BRP Inc. reported a second-quarter loss on September 3 while raising its full-year outlook, as strong off-road demand offset a tariff-driven earnings hit. Revenue climbed 18.5% year over year to $2.24 billion, but normalized diluted EPS swung to a loss of $0.18 a share from a profit of $0.92 a year earlier. Gross margin fell 940 basis points to 11.7%, with Section 232 tariffs accounting for a large piece and a one-time $74.8 million supplier support payment cutting another 330 basis points, while normalized EBITDA dropped 34.9% to $138.8 million. Management raised full-year revenue guidance to a range of $9.23 billion to $9.475 billion and lifted normalized EPS guidance by $1, to $4 to $4.5, citing Can-Am's record North American side-by-side share of nearly a third and Asia Pacific retail growth of 8%. BRP now expects $200 million of net tariff exposure for the fiscal year, or roughly $225 million annualized, and a new 50% Section 338 tariff on Spyder units imported from Canada is projected to add a $60 million to $65 million headwind next year, with Q3 normalized EPS guided to fall 50% to 60% year over year.
BRP Inc.Strong off-road demand and record Can-Am side-by-side share plus Asia Pacific retail growth of 8% lifted full-year guidance.
