A Ski-Doo assembly line at a BRP facility in Valcourt, Que., in 2020. The snowmobile maker says its latest quarter delivered better-than-expected results.Christinne Muschi/The Globe and Mail
BRP Inc. DOO-T says it delivered better than anticipated results despite the economic environment, leaving it confident enough to issue full-year guidance.
“Since we are starting to see the benefit of our action, and despite ongoing volatility, we are comfortable issuing guidance,” said outgoing president and chief executive José Boisjoli on an earnings call Friday.
“We are confident that the momentum generated by our new product introduction will allow us to deliver a stronger second half of the year.”
The Ski-Doo and Sea-Doo maker says its second-quarter profit amounted to $57.1-million or 79 cents per diluted share for the quarter ended July 31. The result compared with a profit of $42-million or 55 cents per diluted share a year earlier.
BRP shares were trading more than eight per cent higher at $85.96 on the TSX during mid-afternoon trading on Friday.
In its full-year guidance, the company said it expects revenue between $8.2-billion and $8.3-billion, with normalized earnings per diluted share expected to come in between $4.25 and $4.75.
Tariff costs manageable for BRP, but weighing on consumer demand, CEO says
In March, tariffs and trade uncertainty prompted BRP to defer its financial guidance for the 2026 financial year.
Chief financial officer Sébastien Martel said on the call that the company has mostly completed the right-sizing of its inventory network, with leaner inventory levels affording BRP greater flexibility to manage shipments based on retail trends.
In 2024, an unseasonably warm North American winter weighed on BRP’s snowmobile sales. It cut snowmobile production by 30 per cent at the time due to the buildup of inventory that had been languishing in retailers’ stockrooms across Canada and the United States.
Martel said the adjustments the company has made have led to better visibility on expected deliveries for the remainder of the year compared with previous quarters.
“These factors give us the confidence in our volume outlook for [the second half of the year]. Consequently, we are comfortable issuing a guidance at this time. Obviously, this assumes that the tariff situation remains as is for the rest of the year,” Martel said.
He noted that the impact of tariffs was considered in the company’s forecast, factoring in a gross tariff impact of about $90-million.
Ski-Doo maker BRP increases shipments to the U.S. in advance of tariffs
“This is up from the previous estimate of $60-million to $70-million, reflecting the increase in steel and aluminum tariffs to 50 per cent, new tariffs on copper, and the expansion of steel and aluminum tariffs to additional products including some of our vehicles.”
On the tariff impact, Boisjoli had previously said that compliance with the Canada-United States-Mexico trade agreement afforded the company some wiggle room.
Revenue for the quarter totalled $1.89 billion compared with $1.81-billion a year prior.
On a normalized basis, BRP says it earned 92 cents per diluted share in its latest quarter compared with a normalized profit of $1.02 per diluted share a year ago.
The company also released new products at a dealer event earlier this month, including a new electric all-terrain vehicle and a new side-by-side vehicle.
Boisjoli is preparing to step down as CEO by the end of the company’s fiscal year on Jan. 31, 2026.
Editor’s note: A previous version of this article included an incorrect profit figure. Second-quarter profit amounted to $57.1-million, not $161-million.