BRP PRESENTS ITS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
Highlights for FY25 Q4
As expected, revenues of $2,097.6 million, a decrease of 19.7% compared to last year, resulting from continued softer demand and the Company's objective to reduce network inventory;
Net loss of $44.5 million, a decrease of 114.7% compared to last year;
Normalized EBITDA [1] of $239.8 million, a decrease of 44.6% compared to last year;
Normalized diluted earnings per share [1] [2] of $0.98 in line with expectations, a decrease of $1.80 per share, and diluted earnings per share of $(0.60), a decrease of $4.55 per share, compared to last year;
North American retail sales decreased by 21% compared to last year, resulting from lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs;
The Company increased its quarterly dividend to $0.215 per share.
Highlights for FY25
Revenues of $7,829.7 million, a decrease of 21.4% compared to last year;
Achieved revised FY25 guidance adjusted for Marine businesses discontinued operations with Normalized diluted earnings per share [1] [2] of $4.68;
Provided shareholder returns through $277.0 million deployed in share repurchases and dividend payments;
North American network inventory decreased by 13% compared to last year, or 18% when excluding snowmobiles for which network inventory increased due to lower industry retail caused by late snowfall.
Fiscal 2026 full-year guidance
Given the ongoing global tariff disputes and the uncertainty surrounding any potential changes to trade regulations, the Company has decided to defer providing financial guidance for FY26. This uncertainty has also had a negative impact on consumer demand, making it difficult to offer reliable projections at this time.
VALCOURT, QC, March 26, 2025 /PRNewswire/ - BRP Inc. (TSX:DOO) (NASDAQ:DOOO) today reported its financial results for the three- and twelve-month periods ended January 31, 2025. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on SEDAR+ and EDGAR as well as in the section Quarterly Reports of BRP's website.
"BRP demonstrated its agility throughout fiscal 2025 by rapidly adapting to softer market conditions. We were the first OEM to proactively adjust shipments to reduce network inventory and we have achieved our objective. As anticipated, our leaner inventory position compared to competitors resulted in short-term market share loss but protected our dealer network and the value of our brands. In this volatile context, we have outpaced the off-road industry with our current models, which speaks highly about the attractiveness of our lineups," said José Boisjoli, President and CEO of BRP.
"Looking ahead to fiscal 2026, the ongoing global tariff disputes have created economic uncertainty, making financial projections more challenging at this time. Over the longer term, our strategic decision to double down on Powersports should allow us to solidify our industry leadership by pushing innovation further and capitalizing on growth opportunities. With a product portfolio that is second-to-none, a strong dealer network and a healthy balance sheet, we are well positioned to sustain profitable growth," concluded Mr. Boisjoli.
[1]
See "Non-IFRS Measures" section of this press release.
[2]
Earnings per share is defined as "EPS".
Financial Highlights [3]
Three-month periods ended
Twelve-month periods ended
(in millions of Canadian dollars, except per share data and margin)
January 31,
2025
January 31,
2024
January 31,
2025
January 31,
2024
January 31,
2023
Revenues
$2,097.6
$2,611.5
$7,829.7
$9,963.0
$10,033.4
Gross Profit
429.4
660.5
1,773.6
2,634.0
2,499.4
Gross Profit (%)
20.5 %
25.3 %
22.7 %
26.4 %
24.9 %
Normalized EBITDA [1]
239.8
432.6
1,040.0
1,793.2
1,706.3
Net Income (Loss)
(44.5)
302.8
62.7
931.7
865.4
Net Loss from Discontinued Operations
(175.1)
(114.9)
(275.7)
(187.2)
—
Normalized Net Income [1]
71.4
213.1
349.0
956.7
976.7
Diluted Earnings (Loss) per Share [2]
(0.60)
3.95
0.84
11.85
10.67
Diluted Normalized Earnings per Share [1][2]
0.98
2.78
4.68
12.17
12.05
Basic Weighted Average Number of Shares
73,016,543
75,475,831
73,661,874
77,166,505
79,382,008
Diluted Weighted Average Number of Shares
73,741,341
76,667,383
74,586,221
78,523,790
80,946,102
[1] See "Non-IFRS Measures" section of this press release.
[2] Earnings per share is defined as "EPS".
[3] Figures are on a continuing basis and prior periods reclassified accordingly, except for the twelve-month period ended January 31, 2023.
FOURTH QUARTER RESULTS
In the context of continued softer demand and the Company's objective to reduce network inventory, its three-month period ended January 31, 2025 was marked by a decrease in the volume of shipments and revenues compared to the same period last year. The decrease in the volume of shipments, the higher sales programs due to increased promotional intensity and the decreased leverage of fixed costs as a result of reduced production have led to a decrease in the gross profit and gross profit margin compared to the same period last year. This decrease was partially offset by favourable pricing and production efficiencies.
The Company's North American retail sales were down 21% for the three-month period ended January 31, 2025. The decrease is mainly explained by lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs.
RevenuesRevenues decreased by $513.9 million, or 19.7%, to $2,097.6 million for the three-month period ended January 31, 2025, compared to $2,611.5 million for the corresponding period ended January 31, 2024. The decrease in revenues was primarily due to a lower volume sold across all product lines, as a result of softer demand, as well as higher sales programs. The decrease was partially offset by favourable pricing across most product lines. The decrease includes a favourable foreign exchange rate variation of $33 million.
Year-Round Products (54% of Q4-FY25 revenues): Revenues from Year-Round Products decreased by $236.8 million, or 17.4%, to $1,127.1 million for the three-month period ended January 31, 2025, compared to $1,363.9 million for the corresponding period ended January 31, 2024. The decrease in revenues from Year-Round Products was primarily attributable to a lower volume of units sold across all product lines as a result of softer demand, unfavourable product mix in SSV and higher sales programs. The decrease was partially offset by favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $26 million.
Seasonal Products (32% of Q4-FY25 revenues): Revenues from Seasonal Products decreased by $275.0 million, or 28.9%, to $677.6 million for the three-month period ended January 31, 2025, compared to $952.6 million for the corresponding period ended January 31, 2024. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold across all product lines as a result of softer demand, unfavourable product mix in Snowmobile and higher sales programs. The decrease was partially offset by favourable product mix on PWC and Sea-Doo pontoon, as well as favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $2 million.
PA&A and OEM Engines (14% of Q4-FY25 revenues): Revenues from PA&A and OEM Engines decreased by $2.1 million, or 0.7%, to $292.9 million for the three-month period ended January 31, 2025, compared to $295.0 million for the corresponding period ended January 31, 2024. The decrease in revenues from PA&A and OEM engines was primarily attributable to softer demand in PA&A. The decrease was partially offset by favourable product mix on OEM engines and favourable pricing on most product lines. The decrease also includes a favourable foreign exchange rate variation of $5 million.
North American Retail Sales
The Company's North American retail sales decreased by 21% for the three-month period ended January 31, 2025 compared to the same period last year. The decrease is mainly explained by lower industry volumes in Snowmobile and market share loss in Off-Road Vehicles due to high non-current inventory from other OEMs.
North American Year-Round Products retail sales decreased on a percentage basis in the low-teens range compared to the three-month period ended January 31, 2024. The North American Year-Round Products industry sales decreased on a percentage basis in the low-single digits over the same period.
North American Seasonal Products retail sales decreased on a percentage basis in the low-thirties range compared to the three-month period ended January 31, 2024. The North American Seasonal Products industry sales decreased on a percentage basis in the mid-twenties range over the same period.
Gross profitGross profit decreased by $231.1 million, or 35.0%, to $429.4 million for the three-month period ended January 31, 2025, compared to $660.5 million for the three-month period ended January 31, 2024. Gross profit margin percentage decreased by 480 basis points to 20.5% for the three-month period ended January 31, 2025, compared to 25.3% for the three-month period ended January 31, 2024. The decreases in gross profit and gross profit margin percentage were the result of a lower volume of units sold, higher sales programs, decreased leverage of fixed costs as a result of reduced production, and higher warranty costs. The decreases were partially offset by favourable pricing across most product lines and production efficiencies. The decrease in gross profit includes a favourable foreign exchange rate variation of $2 million.
Operating ExpensesOperating expenses decreased by $12.8 million, or 3.9%, to $317.4 million for the three-month period ended January 31, 2025, compared to $330.2 million for the three-month period ended January 31, 2024. The decrease in operating expenses was mainly attributable to lower G&A expenses due to cost optimization and lower R&D expenses. The decrease was partially offset by higher restructuring and reorganization costs. The decrease in operating expenses includes an unfavourable foreign exchange rate variation of $9 million.
Normalized EBITDA [1] Normalized EBITDA [1] decreased by $192.8 million, or 44.6%, to $239.8 million for the three-month period ended January 31, 2025, compared to $432.6 million for the three-month period ended January 31, 2024. The decrease in normalized EBITDA [1] was primarily due to lower gross profit.
Net Income (Loss)Net income (loss) decreased by $347.3 million, or 114.7%, to $(44.5) million for the three-month period ended January 31, 2025, compared to $302.8 million for the three-month period ended January 31, 2024. The decrease in net income was primarily due to a lower operating income, resulting from a lower gross profit and an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt. The decrease was partially offset by a lower income tax expense.
Net Loss from Discontinued OperationsNet loss increased by $60.2 million, or 52.4%, to $(175.1) million for the three-month period ended January 31, 2025, compared to $(114.9) million for the three-month period ended January 31, 2024. The increase in net loss was primarily due to an impairment charge taken on the Marine businesses assets held for sale during the three-month period ended January 31, 2025.
[1]
See "Non-IFRS Measures" section of this press release.
TWELVE-MONTH PERIOD ENDED JANUARY 31, 2025
RevenuesRevenues decreased by $2,133.3 million, or 21.4%, to $7,829.7 million for the twelve-month period ended January 31, 2025, compared to $9,963.0 million for the corresponding period ended January 31, 2024. The decrease in revenues was primarily due to a lower volume sold across all product lines, as a result of softer demand, the Company's focus on reducing network inventory levels, as well as higher sales programs. The decrease was partially offset by favourable product mix across most product lines and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $94 million.
Normalized EBITDA [1] Normalized EBITDA [1] decreased by $753.2 million, or 42.0%, to $1,040.0 million for the twelve-month period ended January 31, 2025, compared to $1,793.2 million for the twelve-month period ended January 31, 2024. The decrease in Normalized EBITDA [1] was primarily due ...
