By Adriano Marchese
BRP cut its full-year profit outlook after posting weaker first-quarter earnings, saying that new U.S. tariffs will weigh on results even as revenue continues to grow.
The Canadian powersports manufacturer on Thursday said it now expects normalized earnings, an adjusted figure, to be between 3 Canadian dollars ($2.17) a share and C$3.50 in fiscal 2027, compared with C$5.21 a share a year earlier.
Previous guidance was for a range of C$5.50 to C$6.50, while analysts expected C$4.04.
Net income is expected to fall to between C$215 million and C$250 million, down from C$340.4 million.
Total revenue is expected to rise to between C$9.13 billion and C$9.38 billion, topping analyst forecasts of a modest rise to C$9.01 billion. The increase is expected to come in thanks to gains across the board, including year-round and seasonal products.
"Although the geopolitical and trade environment remains volatile, we are issuing a revised full-year guidance that incorporates both positive trends in our business and net tariff costs," said Chief Executive Denis Le Vot.
For the three months ended April 30, BRP posted net income of C$127.3 million, or C$1.73 a share, down from C$161 million, or C$2.19 a share, in the comparable quarter a year ago.
Adjusted earnings were C$1.83 a share. According to FactSet, analysts were expecting C$1.15 a share.
Revenues rose 29.5% to C$2.39 billion, topping forecasts of C$2.12 billion. BRP noted that North American powersports retail sales fell 7% from a year earlier, largely due to last year's snowmobile season that ended on an unusually strong note.
Le Vot said the first quarter's results were above expectations, driven by higher volumes, disciplined cost management, stronger overall execution and a more favorable promotional environment.
For the second quarter, the company expects normalized earnings to be down about C$1.60 to C$1.65, due primarily to the effects of tariffs and the timing of personal watercraft deliveries, it said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 28, 2026 06:41 ET (10:41 GMT)
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