BRP Inc.

BRP reported Q1 fiscal 2027 revenue of $2.4 billion, up 30% year over year, normalized EBITDA of $334 million, and normalized EPS of $1.83. Gross profit was $562 million with a 23.5% margin, up 210 basis points from last year; normalized EBITDA rose 67% year over year and EPS nearly tripled. Free cash flow was $367 million, and cash ended the quarter at close to $700 million with net leverage at 1.4x. For full-year fiscal 2027, BRP guided to revenue of $9.125 billion to $9.375 billion, normalized EBITDA of $925 million to $975 million, normalized EPS of $3.00 to $3.50, and free cash flow of over $600 million. Management said Q2 EPS should decline about $1.60 to $1.65 year over year, and that the revised full-year outlook assumes $500 million to $550 million of incremental tariff impact, partially offset by about $200 million of mitigation.

Denis Le Vot said the quarter confirmed BRP’s competitive strength, citing sustained retail momentum, especially in ORV, where the company continued to outpace the market and gain share. His tone was confident but cautious: he emphasized that BRP is responding quickly to tariff disruption while protecting long-term growth, innovation, dealer health and product investment. He repeatedly framed the company as agile and said BRP will keep adjusting operations as the trade picture becomes clearer.

Sebastien Martel highlighted the quarter’s financial outperformance, pointing to 30% revenue growth, a 23.5% gross margin, and $367 million of free cash flow. He said Q1 only had limited tariff impact because the revised Section 232 tariffs took effect late in the quarter, and BRP temporarily redirected some U.S. shipments before normalizing by the end of April. He also noted that the company has close to $700 million of cash, net leverage of 1.4x, and expects over $600 million of free cash flow for the year, supported by working capital tailwinds including about $150 million from a Scandinavian floor plan factoring facility and lower cash taxes.

Analysts focused heavily on tariffs, asking about mitigation levers, pricing, manufacturing footprint changes, and how much of the tariff burden could be offset if the current structure persisted. Management said the main tools are overhead discipline, project reprioritization, accelerated lean initiatives, selective pricing tied to currency moves, and value-chain efficiencies, while stressing that they do not want to damage demand or brand competitiveness. Questions also covered demand trends, and management said North American consumer demand has remained resilient, with strong ORV momentum and Snowmobile preorders for model year 2027 running 50% above last year. On cash flow, management said the working capital benefit comes largely from AR/floor-plan factoring in Scandinavia and lower cash taxes.