BRP (DOO) Q1 2026 earnings summary

Executive summary

• Revenues declined 7.7%–8% year-over-year to CA$1,847M, mainly due to lower shipments, softer industry trends, and inventory right-sizing.

• Net income surged to CA$161M, up 278.8%, driven by FX gains and lower operating expenses, while normalized diluted EPS fell 70% to CA$0.47 due to non-recurring items.

• Free cash flow increased 34% to CA$162M, and network inventory was reduced by 21% year-over-year.

• Outperformed North American powersports retail, especially in Canada and Latin America, despite softness in the US, EMEA, and Asia-Pacific.

• CEO succession plan announced, with a global search underway.

Financial highlights

• Gross profit fell 24% to CA$395M, with gross margin dropping to 21.4% from 26.1% year-over-year.

• Normalized EBITDA declined 34.7% to CA$200.8M; normalized EPS was CA$0.47, down from CA$1.58.

• Operating income fell 51% to CA$93.9M.

• Free cash flow from continuing operations rose to CA$162M, up from CA$120.7M.

• Net cash from operating activities increased to CA$214.5M from CA$141.4M.

Outlook and guidance

• No formal FY26 guidance issued due to macroeconomic and tariff uncertainty.

• Q2 expected to be the last quarter of significant network inventory reduction, with financial performance similar to Q1.

• New product launches at the August Dealer Event and leaner inventory position expected to drive H2 momentum and possible double-digit growth if retail trends hold.