BRP Stock Climbs After Q4 Earnings Top Estimates, Outlook Held Back Amid Trade Uncertainty

BRP Inc. DOOO shares traded higher on Wednesday after the company reported fourth-quarter results.

The company reported a revenue decrease of 19.7% year-over-year to C$2.098 billion. In USD, revenues of $1.48 billion beat the street view of $1.35 billion.

Adjusted EPS of C$0.98 declined C$1.80 per share from the year-ago quarter. In USD, adjusted EPS was $0.69 above the consensus of $0.62.

The revenue decline was primarily due to lower sales volume across all product lines on weak demand and increasing sales programs.

North American retail sales dipped 21% Y/Y owing to weak industry volumes in Snowmobile and market share loss in Off-Road Vehicles on high non-current inventory from other OEMs.

Year-Round Products (54% of sales) revenues decreased 17.4% Y/Y to C$1.13 billion, primarily due to lower sales volume, unfavourable product mix in SSV and higher sales programs.

Seasonal Products (32% of sales) revenues dropped 28.9% Y/Y to C$677.6 million.

Powersports PA&A and OEM Engines (14% of sales) revenues declined 0.7% Y/Y to C$292.9 million, attributed to lower demand.

Gross profit decreased by 35.0% Y/Y, to C$429.4 million, and the margin contracted by 480 bps to 20.5%.

Normalized EBITDA decreased 44.6% Y/Y to C$239.8 million, reflecting lower gross margin.

BRP generated C$740.1 million in net operating cash flows for the year, down from C$1.658 billion a year earlier, due to lower profitability and unfavorable working capital changes.

On March 25, 2025, the company declared a quarterly dividend of C$0.215 per share, payable on April 18, 2025, to shareholders of record at the close of business on April 4, 2025.

Outlook: BRP decided to defer providing FY26 guidance, owing to ongoing global tariff disputes and uncertainty related to potential changes to trade regulations.

José Boisjoli, President and CEO of BRP said, “BRP demonstrated its agility throughout fiscal 2025 by rapidly adapting to softer market conditions. We were the first OEM to proactively adjust shipments to reduce network inventory and we have achieved our objective.”

”Over the longer term, our strategic decision to double down on Powersports should allow us to solidify our industry leadership by pushing innovation further and capitalizing on growth opportunities.”

Price Action: DOOO shares are up 8.81% at $38.67 at the last check Wednesday.

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