BRP, Inc., the parent company of the Ski-Doo, Sea-Doo and Lynx powersports brands, reported that results for its fiscal third quarter ended October 31 were highlighted by double-digit growth in revenues compared to the same period last year, driven by higher ORV deliveries and favorable product mix following the successful launch of new products. Those positives partly offset lower snowmobile shipments.

“Third-quarter results came in ahead of expectations with significant revenue, profitability and free cash flow increases,” said José Boisjoli, president and CEO of BRP, Inc. “This strong performance was fueled by the successful introduction of new industry-leading products, which drove market share gains in the SSV and ATV categories in North America. In fact, we recorded our strongest third quarter ever at retail for SSV. Reflecting this solid outcome, we are increasing our guidance for fiscal year 2026.”

Revenues increased 14.0 percent y/y to $2.25 billion for the third quarter. The increase in revenues was reportedly driven by higher ORV deliveries and a favorable product mix following the “successful launch” of new products, partly offset by lower Snowmobile shipments. The increase includes a favorable foreign exchange rate variation of $37 million.

Year-Round Products
Revenues from Year-Round Products, which represented 56 percent of Q3 total revenues, increased 22.1 percent y/y to $1.27 billion for the quarter, said to be primarily attributable to a higher volume of units sold and favorable product mix in ORV following the successful launch of new products, as well as favorable variations in sales programs and pricing across all product lines. The increase includes a favorable foreign exchange rate variation of $14 million.

Seasonal Products
Revenues from Seasonal Products, which represented 27 percent of Q3 total revenues, decreased 1.6 percent y/y to $606.2 million for the third quarter. The decrease in revenues from Seasonal Products was primarily attributable to lower unit volume sold in Snowmobile, partially offset by higher unit volume in PWC and Sea-Doo pontoons, as well as favorable product mix and pricing across all product lines. The decrease includes a favorable foreign exchange rate variation of $13 million.

PA&A and OEM Engines
Revenues from PA&A and OEM Engines, which represented 17 percent of Q3 total revenues, increased 17.8 percent y/y to $378.5 million for the third quarter. The increase in revenues from PA&A and OEM engines was primarily attributable to higher PA&A volume sold and a favorable product mix in OEM engines. The increase also includes a favorable foreign exchange rate variation of $10 million.

North American Retail Sales
The company’s North American retail sales were reported to be down 4 percent year-over-year (y/y) in the third quarter. The decrease was reportedly due to lower Seasonal Products sales outside the peak retail period, partly offset by higher SSV retail driven by market share gains.

  • North American Year-Round Products retail sales increased on a percentage basis in the low-single- digits compared to the year-ago Q3 period. Year-Round Products industry sales were said to be flat over the same period.
  • North American Seasonal Products retail sales decreased on a percentage basis in the high-teens range compared to the year-ago Q3 period. Seasonal Products industry sales decreased on a percentage basis in the high-single-digits over the same period.

Profitability and Expenses
Gross profit increased 24.4 percent to $541.2 million for the third quarter, compared to $435.1 million for the prior-year fiscal Q3 period.

Gross margin percentage increased 210 basis points y/y to 24.1 percent of revenue for the third quarter, compared to 22.0 percent for the prior-year fiscal Q3 period. The increases in gross profit and gross profit margin were reportedly driven by favorable impacts from volume, product mix, pricing net of sales programs and production efficiencies, which were partially offset by the impacts of global tariffs mainly on PA&A, and by higher incentive compensation costs. The increase in gross profit includes an unfavorable foreign exchange rate variation of $3 million.

Operating expenses increased by $42.8 million, or 14.5 percent, to $338.6 million for the third quarter, compared to $295.8 million for the prior-year fiscal Q3 period. The increase in operating expenses was attributed mainly to higher incentive compensation costs. The increase was partially offset by higher restructuring and reorganization costs, as well as impairment charges taken on unutilized assets during the prior-year fiscal Q3 period. The increase in operating expenses includes an unfavorable foreign exchange rate variation of $11 million.

Normalized (Adjusted) EBITDA increased by $57.2 million, or 21.3 percent, to $325.6 million for the third quarter, compared to $268.4 million for the prior-year fiscal Q3 period. The increase in Normalized EBITDA was primarily due to higher operating income.

Net income increased by $45.9 million, or 150.0 percent, to $76.5 million for the third quarter, compared to $30.6 million for the prior-year fiscal Q3 period. The increase in net income was said to be primarily due to higher operating income, partially offset by higher net financing costs.

Net loss decreased by $16.1 million, or 67.6 percent, to a loss of $7.7 million for the third quarter, compared to a $23.8 million net loss for the prior-year fiscal Q3 period. The decrease in net loss was primarily due to the closing of the sales of Alumacraft’s and Manitou’s assets during the three-month periods ended July 31, 2025, and October 31, 2025, respectively.

Guidance
The company has increased its FY 2026 guidance as follows, which supersedes all prior financial guidance statements made by the company.

Image courtesy Ski-Doo/BRP, Inc.