“We are an innovation machine and a profitability machine,” claims BRP’s CFO Sebastien Martel. Highlighting the company’s dual focus, he says: “The priority has always been protecting the financial flexibility of the company, and we are fortunate we are in a good position.. . Currently, being prudent has been the name of the game, and we’re going to continue managing our balance sheet that way.”
This comes as BRP releases its second quarter results for fiscal year 2026. The company, which manufactures and sells powersports and marine products, says it’s enjoying revenues of CAD$1,888.2 million, an increase of 4.3 per cent compared to last year and a net income of CAD$57.1 million, an increase of 36.0 per cent compared to last year.
Normalised EBITDA is CAD$213.2 million, a decrease of 9.2 per cent compared to last year.
The company’s North American retail sales were down 11 per cent for the three-month period ending 31 July, compared to the same period last year. The decrease stems from PWC (personal watercraft) market share loss in a softer industry, and SSV (side-by-side off-road vehicle) market share loss, due to lower non-current unit availability.
Within watercraft, Jose Boisjoli, president and CEO points out that premium models are selling well versus value product. “Obviously, the inflation, the high financing rate, the uncertainty [has] put some pressure on the lower income customers, and we see the premium selling well versus the value product.” This is the same trend he saw in the last two quarters.
“But we are well positioned because, as you know, we’re better in the high-end product than the entry level.”
Boisjoli notes that in the watercraft industry: “Recreational product for recreational-only activity is still good.” But he says BRP has also done well out of its specialised vehicles, like WakePro (for watersking), the Explorer (long-distance rides) and FishPro (pictured above and used by – unsurprisingly – anglers . . . model details are available on BRP’s website). “This is tailored to activity, which brings new customers to the industry.”
Boisjoli says that others entering this territory – like Yamaha – can help accelerate the development of people who fish into the watercraft category. “I welcome the initiative. I mean if we could continue because we are the two main players to grow the industry, I think it will be better for both of us, and we’re not afraid of the competition. It’s pushing us to be better and to be more competitive. We like competition.” The company recently sold 100 per cent of the outstanding shares of Telwater, an Australian aluminium boat manufacturer it owned, to Yamaha Motor Australia, a subsidiary of Yamaha Motor.
PWC sales are “slightly lagging the industry,” he says. “Switch pontoon retail was down mid-twenty per cent as the industry is still going through a correction period. Sea Doo had a better performance in international market, with sales holding steady in Asia Pacific and growing low single digit in Latin America.”
Boisjoli says the company is working hard to mitigate against tariff exposure. Depending on the regulation and where the goods are coming from makes all the difference. “Basically, it’s sourcing. . . Sometimes we move the production or the supplier from one country to another. I saw some ideas from our team where a supplier was doing an assembly from parts coming from Asia, and now we’re doing it ourselves in our factory. There is many, many things that we do to be able to minimise the impact of those tariffs.”
“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.”
The latest set of financial results are for the three – and six – month periods ended 31 July 31 2025. During this period, BRP launched its 300 hp Rotax engine on certain Sea-Doo Switch models.
“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,” Boisjoli concludes.
BRP’s 2Q results for 2025 in detail
The company’s three-month period ended 31 July 2025. It was marked by a slight increase in revenues compared to the three-month period ended 31 July 2024. The volume of shipments was comparable to last year as ORV deliveries were higher than last year’s quarter where the company reduced network inventory levels, partially offset by lower PWC shipments. Gross profit and gross profit margin were also comparable to last year, driven by favourable impacts of pricing and production efficiencies, which were offset by unfavourable impacts of global tariffs mainly on PA&A. All financial information is in Canadian dollars unless otherwise noted.
Revenues increased by $77.1 million, or 4.3 per cent, to $1,888.2 million for the three-month period, compared to $1,811.1 million for the corresponding period ended 31 July 2024. The increase in revenues was primarily due to a higher volume of ORV and PA&A sold, as well as favourable pricing across all product lines. The increase was offset by a lower volume of PWC sold. The increase includes a favourable foreign exchange rate variation of $15 million.
Revenues from year-round products increased by $128.8 million, or 13.1 per cent, to $1,113.8 million for the three-month period ended 31 July 2025, compared to $985.0 million for the corresponding period ended 31 July 31 2024. The increase was primarily attributable to a higher volume of units sold and favourable product mix across most product lines, as well as favourable pricing across all product lines. The increase was partially offset by a lower volume of units sold, unfavourable product mix and higher sales programs on 3WV. The increase includes a favourable foreign exchange rate variation of $8 million.
Revenues from seasonal products decreased by $72.1 million, or 13.3 per cent, to $469.7 million for the three-month period ended 31 July 2025, compared to $541.8 million for the corresponding period ended 31 July 2024. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold in PWC and higher sales programs in Snowmobile. The decrease was partially offset by favourable product mix in PWC and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $2 million.
Revenues from PA&A and OEM engines increased by $20.4 million, or 7.2 per cent, to $304.7 million for the three-month period ended 31 July 2025, compared to $284.3 million for the corresponding period ended 31 July 2024. The increase in revenues from PA&A and OEM engines was primarily attributable to a higher volume of PA&A sold and favourable pricing across all product lines. The increase also includes a favourable foreign exchange rate variation of $5 million.
Gross profit decreased by $1.6 million, or 0.4 per cent, to $397.7 million for the three-month period ended 31 July 2025, compared to $399.3 million for the three-month period ended 31 July 2024. Gross profit margin percentage decreased by 90 basis points to 21.1 per cent for the three-month period ended 31 July 2025, compared to 22.0 per cent for the three-month period ended 31 July 2024. The gross profit and gross profit margin were comparable to last year, driven by favourable impacts of pricing and production efficiencies, which were offset by the unfavourable impacts of global tariffs mainly on PA&A. The slight decrease in gross profit includes a favourable foreign exchange rate variation of $7 million.
Operating expenses increased by $28.6 million, or 10.3 per cent, to $307.3 million compared to $278.7 million for the three-month period ended 31 July 2024. The increase in operating expenses was mainly attributable to higher R&D expenses due to the recognition of R&D subsidies from prior years during the three-month period ended 31 July 2024, and higher G&A expenses due to a special long-term incentive program during the three-month period ended July 31, 2025. The increase was partially offset by lower restructuring and reorganisation costs. The increase in operating expenses includes an unfavourable foreign exchange rate variation of $4 million.
Normalised EBITDA decreased by $21.7 million, or 9.2 per cent, to $213.2 million compared to $234.9 million in the similar 2024 period.
Net income increased by $15.1 million, or 36.0 per cent, to $57.1 million, compared to $42.0 million for the same period in 2024. The increase in net income was primarily due to a lower income tax expense mainly due to the recognition of tax incentives related to prior years. The increase was partially offset by lower operating income, resulting from higher operating expenses.
Net loss decreased by $1.2 million, or 3.4 per cent, to $(33.6) million for the three-month period ended 31 July 2025, compared to $(34.8) million for the three-month period ended 31 July 2024. The decrease in net loss was primarily due to a higher volume of units sold, lower sales programs, and lower operating costs.
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