BRP, Inc. reported that it closed the 2026 fiscal year on a strong note as the parent of the Ski-Doo, Sea-Doo and Lynx powersports brands delivered double-digit year-over-year (y/y) revenue growth in the fiscal 2026 fourth quarter ended January 31. The company noted the revenue increase was primarily due to a favorable off-road vehicle (ORV) product mix, driven by the introduction of new models and features, as well as higher shipments in the category. Revenue growth was also attributed to higher personal watercraft (PWC) shipments compared with the prior-year Q4 period, which had been impacted by a network inventory reduction.

BRP, Inc., fka Bombardier Recreational Products, Inc., reports in the Canadian (CN$) currency. Currency has not been converted to the U.S. dollar (US$) currency in this report.

Consolidated fourth quarter revenues increased 16.0 percent to CN$2.46 billion for the fiscal 2026 fourth quarter, compared to CN$2.12 billion for the corresponding period ended January 31, 2025. The company said the increase for the quarter includes a favorable foreign exchange rate variation of CN$18 million.

Year-Round Products (54 percent of Q4 revenues)
Revenues from Year-Round Products increased 16.8 percent to CN$1.32 billion for the fiscal 2026 fourth quarter, compared to CN$1.13 billion for the fiscal 2025 fourth quarter. The increase in revenues from Year-Round Products was primarily attributable to a favorable product mix and higher unit volume in ORV, driven by the introduction of new models and features. The increase was also attributed to favorable pricing net of sales programs across most product lines, partially offset by lower volume of units sold in 3WV. The increase includes a favorable foreign exchange rate variation of CN$8 million.

Seasonal Products (32 percent of Q4 revenues)
Revenues from Seasonal Products increased 17.5 percent y/y to CN$796.4 million for the fiscal 2026 fourth quarter. The increase in revenues from Seasonal Products was primarily attributed to a higher volume of units sold in PWC compared to the prior-year Q4 period, which had been impacted by network inventory reduction. The increase was also said to be attributable to a higher volume of units sold and a favorable product mix in Snowmobile, as well as favorable pricing net of sales programs across most product lines. The increase was partially offset by a lower volume of units sold in Pontoon. The increase includes a favorable foreign exchange rate variation of CN$7 million.

PA&A, OEM Engines and Others (14 percent of Q4-FY26 revenues)
Revenues from PA&A, OEM Engines and Others increased by CN$31.0 million, or 9.9 percent, to CN$343.7 million for the fiscal 2026 fourth quarter, compared to CN$312.7 million for the corresponding period ended January 31, 2025. The increase in revenues from PA&A, OEM Engines and Others was primarily attributable to a higher volume of PA&A sold and favorable pricing net of sales programs, partially offset by unfavorable product mix in OEM Engines. The increase also includes a favorable foreign exchange rate variation of CN$3 million.

North American Retail Sales
North American retail sales increased 12.0 percent y/y in the fiscal 2026 fourth quarter. The increase in retail sales was reportedly driven by stronger Snowmobile industry volumes compared to the prior-year period, which had been affected by late snowfalls, and by market share gains in ORV and Snowmobile.

  • North American Year-Round Products retail sales increased in the high single digits on a percentage basis compared to the prior-year Q4 period. The Year-Round Products industry sales were flat over the same period.
  • North American Seasonal Products retail sales increased in the mid-teens percentage range compared to the three-month period ended January 31, 2025. The Seasonal Products industry sales increased on a percentage basis in the high single digits over the same period.

“In just two months as CEO, I’ve already witnessed first-hand how BRP’s exceptional talent, combined with our engaged dealer network and powerful brands, holds immense potential,” said Denis Le Vot, president and CEO, BRP. “I’m pleased to share that our teams rose to the year’s challenges with conviction, navigating through a volatile tariff environment and a demanding competitive landscape to deliver FY26 financial results above expectations. In the fourth quarter, we recorded a strong retail performance in ORV and snowmobiles in North America, fueled by the success of our new product introductions.”

Profitability & Expenses
Gross profit increased by CN$131.8 million, or 31.2 percent, to CN$553.6 million for the fiscal 2026 fourth quarter, compared to CN$421.8 million for the prior-year Q4 period. Gross profit margin percentage increased by 260 basis points to 22.5 percent for the fiscal 2026 fourth quarter, compared to 19.9 percent for the prior-year Q4 period. The increases in gross profit and gross profit margin were driven by favorable impacts from volume and pricing net of sales programs, which were partially offset by global tariffs, mainly on PA&A, provisions related to EV products, increased warranty expenses, and higher incentive compensation costs. The increase in gross profit includes a favorable foreign exchange rate variation of CN$14 million.

Operating expenses increased by CN$223.4 million, or 70.3 percent, to CN$541.1 million for the fiscal 2026 fourth quarter, compared to CN$317.7 million for the prior-year Q4 period. The increase in operating expenses was mainly attributable to impairment charges on the EV assets and light mobility CGU, as well as higher incentive compensation costs. The increase was reportedly partially offset by the reversal of the non-controlling interest liability during the fiscal 2026 fourth quarter. The increase in operating expenses includes an unfavorable foreign exchange rate variation of CN$2 million.

Normalized (Adjusted) EBITDA increased by CN$116.8 million, or 47.3 percent, to CN$363.8 million for the fiscal 2026 fourth quarter, compared to CN$247.0 million for the prior-year Q4 period. The increase in Normalized EBITDA was primarily due to higher gross profit, partially offset by increased operating expenses.

Net income increased by CN$96.3 million, or 190.7 percent, to CN$45.8 million for the fiscal 2026 fourth quarter, compared to a net loss of CN$50.5 million for the prior-year Q4 period. The increase in net income was primarily due to a favorable foreign exchange rate on the U.S.-denominated long-term debt and higher gross profit, partially offset by increased operating expenses from impairment charges taken on the EV assets and light mobility CGU.

Normalized (Adjusted) Net Income
Normalized net income increased by CN$86.5 million, or 112.6 percent, to CN$163.3 million for the fiscal 2026 fourth quarter, compared to CN$76.8 million for the prior-year Q4 period. The increase in Normalized net income was primarily due to higher gross profit, partially offset by increased operating expenses.

Net Income (Loss) from Discontinued Operations
Net income from discontinued operations increased by CN$170.2 million, or 100.7 percent, to CN$1.1 million for the fiscal 2026 fourth quarter, compared to a net loss of CN$169.1 million for the three-month period ended January 31, 2025. The increase in net income from discontinued operations was said to be primarily due to the impairment charges recorded on the Marine business assets held for sale during the three-month period ended January 31, 2025, as well as 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.

Full-Year Summary
The twelve-month period ended January 31, 2026

  • Consolidated revenues increased by CN$539.8 million, or 6.8 percent, to CN$8.44 billion for fiscal 2026, compared to CN$7.90 billion for fiscal 2025. The increase includes a favorable foreign exchange rate variation of CN$103 million.
  • Normalized EBITDA increased by CN$45.6 million, or 4.3 percent, to CN$1.10 billion for fiscal 2026, compared to CN$1.06 billion for fiscal 2025.
  • Net income increased by CN$275.8 million, or 426.9 percent, to CN$340.4 million for fiscal 2026, compared to CN$64.6 million for fiscal 2025.
  • Normalized net income increased by CN$20.2 million, or 5.6 percent, to CN$382.5 million for fiscal 2026, compared to CN$362.3 million for fiscal 2025.
  • Net Loss from Discontinued Operations
    Net loss from discontinued operations decreased by CN$226.5 million, or 81.6 percent, to a loss of CN$51.1 million for fiscal 2026, compared to a net loss of CN$277.6 million for fiscal 2025.

Liquidity & Cash Flows Summary
Consolidated net cash flows generated from operating activities totaled CN$1.21 billion for fiscal 2026, compared to CN$688.2 million generated for fiscal 2025. The increase was said to be mainly due to favorable changes in working capital, higher profitability and lower income taxes paid. The favorable changes in working capital were reportedly the result of increased trade payables and accruals due to higher average payment terms, as well as decreased trade and other receivables. The favorable changes in working capital were said to be partially offset by a smaller decrease in inventories and unfavorable changes in provisions.

The company invested CN$318.4 million of its liquidity in capital expenditures (CapEx) to introduce new products and modernize its software infrastructure to support future growth and also closed the sales of Alumacraft’s and Manitou’s assets.

During the twelve-month period ended January 31, 2026, the company also returned CN$113.2 million to its shareholders through quarterly dividend payouts and share repurchase programs. The company also repaid U.S. $200.8 million of its Term Facility concurrent with its amendment.

Dividend
On March 25, 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 April 24, 2026, to shareholders of record at the close of business on April 10, 2026.

Fiscal 2027 Full-Year Guidance
The company has established its FY27 guidance as follows:

“Looking ahead, our priority is to continue advancing our M28 strategic plan. Thanks to our healthy inventory position and steadfast focus on product innovations, we are poised for solid revenue and profit growth in FY27. Although the geopolitical environment remains uncertain, we are confident in our ability to adapt and execute on what we can control. BRP is well positioned to drive long-term growth and sustainable value for shareholders,” concluded Le Vot.

Image, data and tables courtesy BRP, Inc.