BRP posts strong results in Q1, but North American retail sales dip
BRP reported stronger-than-expected first-quarter fiscal 2027 results, driven by higher off-road vehicle shipments, favorable product mix and disciplined inventory management. However, the company must still navigate ongoing tariff pressures.
The parent company of Can-Am, Sea-Doo, Ski-Doo and Lynx generated revenue of CA$2.39 billion during the quarter ended April 30, a 29.5% increase from the same period a year ago. Normalized EBITDA rose 66.5% to CA$334.4 million as gross margins improved and promotional activity eased compared with last year.
“We delivered Q1 financial results above expectations, driven by higher volumes, disciplined cost management, strong overall execution and a more favorable promotional environment,” says Denis Le Vot, president and CEO of BRP. “We also sustained our solid retail momentum across key ORV segments, as new product introductions in the second half of last year contributed to additional market share gains.”
For dealers, one of the most encouraging indicators was BRP’s continued focus on inventory discipline. During the earnings call, executives reported dealer inventory was down 3% year-over-year, reflecting what the company described as improved alignment between wholesale shipments and retail demand.
North American retail sales, however, declined 7% overall during the quarter. The comparison was heavily affected by a strong snowmobile season the year before. Excluding snowmobiles, BRP reported North American retail sales increased approximately 2%.
The company said its year-round products business, which includes Can-Am off-road vehicles, continued to outperform the overall market. North American year-round product retail sales increased at a mid-single-digit rate while the industry grew only in the low-single digits. BRP also reported market share gains in the ORV segment, including a three-point gain in premium side-by-side models.
Meanwhile, the personal watercraft segment faced continued pressure from elevated levels of discounted carryover inventory across the industry.
Despite broader economic concerns and uncertainty surrounding tariffs, BRP executives said consumer demand remains resilient in many key categories.
“We haven’t seen significant shifts in demand, particularly in North America,” CFO Sébastien Martel told analysts during the earnings call. He noted that ORV trends remain strong and that snowmobile pre-orders are up roughly 50% from a year ago.
International markets also contributed to the quarter’s performance. BRP reported retail sales growth of 10% in Europe, the Middle East and Africa, while Latin American sales increased 7%, led by record performances in Brazil and Mexico.
While the quarter exceeded expectations, tariffs remain a significant concern for the manufacturer. BRP revised its fiscal 2027 outlook to incorporate expected tariff-related costs, though executives emphasized that mitigation efforts are already underway.
“As tariff policies shifted significantly during the quarter, our teams moved quickly to define mitigation measures to reduce their impact,” Le Vot notes. “Looking ahead, we are focused on navigating these headwinds while also protecting our long-term growth prospects.”
Management said its strategy to handle the headwinds includes improving operational efficiencies, selective pricing actions, reduced discretionary spending and prioritization of key growth investments. Executives indicated they are avoiding drastic long-term manufacturing changes until trade policies become clearer.
Despite the tariff uncertainty, BRP maintained a positive outlook for its dealer network and product portfolio.
“Thanks to our engaged dealer network, valued suppliers and leading-edge product lineups, we are confident in our ability to further strengthen our position in the future,” Le Vot adds.
BRP now expects fiscal 2027 revenue to range between CA$9.1 billion and CA$9.4 billion. The company also expects to generate more than CA$600 million in free cash flow during the year while continuing to invest in new products, technology and dealer support initiatives.
