BRP (DOO) investor relations material

Executive summary

• Q2 FY27 revenues rose 18.5% year-over-year to $2,236.8M, driven by higher ORV shipments and favorable SSV mix, despite significant tariff headwinds.

• Net loss was $136.8M, down $193.9M from last year, mainly due to lower gross profit, tariffs, supplier restructuring, and FX losses on US-denominated debt.

• Normalized EBITDA fell 34.9% to $138.8M, reflecting lower gross profit and higher operating expenses.

• North American Powersports retail sales increased 1% year-over-year, with market share gains in ORV, ATV, and PWC.

• Announced CFO succession: Sébastien Martel retiring, Minh Thanh Tran to assume CFO role effective October 1, 2026; major product launches every six months for four years.

Financial highlights

• Gross profit dropped 34.0% to $262.5M; gross margin fell to 11.7% from 21.1% due to tariffs and a one-time supplier restructuring.

• Normalized diluted loss per share was $0.18; net loss per share was $1.88.

• Free cash flow for Q2 was $193M, up 96% year-over-year; six-month free cash flow reached $559.4M.

• Operating loss was $50.0M, compared to $90.4M operating income last year.

• Share repurchases totaled $151M and dividends paid $18M in Q2; $231.7M returned to shareholders in six months.

Outlook and guidance

• FY27 revenue guidance raised to $9,225M–$9,475M; normalized EBITDA $1,025M–$1,075M; normalized EPS $4.00–$4.50.

• Q3 normalized EPS expected down 50–60% year-over-year due to tariffs, with stronger Q4 anticipated.

• Free cash flow for the year expected to exceed $800M.

• Net income guidance lowered to $160M–$195M.

• Capital expenditures projected at $450M for FY27.