How did DOOO's Q4 2025 earnings surprise analysts?

BRP Inc. (NASDAQ:DOOO) reported its fiscal fourth-quarter 2025 earnings, surpassing analysts’ expectations with an EPS of $0.98 against a forecast of $0.86. The company also reported revenue of $2.1 billion, exceeding the anticipated $2 billion. Following the announcement, BRP’s stock surged 8.94%, reflecting investor optimism despite a challenging market environment. 1. **Strategic Focus on Innovation**: BRP's performance was bolstered by its strategic emphasis on innovation and the introduction of new products. The company launched an electric motorcycle, which contributed to its robust performance in a challenging retail environment. 2. **Market Leadership**: BRP maintained its position as the leading OEM in Powersports in North America, gaining market share in key segments such as side-by-side vehicles and ATVs. This strategic positioning helped the company navigate the downturn in the Powersports market, which experienced a 21% decline in North American retail sales. 3. **Financial Resilience**: BRP demonstrated resilience with an EPS of $0.98, surpassing the forecasted $0.86, marking a 13.95% positive surprise. Revenue also exceeded expectations, coming in at $2.1 billion compared to the $2 billion forecast. This performance reflects the company’s ability to navigate a challenging retail environment and leverage its market-leading position. In summary, BRP's Q4 2025 earnings exceeded analysts' expectations due to strategic product launches, market leadership, and strong financial performance despite industry headwinds.