BRP’s Q2 FY26 revenue growth, new products, and inventory reset signal market momentum
BRP Inc. reported second-quarter fiscal 2026 results that exceeded expectations, backed by strong product launches and progress on inventory management, setting a positive tone for dealers heading into the second half of the year.
Financial Highlights – Q2 FY26:
- Revenue: $1.89 billion, up 4.3% year-over-year
- Net Income: $57.1 million, up 36%
- Normalized EBITDA: $213.2 million, down 9.2%
- North American Retail Sales: Down 11%, reflecting softer PWC and SSV markets
Product momentum
BRP continues to energize dealers with several industry-first launches:
- New Can-Am Defender SSV
- Can-Am Outlander Electric ATV
- Can-Am Outlander MAX 6×6 – Ultimate Utility ATV
- Sea-Doo Switch with 300 hp Rotax Engine
“Dealer sentiment is strong following our recent event. With healthier inventory levels and our expanded product portfolio, BRP is positioned to benefit as the industry rebounds,” — José Boisjoli, BRP President and CEO.
Regional sales performance
- Canada: +4% Y/Y
- U.S.: -15% Y/Y
- Latin America: +22%, led by Brazil and Mexico
- Asia-Pacific: +5%, driven by Australia and China
North American retail sales
The company’s North American retail sales decreased by 11% for the three-month period ended July 31, 2025, compared to the same period last year. The decrease is primarily attributed to PWC’s market share loss in a softer industry and SSV’s market share decline due to lower non-current unit availability.
- North American Year-Round Products retail sales decreased on a percentage basis in the high-single digits compared to the three-month period ended July 31, 2024. The Year-Round Products industry sales decreased on a percentage basis in the low-single digits over the same period.
- North American Seasonal Products retail sales decreased on a percentage basis in the high-teens range compared to the three-month period ended July 31, 2024. The Seasonal Products industry sales decreased on a percentage basis in the mid-teens range over the same period.
Analyst insight
Martin Landry of Stifel Canada noted the Q2 EPS beat expectations and emphasized that BRP’s improved inventory position gives management confidence in FY26 guidance.
“The North American market remains soft, but easing interest rates could bring lower-income consumers back to stores,” Landry says. He highlighted international sales growth as a potential catalyst and suggested that BRP’s divestment of the low-margin marine business could allow EBITDA margins to rebound to 17% in the near term, with long-term EPS potential of $8–$10.
Inventory and operations
BRP has completed most of its multi-year inventory reduction, down 20% from last year. The gross margin remained at 21.1%, while operating expenses increased due to higher marketing and R&D investments.
Outlook
BRP’s full-year FY26 guidance projects revenues of $8.15–$8.3 billion. Dealers can expect continued support from BRP’s comprehensive product lineup, strong dealer network, and international market growth.
