BRP (DOO) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was challenging due to a tough macroeconomic environment, softer industry and consumer demand, and proactive inventory reduction, with a focus on operational discipline and Powersports.

• The company initiated the sale of its Marine business, now classified as discontinued operations, to refocus on core Powersports and improve its long-term financial profile.

• Several new models and innovations were launched, with continued investment in product development and operational efficiency, and 17 design awards won despite short-term market share loss.

• Delivered financial results within revised guidance, emphasizing operational agility, cost structure improvements, and disciplined execution.

Financial highlights

• Fiscal 2025 revenue was $7.83 billion, down 21% year-over-year, with normalized EBITDA at $1.04 billion and normalized EPS at $4.68, all within revised guidance.

• Net income for FY25 was $62.7 million, a 93% decrease from the prior year; Q4 net loss was $44.5 million.

• Q4 revenue declined 20% year-over-year to $2.1 billion, with gross profit at $429 million and a margin of 20.5%.

• Free cash flow for FY25 was $313.7 million, supporting $277 million in dividends and share repurchases.

Outlook and guidance

• Fiscal 2026 began with leaner inventory, a right-sized cost structure, and a focus on Powersports, positioning for potential top-line growth and margin improvement.

• No formal FY26 guidance issued due to ongoing tariff disputes, geopolitical uncertainty, and soft demand.

• Q1 EPS expected to be down about 70% year-over-year on a continuing operations basis.