BRP Inc. Revises Full-Year Guidance Amid Tariff Headwinds
The powersports manufacturer reported first-quarter revenues of $2,391.8 million, a 29.5% increase over the prior year
BRP Inc. (DOO), a global leader in powersports products and powertrains, reported first-quarter revenues of $2,391.8 million, which rose 29.5% compared to the same period last year. The company attributed the growth to higher shipments of personal watercraft and off-road vehicles, as well as a more favorable product mix for off-road vehicles.
Normalized EBITDA rose 66.5% to $334.4 million. Normalized diluted earnings per share increased by $1.36 to 1.83 Canadian dollars a share. However, net income fell 20.9% to $127.3 million, and diluted earnings per share decreased $0.46 to 1.73 Canadian dollars a share.
Retail performance in North America showed mixed results. North American powersports retail sales decreased 7% compared to last year, a move the company said was mainly due to a strong end-of-season for snowmobiles in the previous year. The company did report market share gains in North America for off-road vehicles. President and CEO Denis Le Vot stated that new product introductions in the second half of last year contributed to those gains.
BRP issued revised full-year guidance to incorporate incremental tariff costs, net of mitigation measures. The company now expects full-year revenues between $9.1 billion and $9.4 billion. Normalized diluted earnings per share for the full year are projected to be between $3.00 and $3.50.