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1. Company Snapshot

1.a. Company Description

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally.The company operates through two segments, Powersports and Marine.It offers all-terrain, side-by-side, and three-wheeled vehicles; seasonal products, such as snowmobiles and personal watercraft; and engines for jet boats, outboards, karts, motorcycles, and recreational aircraft.


The company also provides parts, accessories, and apparel, as well as other services.It sells its products through a network of independent dealers and distributors, as well as to original equipment manufacturers.The company was formerly known as J.A. Bombardier (J.A.B.) Inc.


and changed its name to BRP Inc.in April 2013.BRP Inc.


was founded in 1937 and is headquartered in Valcourt, Canada.

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1.b. Last Insights on DOO

BRP Inc.'s recent performance was negatively driven by the company's struggle to navigate a complex and uncertain automotive landscape, shaped by economic volatility, regulatory shifts, and evolving consumer preferences. The company also faces tariff threats, which could further exacerbate its challenges. Furthermore, the announcement of the fourth quarter and full-year FY25 financial results conference call on March 26, 2025, may provide insights into the company's recent performance, but the recent news suggests that the company is still facing significant headwinds.

1.c. Company Highlights

2. BRP's Q2 FY26 Earnings: A Closer Look

BRP Inc. reported Q2 FY26 revenue of $1.9 billion, normalized EBITDA of $213 million, and normalized EPS of $0.92, outperforming expectations. The actual EPS came out at $0.3301, below estimates of $1.22. The company's financial performance was impacted by various factors, including inventory levels and market trends. According to Sebastien Martel, favorable product mix and reduced programs were key revenue drivers unrelated to volume.

Publication Date: Sep -07

📋 Highlights
  • Revenue Drivers:: Favorable product mix and reduced program complexity boosted revenue, unrelated to volume changes.
  • New Entrants:: Q2 new entrant participation at 23%, mirroring pre-COVID levels, with stable industry unit sales (2024 vs. 2019).
  • Premium Product Trend:: Inflation and high financing costs favor premium models over value-oriented offerings.
  • International Growth:: Side-by-side utility demand drives expansion in international markets, offsetting North American volume stagnation.
  • Analyst Event:: BRP announced its Analyst Day on October 8–9 in Valcourt to discuss strategic priorities.

Financial Performance

The company's revenue growth was driven by year-round products, while seasonal product revenue fell 13% due to planned reductions in personal watercraft shipments. Parts and accessories revenue rose 7%. The normalized EBITDA margin was not explicitly stated, but the company is targeting ~17% long-term normalized EBITDA margins.

Valuation Metrics

To understand what's priced into BRP's stock, we can look at various valuation metrics. The current P/E Ratio is -176.11, P/B Ratio is 13.64, and P/S Ratio is 0.85. The EV/EBITDA ratio is 10.95, indicating the company's enterprise value relative to its EBITDA. The Dividend Yield is 0.94%, and the Free Cash Flow Yield is 7.26%. These metrics provide insight into the company's valuation and potential for future growth.

Industry Trends

Industry trends are a crucial factor in BRP's performance. The company noted that new entrants in Q2 were 23%, similar to pre-COVID levels. Premium models are outperforming entry-level ones, with side-by-side utilities and exports growing, particularly in international markets. The company expects continued expansion in this segment despite North American volume stabilizing.

Guidance and Outlook

BRP updated its full-year guidance to $8.15–8.3 billion revenue, $1.04–1.09 billion normalized EBITDA, and $4.25–4.75 normalized EPS, factoring in $90 million in tariff impacts. The company is confident in its growth prospects, driven by new product launches, operational discipline, and a strong dealer network.

3. NewsRoom

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BRP Inc (DOOO) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and Market Share Gains

Dec -04

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BRP Inc. (DOOO) Beats Q3 Earnings and Revenue Estimates

Dec -04

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BRP ANNOUNCES THE RENEWAL OF ITS NORMAL COURSE ISSUER BID

Dec -04

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BRP PRESENTS ITS THIRD QUARTER RESULTS FOR FISCAL YEAR 2026

Dec -04

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Can-Am to Return to Dakar Rally with Proven Champions, New Hopefuls, and Race-Tested Maverick R Platform

Dec -02

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Is There Value in BRP After a 34.9% Rally and Electric Mobility Expansion?

Nov -30

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BRP Donates More Than $300,000 to Ride Out Intimidation on its Fourth Annual Yellow Day

Nov -28

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Can-Am Unveils the Industry's Most Affordable HVAC-Equipped Side-by-Sides and a New Camouflage Outlander Electric

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.91%)

6. Segments

Powersports

Expected Growth: 5%

BRP Inc.'s Powersports segment growth is driven by increasing demand for outdoor recreational activities, innovative product offerings such as Sea-Doo watercraft and Can-Am off-road vehicles, expanding global distribution networks, and strategic partnerships. Additionally, the company's focus on digital marketing and e-commerce platforms enhances customer engagement and drives sales.

Marine

Expected Growth: 3%

BRP Inc.'s Marine segment growth is driven by increasing demand for recreational boats and watercraft, fueled by rising disposable incomes and a growing middle class. Additionally, the company's focus on innovation, product diversification, and strategic acquisitions have contributed to its growth momentum.

Inter-segment Eliminations

Expected Growth: 0%

BRP Inc.'s Inter-segment Eliminations with 0% growth is attributed to the absence of significant transactions between segments, indicating a lack of intercompany sales or purchases. This suggests a decentralized business model, where each segment operates independently, or a lack of material eliminations due to the company's organizational structure.

7. Detailed Products

Ski-Doo Snowmobiles

BRP's Ski-Doo snowmobiles are designed for performance, agility, and reliability, offering a range of models for trail riding, mountain riding, and utility use.

Sea-Doo Watercraft

BRP's Sea-Doo watercraft are designed for thrill-seekers and families, offering a range of models for recreation, fishing, and touring.

Can-Am Off-Road Vehicles

BRP's Can-Am off-road vehicles are designed for adventure, offering a range of models for trail riding, hunting, and utility use.

Can-Am On-Road Vehicles

BRP's Can-Am on-road vehicles are designed for comfort, style, and performance, offering a range of models for commuting, touring, and cruising.

Rotax Engines

BRP's Rotax engines are designed for performance, reliability, and efficiency, powering a range of applications from recreational vehicles to industrial equipment.

Evinrude Outboard Engines

BRP's Evinrude outboard engines are designed for boating enthusiasts, offering a range of models for fishing, cruising, and water sports.

8. BRP Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

BRP Inc. faces moderate threat from substitutes due to the availability of alternative recreational products and services.

Bargaining Power Of Customers

BRP Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative products and services.

Bargaining Power Of Suppliers

BRP Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

BRP Inc. operates in a moderately competitive industry, and new entrants may face significant barriers to entry, but the threat of new entrants is still present.

Intensity Of Rivalry

BRP Inc. operates in a highly competitive industry, and the intensity of rivalry is high due to the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.49%
Debt Cost 7.86%
Equity Weight 21.51%
Equity Cost 15.80%
WACC 9.57%
Leverage 364.87%

11. Quality Control: BRP Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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LCI

A-Score: 5.6/10

Value: 6.9

Growth: 5.8

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 6.0

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Thor Industries

A-Score: 4.8/10

Value: 6.1

Growth: 4.0

Quality: 5.3

Yield: 4.0

Momentum: 4.0

Volatility: 5.3

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Brunswick

A-Score: 4.5/10

Value: 6.9

Growth: 4.8

Quality: 2.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.3

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Harley-Davidson

A-Score: 4.4/10

Value: 6.6

Growth: 4.0

Quality: 3.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

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BRP

A-Score: 4.0/10

Value: 5.5

Growth: 4.0

Quality: 2.4

Yield: 1.0

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

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Polaris

A-Score: 3.9/10

Value: 6.4

Growth: 2.6

Quality: 2.4

Yield: 7.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

106.12$

Current Price

106.12$

Potential

-0.00%

Expected Cash-Flows