Canadian boat maker BRP Q2 revenue beats estimates

Overview

• BRP fiscal Q2 revenue grows 4.3%, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q2 beats consensus, reaching CAD 0.92, per LSEG data

• Normalized EBITDA declines 9.2% due to higher operating expenses

Outlook

• BRP sees FY26 total company revenue between C$8.15 bln and C$8.3 bln

• Company expects FY26 normalized EPS between C$4.25 and C$4.75

• Company projects FY26 capital expenditures at ~C$420 mln

Result Drivers

• YEAR-ROUND PRODUCTS - Revenue increased due to higher unit sales and favorable pricing, contributing to a 13.1% rise in Year-Round Products revenue

• SEASONAL PRODUCTS DECLINE - Revenue from Seasonal Products fell 13.3% due to lower PWC sales and increased sales programs in Snowmobile

• PA&A GROWTH - Revenue from PA&A and OEM Engines rose 7.2% driven by higher sales volume and favorable pricing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy"

• Wall Street's median 12-month price target for BRP Inc is C$70.00, about 12.9% below its August 28 closing price of C$79.00

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNW8Rb0Wa