BRP (DOO) Q3 2026 earnings summary

Executive summary

• Q3 results exceeded expectations with revenue up 14% year-over-year, driven by strong ORV sales and successful new product launches, including record October retail in SSV and ATV.

• Net income rose 150% to $77M, normalized EBITDA increased 21% to $326M, and normalized EPS reached $1.59.

• Guidance for FY26 was raised to approximately $5 normalized EPS and $8.3 billion in revenue.

• Strategic focus on innovation, lean inventory, and dealer engagement underpins confidence in long-term growth, with the M28 plan targeting $9.5B in revenue and $8.00 EPS by FY28.

• Network inventory rightsizing mostly completed, positioning for improved alignment of shipments and retail.

Financial highlights

• Revenue up 14% year-over-year to $2.25B, driven by higher ORV shipments and favorable mix.

• Gross profit reached $541M, margin of 24.1%, up 210 bps, aided by cost improvements and favorable pricing.

• Normalized EBITDA grew 21% to $326M; normalized EPS up 33% to $1.59.

• Free cash flow from continued operations was $320M, up 268% year-over-year.

• Operating income up 45% to $203M; operating margin improved.

Outlook and guidance

• FY26 guidance raised: revenue of about $8.3B, normalized EBITDA of up to $1.1B, and normalized EPS of about $5.00.

• Expectation for double-digit normalized EPS growth in FY27, supported by product launches and lean inventory.

• Long-term target for FY28: $9.5B in revenue and $8.00 normalized EPS.

• Guidance incorporates ~$90M estimated tariff impact.

• Industry retail for ORV expected to remain flat in calendar 2026; snowmobile season outlook depends on snowfall.