BRP North American retail sales rise 12% YoY in Q4

A rebound in retail demand and strong performance across key product lines lifted Canadian powersports manufacturer Bombardier Recreational Products’ results in the fourth quarter of fiscal 2026. North American retail sales increased 12% year over year in the quarter ended Jan. 31, driven by market share gains in off-road vehicles (ORV) and snowmobiles, according to the company’s March 26 earnings presentation. Despite Q4 growth, BRP’s full-year North American retail sales declined 1% YoY. The company reported total revenue of about CA$2.5 billion ($1.8 billion) in Q4, up 16% YoY, fueled by increased shipments, favorable pricing and improved product mix, according to the earnings presentation. Full-year revenue rose 6.8% YoY to $6.1 billion. North American dealer inventory declined 17% YoY, reflecting progress in the company’s inventory reduction strategy and improved alignment between wholesale shipments and retail demand , BRP Chief Executive Denis Le Vot said during the Ville de Valcourt, Quebec-based company’s March 26 earnings call. “We reached optimal levels for ORV and snowmobile following a good quarter at retail, and we are progressing towards these levels for the other product lines,” he said. “We are now positioned to better align wholesale with retail in fiscal 2027 and to capture market demand when the industry returns to growth.” Sales by segment For Q4, BRP reported the following YoY sales performance by segment: Side-by-side vehicles were up “high-single digit percentage”; All-terrain vehicles were up “low-teen digit percentage”; Three-wheel vehicles were down “mid-teens digit percentage”; Snowmobiles were up “high-teen digit percentage”; Personal watercrafts were down “high-teen digit percentage”; and Pontoons were down about 20%. For fiscal 2026, YoY sales performance by segment was: Side-by-side vehicles were “about flat”; All-terrain vehicles were “about flat”; Three-wheel vehicles were down “mid-20%”; Snowmobiles were up “about 20%”; Personal watercraft were down by low teen digit percentages; and Pontoons were down around “mid-20%”. BRP did not provide specific numbers in its earnings report. Profitability improves Despite mixed sales performance, BRP posted net income of $33.1 million YoY in Q4, up compared to a $36.5 million net loss in Q4 2025, according to the earnings presentation. Meanwhile, full-year net income landed at $245.7 million, up 426.9% YoY. Operating income for Q4 totaled $9 million, down 88% YoY, according to the presentation. Operating income for the year declined to $288.3 million, down 27.9% YoY, largely due to higher operating expenses and impairment charges. During the quarter, BRP recorded a $167.8 million impairment charge tied to its electric vehicle and light mobility investments, citing slower adoption and a weaker outlook for returns, Chief Financial Officer Sebastien Martel said during the earnings call. “We entered the EV and light mobility markets during a period of rapid expansion, investing in these areas with a long-term mindset,” he said. “Still, as previously mentioned, our intention remains to continue selling EV products we have already developed while limiting the annual financial impact to [$18.1] million.” Outlook for fiscal 2027 BRP expects revenue to grow between $6.4 billion and $6.6 billion, or between 5% and 8% in fiscal 2027, according to the earnings presentation. BRP expects strong first-half growth and results trending toward the high end of guidance despite macroeconomic uncertainty , but widened its outlook range to account for potential second-half demand softness and economic risks, Martel said. “Retail in fiscal 2027 continues to perform well and is tracking in line with our initial plan for the year,” he said. “This positions for a strong top line growth in the first half, driven by continued market share gains and supported by shipments that are expected to be more aligned with retail following last year's significant network inventory rightsizing.” Ultimately, BRP’s earnings came in stronger than expected due to its retail growth, market share gains and improved margins, according to a March 26 BMO Capital Markets research note. The company’s cautious but transparent fiscal 2027 guidance also reflects stable demand with downside risk tied to macroeconomic uncertainty, according to the note. Shares of BRP Inc. [ Nasdaq: DOOO ] were trading down 1.5% from market open to $66.25 at market close today. BRP has a market capitalization of $4.9 billion. Editor’s note: All amounts have been converted to U.S. dollars. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. Register by March 27 for early-bird savings. To see event agendas and register, visit autofinance.live .

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BRP North American retail sales rise 12% YoY in Q4

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