BRP stock rises after beating Q4 earnings estimates, but outlook is uncertain

From Yahoo Finance: 2025-03-26 09:43:00

BRP Inc. shares rose after reporting fourth-quarter results, with a 19.7% revenue decline to C$2.098 billion. Adjusted EPS fell to C$0.98, beating expectations at $0.69. Sales dropped due to weak demand and sales programs.

North American retail sales dipped 21% Y/Y, attributed to low industry volumes in Snowmobile and market share loss in Off-Road Vehicles. Year-Round Products revenues decreased 17.4% Y/Y, while Seasonal Products revenues dropped 28.9% Y/Y.

Gross profit decreased by 35.0% Y/Y to C$429.4 million, with a margin contraction of 480 bps to 20.5%. Normalized EBITDA also fell 44.6% Y/Y to C$239.8 million. BRP generated C$740.1 million in net operating cash flows for the year.

BRP declared a quarterly dividend of C$0.215 per share on March 25, payable on April 18. The company decided not to provide FY26 guidance due to global tariff disputes and trade regulation uncertainty. CEO José Boisjoli emphasized the company’s agility and strategic focus on Powersports. DOOO shares are up 8.81% at $38.67.

Read more: BRP Stock Climbs After Q4 Earnings Top Estimates, Outlook Held Back Amid Trade Uncertainty