 to C$1.65 vs last year

Result Drivers
HIGHER ORV & PWC SHIPMENTS - Co said revenue growth was primarily driven by increased shipments of off-road vehicles and personal watercraft, as well as favorable product mix from new models and features
FAVORABLE PRICING & LOWER SALES PROGRAMS - Gross profit and margin rose due to higher volumes, lower sales programs and favorable pricing, partially offset by global tariffs
RETAIL SALES MIXED - North American retail sales fell 7% due to lower snowmobile volumes and PWC market share losses, partly offset by market share gains in ORV

Company press release: ID:nCNWdtRGha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$2.39 bln
C$2.12 bln (15 Analysts)
Q1 Adjusted EPS
Beat
C$1.83
C$1.18 (14 Analysts)
Q1 EPS
 
C$1.73
 
Q1 Adjusted Net Income
 
C$134.5 mln
 
Q1 Net Income
 
C$127.3 mln
 
Q1 Adjusted EBITDA
 
C$334.4 mln
 
Q1 Gross Profit
 
C$561.6 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 9 "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 23.9% above its May 27 closing price of C$80.29
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

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(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.)