BRP Lifts FY27 Guidance Despite Q2 Net Loss from Tariffs and Supplier Restructuring
DOO sits 30% above its 52-week low of $48.831.
Summary
BRP's Q2 FY27 revenue rose 18.5% to C$2,236.8M, but the company swung to a C$136.8M net loss on tariffs and a supplier restructuring. Management raised full-year EPS guidance to C$4.00-C$4.50 and announced a CFO transition.
Key Events · Earnings and Guidance · DOO
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Q2 Revenue Up 18.5%, Net Loss of C$136.8M
Revenues rose to C$2,236.8M from C$1,888.2M, driven by higher ORV shipments and favorable SSV mix, but the company swung to a net loss of C$136.8M from a C$57.1M profit last year.
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Gross Margin Collapses to 11.7%
Gross profit fell 34% to C$262.5M as Section 232 tariffs and a C$74.8M supplier financial restructuring charge (330 bps) crushed margins from 21.1% to 11.7%.
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FY27 Guidance Raised to C$4.00-C$4.50 EPS
Management increased full-year Normalized diluted EPS guidance to C$4.00-C$4.50, with revenue guidance of C$9,225-C$9,475M and Normalized EBITDA of C$1,025-C$1,075M, citing ORV market share gains and reduced net tariff costs.
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Q3 EPS Expected Down 50-60% YoY
The company guided Q3 FY27 Normalized diluted EPS to decline approximately 50-60% versus the prior year, mainly due to increased tariff impact.
Analysis · DOO · Manufacturing
A mixed quarter for BRP: revenue climbed 18.5% to C$2,236.8M, yet the bottom line swung to a net loss of C$136.8M from a C$57.1M profit a year earlier. The reversal stemmed from Section 232 tariffs on steel, aluminum, and copper imports, along with a C$74.8M charge tied to a supplier financial restructuring that compressed gross margin to 11.7% from 21.1%. Even so, management raised full-year Normalized diluted EPS guidance to C$4.00-C$4.50, pointing to strong ORV market share gains and reduced net tariff costs. A planned CFO transition and the launch of a branded retail financing program in the US were also announced. Investor reaction will likely hinge on whether the raised guidance outweighs the deteriorating margin profile and a Q3 outlook calling for a 50-60% EPS decline.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1045 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DOO was trading at $63.37 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $48.83 to $81.89. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.