Q1 2027 BRP Inc Earnings Call Transcript
Key Points
- BRP Inc (DOO) delivered financial results ahead of expectations with revenue of $2.4 billion, normalized EBITDA of $334 million, and normalized EPS of $1.83.
- The company experienced strong retail momentum, particularly in the Off-Road Vehicle (ORV) segment, with a 3-point market share gain in premium current units.
- BRP Inc (DOO) generated strong free cash flow of more than $350 million, surpassing last year's level.
- The company reported a healthy dealer inventory, down 3% compared to the same period last year, indicating improved alignment between wholesale shipments and retail demand.
- BRP Inc (DOO) saw growth in international markets, with a 10% retail increase in EMEA and a 7% sales growth in Latin America, driven by strong performance in Brazil and Mexico.
- The North American tariff landscape has created uncertainty, leading BRP Inc (DOO) to suspend its fiscal '27 guidance.
- The company faces a significant incremental tariff impact of $500 million to $550 million for the year due to changes in Section 232 tariffs.
- Despite mitigation efforts, the net tariff headwind remains meaningful, especially in the near term.
- The Personal Watercraft (PWC) segment faced industry headwinds due to elevated levels of discounted carryover inventory from other OEMs.
- The Asia Pacific region saw a retail decline of 4%, partially due to a late season decline in PWC demand.
Good morning, ladies and gentlemen. Welcome to the BRP Inc.'s Q1 fiscal year '27 conference call. (Operator Instructions)
I would now like to turn the meeting over to Mr. Philippe Deschenes. Please go ahead, Mr. Deschenes.
Thank you, Sylvie. Good morning, and welcome to Marty's conference call for the first quarter of fiscal year '27. Joining me this morning are Denis Le Vot, President and Chief Executive Officer; and Sebastien Martel, Chief Financial Officer. Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking lens will be made during the call and that the actual results could differ from those statements. .
The forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult BRP's MD&A for a complete list of the -- also during the call, reference will be made to supporting slides, and you can find the presentation on our website at brp.com under the Investor
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