BRP (DOO) investor relations material

Executive summary

• Revenues rose 30% year-over-year to CA$2.4 billion, driven by higher ORV and PWC shipments and favorable product mix.

• Normalized EBITDA increased 67% to CA$334 million, with normalized diluted EPS surging to CA$1.83.

• Net income was CA$127 million, down 21% year-over-year due to higher costs, tariffs, and FX impacts.

• Q1 results exceeded expectations, supported by strong retail momentum, disciplined cost management, and favorable promotional environment.

• North American Powersports retail sales declined 7% year-over-year, with market share gains in ORV but losses in PWC.

Financial highlights

• Gross profit reached CA$562 million, with a margin of 23.5%, up 210 basis points year-over-year.

• Operating income rose 140% to CA$225.5 million.

• Free cash flow for Q1 was CA$367.3 million, up from CA$201.3 million year-over-year.

• Normalized net income surged 288.7% to CA$134.5 million.

• Net leverage ratio stood at 1.4x at quarter end.

Outlook and guidance

• FY27 revenue guidance revised to CA$9.125–CA$9.375 billion, with normalized EBITDA at CA$925–CA$975 million and normalized EPS at CA$3.00–CA$3.50.

• Guidance incorporates incremental tariff costs of CA$500–CA$550 million, partially offset by CA$200 million in mitigation measures.

• Free cash flow expected to exceed CA$600 million for the year.

• Q2 FY27 normalized diluted EPS projected to decline by CA$1.60–CA$1.65 year-over-year due to tariffs, shipment timing, and prior-year tax credits.

• Capital expenditures planned at CA$390 million.