The strong revenue and gross margin beat is overshadowed by the massive tariff cost headwind (>$500M for FY2027) and declining retail sales (-7%). Monitor upcoming quarters for tariff mitigation updates and retail demand trends. The NCIB buyback provides modest support but does not offset the fundamental tariff risk.
Price Chart
Executive Summary
BRP reported Q1 FY2027 results with total revenues of $2,391.8M, up 29.5% YoY, driven by higher ORV and PWC shipments. Gross profit margin improved 210bps to 23.5%. However, net income from continuing operations fell 20.9% to $127.3M due to an unfavorable FX loss on USD-denominated debt and higher taxes. North American retail sales declined 7% YoY. The company disclosed that incremental tariff costs from Section 232 amendments are expected to exceed $500M for FY2027, creating significant headwinds.
Key Facts
- Total revenues increased 29.5% YoY to $2,391.8M (from $1,846.9M)
- Gross profit margin improved 210bps to 23.5% (from 21.4%)
- Net income from continuing operations decreased 20.9% to $127.3M (from $161.0M)
- Diluted EPS from continuing operations fell to $1.73 (from $2.19)
- Normalized diluted EPS surged 289.4% to $1.83 (from $0.47)
- North American retail sales declined 7% YoY
- Incremental tariff costs from Section 232 amendments expected to exceed $500M for FY2027
- Free cash flow increased to $367.3M (from $201.3M)
- Company repurchased 438,200 shares for $44.5M under NCIB
- Quarterly dividend declared at $0.25 per share
Financial Impact
Revenue growth of $544.9M (+29.5%) but net income decline of $33.7M (-20.9%); tariff headwind >$500M for FY2027
Risk Factors
- Potential incremental tariff costs exceeding $500M for FY2027 from Section 232 amendments
- North American retail sales declining 7% YoY with market share losses in PWC
- Unfavorable FX impact on net income from USD-denominated debt
- Higher effective tax rate (27.2% vs 8%) reducing net income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-242966 |
| Document: d111006dex991.htm | 0001193125-26-242966 |
| Document: d111006d6k.htm | 0001193125-26-242966 |
| Document: d111006dex994.htm | 0001193125-26-242966 |
| Document: d111006dex993.htm | 0001193125-26-242966 |
| Document: 0001193125-26-242966-index-headers.html | 0001193125-26-242966 |
| Document: 0001193125-26-242966-index.html | 0001193125-26-242966 |
| Document: 0001193125-26-242966.txt | 0001193125-26-242966 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 20d ago | SC 13G/A | $55.66 | awaiting T+20 | — | $59.90 (+7.62%) |
Sep 3, 2026 7w ago | 6-K | $64.22 $56.01 | ▲ +12.79% | ▲ +11.60% | $59.90 (+6.73%) |
Sep 1, 2026 8w ago | Press Release | $61.74 $56.12 | ▼ −9.10% | ▼ −9.42% | $59.90 (−2.98%) |
Aug 21, 2026 9w ago | Institutional Cluster | $68.04 $58.16 | ▼ −14.52% | ▼ −13.99% | $59.90 (−11.96%) |
Jun 11, 2026 19w ago | Institutional Cluster | $59.12 $58.68 | ▲ +0.74% | ▲ +2.64% | $59.90 (−1.32%) |
May 28, 2026 21w ago | 6-K | $58.57 $62.32 | ▼ −6.40% | ▼ −9.55% | $59.90 (−2.27%) |
May 28, 2026 21w ago | 6-K | $58.57 $62.32 | ▲ +6.40% | ▲ +9.55% | $59.90 (+2.27%) |
Apr 22, 2026 26w ago | 6-K | $56.49 $54.17 | ▼ −4.11% | ▼ −7.27% | $59.90 (+6.04%) |
Mar 26, 2026 30w ago | 6-K | $67.08 $56.78 | ▼ −15.36% | ▼ −26.02% | $59.90 (−10.70%) |
Mar 11, 2026 33w ago | Court Ruling | $63.47 $75.76 | ▲ +19.36% | ▲ +17.07% | $59.90 (−5.63%) |
US Market Status
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