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What is BRP's latest dividend and current dividend yield?

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Did BRP beat or miss consensus estimates last quarter?

What were the key takeaways from BRP’s earnings call?

- **Revenue Beat**: $1.9B Q2 revenue (+4% YoY), driven by ORV and EV growth.
- **New Product Success**: Can-Am Defender launch boosts ORV market share; Outlander electric gains traction in China.
- **Tariff Challenge**: $90M FY26 impact, partially mitigated by pricing and supply chain shifts.
- **H2 Guidance Confidence**: $8.15-8.3B revenue, 22-31% EBITDA growth, backed by lean inventory and dealer demand.
- **Long-Term Vision**: 17% EBITDA margin target; utility SSVs (2/3 of industry) key to sustained growth.

**【CEO Summary Section】**
- Q2 revenue of $1.9 billion, up 4% YoY, driven by ORV shipments and electric vehicle (EV) momentum.
- North American Powersport retail down 11%, but Canada outperformed with 4% growth in ORV, offsetting U.S. decline.
- Global industry trends improved, with Latin America up 22% and China's Asia Pacific market growing 5%.
- Launched new Can-Am Defender, Outlander electric, and other models, positioning for H2 market share gains.
- Sold Manitou division, expected to close soon, reducing non-core distractions.

**【CFO Financial Commentary】**
- Normalized EBITDA of $213 million, EPS of $0.92, and free cash flow of $100 million.
- Network inventory reduced 20% YoY, dealers' credit line usage at 60%, healthy for new product uptake.
- Tariff impact estimated at $90 million for FY26, partially mitigated by pricing adjustments.
- H2 guidance: Revenue $8.15-8.3 billion, EBITDA $1.04-1.09 billion, EPS $4.25-4.75, driven by new product launches and lean inventory.

**【Q&A Highlights】**
- **Tariffs & Trade Policy**: 2/3 of content sourced from North America under USMCA compliance; $90M tariff impact includes steel/aluminum on 2/3 of vehicles. Mitigation strategies include supplier diversification and assembly in Mexico/Canada.
- **Inventory Management**: Dealer inventory at pre-COVID levels, except snowmobile. H2 shipments aligned with retail trends, reducing destocking headwinds.
- **Retail Trends**: Q2 ORV retail improved sequentially, with August momentum. H2 expects similar trends, driven by new Defender and EV launches.
- **Margin Outlook**: 22-31% EBITDA growth in H2, margin >14%, vs. 10.5% in H1. Promotions reduced by 75-100bps, with potential further margin gains in FY27.
- **Long-Term Growth**: Targeting 17% EBITDA margin, achievable with industry recovery. New products like Defender and Outlander electric positioned for market share gains.

BRP Inc. (DOOO) Q2 2026 Earnings Call Transcript

- **Q1 Execution Strong**: $1.8B revenue, $201M EBITDA, and $162M free cash flow highlight disciplined execution amid macro challenges.
- **Inventory Reset Complete**: 21% YoY inventory decline; dealer credit utilization at 70% (pre-COVID levels) signals readiness for H2 rebound.
- **H2 Growth Catalysts**: New product launches in August and aligned wholesale/retail to drive double-digit top-line growth.
- **Tariff Impact Manageable**: $60-70M FY '26 tariff headwind offset via supply chain optimization and pricing adjustments.
- **CEO Transition**: Jose Boisjoli to retire post-FY '26; successor search underway with focus on continuity and innovation.


**【CEO Summary Section】**
- Q1 FY '26 revenue of $1.8B, normalized EBITDA of $201M, and free cash flow of $162M, in line with expectations.
- North American Powersport retail outperformed industry, driven by 80% snowmobile sales growth and strong pre-orders for '26 season.
- Inventory reduction progress: 21% year-over-year decline across all product lines, with dealer credit utilization at 70% (pre-COVID levels).
- H2 outlook: Potential double-digit top-line growth with new product launches and aligned wholesale/retail.

**【CFO Financial Commentary】**
- Gross profit of $395M (21.4% margin), impacted by lower volumes, sales programs, and tariffs.
- FY '26 tariff impact estimated at $60-70M, partially mitigated through supplier collaboration and pricing adjustments.
- Strong free cash flow generation ($162M) and $300M+ cash on hand, supporting financial flexibility.
- No guidance provided due to macroeconomic uncertainty, but positioned for H2 improvement.

**【Q&A Key Highlights】**
- **Inventory Dynamics**: Seasonal product inventory reduction expected to complete by Q2 end; dealer network in better shape than competitors.
- **Tariff Mitigation**: 60-70% of tariff impact offset via supply chain adjustments; MY '26 pricing strategy to balance consumer demand and cost pass-through.
- **Demand Trends**: High-end products (e.g., premium ORVs, watercraft) outperforming entry-level; Latin America (+18%) and Canada (+21%) leading regional growth.
- **Leadership Transition**: CEO Jose Boisjoli to retire by FY '26 end; global search underway for successor with internal/external candidates.


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