BRP reports strong Q3 as new ORV lineup drives gains; dealers increasingly confident
BRP delivered a stronger-than-expected third quarter and raised its full-year outlook, driven by surging demand for its new ORV lineup — particularly the Can-Am Defender HD11 — which helped the company gain market share despite a highly promotional competitive environment.
“We are pleased with our third-quarter financial results, which came in ahead of expectations,” says outgoing CEO José Boisjoli. “Our teams remain focused on disciplined execution, and our hard work paid off. We also gained market share in ORV, fueled by the success of our newly introduced models.”
Revenue rose 14% to $2.3 billion (CAD), while normalized EPS climbed 33%. BRP also posted its strongest third quarter ever in side-by-side retail. The new 2026 utility lineup — including the Defender HD11 and the Outlander Backcountry 4×4/6×6 — was the standout of the quarter.
“The momentum for side-by-side is very strong,” Boisjoli shares. “It was our highest quarter ever in terms of retail. Dealers were extremely pleased with the ETV and side-by-side lineup, notably the HD11. The reception is very good, and units are selling every day.”
CFO Sébastien Martel highlighted significant cost improvements and operational efficiencies that helped expand gross margin by 210 basis points to 24.1%. Free cash flow hit $320 million, enabling BRP to reduce long-term debt.
“With our solid balance sheet and robust free cash flow generation, we are well-positioned to enhance the return of capital to shareholders,” Martel says.
Dealer sentiment
The company said dealer willingness to take on new inventory is increasing as supply normalizes and interest-rate cuts approach.
“When dealers look at their business, they are more willing to take on the new models,” Boisjoli says. “As we see rates come down and inventories lean out across all OEMs, dealer appetite is increasing.”
BRP’s network inventory is now down 17% year-over-year and 6% below pre-Covid levels, with especially strong reductions in three-wheel, PWC, Switch, and snowmobile.
“This positions our dealers with significant capacity to take on our newly introduced products as we ramp up production,” Martel says.
Industry outlook
BRP expects the ORV industry to remain “flatish” in calendar 2026, though high-end models continue to outperform entry-level units.
“High-end products are selling well, but on entry-level models, traffic is lighter and some OEMs are pushing harder on discounts,” Martel says.
Boisjoli added that BRP still expects to return to 30% ORV market share by FY28 under its M28 strategic plan.
Snowmobile segment
Snowmobile retail remains challenging due to heavy non-current discounting from other OEMs, according to BRP.
“About two-thirds of retail during the quarter were non-current units—a level we have not seen for many years,” Boisjoli says. “We lagged the industry as planned, given our lower non-current inventory, but we are outperforming in current units.”
Early snowfall in key regions is helping momentum early in the season.
FY26 guidance
Given strong dealer orders and stable macro assumptions, BRP now expects:
- FY26 revenue of ~$8.3 billion
- Normalized EBITDA of ~$1.1 billion
- Normalized EPS of ~$5
“With our successful product introductions, lean inventory levels, and improving dealer sentiment, we expect to carry strong momentum into FY27,” Martel says.
Boisjoli’s final earnings call
Boisjoli closed the call — his last as CEO — by emphasizing the company’s long-term position.
“We have built a strong organization, and I have no doubt that we are the best positioned in the industry,” he comments. “Our goal is to consistently wow consumers with innovative products and unbeatable experiences.”
