EarningsQ2 2027 Earnings Report
DE:B15A Q2 2027 EPS Results
Actual EPS-€0.11
Consensus EPS-€0.43
Beat/MissBeat by +€0.31
One Year Ago EPS€0.59
DE:B15A Q2 2027 Revenue Results
Actual Revenue€1.43B
Expected Revenue€1.28B
Beat/MissBeat by +€143.51M
YoY Revenue Growth+18.46%
Earnings Announcement Details
QuarterQ2 2027
Date09/03/2026
TimeBefore Open
Conference CallThursday, September 3, 2026
DE:B15A Upcoming Earnings
BRP's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:B15A Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly constructive overall. BRP reported revenue growth, results ahead of expectations, strong ORV and market-share performance, healthy inventory, solid cash generation, new product momentum, and increased full-year guidance. These positives outweighed meaningful headwinds from tariffs, inflation, supplier restructuring, PWC weakness, and the expected third-quarter EPS decline.Company Guidance
Revenue Growth and Q2 Results Ahead of Expectations
BRP delivered second-quarter revenue of CAD 2.2 billion, normalized EBITDA of CAD 139 million, and normalized loss per share of CAD 0.18. Revenue grew 18%, primarily driven by higher ORV shipments, a favorable SSV product mix, and positive pricing net of programs. Results were ahead of expectations despite an incremental net tariff impact of about CAD 145 million compared with the second quarter of last year.
Strong Free Cash Flow and Balance Sheet
Free cash flow was CAD 193 million in the quarter and CAD 560 million year to date. BRP ended the quarter with more than CAD 600 million in cash and a net leverage ratio of 1.6 times, further strengthening its financial flexibility.
Healthy Dealer Inventory and Snowmobile Inventory Reduction
Dealer inventory remained healthy, up only 2% year over year. ORV inventory was described as being in a good place at approximately 100 days, while snowmobile inventory at the end of the season was down 30% versus a year ago. BRP also increased ORV availability and optimized the mix of current model-year units.
Strong North American SSV Performance
Second-quarter North American SSV retail increased mid-single digits, outpacing the industry, with utility cab retail growth of more than 30% driven by the new Defender HD11. BRP delivered its strongest-ever second quarter for utility SSV retail. For the full season, SSV retail grew high single digits versus industry growth of mid-single digits, while current model-year SSV market share increased by more than three points to an all-time high, with Can-Am capturing nearly one-third of units sold.
ATV Market Share Gains
North American ATV retail increased mid-single digits during the quarter while the industry declined low single digits, moving BRP into the number two position and within striking distance of the leader. For the full season, BRP retail grew low single digits while the industry declined low single digits. Current model-year ATV retail increased nearly 20%, making Can-Am the number one brand in the category, with share gains in the key mid- and high-CC segments.
International Retail Progress
EMEA market conditions continued to improve, particularly in ORV and PWC, supported by strong demand in Eastern Europe and Scandinavia. Asia Pacific industry retail grew low single digits, while BRP outperformed the industry with retail increasing 8% and further SSV market-share gains. Management also said international revenue in fiscal 2027 will almost reach the CAD 2.5 billion target previously pursued for last year.
Utility SSV Capacity Expansion
BRP is expanding capacity within its existing manufacturing footprint to meet higher-than-expected demand for cab units. The expansion is expected to increase throughput by roughly 33%, requires relatively limited CapEx, and primarily involves extending the building and reorganizing the physical production line.
Continued Investment in ORV Growth
BRP is continuing to invest in utility SSV cabs, the Defender lineup, manufacturing capacity, and new products. Management said the utility SSV cab segment has more than quadrupled over the past six years and now represents nearly half of the utility side-by-side industry.
New Product Launches and Innovation Pipeline
At Club BRP, the company introduced the fiscal 2027 Sea-Doo lineup, including the all-new Spark X and Sea-Doo RXP-X Senna 350 with the 350-horsepower Rotax 1630 ACE engine. BRP also introduced the Can-Am Ryker's most significant evolution since launch, new Defender HD10 and XU models, and meaningful upgrades across the ORV lineup. The Ryker will be the first model manufactured at BRP's new Vietnam facility.
Long-Term Off-Road Product Commitment
BRP committed to introducing major off-road product news every six months for the next four years. The company also presented the Defender Prerunner and Maverick R XRay concepts, while explicitly stating that neither concept was a production announcement.
BRP Financial Services Launch
BRP launched its new U.S. retail financing program, BRP Financial Services, to provide a seamless financing experience, strengthen dealer and consumer relationships, and improve customer insight. After two weeks, 90% of the dealer network had signed up and the program was already originating loans.
Full-Year Guidance Increased
BRP increased normalized EPS guidance by CAD 1 to CAD 4 to CAD 4.50. Updated fiscal 2027 guidance calls for revenue of CAD 9.225 billion to CAD 9.475 billion, normalized EBITDA of CAD 1.025 billion to CAD 1.075 billion, and more than CAD 800 million of free cash flow.
Improved Net Tariff Exposure
The company now expects Section 232 and 338 net tariff exposure of CAD 200 million for the year, representing approximately CAD 225 million on an annualized basis. Management said the improved exposure, including the reduced ATV tariff rate and the mix shift toward models not subject to Section 232 tariffs, supported the guidance increase.
Underlying Gross Margin Improvement
Reported gross profit was CAD 263 million, with an 11.7% margin. Excluding the approximately 740-basis-point tariff headwind and the approximately 330-basis-point one-time supplier restructuring impact, gross profit margin would have increased approximately 140 basis points year over year. The improvement included 110 basis points from fixed-cost leverage, 80 basis points from pricing, and 110 basis points from manufacturing efficiencies.
Mission 28 Execution and Dealer Expansion
Management said Mission 28 fundamentals remain in place, including dealer network expansion, ORV market-share gains, product introductions, and lean initiatives. BRP added 36 dealerships last year versus a target of 30, has already signed 20 dealerships this year, and is targeting approximately 40 additions this year. Management said the Mission 28 objective of CAD 8 for next year remains reachable net of tariffs.
Potential Additional Share Buybacks
BRP said its strong free cash flow provides flexibility for capital deployment. With another NCIB window opening in early December, the company could deploy an additional CAD 200 million toward buybacks from then through year-end if it decides to execute.
CFO Succession Plan
Sébastien Martel announced his retirement after more than 22 years with BRP and will remain as an executive advisor until April 2027. Minh Thanh Tran will become CFO on October 1, 2026, supported by a transition period with Martel. Management highlighted Tran's experience in corporate strategy, mergers and acquisitions, transformation, product strategy, ERP implementation, Mission 28, and manufacturing expansion in Asia.
DE:B15A Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed