BRP (TSE:DOO)
TSX:DOO
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BRP
(TSX:DOO)
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Rating:53Neutral
Price Target:
C$94.00
â–¼(-6.00% Downside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by mixed financials: strong operating/free cash flow and returning revenue growth are offset by materially weaker margins and a still-high leverage profile. Technical indicators add a modest drag due to negative MACD and below-neutral RSI, while valuation is neutral with a ~23x P/E and low dividend yield.
Positive Factors
Free cash flow strength
Sustained free cash flow generation (FCF > reported earnings in TTM) provides durable internal funding for capex, R&D and interest service. Strong FCF growth improves liquidity and lowers refinancing risk, enabling investment in products and debt reduction even if profitability remains cyclical.
Negative Factors
High leverage
Elevated leverage materially reduces financial flexibility and raises interest and refinancing risk. With debt many times equity, any profit squeeze or downturn could quickly strain covenants and cash available for investment, making capital-structure repair a persistent strategic constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained free cash flow generation (FCF > reported earnings in TTM) provides durable internal funding for capex, R&D and interest service. Strong FCF growth improves liquidity and lowers refinancing risk, enabling investment in products and debt reduction even if profitability remains cyclical.
Read all positive factors
BRP (DOO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.12B
Dividend Yield0.86%
Average Volume (3M)239.69K
Price to Earnings (P/E)25.8
Beta (1Y)1.15
Revenue Growth-5.14%
EPS Growth-87.15%
CountryCA
Employees16,500
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)2.21
Shares Outstanding36,378,124
10 Day Avg. Volume323,350
30 Day Avg. Volume239,689
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)12.44
Price to Sales (P/S)0.89
P/FCF Ratio10.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$117.88Price Target Upside17.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)6.24
Revenue Forecast (FY)C$9.05B
BRP Business Overview & Revenue Model
Company Description
BRP 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 ...
BRP Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call presented strong financial and operational progress: double‑digit revenue growth, significant margin expansion, robust free cash flow, reduced network inventory, market share gains in ORV, and a raised full‑year guidance. Management also took proactive balance sheet and capital allocation actions (debt repayment, refinancing, NCIB). Offsetting these positives are regional softness (notably Asia Pacific), continued promotional pressure and noncurrent inventory in the snowmobile market, tariff/FX headwinds, below‑average plant utilization and some one‑time transitions for FY'27. Overall, the positives (financial outperformance, guidance upgrade, inventory discipline and product momentum) materially outweigh the challenges, supporting a constructive near‑to‑medium term outlook.Positive Updates
Quarterly Revenue Growth
Revenues increased 14% year-over-year to $2.3 billion in Q3, driven primarily by stronger ORV shipments and higher year‑round product sales.
Negative Updates
Soft Retail in Several Regions
North America retail decreased 4% (1% excluding snowmobile); U.S. retail down 3%; Asia Pacific retail declined 11% and EME down 4%—regional softness offsets some domestic gains.
Read all updates
Q3-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Revenues increased 14% year-over-year to $2.3 billion in Q3, driven primarily by stronger ORV shipments and higher year‑round product sales.
Read all positive updates
Company Guidance
BRP raised its FY‑26 outlook and now expects about $8.3 billion of revenue, roughly $1.1 billion of normalized EBITDA and about $5 of normalized EPS (assuming macro and tariff stability); Q3 free cash flow was $320 million (YTD ≈ $650 million) with full‑year FCF now seen around $650–700 million, cash on hand of $250 million, ~USD200 million of debt repaid and an expected ~USD200 million Telwater proceeds in Q4, producing financing cost savings of ~$10 million in FY‑26 and ~$30 million annually from FY‑27; the company renewed an NCIB to buy up to 3.1 million shares, ended Q3 with network inventory down 17% YoY (6% below pre‑COVID) and ORV inventory down 8%, and signaled FY‑27 tailwinds from dealer destocking of roughly $400–500 million of revenue (~$1.25 EPS) with a base‑case EBITDA margin ~14%, mid‑ to high‑teens EPS growth for FY‑27, asset utilization rising from ~65% this year to low‑70s next year, a reduced gross tariff exposure (~$90 million) expected to be flattish next year, CapEx roughly $420 million for FY‑27, and a target net debt/EBITDA range of about 1.5–2x.BRP Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
45
Neutral
Cash Flow
72
Positive
| Breakdown | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.44B | 7.83B | 9.96B | 10.03B | 7.65B |
| Gross Profit | 1.89B | 1.77B | 2.63B | 2.50B | 2.13B |
| EBITDA | 1.03B | 976.60M | 1.74B | 1.61B | 1.39B |
| Net Income | 291.60M | -213.10M | 743.40M | 863.90M | 793.90M |
Balance Sheet | |||||
| Total Assets | 6.32B | 6.29B | 6.78B | 6.46B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 427.10M | 180.70M | 491.80M | 202.30M | 265.80M |
| Total Debt | 2.68B | 3.13B | 2.95B | 3.02B | 2.19B |
| Total Liabilities | 5.71B | 6.05B | 5.96B | 5.92B | 5.16B |
| Stockholders Equity | 604.10M | 241.30M | 808.90M | 534.90M | -135.60M |
Cash Flow | |||||
| Free Cash Flow | 738.30M | 165.70M | 942.10M | -52.20M | 87.90M |
| Operating Cash Flow | 1.04B | 562.30M | 1.49B | 548.80M | 716.80M |
| Investing Cash Flow | -318.40M | -425.50M | -574.90M | -853.40M | -687.70M |
| Financing Cash Flow | -486.00M | -375.30M | -629.20M | 291.00M | -1.09B |
BRP Technical Analysis
Positive
100.00
Price Trends
100.04
Negative
99.21
Positive
89.39
Positive
Market Momentum
-1.48
Negative
61.82
Neutral
87.16
Negative
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 100 is above the 20-day moving average (MA) of 90.15, below the 50-day MA of 100.04, and above the 200-day MA of 89.39, indicating a neutral trend. The MACD of -1.48 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DOO.
BRP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$15.10B | 18.88 | 14.55% | 1.44% | 7.12% | 17.15% | |
70 Outperform | C$5.12B | 8.51 | 9.92% | 1.32% | -5.33% | -57.58% | |
66 Neutral | C$21.66B | 17.79 | 6.73% | 3.69% | 0.66% | -0.61% | |
63 Neutral | C$672.57M | 7.04 | 7.13% | 1.93% | -7.25% | -143.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | C$9.95B | 16.32 | 8.99% | 4.10% | -0.13% | 13.73% | |
53 Neutral | C$7.12B | 25.78 | 54.95% | 0.86% | -5.14% | -87.15% |
* Consumer Cyclical Sector Average
TSE:DOO
BRP
100.00
48.16
92.89%
TSE:MG
Magna International
77.69
30.20
63.60%
TSE:LNR
Linamar
86.17
35.26
69.24%
TSE:MRE
Martinrea International
9.34
2.29
32.48%
TSE:CCL.A
CCL Industries (A)
87.72
18.10
25.99%
TSE:CTC.A
Canadian Tire
187.08
42.38
29.29%
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.