BRP Reports Strong Q2 Revenue Growth Amid Tariff Challenges
BRP Inc. (NASDAQ:DOOO) reported a strong second-quarter performance in fiscal 2027, with revenue rising 18% year-over-year to CAD 2.2 billion, driven by robust demand for off-road vehicles and market-share gains. Despite facing tariff costs of approximately CAD 145 million compared to the prior-year quarter, BRP raised its full-year normalized EPS outlook to between CAD 4.00–CAD 4.50 per share. The company also expects more than CAD 800 million in free cash flow for fiscal 2027 and plans a 33% expansion of utility side-by-side vehicle production capacity, responding to strong demand for models like the Can-Am Defender HD11. However, weaker personal watercraft volumes and inflation partially offset these gains. BRP lowered its expected annual tariff exposure to CAD 200 million but warned that new tariffs on Spyder imports could add a CAD 60–CAD 65 million headwind in fiscal 2028.
Tickers: $DOOO
Topics: capacity_expansion free_cash_flow revenue_growth tariffs