BRP (DOO) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue grew 4% year-over-year to CA$1,888M, with net income up 36% to CA$57M and normalized diluted EPS at CA$0.92, despite a challenging North American retail environment and market share losses in some segments.

• Free cash flow increased 54% to CA$99M, and network inventory was reduced across all product lines, positioning for new product launches and future growth.

• Multiple new and upgraded products were introduced, including the Can-Am Defender, Outlander Electric, and a 300 hp Rotax engine for Sea-Doo Switch, receiving strong dealer and media feedback.

• Announced a definitive agreement for the sale of Manny 2, expected to close soon.

• Maintained #1 position in North American electric motorcycle industry.

Financial highlights

• Q2 revenue was CA$1,888.2M, up 4% year-over-year, with gross profit at CA$397.7M (21.1% margin), and normalized EBITDA at CA$213.2M, down 9% year-over-year.

• Normalized diluted EPS was CA$0.92, including CA$0.35 from tax credits; diluted EPS rose 44% to CA$0.79.

• Free cash flow from continuing operations was CA$100M; cash balance exceeded CA$270M.

• Operating income was CA$90.4M, down 25% year-over-year.

• Gross margin was 21.1%, down year-over-year due to lower capacity utilization, unfavorable mix, and tariffs.

Outlook and guidance

• FY26 guidance: revenue of CA$8.15–8.3B, normalized EBITDA of CA$1.04–1.09B, normalized EPS of CA$4.25–4.75, and net income of CA$430–470M.

• H2 revenue expected to grow 8–12%, with normalized EBITDA up 22–31% and margin above 14%.

• Guidance assumes CA$90M gross tariff impact and stable tariff environment.

• Q3 normalized EPS expected to be stable year-over-year, with most H2 growth in Q4.

• Capital expenditures for FY26 projected at CA$410–420M.