BRP tops Q4 expectations as strong retail, new products drive momentum into FY27
BRP Inc. closed out fiscal 2026 with stronger-than-expected fourth-quarter results, fueled by new product momentum, retail growth, and market share gains in key North American segments — trends that analysts say should carry into the new model year.
For BRP dealers, the takeaway is clear: retail demand remains resilient, inventory is improving, and fresh product introductions — particularly in side-by-sides and ATVs — are driving showroom traffic.
Retail strength, product mix lift Q4
BRP reported fourth-quarter revenue of $2.46 billion (CAD), up 16% year-over-year, driven by a favorable off-road vehicle (ORV) mix and increased shipments of both ORVs and personal watercraft.
North American retail sales rose 12% in the quarter, with gains led by snowmobiles — aided by improved snow conditions — and continued share growth in both ORV and snowmobile segments.
CEO Denis Le Vot pointed to new product launches as a key catalyst.
“In the fourth quarter, we recorded a strong retail performance in ORV and snowmobiles in North America, fueled by the success of our new product introductions,” Le Vot says.
That product momentum is particularly relevant for dealers, as BRP’s lineup updates are translating directly into retail gains — especially in competitive categories like ATVs and side-by-sides.
Analyst: Momentum driven by new units
Martin Landry, managing director at Stifel Canada, said BRP’s quarter exceeded expectations, with earnings supported by stronger-than-anticipated revenue and disciplined cost control.
“Sales were boosted by successful product introductions, such as the new Defender side-by-side and new ATVs,” Landry notes, highlighting the impact of BRP’s latest launches on dealer floors.
According to Landry, the company is seeing notable share gains in North America, particularly in ATVs, where BRP retail sales increased in the low-teens percentage range despite overall industry softness.
He also pointed to a standout performance from the new Defender HD11 side-by-side, which helped drive ORV share gains and should continue contributing through the first half of fiscal 2027.
Inventory improves
BRP ended the fiscal year with North American network inventory down 17% year-over-year — a key metric for dealers following several years of elevated inventory levels. The reduction signals improved alignment between supply and retail demand, helping support pricing and margins at the dealership level.
At the same time, BRP reported higher gross margins in the quarter, benefiting from favorable pricing and product mix, though partially offset by tariffs, warranty costs and provisions tied to its electric vehicle (EV) business.
EV challenges persist
One notable headwind in the quarter was a $232.5 million impairment tied to BRP’s electric vehicle and light mobility assets, reflecting broader challenges in the EV and micromobility space. While the charge weighed on operating income, it did not overshadow the company’s core powersports performance, which remains the primary driver for dealers.
FY27 outlook: Strong start expected
Looking ahead, BRP is guiding for continued growth in fiscal 2027, with revenue expected to reach between $8.9 billion and $9.15 billion (CAD). The company is forecasting a particularly strong start to the year, with first-quarter EBITDA projected to increase by roughly 40% year-over-year.
Landry said that front-loaded strength should provide confidence in the company’s outlook.
“This creates a front-end loaded guidance, reassuring investors,” he notes, adding that current trends could push results toward the higher end of guidance if momentum holds.
Dealer traffic remains resilient
Despite macro concerns, including higher fuel prices and geopolitical uncertainty, BRP and its analysts report that dealership traffic has remained steady. That resilience is an encouraging sign for dealers heading into the 2027 model year, particularly as new units continue to drive interest and conversion.
Full-year performance
For the full fiscal year, BRP reported revenue of $8.44 billion, up 6.8%, while normalized earnings also increased. The company exceeded its revised guidance for the year, underscoring its ability to navigate a challenging operating environment. Le Vot emphasized that BRP’s strategy moving forward will focus on innovation, disciplined inventory management and execution of its long-term growth plan.
What it means for dealers
For dealers, BRP’s results point to several key trends:
- New products are driving retail growth, especially in side-by-sides and ATVs
- Inventory levels are normalizing, improving margin stability
- Retail demand remains solid, even amid economic uncertainty
- Momentum is expected to continue into early FY27, with a strong first quarter projected
With fresh product cycles hitting showrooms and inventory levels in a healthier position, BRP dealers appear well-positioned to capitalize on continued demand heading into the new selling season.
