DOOO, CA05577W2004

BRP stock reports 18.5 percent revenue growth as margins shrink

Published on 10/01/2026 at 01:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

BRP stock posted CAD 2,236.8 million in Q2 FY2027 revenue, up 18.5 percent on July 31, 2026. Gross margin fell to 11.7 percent as tariffs weighed.

DOOO, CA05577W2004, Illustration mit AI erstellt.

BRP Inc. (ISIN CA05577W2004) reported CAD 2,236.8 million in revenue for the second quarter of fiscal 2027, up 18.5 percent from the same period a year earlier. The September 3, 2026 release from PR Newswire shows a sharp split between sales growth and profitability for the period ended July 31, 2026.

Revenue growth reaches 18.5 percent

BRP said revenue growth was driven mainly by higher off-road vehicle shipments and a favorable side-by-side vehicle mix, according to PR Newswire. Year-round products generated CAD 1,485.1 million, an increase of 33.3 percent, while seasonal-products revenue declined 8.9 percent to CAD 427.7 million.

The six-month picture was also positive on sales. Revenue reached CAD 4,628.6 million for the period ended July 31, 2026, up 23.9 percent from CAD 3,735.1 million a year earlier, according to the company release.

Margins absorb tariff pressure

Gross profit fell 34.0 percent to CAD 262.5 million from CAD 397.7 million, while gross margin dropped to 11.7 percent from 21.1 percent. PR Newswire attributed the pressure to U.S. tariffs on steel, aluminum and copper imports and a supplier financial restructuring that reduced gross profit by CAD 74.8 million.

Normalized EBITDA declined 34.9 percent to CAD 138.8 million from CAD 213.2 million. The result shows why the revenue increase alone does not define the current earnings picture.

Guidance rises with a clear risk

BRP raised fiscal 2027 normalized diluted EPS guidance to CAD 4.00 to CAD 4.50, while total revenue guidance stands at CAD 9,225 million to CAD 9,475 million. The same PR Newswire release also reports CAD 686.8 million in operating cash flow for the first six months.

BRP declared a quarterly dividend of CAD 0.25 per share on September 2, 2026, payable October 13, 2026. The company returned CAD 231.7 million through dividends and share repurchases during the six months ended July 31, 2026.

Euro reference stays dated

The German market reference is the Lang & Schwarz prior close of EUR 49.62 on September 29, 2026. For investors tracking the October 1 session, the key tension is visible in the numbers: revenue expanded 18.5 percent, while gross profit contracted 34.0 percent.