What is the revenue and EPS growth rate for BRP year over year?

What does BRP do and what are its main business segments?

Did BRP beat or miss consensus estimates last quarter?

What is the market's earnings forecast for BRP next quarter?

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

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

What factors drove the changes in BRP's revenue and profit?

What is BRP's gross profit margin?

- **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.

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