BRP Reports Q2 Earnings Amid Tariff Impacts and Market Shifts
Bombardier Recreational Products (DOO) reported second-quarter earnings for fiscal year 2027, showing revenue of $2.2368 billion—a strong 18.5% increase driven by higher off-road vehicle shipments and a favorable product mix. However, normalized diluted EPS fell to a loss of $0.18 per share from prior-year earnings of $0.92 due to significant tariff impacts and supplier restructuring costs. The company’s gross profit margin dropped sharply to 11.7%—a decrease of nearly 940 basis points—from the previous year, largely attributed to Section 232 tariffs and financial support provided to a key supplier during its restructuring phase. Despite these challenges, BRP maintained strong free cash flow generation with $193 million in Q2 alone. Looking ahead, management revised full-year revenue guidance upward to between $9.225 billion and $9.475 billion while projecting normalized diluted EPS of $4.00–$4.50—up from prior estimates. However, ongoing tariff pressures are expected to continue affecting profitability in the coming quarters.
Topics: eps market share revenue supplier restructuring tariffs