1. BRP Q4 FY25 revenues dropped 19.7% to $2.1 billion. 2. Net income fell 114.7% to a loss of $44.5 million. 3. Retail sales in North America declined 21% amid high inventory levels. 4. Strategic focus on Powersports aims to drive long-term growth despite current challenges. 5. Global tariff disputes add to economic uncertainty impacting financial projections.
The substantial decrease in revenues and net income signals financial distress, impacting investor confidence.
The significant losses and reduced sales figures directly affect DOOO's market perception and growth potential.
Immediate effects are expected due to current financial performance; however, strategic focus on innovation may stabilize longer-term prospects.
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.
| Measure | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 | Year 2023 |
|---|---|---|---|---|---|
| Revenues | $2,097.6M | $2,611.5M | $7,829.7M | $9,963.0M | $10,033.4M |
| Gross Profit | $429.4M | $660.5M | $1,773.6M | $2,634.0M | $2,499.4M |
| Normalized EBITDA | $239.8M | $432.6M | $1,040.0M | $1,793.2M | $1,706.3M |
| Net Income (Loss) | ($44.5M) | $302.8M | $62.7M | $931.7M | $865.4M |
| Diluted Earnings (Loss) per Share | ($0.60) | $3.95 | $0.84 | $11.85 | $10.67 |
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.
Consolidated net cash flows generated from operating activities totaled $740.1 million for the twelve-month period ended January 31, 2025 compared to $1,658.1 million generated for the twelve-month period ended January 31, 2024. The decrease was mainly due to lower profitability and unfavourable changes in working capital, partially offset by lower income taxes paid.
On March 25, 2025, the Company's Board of Directors declared a quarterly dividend of $0.215 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on April 18, 2025 to shareholders of record at the close of business on April 4, 2025.
Today at 9 a.m. ET, BRP Inc. will host a conference call and webcast to discuss its FY25 fourth quarter results. The call will be hosted by José Boisjoli, President and CEO, and Sébastien Martel, CFO. To listen to the conference call by phone (event number 55768), please dial 1 800 717-1738 (toll-free in North America). Click here for International numbers.
BRP Inc. is a global leader in the world of powersports products, propulsion systems and boats built on over 80 years of ingenuity and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The Company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Committed to growing responsibly, BRP is developing electric models for its existing product lines. Headquartered in Quebec, Canada, BRP had annual sales of CA$7.8 billion from over 130 countries and employed approximately 16,500 driven, resourceful people as of January 31, 2025.
For more information, visit www.brp.com.