RP, Inc. President and CEO Denis Le Vot reported that the Quebec, Canada-based parent of the Ski-Doo, Sea-Doo and Lynx power sports brands delivered 2026 first quarter financial results above expectations, a performance that was said to be driven by higher volumes, disciplined cost management, strong overall execution and a more favorable promotional environment. The company reports financial information in Canadian dollars (CN$) unless otherwise noted. 

“We also sustained our solid retail momentum across key ORV segments, as new product introductions in the second half of last year contributed to additional market share gains,” Le Vot noted in the company’s Q1 earnings release. 

The first quarter of fiscal 2027 was said to be marked by double-digit revenue growth compared to the year-ago Q1 period. The increase in revenues was primarily driven by higher ORV shipments and a favorable product mix resulting from the introduction of new models and features in this product category. Revenue growth was also attributable to higher PWC shipments than in the prior-year Q1 period, when shipments occurred later in the season. Gross profit and gross profit margin reportedly increased year-over-year (y/y), reflecting the positive impacts of higher volumes, lower sales programs, and favorable pricing, partially offset by global tariffs. 

The company’s North American retail sales were down 7 percent for the three-month period ended April 30, compared to the prior-year period ended April 30, 2025. The decrease in retail sales was attributed mainly to lower Snowmobile industry volumes compared with a strong end-of-season last year, as well as to market share losses in PWC. The decrease was said to be partially offset by gains in ORV market share. 

Revenues
Revenues increased 29.5 percent y/y to CN$2.39 billion for the fiscal first quarter ended April 30, compared to CN$1.85 billion for the prior-year fiscal Q1 period. The increase in revenues for the quarter was said to be primarily due to higher ORV and PWC shipments, as well as a favorable product mix in ORV resulting from the introduction of new models and features in this product category. The increase reportedly includes an unfavorable foreign exchange rate variation of CN$15 million.

  • Year-Round Products revenues, representing 61 percent of Q1 revenues, increased 31.0 percent y/y to CN$1,448.7 million for the fiscal first quarter, compared to CN$1,105.8 million for the prior-year Q1 period. The increase in revenues from Year-Round Products was primarily attributable to higher unit volume across most product lines and to a favorable product mix in ORV, driven by the introduction of new models and features in this product category. The increase was also attributable to a favorable pricing net of sales programs across most product lines. The increase includes an unfavorable foreign exchange rate variation of CN$14 million.
  • Seasonal Products revenues, representing 24 percent of fiscal Q1 revenues, increased 35.6 percent y/y to CN$568.4 million for the fiscal first quarter, compared to CN$419.2 million for the prior-year Q1 period. The increase in revenues from Seasonal Products was primarily attributable to higher PWC volume compared to the prior-year Q1 period, when shipments occurred later in the season. The increase was also reportedly attributable to lower snowmobile sales.
  • PA&A, OEM Engines and Others revenues, representing 15 percent of fiscal Q1 revenues, increased 16.4 percent y/y to CN$374.7 million in the fiscal first quarter, compared to CN$321.9 million in the prior-year Q1 period. The increase in revenues from PA&A, OEM Engines, and Others was primarily attributable to higher PA&A volume and favorable pricing across most product lines. The increase was partially offset by higher sales programs and an unfavorable product mix in PA&A.

North American Retail Sales 
The company’s North American retail sales decreased by 7 percent for the fiscal first quarter compared to the prior-year Q1 period. The decrease in retail sales was mainly due to lower Snowmobile industry volumes compared with a strong end-of-season last year, as well as to market share losses in PWC. The decrease was partially offset by gains in ORV market share. 

  • North American Year-Round Products retail sales increased on a percentage basis in the mid-single digits compared to the three-month period ended April 30, 2025. The Year-Round Products industry’s sales increased by a low single-digit percentage over the same period. 
  • North American Seasonal Products retail sales decreased on a percentage basis in the low thirties range compared to the three-month period ended April 30, 2025. The Seasonal Products industry’s sales decreased by a mid-teens percentage over the same period. 

Profitability & Expenses
Gross profit increased by CN$166.8 million, or 42.2 percent, to CN$561.6 million for the fiscal first quarter, compared to CN$394.8 million for the three-month period ended April 30, 2025. Gross profit margin percentage increased by 210 basis points to 23.5 percent for the fiscal first quarter, compared to 21.4 percent for the three-month period ended April 30, 2025. Gross profit and gross profit margin increased compared to last year, reflecting the positive impacts of higher volumes, lower sales programs and favorable pricing, partially offset by the impacts of global tariffs. The increase in gross profit includes an unfavorable foreign exchange rate variation of CN$16 million.

Operating expenses increased by CN$35.2 million, or 11.7 percent, to CN$336.1 million for the fiscal first quarter, compared to CN$300.9 million for the three-month period ended April 30, 2025. The increase in operating expenses was mainly attributable to higher S&M expenses following the launch of campaigns to support revenue growth, as well as increased investments in R&D and G&A to reinforce product development and infrastructure, respectively. The increase was partially offset by a favorable foreign exchange variation on working capital, net of forward contracts. The increase in operating expenses includes a favorable foreign exchange rate variation of CN$10 million.

Normalized EBITDA increased by CN$133.6 million, or 66.5 percent, to CN$334.4 million for the fiscal first quarter, compared to CN$200.8 million for the three-month period ended April 30, 2025. The increase in Normalized EBITDA was primarily due to higher gross profit, partially offset by increased operating expenses.

Net income decreased by CN$33.7 million, or 20.9 percent, to CN$127.3 million for the fiscal first quarter, compared to CN$161.0 million for the three-month period ended April 30, 2025. The decrease in net income was primarily due to an unfavorable foreign exchange rate variation on the U.S.-denominated long-term debt and to a higher income tax expense. The decrease was partially offset by a higher operating income.

Normalized net income increased by CN$99.9 million, or 288.7 percent, to CN$134.5 million for the fiscal first quarter, compared to CN$34.6 million for the three-month period ended April 30, 2025. The increase in Normalized net income was primarily due to higher gross profit, partially offset by increased operating expenses.

Net income from Discontinued Operations increased by CN$12.5 million, or 114.7 percent, to CN$1.6 million for the fiscal first quarter, compared to a net loss of CN$10.9 million for the three-month period ended April 30, 2025. The increase in net income was primarily due to the sale of Alumacraft’s and Manitou’s assets during the three-month periods ended July 31, 2025, and October 31, 2025, respectively. 

Liquidity & Cash Flows
Consolidated net cash flows generated from operating activities totaled CN$425.5 million for the fiscal first quarter, compared to CN$255.8 million generated for the three-month period ended April 30, 2025. The increase was mainly due to higher profitability, favorable changes in working capital, and lower income taxes paid. The favorable changes in working capital were driven by increased provisions, partially offset by increases in inventories and income tax receivables. 

The company invested CN$57.1 million of its liquidity in capital expenditures to introduce new products and modernize its software infrastructure to support future growth. 

During the three-month period ended April 30, 2026, the company also returned CN$62.7 million to shareholders through quarterly dividends and a share repurchase program. 

Dividend
On May 27, 2026, the company’s Board of Directors declared a quarterly dividend of CN$0.25 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on July 14, 2026, to shareholders of record at the close of business on June 30, 2026.

Revised Guidance & Outlook
The company issued a revised FY27 guidance as follows, incorporating incremental tariff cost net of mitigation measures, and superseding prior full-year financial guidance statements issued by the company:

Fiscal 2027 Quarterly Outlook
The company expects Q2 Fiscal 2027 Normalized diluted earnings per share [1] to be down approximately CN$1.60 to CN$1.65 versus the same three-month period in Fiscal 2026. The decline results from the net impact of tariffs, the timing of PWC shipments and higher tax incentives last year.

“As tariff policies shifted significantly during the quarter, our teams moved quickly to define mitigation measures to reduce their impact. Looking ahead, we are focused on navigating these headwinds while also protecting our long-term growth prospects. Although the geopolitical and trade environment remains volatile, we are issuing a revised full-year guidance that incorporates both positive trends in our business and net tariff costs. Thanks to our engaged dealer network, valued suppliers and leading-edge product lineups, we are confident in our ability to further strengthen our position in the future,” concluded Le Vot.

Image, data and table courtesy BRP, Inc.