BRP (DOO) AI Stock Analysis

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BRP

(TSX:DOO)

Rating:54Neutral

Price Target:

C$62.00

▼(-3.62%Downside)

The overall stock score reflects significant financial challenges, including declining revenue and negative earnings, which weigh heavily on the valuation. Positive technical indicators and a balanced earnings call sentiment offer some support but are not enough to offset the financial risks.

Positive Factors

Financial Prospects

Promo and mix strategies are being successfully implemented, leading to improved prospects.

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 Pressure

DOO continues to face retail pressure as competitors have more non-current inventory.

BRP (DOO) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$4.54B

Dividend Yield1.3%

Average Volume (3M)208.30K

Price to Earnings (P/E)19.7

Beta (1Y)0.95

Revenue Growth-22.34%

EPS Growth-110.04%

CountryCA

Employees16,500

SectorConsumer Cyclical

Sector Strength73

IndustryAuto - Recreational Vehicles

Share Statistics

EPS (TTM)0.47

Shares Outstanding34,512,676

10 Day Avg. Volume271,592

30 Day Avg. Volume208,304

Financial Highlights & Ratios

PEG Ratio0.08

Price to Book (P/B)15.03

Price to Sales (P/S)0.00

P/FCF Ratio15.68

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$65.66

Price Target Upside2.06% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

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: 29.44%|

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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
7.83B	10.37B	10.03B	7.65B	5.95B
	Gross Profit
1.77B	2.60B	2.50B	2.13B	1.47B
	EBIT
551.70M	1.16B	1.37B	1.19B	465.60M
	EBITDA
706.90M	1.51B	1.54B	1.44B	832.00M
	Net Income Common Stockholders
-213.10M	743.40M	863.90M	793.90M	363.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
260.80M	491.80M	324.90M	339.40M	1.40B
	Total Assets
6.29B	6.78B	6.46B	5.03B	4.89B
	Total Debt
3.13B	2.95B	3.02B	2.19B	2.65B
	Net Debt
2.95B	2.46B	2.81B	1.92B	1.32B
	Total Liabilities
6.05B	5.96B	5.92B	5.16B	5.36B
	Stockholders Equity
241.30M	808.90M	534.90M	-135.60M	-478.70M
Cash Flow		Free Cash Flow
313.70M	1.07B	-9.90M	72.30M	674.30M
	Operating Cash Flow
740.10M	1.66B	649.50M	770.00M	954.20M
	Investing Cash Flow
-425.50M	-574.90M	-853.40M	-687.70M	-260.30M
	Financing Cash Flow
-553.10M	-629.20M	190.30M	-1.14B	583.80M

BRP Technical Analysis

Technical Analysis Sentiment

Positive

Last Price64.33

Price Trends

50DMA

50.39

Positive

100DMA

56.71

Positive

200DMA

66.59

Negative

Market Momentum

MACD

2.99

Negative

RSI

75.55

Negative

STOCH

96.58

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 64.33 is above the 20-day moving average (MA) of 53.11, above the 50-day MA of 50.39, and below the 200-day MA of 66.59, indicating a neutral trend. The MACD of 2.99 indicates Negative momentum. The RSI at 75.55 is Negative, neither overbought nor oversold. The STOCH value of 96.58 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
DOO	54 Neutral	$4.54B	19.66	26.57%	1.30%	-22.34%	-110.04%
MGA		$10.28B	9.08	9.85%	5.31%	―	―
EXCOF		$188.68M	9.92	6.86%	6.13%	―	―
LIMAF		$2.75B	15.08	4.66%	1.62%	―	―
MRETF		$456.57M	5.32	-3.98%	2.31%	―	―
NFI	59 Neutral	C$1.78B	―	-0.03%	―	15.99%	99.83%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:DOO

BRP

64.33

-21.31

-24.88%

MGA

Magna International

36.14

-5.90

-14.03%

EXCOF

Exco Technologies

4.96

-0.40

-7.46%

LIMAF

Linamar

45.01

-5.21

-10.37%

MRETF

Martinrea International

6.00

-2.65

-30.64%

TSE:NFI

NFI Group Inc

15.23

-1.26

-7.64%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.