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BRP
(TSX:DOO)
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Rating:53Neutral
Price Target:
C$86.00
▲(2.78% Upside)
Action:Reiterated
Date:09/15/26
The score is held back primarily by compressed profitability and high balance-sheet leverage, despite strong operating/free cash flow. Technical indicators are also negative with the stock trading below key moving averages and a negative MACD. The latest earnings call was a support (raised full-year guidance and strong ORV/SSV execution), but valuation is a notable headwind given the high P/E and modest yield.
Positive Factors
ORV and SSV Market-Share Gains
BRP is gaining share in important off-road categories while industry demand is mixed, indicating strong product-market fit and dealer execution. Continued momentum in utility SSVs and ATVs can support revenue resilience, improve scale economics, and reinforce Can-Am’s competitive position over the next several quarters.
Negative Factors
Very High Balance-Sheet Leverage
The stretched capital structure leaves BRP more sensitive to earnings volatility, cyclical demand, refinancing conditions, and interest costs. High leverage can restrict financial flexibility precisely when the company needs to fund product launches, absorb margin shocks, or sustain investment through a weaker recreational-vehicle cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
ORV and SSV Market-Share Gains
BRP is gaining share in important off-road categories while industry demand is mixed, indicating strong product-market fit and dealer execution. Continued momentum in utility SSVs and ATVs can support revenue resilience, improve scale economics, and reinforce Can-Am’s competitive position over the next several quarters.
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BRP (DOO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.60B
Dividend Yield1.23%
Average Volume (3M)254.24K
Price to Earnings (P/E)51.7
Beta (1Y)1.00
Revenue Growth19.87%
EPS GrowthN/A
CountryCA
Employees17,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)1.52
Shares Outstanding36,331,097
10 Day Avg. Volume242,490
30 Day Avg. Volume254,235
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)21.22
Price to Sales (P/S)0.65
P/FCF Ratio30.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$102.11Price Target Upside22.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.18
Revenue Forecast (FY)C$9.40B
BRP Business Overview & Revenue Model
Company Description
BRP Inc., along with its affiliates, designs, manufactures, distributes, and sells a wide array of powersports vehicles and marine equipment across an extensive international footprint that includes the United States, Canada, Mexico, various Europ...
How the Company Makes Money
null...
BRP Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
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.Positive Updates
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.
Negative Updates
Tariff and Trade Headwinds
Second-quarter results included an incremental net tariff impact of about CAD 145 million year over year. Tariffs reduced reported gross margin by approximately 740 basis points. BRP expects CAD 200 million of net tariff exposure this year and approximately CAD 225 million on an annualized basis, with the trade environment described as volatile and not yet predictable.
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Q2-2027 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
BRP increased its fiscal 2027 normalized EPS guidance by CAD 1 to a range of CAD 4 to CAD 4.50, with revenues between CAD 9.225 billion and CAD 9.475 billion, normalized EBITDA between CAD 1.025 billion and CAD 1.075 billion, and more than CAD 800 million of free cash flow; third quarter normalized EPS is expected to be down 50%-60% year-over-year, with tariffs within the range of CAD 30 million-CAD 35 million in Q3 and the remaining in Q4, while full-year net tariff exposure is expected to be CAD 200 million, representing approximately CAD 225 million of net tariff exposure on an annualized basis, and next year’s exposure is expected to be CAD 225 million, including about a CAD 60 million to CAD 65 million headwind from Spyder; inflation is expected to be a 100 to 125 basis points headwind, less promotion is expected to provide a positive tailwind of about 50 basis points, North American ORV industry growth is expected to be up low single in the H2 and for next year, and the Mission 28 objective of CAD 8 for next year is still very much reachable, net of tariffs.BRP Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.34B | 8.44B | 9.96B | 10.03B | 7.65B | 5.95B |
| Gross Profit | 1.92B | 1.89B | 2.63B | 2.50B | 2.13B | 1.55B |
| EBITDA | 859.70M | 971.00M | 1.81B | 1.67B | 1.45B | 995.50M |
| Net Income | 112.70M | 291.60M | 743.40M | 863.90M | 793.90M | 363.40M |
Balance Sheet | ||||||
| Total Assets | 6.64B | 6.32B | 6.78B | 6.46B | 5.03B | 4.89B |
| Cash, Cash Equivalents and Short-Term Investments | 647.80M | 427.10M | 491.80M | 202.30M | 265.80M | 1.33B |
| Total Debt | 3.00B | 2.68B | 2.95B | 3.02B | 2.19B | 2.65B |
| Total Liabilities | 6.30B | 5.71B | 5.96B | 5.92B | 5.16B | 5.36B |
| Stockholders Equity | 328.70M | 604.10M | 808.90M | 534.90M | -135.60M | -478.70M |
Cash Flow | ||||||
| Free Cash Flow | 1.09B | 738.30M | 942.10M | -52.20M | 87.90M | 608.80M |
| Operating Cash Flow | 1.39B | 1.04B | 1.49B | 548.80M | 716.80M | 862.10M |
| Investing Cash Flow | -325.50M | -318.40M | -574.90M | -853.40M | -687.70M | -260.30M |
| Financing Cash Flow | -695.90M | -486.00M | -629.20M | 291.00M | -1.09B | 675.90M |
BRP Technical Analysis
Neutral
83.67
Price Trends
83.19
Negative
84.19
Negative
88.35
Negative
Market Momentum
-1.05
Negative
55.53
Neutral
74.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DOO, the sentiment is Neutral. The current price of 83.67 is above the 20-day moving average (MA) of 78.58, above the 50-day MA of 83.19, and below the 200-day MA of 88.35, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DOO.
BRP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$16.53B | 20.91 | 14.41% | 1.41% | 5.44% | 4.67% | |
73 Outperform | C$5.40B | 7.75 | 10.96% | 1.34% | 9.32% | 227.52% | |
72 Outperform | C$24.76B | 23.43 | 6.14% | 3.04% | 1.59% | -35.21% | |
67 Neutral | C$10.72B | 15.91 | 11.53% | 3.52% | 1.05% | -6.66% | |
65 Neutral | C$661.26M | 5.53 | 7.89% | 2.12% | -2.65% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | C$5.60B | 51.66 | 20.51% | 1.23% | 19.87% | ― |
* Consumer Cyclical Sector Average
TSE:DOO
BRP
82.13
-9.85
-10.71%
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TSE:LNR
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88.48
13.82
18.52%
TSE:MRE
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9.48
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-6.61%
TSE:CCL.A
CCL Industries (A)
99.64
20.67
26.17%
TSE:CTC.A
Canadian Tire
208.25
40.71
24.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.