BRP (DOO) Q1 2026 earnings summary

Executive summary

• Revenues declined 7.7%–8% year-over-year to CA$1,847M, mainly due to lower shipments, industry softness, and inventory right-sizing.

• Net income rose to CA$161M, with diluted EPS up 278.8% to CA$2.19, mainly from FX gains and lower expenses, while normalized EPS fell 70% to CA$0.47.

• Free cash flow increased 34% to CA$162M, and network inventory was reduced by 21% year-over-year.

• Outperformed North American powersports industry at retail, with record Q1 retail sales in Canada, Brazil, Mexico, China, and EMEA distributor markets.

• CEO announced intention to retire by fiscal year-end; global search and succession plan underway.

Financial highlights

• Gross profit fell 24% to CA$395M, with gross margin dropping to 21.4% from 26.1% year-over-year.

• Normalized EBITDA reached CA$200.8M, down 35%; normalized EPS was CA$0.47, down from CA$1.58.

• Operating income fell 51% to CA$93.9M; normalized net income dropped 71% to CA$34.6M.

• Free cash flow from continuing operations rose to CA$162M, up from CA$120.7M.

• Net cash from operating activities increased to CA$214.5M from CA$141.4M.

Outlook and guidance

• No formal FY26 guidance issued due to ongoing tariff and macroeconomic uncertainty.

• Q2 financial performance expected to be similar to Q1, with further network inventory reduction planned.

• H2 could see double-digit top-line growth and improved EBITDA/EPS if retail trends hold.

• New product launches planned for August, expected to support H2 growth.

• Longer-term focus on core Powersports and innovation to drive sustained leadership.