BRP Q2 FY26 results: New Can-Am Machines Debut as Sales Slide, Profit Improves

Valcourt, Quebec — August 29, 2025 (CAD figures)
BRP’s latest quarter is a mix of steady revenue, lower retail demand, and big product news that matters to SxS and ATV riders. While North American retail sales fell double digits, BRP used its Club BRP 2026 dealer event to roll out several headline-grabbers for our crowd: a next-gen Can-Am Defender, the Outlander Electric ATV, and the Outlander MAX 6×6.

Below is what riders, shoppers, and dealers should know.

The quick take on BRP Q2 FY26 results

• Revenue: $1.89B, +4.3% year over year
• Net income: $57.1M, +36% (helped by lower tax expense)
• Normalized EBITDA: $213.2M, –9.2% (higher operating costs)
• North American retail: –11% (PWC softness and limited non-current SSV availability)
• FY26 outlook: Total revenue $8.1–$8.3B; normalized diluted EPS $4.25–$4.75

Why it matters to off-road riders

Fresh iron, right timing

BRP says dealer sentiment improved at Club BRP thanks to a wave of new machines and healthier inventory. For the SxS/ATV community, three launches stand out:

• Can-Am Defender (new generation): A ground-up update for the work-ready ute-rec staple. Expect better refinement and utility features aimed squarely at ranch, farm, and trail duty.
• Can-Am Outlander Electric: BRP’s first full-electric ATV brings quiet operation, instant torque, and low maintenance—useful for property work and hunting.
• Can-Am Outlander MAX 6×6: A heavy-hauler utility ATV with serious traction and payload capability for job sites and backcountry logistics.

Those arrivals land as BRP reports “leaner inventory,” which should help shoppers actually find the trims they want—and help dealers hold value.

Pricing, tariffs, and parts

Gross margin held close to last year (21.1% vs. 22.0%), with tariffs weighing on parts, accessories & apparel (PA&A). Translation: expect continued focus on pricing discipline and targeted promos rather than blanket discounts, especially on parts.

BRP Q2 FY26 results Q2 by the numbers (three months ended July 31, 2025)

• Revenue: $1,888.2M (vs. $1,811.1M)
• Gross profit: $397.7M (vs. $399.3M)
• Operating expenses: $307.3M (up 10.3%; more R&D and a special long-term incentive program)
• Normalized EBITDA: $213.2M (vs. $234.9M)
• Diluted EPS: $0.79 (up from $0.55)
• Normalized diluted EPS: $0.92 (down from $1.02)

Segment mix:

• Year-Round Products (ORV/SSV/3-wheel): $1,113.8M, +13.1% (59% of sales)
• Seasonal (PWC/Snow): $469.7M, –13.3% (25%)
• PA&A & OEM Engines: $304.7M, +7.2% (16%)

Retail snapshot (North America):

• Year-Round Products: down high-single digits; the overall industry was down low-single digits
• Seasonal Products: down high-teens; the industry was down mid-teens

First half (six months) context

• Revenue: $3,735.1M (–2.0%)
• Normalized EBITDA: $414.0M (–23.7%) on lower gross profit
• Net income: $218.1M (+158%), aided by FX on U.S.-denominated debt and lower taxes
• Free cash flow: $239.2M (up sharply from $51.2M), with working-capital tailwinds

BRP invested $119.1M in capex (new products + software) and declared a $0.215/share quarterly dividend (record Sept 30, payable Oct 14).

FY26 guidance (as issued)

• Total revenue:$8.15–$8.30B
  • Year-Round Products: $4.75–$4.80B
  • Seasonal Products: $2.15–$2.20B
  • PA&A & OEM Engines: $1.25–$1.30B
• Normalized EBITDA: $1.04–$1.09B
• Normalized diluted EPS: $4.25–$4.75
• Net income: $430–$470M

Assumptions include an ~21% effective tax rate, capex around $420M, and about 73.8M diluted shares.

What to watch next

1. Dealer lots this fall/winter: How quickly the new Defender and Outlander variants reach stores—and how trims/availability look outside core markets.
2. Promo cadence vs. pricing power: Retail softness suggests selective incentives; we’ll watch how BRP balances promos with margin.
3. PA&A pricing: With tariffs pressuring parts margins, expect curated bundles and seasonal offers rather than across-the-board cuts.
4. EV adoption curve: Outlander Electric is a milestone; early owner feedback on range, towing, and cold-weather performance will be key.
5. Industry rebound: BRP is positioning for a stronger back half; macro trends (rates, confidence, weather) will drive how fast retail stabilizes.

Editor’s note: All figures are reported by BRP in Canadian dollars (CAD). “Normalized” metrics are non-IFRS measures used by management to evaluate operating performance.

Source: BRP Inc. press release, “BRP Presents Its Second Quarter Results for Fiscal Year 2026,” dated August 29, 2025., BRP Q2 FY26 results