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BRP Inc (TSE:DOO)
TSX:DOO
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BRP
(TSX:DOO)
Rating:58Neutral
Price Target:
C$69.00
▲(5.96%Upside)
Positive Factors
Financial Performance
Management expects significant sales growth and strong improvement in earnings and adjusted EBITDA.
Stock Rating
The analyst is upgrading the stock to a BUY rating.
Negative Factors
Macroeconomic Challenges
The overall macroeconomic backdrop remains challenging, with DOO's retail expectations lowered from 'flat' last quarter to more in line with FY1Q26's -5% (ex. snowmobile).
Retail Competition
DOO continues to face retail pressure as competitors have more non-current inventory.
BRP (DOO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$4.76B
Dividend Yield1.3%
Average Volume (3M)188.00K
Price to Earnings (P/E)19.7
Beta (1Y)0.98
Revenue Growth-22.34%
EPS Growth-110.04%
CountryCA
Employees16,500
SectorConsumer Cyclical
Sector Strength56
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.47
Shares Outstanding34,512,676
10 Day Avg. Volume145,179
30 Day Avg. Volume187,998
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)16.48
Price to Sales (P/S)0.00
P/FCF Ratio-890.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.59Price Target Upside2.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
BRP Business Overview & Revenue Model
Company DescriptionBRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The company operates through two segments, Powersports and Marine. It offers all-terrain, side-by-side, and three-wheeled vehicles; seasonal products, such as snowmobiles and personal watercraft; and engines for jet boats, outboards, karts, motorcycles, and recreational aircraft. The company also provides parts, accessories, and apparel, as well as other services. It sells its products through a network of independent dealers and distributors, as well as to original equipment manufacturers. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.
How the Company Makes MoneyBRP Inc. generates revenue primarily through the sale of its wide array of powersports vehicles and related products. The company's revenue streams include the sale of snowmobiles, watercraft, and off-road vehicles such as ATVs and side-by-sides, as well as the sale of parts, accessories, and apparel (PA&A). Additionally, BRP benefits from a network of dealers and distributors across various regions, enhancing its market reach and sales capabilities. The company also forms strategic partnerships for technology development and market expansion, further contributing to its revenue. BRP's innovation-driven approach and strong brand equity allow it to maintain a competitive edge in the global recreational vehicle market.
BRP Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2026)
| % Change Since: 31.03%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales performance in certain regions and product lines, robust cash flow, and industry recognition for design excellence. However, it also pointed out challenges with revenue and EBITDA declines, soft demand in non-North American markets, significant tariff impacts, and declines in certain product lines. The sentiment is balanced with both positive achievements and notable challenges.Q1-2026 Updates
Positive Updates
Strong Snowmobile Sales
Snowmobile retail was strong, up over 80%, driven by favorable snow conditions, contributing to the strong end of season pre-orders.
Retail Growth in Canada and Latin America
Retail growth of 21% in Canada and 18% in Latin America, driven by strong momentum in ORV and personal watercraft.
Snowmobile Inventory Reduction
Achieved a year-over-year network inventory reduction of 15%, with a healthier inventory level combined with strong lineup resulting in strong spring pre-orders.
Record Retail Sales in Several Regions
Highest retail sales ever for the first quarter in Canada, Brazil, Mexico, China, and EMEA distributor markets.
Strong Free Cash Flow Generation
Generated strong free cash flow of $162 million.
Red Dot Design Team of the Year 2025
BRP's design and innovation team received a prestigious international title for design excellence.
Negative Updates
Revenue and EBITDA Decline
Revenue was down 8% to $1.8 billion and normalized EBITDA ended at $201 million, primarily due to lower shipments and higher sales programs.
Challenges in Non-North American Markets
Demand remains soft in EMEA and Asia Pacific with retail down 22% and 13% respectively.
Tariff Impact
Estimated total gross tariff impact for fiscal '26 to be between $60 million and $70 million, creating uncertainty and weighing on consumer confidence.
Decline in Certain Product Lines
Three-wheel vehicle retail was down high 20% and Can-Am side-by-side was down about 10%.
Seasonal Product Revenue Decline
Revenue for seasonal products was down 22% to $419 million, reflecting reduced shipments.
Company Guidance
During the BRP Inc. FY '26 First Quarter Results Conference Call, guidance indicated that the company is positioned for a stronger second half of the fiscal year, despite an 8% decline in revenue to $1.8 billion and a reduction in normalized EBITDA to $201 million. The company's approach focuses on aligning wholesale with retail, with expectations for double-digit top-line growth in the latter half of the year, contingent on current retail trends maintaining consistency. The call highlighted a 21% growth in Canadian powersport retail, contrasted by a 6% decrease in the United States. Despite challenges, the company is optimistic about upcoming product launches and a significant reduction in network inventory by the end of the second quarter, positioning them to capitalize on market opportunities and capitalize on the anticipated demand rebound.BRP Financial Statement Overview
Summary
BRP is facing financial challenges with declining revenue and profitability, leading to a negative net income. The company's high debt levels pose a risk, although it retains some cash generation capability through positive free cash flow. Improvement in operational efficiency and revenue growth is needed to enhance financial stability.Income Statement
The company experienced a significant decline in total revenue from $10.37 billion in 2024 to $7.83 billion in 2025, representing a sharp decrease. Gross profit margin remained relatively stable at 22.65% in 2025, down from 25.10% in 2024. However, the net income turned negative in 2025, showing a net loss, which is concerning. EBIT and EBITDA margins also declined, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a concerning trend with a decline in stockholders' equity, which is now very low compared to total assets. The debt-to-equity ratio is extremely high, indicating significant leverage and potential financial risk. The equity ratio is low, suggesting a reliance on debt financing. However, total assets have been relatively stable.50
Neutral
Cash Flow
Operating cash flow decreased significantly from $1.66 billion in 2024 to $740 million in 2025, reflecting operational difficulties. Free cash flow also decreased but remained positive, indicating some ability to generate cash. The free cash flow to net income ratio is not meaningful due to the negative net income.60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.03B | 7.83B | 10.37B | 10.03B | 7.65B | 5.95B |
| Gross Profit | 2.14B | 1.77B | 2.60B | 2.50B | 2.13B | 1.47B |
| EBITDA | 991.10M | 706.90M | 1.51B | 1.54B | 1.44B | 832.00M |
| Net Income | 250.50M | -213.10M | 743.40M | 863.90M | 793.90M | 363.40M |
Balance Sheet | ||||||
| Total Assets | 6.29B | 6.29B | 6.78B | 6.46B | 5.03B | 4.89B |
| Cash, Cash Equivalents and Short-Term Investments | 260.80M | 260.80M | 491.80M | 324.90M | 339.40M | 1.40B |
| Total Debt | 3.13B | 3.13B | 2.95B | 3.02B | 2.19B | 2.65B |
| Total Liabilities | 6.05B | 6.05B | 5.96B | 5.92B | 5.16B | 5.36B |
| Stockholders Equity | 241.30M | 241.30M | 808.90M | 534.90M | -135.60M | -478.70M |
Cash Flow | ||||||
| Free Cash Flow | 486.50M | 313.70M | 1.07B | -9.90M | 72.30M | 674.30M |
| Operating Cash Flow | 1.03B | 740.10M | 1.66B | 649.50M | 770.00M | 954.20M |
| Investing Cash Flow | -540.10M | -425.50M | -574.90M | -853.40M | -687.70M | -260.30M |
| Financing Cash Flow | -689.70M | -553.10M | -629.20M | 190.30M | -1.14B | 583.80M |
BRP Technical Analysis
Positive
65.12
Price Trends
54.83
Positive
55.32
Positive
64.60
Positive
Market Momentum
3.00
Positive
63.19
Neutral
42.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DOO, the sentiment is Positive. The current price of 65.12 is above the 20-day moving average (MA) of 64.18, above the 50-day MA of 54.83, and above the 200-day MA of 64.60, indicating a bullish trend. The MACD of 3.00 indicates Positive momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DOO.
BRP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $4.76B | 19.66 | 26.57% | 1.30% | -22.34% | -110.04% | |
56 Neutral | HK$24.19B | 4.02 | -1.57% | 11.14% | 0.06% | -64.76% | |
| $10.55B | 9.34 | 9.85% | 5.16% | ― | ― | ||
| $193.75M | 10.21 | 6.86% | 6.09% | ― | ― | ||
| $2.78B | 15.30 | 4.66% | 1.81% | ― | ― | ||
| $448.09M | 5.32 | -3.98% | 2.25% | ― | ― | ||
66 Neutral | C$2.04B | ― | -0.03% | ― | 15.99% | 99.83% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:DOO
BRP
65.12
-20.66
-24.09%
MGA
Magna International
37.52
-2.04
-5.16%
EXCOF
Exco Technologies
4.98
-0.40
-7.43%
LIMAF
Linamar
46.22
-0.84
-1.78%
MRETF
Martinrea International
6.18
-1.99
-24.36%
TSE:NFI
NFI Group Inc
17.15
1.53
9.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.