BRP Inc. (DOOO, Financial) disclosed its first-quarter revenue, revealing a decrease to C$1.85 billion from C$2 billion in the same period the previous year. This performance aligns with the company's expectations despite challenging market conditions. The firm credits a robust conclusion to the snowmobile season for slightly surpassing the overall North American Powersports industry, with retail sales remaining consistent compared to last year's first quarter.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for BRP Inc (DOOO, Financial) is $37.70 with a high estimate of $43.04 and a low estimate of $35.03. The average target implies an upside of 4.95% from the current price of $35.92. More detailed estimate data can be found on the BRP Inc (DOOO) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, BRP Inc's (DOOO, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BRP Inc (DOOO, Financial) in one year is $58.22, suggesting a upside of 62.08% from the current price of $35.92. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BRP Inc (DOOO) Summary page.
DOOO Key Business Developments
Release Date: March 26, 2025
- Revenue: $7.8 billion for the fiscal year.
- Normalized EBITDA: $1 billion.
- Normalized EPS: $4.68.
- Inventory Reduction: Total North American powersport inventory reduced by 18%.
- Q4 Revenue: Down 20% to $2.1 billion.
- Gross Profit: $429 million with a margin of 20.5%.
- Normalized EBITDA for Q4: $240 million.
- Normalized EPS for Q4: $0.98.
- Free Cash Flow: Over $450 million from continuing operations.
- Net Leverage Ratio: 2.6 times.
- Year-Round Products Revenue: Down 17% to $1.1 billion in Q4.
- Seasonal Products Revenue: Down 29% to $678 million in Q4.
- Parts, Accessories, and Apparel Revenue: Down 1% to $293 million in Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BRP Inc (DOOO, Financial) achieved over $200 million in lean savings for the year, improving operational efficiency.
- The company ended the year with $7.8 billion in revenue, normalized EBITDA of $1 billion, and a normalized EPS of $4.68, all within their revised guidance range.
- BRP Inc (DOOO) significantly reduced network inventory levels, achieving an 18% reduction in North American powersport inventory, aligning with their objective of 15% to 20%.
- The company maintained strong demand for high-end products, such as the Defender cab, gaining about 2 points of market share in the utility segment.
- BRP Inc (DOOO) introduced several new models and expanded into new segments, including the launch of the Can-Am electric motorcycle, positioning the business for long-term success.
Negative Points
- BRP Inc (DOOO) experienced a 20% decline in Q4 revenues to $2.1 billion, primarily due to lower shipments and higher sales programs.
- The company faced a challenging macroeconomic environment with softer industry demand and continued pressure on consumer demand.
- BRP Inc (DOOO) saw a 21% decline in North American powersports retail in Q4, with a notable 30% drop in 3-wheel vehicle retail.
- The ongoing tariff disputes and changing geopolitical dynamics have created an unpredictable operating and demand environment, impacting consumer confidence.
- The company refrained from issuing guidance for fiscal '26 due to the uncertainty surrounding tariffs and consumer demand, making it difficult to forecast with confidence.
