BRP Q2 Revenue Rises 18.5% as ORV Shipments Grow, but Tariffs Squeeze Margins

BRP opened September 3 with a mixed but strategically important second-quarter report: revenue climbed 18.5% year over year to C$2.2368 billion as off-road vehicle shipments increased, yet tariff pressure and a supplier restructuring sharply compressed profitability.

BRP is headquartered in Valcourt, Quebec, its brands span Can-Am, Ski-Doo, Sea-Doo, Lynx and Rotax, and the company’s results provide a direct look at dealer demand, inventory flow, product mix and trade-cost pressure across North American powersports.

What happened

BRP reported revenue of C$2.2368 billion for the three months ended July 31, 2026, up 18.5% from C$1.8882 billion a year earlier.

The company said the increase was driven primarily by higher off-road vehicle shipments to support retail demand and by a favourable side-by-side product mix from new models. Year-round product revenue rose 33.3% to C$1.4851 billion.

Seasonal-product revenue moved the other direction. BRP reported an 8.9% decline to C$427.7 million, primarily because fewer personal watercraft units were shipped in the quarter after some volume had moved earlier into the first quarter.

Parts, accessories, apparel, OEM engines and other revenue increased 6.3% to C$324 million.

Those numbers show why a single corporate headline can hide several different category stories. ORV shipments and mix were strong, while PWC timing reduced seasonal-product revenue.

Retail was positive, but only modestly

BRP reported that North American powersports retail sales increased 1% from the same quarter last year.

The increase was driven by positive side-by-side industry trends and BRP market-share gains in off-road vehicles. Year-round-product retail increased in the low-single-digit range, while seasonal-product retail declined in the low single digits.

That distinction matters to dealers.

An 18.5% increase in manufacturer revenue does not mean retail demand increased 18.5%. Wholesale shipments, product mix, timing and foreign exchange can all move corporate revenue more dramatically than showroom retail.

Tariffs and supplier disruption hit margins

The strongest caution in the quarter is profitability.

Gross profit fell 34% to C$262.5 million, and gross margin declined to 11.7% from 21.1% a year earlier.

BRP attributed the decline mainly to Section 232 tariffs on steel, aluminum and copper imports into the United States, along with a supplier financial restructuring that created a C$74.8 million unfavourable effect on gross profit.

Normalized EBITDA fell 34.9% to C$138.8 million.

The company reported a net loss of C$136.8 million for the quarter, compared with net income of C$57.1 million in the comparable period.

For Canadian dealers, that is an important reminder that healthy retail activity and healthy manufacturer margins are not the same thing. Product demand can improve while input costs, tariffs, exchange rates and supplier problems reduce the economics behind each unit.

BRP raised full-year EPS guidance

Despite the quarter’s profit pressure, BRP increased its fiscal-year 2027 normalized diluted earnings-per-share guidance to C$4.00 to C$4.50.

The company now guides total fiscal-year revenue to between C$9.225 billion and C$9.475 billion.

BRP said the stronger outlook reflects its ORV performance, market-share gains and lower expected net tariff costs than previously anticipated.

The company also cautioned that third-quarter normalized diluted EPS is expected to be down approximately 50% to 60% from the comparable period, mainly because of increased tariff impact.

That combination is more informative than a simple “guidance raised” headline. BRP sees enough strength to improve the full-year outlook, but the trade-cost environment remains a material near-term risk.

Off-road is clearly the strategic centre

BRP used the results release to reinforce a major strategic commitment from its recent Club BRP dealer event.

The company says it intends to make major off-road product announcements every six months for the next four years as it works toward becoming North America’s leading off-road brand.

Recent product activity includes the second-generation Can-Am Defender HD10 and continued expansion across BRP’s off-road portfolio.

For dealers, a six-month product cadence can create opportunity and complexity at the same time.

More frequent major introductions can keep showroom interest high, but they also increase the importance of inventory aging, product training, accessory planning and disciplined ordering. Dealers need enough stock to capture demand without allowing superseded configurations to accumulate.

What the numbers say about inventory

BRP’s report says higher ORV shipments were used to support retail demand, while North American retail itself grew only 1%.

That does not automatically indicate over-shipping. It does mean dealers should watch the relationship closely over the next several quarters.

The healthiest pattern would be continued retail growth, controlled dealer inventory and limited need for heavy discounting.

If wholesale shipments keep running much faster than retail, dealer carrying costs and incentive requirements can become more important.

The Canadian significance is unusually direct

Many powersports business stories require a Canadian angle to be constructed carefully. This one does not.

BRP is a Quebec-headquartered global powersports company, and the financial results directly describe the performance of brands sold through Canadian dealer networks.

That gives Canadian dealers useful context around manufacturer health, category demand and product strategy.

It also matters to suppliers, employees and communities connected to BRP’s Canadian operations.

The article should not become investment advice.

Dealer implications

For Can-Am dealers, the strongest signal is continued ORV focus.

The company is shipping more year-round products, gaining ORV share and committing to a sustained product-news cycle.

Dealers should use that information operationally: review aged inventory, prepare staff for shorter product-news intervals, map accessory packages to new models and measure whether new introductions are actually generating leads and retail turns.

The tariff pressure also matters.

Even when BRP reduces its net exposure, trade costs can affect manufacturer margins, pricing strategy and promotional flexibility. Dealers should avoid assuming today’s incentives or margins will look the same later in the year.

What to watch next

Three items deserve attention.

First, whether North American ORV retail growth strengthens enough to keep pace with higher shipments.

Second, how tariffs affect BRP’s third-quarter profitability and whether mitigation continues to improve.

Third, whether the promised six-month off-road product cadence translates into sustained Canadian dealer demand rather than short launch spikes.

Those are the next events that can materially change the story.

Bottom line

BRP’s second-quarter revenue rose 18.5% to C$2.2368 billion, driven by higher ORV shipments and favourable side-by-side mix, while North American powersports retail increased 1% and the company gained ORV market share.

The quarter was not uniformly strong: gross margin and normalized EBITDA fell sharply under tariff and supplier-restructuring pressure, and BRP reported a net loss.

For Canadian powersports dealers, the most important signal is the combination of ORV momentum, continued product investment and persistent cost pressure. BRP is pushing harder into off-road at the same time the economics of manufacturing and distribution remain volatile.