Highlights

- Revenues of $2,236.8 million, an increase of 18.5% compared to last year, primarily driven by higher ORV shipments and favourable SSV mix;

- Net loss of $136.8 million, a decrease of $193.9 million compared to last year;

- Normalized EBITDA [1] of $138.8 million, a decrease of 34.9% compared to last year;

- Normalized diluted loss per share [1][2]of $0.18, a decrease of $1.10 per share, and diluted loss per share of $1.88, a decrease of $2.67 per share, compared to last year;

- North American Powersports retail sales increased by 1% compared to last year;

- Market share gains for ORV in North America;

- Increasing full year-end guidance for Normalized diluted earnings per share [1][2] at $4.00 to $4.50;

- The Company announces planned financial leadership transition.

Recent events – Highlights from Club BRP 2027

- Demonstrating its ambition to become North America's leading off-road brand, the Company committed to major product announcements every six months for the next four years.

- The Company continued to bolster its offering with several industry-firsts and innovative products, namely the all-new limited-edition Sea-Doo RXP-X Senna 350 equipped with the most powerful PWC engine from the factory, an upgraded Spark lineup delivering more horsepower and the addition of the new Spark X model with premium features, the second-generation Can-Am Defender HD10 as well as the most significant evolution of the Can-Am Ryker platform since its initial launch.

- The Company also launched BRP Financial Services, its new branded retail financing program in the United States.

VALCOURT, QC, Sept. 3, 2026 /CNW/ -- BRP Inc. (TSX: DOO) (NASDAQ: DOO) today reported its financial results for the three- and six-month periods ended July 31, 2026. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on SEDAR+ and EDGAR as well as in the section Quarterly Reports of BRP's website.

"Our second-quarter financial results exceeded expectations, reflecting disciplined execution and increased ORV shipments to support sustained retail momentum. Given our strong performance in ORV leading to additional market share gains, and reduced net tariff costs, we are raising our full-year guidance," said Denis Le Vot, President and CEO of BRP.

"Looking ahead, we remain focused on navigating through the volatile geopolitical and trade environment and advancing our long-term growth prospects. Our recent Club BRP dealer event allowed us to showcase innovative initiatives that strengthen our competitive position, including a commitment to releasing major off-road product news every six months for the next four years. This will be instrumental in achieving our goal of making Can-Am the number one ORV brand in North America and being the undeniable OEM of choice for dealers and riders," concluded Mr. Le Vot.

FISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK

The Company has increased its FY27 guidance as follows, which supersedes all prior financial guidance statements made by the Company:

Other assumptions for FY27 Guidance

FY27 Quarterly Outlook [6]

The Company expects Q3 Fiscal 2027 Normalized diluted earnings per share [1] to be down approximately 50% to 60% versus the same three-month period in Fiscal 2026, mainly due to the increased tariff impact.

SECOND QUARTER RESULTS

The three-month period ended July 31, 2026 marked the second consecutive quarter of Fiscal 2027 with double-digit revenue growth compared to the same period last year. The increase in revenues was primarily driven by higher ORV shipments to support retail demand and a favourable SSV mix resulting from the introduction of new models. Revenue growth was partially offset by lower PWC deliveries, mostly reflecting units that were shipped earlier in the first quarter. Gross profit and gross profit margin decreased compared to last year, primarily due to the impacts of Section 232 tariffs on Steel, Aluminum and Copper imports into the United States, as well as the effect of a supplier financial restructuring. The supplier financial restructuring represented an unfavourable impact of $74.8 million or 330 bps on gross profit and gross profit margin respectively. These impacts were partially offset by the positive effects of higher volumes and lower sales programs mainly in ORV.

The Company's North American retail sales were up 1% for the three-month period ended July 31, 2026 compared to the same period last year. The increase in retail sales was driven by positive industry trends in SSV and market share gains in ORV, which were partially offset by lower retail sales in Seasonal Products.

Revenues

Revenues increased by $348.6 million, or 18.5%, to $2,236.8 million for the three-month period ended July 31, 2026, compared to $1,888.2 million for the corresponding period ended July 31, 2025. The increase in revenues was primarily due to a higher volume of units sold in ORV to support retail demand and a favourable SSV product mix resulting from the introduction of new models. The increase was partially offset by a lower volume of units sold in PWC, mostly reflecting units that were shipped earlier in the first quarter. The increase includes a favourable foreign exchange rate variation of $46 million.

- Year-Round Products (66% of Q2-FY27 revenues): Revenues from Year-Round Products increased by $371.3 million, or 33.3%, to $1,485.1 million for the three-month period ended July 31, 2026, compared to $1,113.8 million for the corresponding period ended July 31, 2025. The increase in revenues from Year-Round Products was primarily attributable to a higher volume of units sold in ORV to support retail demand and a favourable SSV product mix resulting from the introduction of new models. The increase was also attributable to lower sales programs across all product lines. The increase includes a favourable foreign exchange rate variation of $37 million.

- Seasonal Products (19% of Q2-FY27 revenues): Revenues from Seasonal Products decreased by $42.0 million, or 8.9%, to $427.7 million for the three-month period ended July 31, 2026, compared to $469.7 million for the corresponding period ended July 31, 2025. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold in PWC, mostly reflecting units that were shipped earlier in the first quarter. The decrease was partially offset by lower sales programs in Snowmobile. The decrease includes a favourable foreign exchange rate variation of $5 million.

- PA&A, OEM Engines and Others (15% of Q2-FY27 revenues): Revenues from PA&A, OEM Engines and Others increased by $19.3 million, or 6.3%, to $324.0 million for the three-month period ended July 31, 2026, compared to $304.7 million for the corresponding period ended July 31, 2025. The increase in revenues from PA&A, OEM Engines and Others was primarily attributable to a higher volume of PA&A sold, coupled with favourable pricing. The increase was partially offset by unfavourable product mix in OEM Engines. The increase includes a favourable foreign exchange rate variation of $4 million.

North American Retail Sales

The Company's North American retail sales increased by 1% for the three-month period ended July 31, 2026 compared to the same period last year. The increase in retail sales was driven by positive industry trends in SSV and market share gains in ORV, which were partially offset by lower retail sales in Seasonal Products.

- North American Year-Round Products retail sales increased on a percentage basis in the low-single digits compared to the three-month period ended July 31, 2025. The Year-Round Products industry sales increased in the low-single digits over the same period.

- North American Seasonal Products retail sales decreased on a percentage basis in the low-single digits compared to the three-month period ended July 31, 2025. The Seasonal Products industry sales increased on a percentage basis in the low-single digits over the same period.

Gross profit

Gross profit decreased by $135.2 million, or 34.0%, to $262.5 million for the three-month period ended July 31, 2026, compared to $397.7 million for the three-month period ended July 31, 2025. Gross profit margin percentage decreased by 940 basis points to 11.7% for the three-month period ended July 31, 2026, compared to 21.1% for the three-month period ended July 31, 2025. Gross profit and gross profit margin decreased compared to last year, primarily due to the impacts of Section 232 tariffs on Steel, Aluminum and Copper imports into the United States, as well as the effect of a supplier financial restructuring. These impacts were partially offset by the positive effects of higher volumes and lower sales programs mainly in ORV. The decrease in gross profit includes a favourable foreign exchange rate variation of $17 million.

Operating Expenses

Operating expenses increased by $5.2 million, or 1.7%, to $312.5 million for the three-month period ended July 31, 2026, compared to $307.3 million for the three-month period ended July 31, 2025. The increase in operating expenses was mainly attributable to higher investments in R&D to support product development, partially offset by lower G&A expenses due to a special long-term incentive program and the costs associated with executive management transition during the three-month period ended July 31, 2025. The increase in operating expenses includes an unfavourable foreign exchange rate variation of $1 million.

Normalized EBITDA [1]

Normalized EBITDA [1] decreased by $74.4 million, or 34.9%, to $138.8 million for the three-month period ended July 31, 2026, compared to $213.2 million for the three-month period ended July 31, 2025. The decrease in Normalized EBITDA [1] was primarily due to lower gross profit combined with increased operating expenses.

Net (Loss) Income

Net income decreased by $193.9 million, or 339.6%, to $(136.