BRP (DOO) Analyst and Investor Day 2025 summary

Strategic Direction and Business Focus

• Launched the M28 plan, focusing on core Powersports by exiting Marine, reducing electrification investments, and pausing urban mobility to concentrate on higher-return opportunities.

• Targeting leadership in off-road vehicles (ORV), aiming for 30%+ market share in side-by-sides and 25%+ in ATVs by fiscal 2028.

• International growth prioritized, with a goal to reach $2.5 billion in international revenue and expand presence in Asia, Latin America, and EMEA.

• Emphasizing dealer and customer experience, aiming to become the OEM of choice for dealers and improve customer NPS by 20%+.

• Added agility to strategic pillars, reinforcing rapid adaptation in a volatile environment.

Financial Guidance and Targets

• Fiscal 2028 targets: ~$9.5 billion in revenue and ~$8 normalized EPS, representing a 7% CAGR in revenue and 33% CAGR in EPS from the current base.

• Positioned to exceed $10 billion in revenue and $10.00 EPS in a mid-cycle industry recovery.

• EBITDA margin expected to reach 17% mid-cycle, with potential to return to 21% as seen during COVID, driven by lean initiatives and higher ORV mix.

• CapEx expected to remain stable at around $410 million annually, focused on innovation and product development.

• No major changes in capital deployment; free cash flow may be used for M&A or buybacks, but plan assumes constant share count.

Operational Improvements and Efficiency

• Targeting $350 million in lean value by fiscal 2028, with $150 million already achieved in fiscal 2026.

• Accelerating time to market by 20%+ through modular product design, standardized components, and streamlined development.

• Manufacturing initiatives include continuous improvement culture, digital and AI-driven optimization, and employee-driven cost reduction ideas.

• AI applications in manufacturing have reduced scrap and are expected to deliver over $100 million in savings.

• Sustained high employee engagement and continuous improvement, with over 80,000 ideas generated annually.