The following is a summary of the BRP Inc. (DOOO) Q3 2025 Earnings Call Transcript:
Financial Performance:
BRP Inc. reported a Q3 revenue of $2 billion, achieving results above expectations due to well-timed Snowmobile shipments and tight expense management.
Gross profit was down, primarily due to less efficient use of assets and higher sales programs, partially offset by favorable pricing and a richer product mix in Side-by-Side Vehicles (SSVs).
Normalized EBITDA was $264 million and normalized EPS was $1.16, benefitting from strategic inventory adjustments.
Business Progress:
BRP decided to sell its Marine businesses, focusing solely on its core Powersports activities to optimize growth opportunities.
Significant progress in network inventory reduction, notably a 22% decrease in ORV inventory.
Launch planning for Can-Am electric motorcycles is well underway, with dealer introductions and production ramping up.
The Powersports market saw diverse global performance, with strong growth in Latin America and challenges in North America and EMEA regions.
Opportunities:
Strengthening the focus on the Powersports sector following the divestiture of the Marine segment, which presents opportunities for increased investment returns and innovation within this sector.
Engagement in the electric motorcycle market with the introduction of Can-Am electric models, tapping into evolving market dynamics and consumer interest in sustainable transportation options.
Risks:
Continued competitive pressures and promotional activities adversely affected market share and retail performance in certain segments, influencing the overall revenue and profit figures for the quarter.
More details: BRP Inc IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
