Sep 3, 2026 earnings call — Tariff impact and ORV momentum
Company raised full-year guidance with revenues now expected between CAD 9.225 billion and CAD 9.475 billion.
Revenue $1.6B (est $1.4B) · EPS $-0.13 (est $-0.46)
Key quotes
"factoring the latest tariff developments in our revised business assumptions, we now expect Section 232 and 338 net tariff exposure to be CAD 200 million for the year, which would represent approximately CAD 225 million of net tariff exposure on an annualized basis."
"Despite this headwind, our performance came in ahead of our expectations, driven primarily by sustained momentum in ORV retail demand and the benefit of a reduced tariff rate on ATVs."
"As a result, we are increasing our full-year guidance."
Analyst Q&A 14
tariff impact and guidance change
Q (Sabahat Khan · RBC): Analyst asked how much the guidance change reflects a better macro, and for details on tariff assumptions and exemptions into the back half.
A: Management said better ORV deliveries helped, personal watercraft production was reduced, inflation costs a profitability hit, and the net tariff exposure drove most of the guidance change; net tariff exposure is CAD 200 million this year and CAD 225 million next year.
"So net-net, when you add all of this, we are talking about a net exposure this year of CAD 200 million and next year of CAD 225 on an annualized basis." — Sébastien Martel (CFO)
supplier support charge
Q (Craig Kennison · Baird): Analyst asked for more detail on the supplier financial restructuring line and whether it affects the supplier relationship.
A: Management said they provided financial support to an important supplier in distress to keep parts flowing; the goal is to maintain the relationship, and price increases from the supplier are possible but not material. Most of the CAD 75 million charge was booked in the quarter.
"The objective is to maintain the relationship with the supplier." — Sébastien Martel (CFO)
tariff cadence and Mission 28 goal
Q (Brian Morrison · TD Cowen): Analyst asked why the back-half tariff proration looks lower this year versus next year and whether Mission 28 EBITDA targets still hold net of tariffs.
A: Management explained this year included offsets and mix effects so H2 tariff impact is smaller; they reaffirmed the Mission 28 objective (CAD 8 next year) remains reachable net of tariffs, though commodities and inflation are variables.
"So the Mission 28 objective of CAD 8 for next year is still very much reachable, net of tariffs." — Sébastien Martel (CFO)
inflation and ORV demand drivers
Q (James Hardiman · Citi): Analyst asked for more detail on inflation (freight, overland vs ocean) and why ORVs are outperforming and how sustainable share gains are.
A: Management said inflationary headwind rose to 100-125 basis points, with most freight pressure on land due to trailer and driver shortages. They said ORV growth is driven by a shift from recreational use to utility use (farming, construction, first responders), and product offerings like Defender and XU support continued share gains.
"There is a strong momentum behind this, which is a shift from used to be kind of a recreational segment to the utility segment." — Denis Le Vot (CEO)
tariff mitigation and buybacks
Q (Benoit Poirier · Desjardins): Analyst asked if there are other mitigation levers to erase tariff impact, and about free cash flow and buyback or higher CapEx next year.
A: Management said they continue to work on product, overhead, lean and supplier levers and are preparing for different scenarios but need tariff predictability to go further. They also said CapEx is steady, and they could deploy an additional CAD 200 million for buybacks from now to year-end.
"we could deploy easily an additional CAD 200 million of cash towards buybacks from now to the end of the year." — Sébastien Martel (CFO)
Q3 vs Q4 tariff split and Spyder impact
Q (Robin Farley · UBS): Analyst asked the split of tariffs between Q3 and Q4 and how much of next year's incremental tariffs come from Section 338 (Spyder) versus product mix.
A: Management said tariffs should be higher in Q3 than Q4 because new-product transition happens mostly in Q4; they expect roughly CAD 30 million-CAD 35 million of tariffs in Q3 with the remainder in Q4. For next year they said Spyder will add about CAD 60 million to CAD 65 million of headwind, and timing depends on product mix.
"So you'll see some, probably within the range of CAD 30 million-CAD 35 million easily of tariffs in Q3 and the remaining in Q4." — Sébastien Martel (CFO)
which customers are buying ORVs
Q (Joe Altobello · Raymond James): Analyst asked which end-customer pockets are strongest as ORV demand and share gains continue.
A: Management said strength is in utility and cab units and in higher-end/luxury models; they noted their average household income supports selling higher-end models and they are increasing cab capacity to meet strong dealer and consumer demand. They reported market share gains and strong performance in PWC as well.
"You can see it is mostly our upper range, upper segment, upper power in the engines that we are selling and in the current business, okay?" — Denis Le Vot (CEO)
year-round product revenue and retail trends
Q (Cameron Doerksen · National Bank): Analyst asked why year-round revenue guide shows modest growth despite ORV outperformance, and asked for retail trends for fiscal Q3.
A: Management said last year had a richer mix (HD11 shipments) so this year's mix is more balanced, which limits top-line growth; retail momentum is expected to be good in H2 as full cab models reach the network, and they expect low-single-digit market growth with the cab/utility segment much stronger.
"Globally on the market, if we are on the ORV, specifically SSV in North America, the momentum is good, but the momentum in size is, if you take for instance, the Q2, the market is up low single." — Denis Le Vot (CEO)
dealer inventory level vs sales
Q (Martin Landry · Stifel): Analyst asked why dealer inventory in North America is only up 2% in units despite strong sales growth and flat retail.
A: Management said compare to very lean inventory at end of January; they are comfortable with current levels (about 100 days on ORV), snowmobile inventory is down, and they are cutting personal watercraft production to protect dealer profitability so wholesale/retail/inventory are balanced for retail support and dealer margins.
"When I look at it in a nutshell, I think we are well-balanced to make sure that we have enough inventory to support retail, but also the right amount of inventory to protect the dealer's profitability." — Sébastien Martel (CFO)
dealership additions and promotions
Q (Tristan Thomas-Martin · BMO): Analyst asked how many dealerships were added versus the 100+ target and if there is anything to flag on promotions.
A: Management said they added 36 last year, are modeling about 40 this year and have already signed 20; at Club BRP many prospects visited and they are confident about adding about 40. They see healthy inventories and expect less OEM promotion, which is a positive tailwind.
"More importantly, at the club we talk about there are prospects which are visiting us to take a decision, and we have a lot of contacts." — Denis Le Vot (CEO)
BRP Financial Services launch
Q (Anthony Bonadio · Wells Fargo): Analyst asked why they launched BRP Financial Services now and implications for P&L as it ramps.
A: Management said the program elevates dealer and consumer experience, brings OEM-level financing services, improves customer knowledge and repurchase influence, and dealers signed quickly; they are already originating loans and expect positive financial implications but emphasized strategic value in becoming OEM of choice.
"And, yes, it may have a positive financial implication, but I think the broader implication is about BRP becoming the OEM of choice for dealers and consumers and building that brand aura around BRP." — Sébastien Martel (CFO)
ORV retail assumption for second half
Q (Brandon Rollé · Loop Capital): Analyst asked the underlying ORV retail assumption in the second half given year-to-date retail performance.
A: Management said year-to-date side-by-side retail is up 7% and ATV up 4%; they expect the industry to remain similar in H2 and expect good retail momentum, helped by a full 6 months of Defender HD11s in the network.
"The expectation is that the industry will remain as we had it in the second half, and our expectation is good retail momentum, especially that we have, we will call it a full 6 months of Defender HD11s in the network." — Sébastien Martel (CFO)
factory expansion in Juárez
Q (Gerrick Johnson · Seaport Research Partners): Analyst asked what the factory expansion entails in Juárez and whether it requires significant CapEx.
A: Management said expansion is mainly line reorganization and building extension to add space for cabin manufacturing steps; throughput will increase roughly 33% with modest CapEx, enabling them to meet demand as dealer inventory is low and market should absorb the extra units.
"We are just mostly extended the building. We are extending a building so that we can have a throughput of this, which is increased by roughly 33% of what we are doing right now, which will be impacting, of course, on our commercial performance." — Denis Le Vot (CEO)
quarter margin drivers and industry assumptions
Q (Jonathan Goldman · Scotiabank): Analyst asked to break down revenue growth into volume, share gains, pricing and mix and whether industry retail assumptions changed.
A: Management provided a margin breakdown: tariffs hit gross profit by 740 basis points and supplier restructuring 330 basis points, netting a 140 basis point year-over-year improvement excluding those items; they said gross margin improvement came from leverage on fixed costs, pricing and manufacturing efficiencies, and they have not changed their North American powersports retail assumption.
"Obviously, leverage on fixed costs is about 110 basis point pricing." — Sébastien Martel (CFO)