BRP REPORTS FISCAL YEAR 2026 FIRST QUARTER RESULTS

Highlights Revenues of $1,846.9 million, a decrease of 7.7% compared to last year; Net income of $161.0 million, an increase of 278.8% compared to last year; Normalized EBITDA [1] of $200.8 million, a decrease of 34.7% compared to last year; Normalized diluted earnings per share [1][2] of $0.47, a decrease of $1.11 per share, and diluted earnings per share of $2.19, an increase of $1.63 per share, compared to last year; North American retail sales were flat compared to last year, resulting from strong end-of-season retail in Snowmobile, offset by a decrease in Year-Round Products retail mainly due to the industry's slowdown; On April 1st, 2025, the Company announced a definitive agreement to sell Telwater Pty, Ltd., and closed the sale of Alumacraft's assets on May 1st, 2025; The Company also announces CEO succession plan. , /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) today reported its financial results for the three-month period ended April 30, 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. "We delivered a sound first-quarter performance despite the current context, with results in line with expectations. Driven by a solid end-of-season in Snowmobile, we slightly outperformed the North American Powersports industry with retail sales holding steady compared to Q1 last year," said José Boisjoli, President and CEO of BRP. "Looking ahead, given the uncertainty, we are still refraining from making financial projections at this time. In the short-term, although demand remains soft due to a challenging macro environment, our strong product portfolio and leaner inventory levels position us favourably for a rebound. Over the longer term, our decision to double down on our core Powersports activities, combined with our team's ingenuity and our commitment to pushing technology and innovation, provide the foundations for sustained leadership," concluded Mr. Boisjoli. [1] See "Non-IFRS Measures" section of this press release. [2] Earnings per share is defined as "EPS". Financial Highlights [3] Three-month periods ended (in millions of Canadian dollars, except per share data and margin) April 30, 2025 April 30, 2024 Revenues $1,846.9 $1,999.9 Gross Profit 394.8 521.7 Gross Profit (%) 21.4 % 26.1 % Normalized EBITDA [1] 200.8 307.4 Net Income 161.0 42.5 Net Loss from Discontinued Operations (10.9) (49.9) Normalized Net Income [1] 34.6 120.5 Diluted Earnings per Share 2.19 0.56 Diluted Normalized Earnings per Share [1] [2] 0.47 1.58 Basic Weighted Average Number of Shares 73,031,821 74,897,906 Diluted Weighted Average Number of Shares 73,513,777 76,036,145 [1] See "Non-IFRS Measures" section of this press release. [2] Earnings per share is defined as "EPS". [3] Figures are on a continuing basis and prior periods reclassified accordingly. FIRST QUARTER RESULTS The first quarter of Fiscal 2026 was marked by continued softer consumer demand exacerbated by the uncertainty surrounding changes to global tariffs and trades regulations. As the Company continued to focus on reducing network inventory levels on Seasonal Products and managed industry slowdown on Year-Round Products, the volume of shipments and revenues decreased compared to the same period last year. The decrease in the volume of shipments, the higher sales programs due to the sustained promotional environment and the decreased leverage of fixed costs 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 production efficiencies. The Company's North American retail sales were flat for the three-month period ended April 30, 2025. Following late snowfall, the Company delivered strong Snowmobile retail sales during the end of the season, which allowed to outpace the industry and reduce network inventory. The increase in Seasonal Products retail sales were offset by a decrease in Year-Round Products retail sales mainly due to the industry's slowdown. Revenues Revenues decreased by $153.0 million, or 7.7%, to $1,846.9 million for the three-month period ended April 30, 2025, compared to $1,999.9 million for the corresponding period ended April 30, 2024. The decrease in revenues was primarily due to a lower volume sold across most product lines, as a result of the industry's slowdown in Year-Round Products and continued focus on reducing network inventory levels in Seasonal Products. The decrease was also due to higher sales programs across most product lines. The decrease was partially offset by favourable pricing across most product lines. The decrease includes a favourable foreign exchange rate variation of $33 million. Year-Round Products (60% of Q1-FY26 revenues): Revenues from Year-Round Products decreased by $52.0 million, or 4.5%, to $1,105.8 million for the three-month period ended April 30, 2025, compared to $1,157.8 million for the corresponding period ended April 30, 2024. The decrease in revenues from Year-Round Products was primarily attributable to a lower volume of units sold across most product lines as a result of softer consumer demand, unfavourable product mix in 3WV and higher sales programs across most product lines. The decrease was partially offset by favourable product mix in ATV and SSV, and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $19 million. Seasonal Products (23% of Q1-FY26 revenues): Revenues from Seasonal Products decreased by $115.9 million, or 21.7%, to $419.2 million for the three-month period ended April 30, 2025, compared to $535.1 million for the corresponding period ended April 30, 2024. The decrease in revenues from Seasonal Products was primarily attributable to a lower volume of units sold across most product lines as a result of continued focus on reducing network inventory levels, unfavourable product mix in Snowmobile and higher sales programs. The decrease was partially offset by favourable product mix and pricing on PWC. The decrease includes a favourable foreign exchange rate variation of $6 million. PA&A and OEM Engines (17% of Q1-FY26 revenues): Revenues from PA&A and OEM Engines increased by $14.9 million, or 4.9%, to $321.9 million for the three-month period ended April 30, 2025, compared to $307.0 million for the corresponding period ended April 30, 2024. The increase in revenues from PA&A and OEM engines was primarily attributable to higher demand in parts following a strong end of Snowmobile season. The increase was partially offset by lower volume of OEM engines and Marine PA&A sold. The increase includes a favourable foreign exchange rate variation of $8 million. North American Retail Sales The Company's North American retail sales were flat for the three-month period ended April 30, 2025 compared to the same period last year. Seasonal Products retail sales were up driven by strong end-of-season retail in Snowmobile following late snowfall, offset by a decrease in Year-Round Products retail sales mainly due to the industry's slowdown. North American Year-Round Products retail sales decreased on a percentage basis in the low-teens range compared to the three-month period ended April 30, 2024. The Year-Round Products industry sales decreased on a percentage basis in the mid-single digits over the same period. North American Seasonal Products retail sales increased on a percentage basis in the high-twenties range compared to the three-month period ended April 30, 2024. The Seasonal Products industry sales increased on a percentage basis in the low-teens range over the same period. Gross profit Gross profit decreased by $126.9 million, or 24.3%, to $394.8 million for the three-month period ended April 30, 2025, compared to $521.7 million for the three-month period ended April 30, 2024. Gross profit margin percentage decreased by 470 basis points to 21.4% for the three-month period ended April 30, 2025, compared to 26.1% for the three-month period ended April 30, 2024. The decreases in gross profit and gross profit margin percentage were the result of a lower volume of units sold, higher sales programs and decreased leverage of fixed costs due to reduced production. The decreases were partially offset by favourable pricing across most product lines and production efficiencies. The decrease in gross profit includes an unfavourable foreign exchange rate variation of $10 million. Operating Expenses Operating expenses decreased by $30.5 million, or 9.2%, to $300.9 million for the three-month period ended April 30, 2025, compared to $331.4 million for the three-month period ended April 30, 2024. The decrease in operating expenses was mainly attributable to lower G&A expenses due to cost optimization, lower S&M expenses and lower restructuring and reorganization costs. The decrease in operating expenses includes an unfavourable foreign exchange rate variation of $13 million. Normalized EBITDA [1] Normalized EBITDA [1] decreased by $106.6 million, or 34.7%, to $200.8 million for the three-month period ended April 30, 2025, compared to $307.4 million for the three-month period ended April 30, 2024. The decrease in Normalized EBITDA [1] was primarily due to lower gross profit. Net Income Net income increased by $118.5 million, or 278.8%, to $161.0 million for the three-month period ended April 30, 2025, compared to $42.5 million for the three-month period ended April 30, 2024. The increase in net income was primarily due to a favourable foreign exchange rate variation on the U.S. denominated long-term debt and lower operating expenses. The increase was partially offset by lower operating income resulting from a lower gross profit and gross profit margin. Net Loss from Discontinued Operations Net loss decreased by $39.0 million, or 78.2%, to $(10.9) million for the three-month period ended April 30, 2025, compared to $(49.9) million for the three-month period ended April 30, 2024. The decrease in net loss was primarily due to a higher volume of units sold, lower sales programs, and lower operating costs as a result of restructuring. [1] See "Non-IFRS Measures" section of this press release. LIQUIDITY AND CAPITAL RESOURCES Consolidated net cash flows generated from operating activities totaled $214.5 million for the three-month period ended April 30, 2025, compared to $141.4 million generated for the three-month period ended April 30, 2024. The increase was mainly due to favourable changes in working capital and lower income taxes paid, partially offset by lower profitability. The favourable changes in working capital were the result of increased trade payables and accruals due to higher average payment terms. The favourable changes in working capital were partially offset by a reduction in account receivables and provisions level, resulting from a lower volume of units sold. The Company invested $51.4 million of its liquidity in capital expenditures for the introduction of new products and modernization of the Company's software infrastructure to support future growth. During the three-month period ended April 30, 2025, the Company also returned $15.6 million to its shareholders through quarterly dividend payouts. The Company did not repurchase subordinate voting shares under its share repurchase programs. Dividend On May 28, 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 July 14, 2025 to shareholders of record at the close of business on June 30, 2025. CONFERENCE CALL AND WEBCAST PRESENTATION Today at 9 a.m. EDT, BRP Inc. will host a conference call and webcast to discuss its FY26 first 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 47832), please dial 1 800-717-1738 (toll-free in North America). Click here for International numbers. The Company's first quarter FY26 webcast presentation is posted in the Quarterly Reports section of BRP's website. About BRP 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, 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. www.brp.com@BRPNews CAUTION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements in this press release, including, but not limited to, statements relating to the Company's decision to continue to refrain from providing guidance for Fiscal 2026 until the situation around potential tariffs and changes to trade regulations further develops, statements relating to the declaration and payment of dividends, statements about the Company's current and future plans, prospects, expectations, including of sustained profitable growth, anticipations, estimates and intentions, results, levels of activity, performance, objectives, targets, goals or achievements, priorities and strategies, including its continued focus on tight network inventory management in order to be positioned favourably for a rebound, sustained promotional intensity and proactively managing production to maintain dealer value proposition, financial position, market position, including expected market share volatility notably in light of high non-current inventory from other OEMs, capabilities, competitive strengths, beliefs, the prospects and trends of the industries in which the Company operates, including softer industry demand trends and sustained promotional intensity and pricing actions, the expected demand for products and services in the markets in which the Company competes, the ongoing commitment to invest in research and product development activities and push the boundaries of innovation, including the expectation of regular flow of new product introductions and development of market-shaping products, the projected design, characteristics, capacity or performance of future products and their expected scheduled entry to market, expected financial requirements and the availability of capital resources and liquidity, the Company's ability to complete its process for the sale of its Marine businesses as expected and to manage and mitigate the risks associated therewith, including the ability to separate the Marine businesses within the anticipated time periods, at expected cost levels and expected proceeds, the impact of the sale of the Marine businesses, including its ability to double down on Powersports to capitalize on market opportunities, and any other future events or developments and other statements that are not historical facts constitute forward-looking statements within the meaning of applicable securities laws. The words "may", "will", "would", "should", "could", "expects", "forecasts", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "outlook", "predicts", "projects", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are presented for the purpose of assisting readers in understanding certain key elements of the Company's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements contained herein. Forward-looking statements, by their very nature, involve inherent risks and uncertainties and are based on a number of assumptions, both general and specific, as further described below. Many factors could cause the Company's actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail under the heading "Risk Factors" of the Company's management's discussion and analysis for Fiscal 2025 ("the 2025 MD&A") for the fiscal year ended on January 31, 2025 and in other continuous disclosure materials filed from time to time with Canadian securities regulatory authorities and the Securities and Exchange Commission: the impact of adverse economic conditions including in the context of easing but still elevated interest and inflation rates; any decline in social acceptability of the Company and its products, including in connection with the broader adoption of electrical or low-emission products; high levels of indebtedness; any unavailability of additional capital; any supply problems, termination or interruption of supply arrangements or increases in the cost of materials; the inability to attract, hire and retain key employees, including members of the Company's management team or employees who possess specialized market knowledge and technical skills; any failure of information technology systems, security breach or cyber-attack, or difficulties with the implementation of new systems, including the difficulties in the continued implementation of its ERP system; the Company's reliance on international sales and operations including heightened concerns for global trade tensions with escalation in tariffs and other retaliatory measures; the Company's inability to successfully execute its growth strategy; fluctuations in foreign currency exchange rates; unfavourable weather conditions and climate change more generally; the seasonal nature of the Company's business and some of its products; the Company's reliance on a network of independent dealers and distributors; any inability of dealers and distributors to secure adequate access to capital; any inability to comply with product safety, health, environmental, privacy matters and noise pollution laws; the Company's large fixed cost base; any failure to compete effectively against competitors or any failure to meet consumers' evolving expectations; any failure to maintain an effective system of internal control over financial reporting and to produce accurate and timely financial statements; any inability to maintain and enhance the Company's reputation and brands; any significant product liability claim; any significant product repair and/or replacement due to product warranty claims or product recalls; any failure to carry proper insurance coverage; the Company's inability to successfully manage inventory levels; any intellectual property infringement and litigation; the Company's inability to successfully execute its manufacturing strategy or to adjust to fluctuating customer demand as a result of manufacturing capacity constraints; increased freight and shipping costs or disruptions in transportation and shipping infrastructure; any failure to comply with covenants in financing and other material agreements; any changes in tax laws and unanticipated tax liabilities; any impairment in the carrying value of goodwill and intangibles with indefinite useful life and trademarks; any deterioration in relationships with employees; pension plan liabilities; natural disasters; volatility in the market price for the Subordinate Voting Shares; the Company's conduct of business through subsidiaries; the significant influence of Beaudier Group and Bain Capital; and future sales of Subordinate Voting Shares by Beaudier Group, Bain Capital, directors, officers or senior management of the Company. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities regulations. In the event that the Company does update any forward-looking statements contained in this press release, no inference should be made that the Company will make additional updates with respect to that statement, related matters or any other forward-looking statement. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. KEY ASSUMPTIONS The Company made a number of economic, market and operational assumptions in preparing and making certain forward-looking statements contained in this Press Release, including without limitation the following assumptions: softer industries in both Seasonal and Year-Round Products and a continuously challenging macroeconomic environment; expected market share volatility; main currencies in which the Company operates will remain at near current levels; levels of inflation, which are expected to continue to ease; there will be no significant changes in tax laws or treaties applicable to the Company; the Company's margins are expected to continue to be pressured by lower volumes; the supply base will remain able to support product development and planned production rates on commercially acceptable terms in a timely manner; the absence of unusually adverse weather conditions, especially in peak seasons. BRP cautions that its assumptions may not materialize, and that the currently challenging macroeconomic and geopolitical environment in which it evolves may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty. Specifically, these assumptions do not incorporate the imposition of wide-ranging U.S. tariffs on all imports from Canada and Mexico and potential retaliatory tariffs. Given the fast-evolving situation and the high degree of uncertainty around the duration of a potential trade war, it is difficult to predict how the effects would flow through the economy. New tariffs could significantly affect the outlooks for economic growth, consumer spending, inflation and the Canadian dollar. NON-IFRS MEASURES This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company uses non-IFRS measures including the following: Non-IFRS measures Definition Reason for use Normalized EBITDA Net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements. Assist investors in determining the financial performance of the Company's operating activities on a consistent basis by excluding certain non-cash elements such as depreciation expense, impairment charge, foreign exchange gain or loss on the Company's long-term debt denominated in U.S. dollars and foreign exchange gain or loss on certain of the Company's lease liabilities. Other elements, such as restructuring and wind-down costs, non-recurring gain or loss and acquisition-related costs, may be excluded from net income in the determination of Normalized EBITDA as they are considered not being reflective of the operational performance of the Company. Normalized net income Net income before normalized elements adjusted to reflect the tax effect on these elements In addition to the financial performance of operating activities, this measure considers the impact of investing activities, financing activities and income taxes on the Company's financial results. Normalized income tax expense Income tax expense adjusted to reflect the tax effect on normalized elements and to normalize specific tax elements Assist investors in determining the tax expense relating to the normalized items explained above, as they are considered not being reflective of the operational performance of the Company. Normalized effective tax rate Based on Normalized net income before Normalized income tax expense Assist investors in determining the effective tax rate including the normalized items explained above, as they are considered not being reflective of the operational performance of the Company. Normalized earnings per share – basic and diluted Calculated by dividing the Normalized net income by the weighted average number of shares – basic and diluted Assist investors in determining the normalized financial performance of the Company's activities on a per share basis. Free cash flow Cash flows from operating activities less additions to PP&E and intangible assets Assist investors in assessing the Company's liquidity generation abilitiesthat could be available for shareholders, debt repayment and business combination, after capital expenditure The Company believes non-IFRS measures are important supplemental measures of financial performance because they eliminate items that have less bearing on the Company's financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. Management also uses non-IFRS measures in order to facilitate financial performance comparisons from period to period, prepare annual operating budgets, assess the Company's ability to meet its future debt service, capital expenditure and working capital requirements and also as a component in the determination of the short-term incentive compensation for the Company's employees. Because other companies may calculate these non-IFRS measures differently than the Company does, these metrics are not comparable to similarly titled measures reported by other companies. The Company refers the reader to the tables below for the reconciliations of the non-IFRS measures presented by the Company to the most directly comparable IFRS measure. Reconciliation Tables [2] The following tables present the reconciliation of non-IFRS measures compared to their respective IFRS measures: Three-month periods ended (in millions of Canadian dollars) April 30, 2025 April 30, 2024 Net income $161.0 $42.5 Normalized elements Foreign exchange (gain) loss on long-term debt and lease liabilities (128.6) 70.7 Costs related to business combinations [3] 3.1 3.2 Restructuring and related costs [4] 0.5 14.2 Other elements [5] 0.4 0.9 Income tax adjustment [1] [6] (1.8) (11.0) Normalized net income [1] 34.6 120.5 Normalized income tax expense [1] 15.8 41.8 Financing costs 46.6 48.6 Financing income (1.3) (1.8) Depreciation expense adjusted [1] 105.1 98.3 Normalized EBITDA [1] $200.8 $307.4 [1] See "Non-IFRS Measures" section. [2] Figures are on a continuing basis and prior periods reclassified accordingly. [3] Transaction costs and depreciation of intangible assets related to business combinations. [4] Costs associated with restructuring and reorganization activities, which are mainly composed of severance costs. [5] Other elements include transaction costs associated with the sale of the Marine businesses and fees associated with the secondary offering that occurred during Fiscal 2025. [6] Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized and to the adjustment related to the impact of foreign currency translation from Mexican operations. The following table [2] presents the reconciliation of items as included in the Normalized net income [1] and Normalized EBITDA [1] compared to respective IFRS measures as well as the Normalized EPS – basic and diluted [1] calculation. (in millions of Canadian dollars, except per share data) Three-month periods ended April 30, 2025 April 30, 2024 Depreciation expense reconciliation Depreciation expense $106.5 $99.7 Depreciation of intangible assets related to business combinations (1.4) (1.4) Depreciation expense adjusted $105.1 $98.3 Income tax expense reconciliation Income tax expense $14.0 $30.8 Income tax adjustment [3] 1.8 11.0 Normalized income tax expense [1] $15.8 $41.8 Normalized EPS - basic [1] calculation Normalized net income [1] $34.6 $120.5 Non-controlling interests 0.1 (0.2) Weighted average number of shares - basic 73,031,821 74,897,906 Normalized EPS - basic [1] $0.48 $1.61 Normalized EPS - diluted [1] calculation Normalized net income [1] $34.6 $120.5 Non-controlling interests 0.1 (0.2) Weighted average number of shares - diluted 73,513,777 76,036,145 Normalized EPS - diluted [1] $0.47 $1.58 [1] See "Non-IFRS Measures" section. [2] Figures are on a continuing basis and prior periods reclassified accordingly. [3] Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized and to the adjustment related to the impact of foreign currency translation from Mexican operations. The following table presents the reconciliation of consolidated net cash flows generated from operating activities to free cash flow [1]. (in millions of Canadian dollars) Three-month periods ended April 30, 2025 April 30, 2024 Net cash flows generated from operating activities $214.5 $141.4 Additions to property, plant and equipment (45.1) (66.8) Additions to intangible assets (9.4) (8.4) Free cash flow [1] $160.0 $66.2 Free cash flow from continuing operations [1] $162.0 $120.7 Free cash flow from discontinued operations [1] $(2.0) $(54.5) [1] See "Non-IFRS Measures" section. SOURCE BRP Inc. 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BRP REPORTS FISCAL YEAR 2026 FIRST QUARTER RESULTS

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