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VALCOURT, Quebec - BRP Inc . (TSX:DOO) (NASDAQ:DOOO) reported better-than-expected first quarter results on Thursday, as revenue came in well above analyst forecasts despite declining from the prior year.
The company’s stock was unchanged in pre-market trading following the earnings release.
The powersports vehicle maker posted adjusted earnings per share of C$0.47 for the quarter ended April 30, beating the analyst consensus estimate of C$0.29. Revenue fell 8% year-over-year to C$1.85 billion, but still topped expectations of C$1.23 billion.
BRP said the revenue decline resulted from lower shipments as it focused on right-sizing network inventory levels in Seasonal Products and aligned Year-Round Products wholesales with softer industry trends. However, the company noted its North American powersports retail sales were flat compared to last year.
"Our Q1 financial results were in line with expectations as we focused on right sizing network inventory levels," said José Boisjoli, President and CEO of BRP. "We continued to outperform in current model year units, demonstrating the continued appeal of our recently introduced models and overall strength of our lineup."
The company reported normalized EBITDA of C$201 million, down 35% from C$307 million last year. Normalized diluted EPS declined 70% to C$0.47.
BRP said it is not providing full-year fiscal 2026 guidance at this time given the current volatile operating environment. For the second quarter, the company expects financial performance similar to Q1.
BRP shares are up about 5% year-to-date.
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