{"success":true,"data":{"pressRelease":{"id":"134799","rtpr_id":"nPnb0wpkLa","ticker":"DOO","exchange":"NASDAQ","all_tickers":["DOO"],"title":"BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2027","author":"PR Newswire","published_at":"2026-09-03T10:00:05.465Z","article_body":"BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2027\n\nPR Newswire\n\nVALCOURT, QC, Sept. 3, 2026\n\nHighlights\n\n * Revenues of $2,236.8 million, an increase of 18.5% compared to last year,\nprimarily driven by higher ORV shipments and favourable SSV mix;\n * Net loss of $136.8 million, a decrease of $193.9 million compared to last\nyear;\n * Normalized EBITDA ([1]) of $138.8 million, a decrease of 34.9% compared to\nlast year;\n * Normalized diluted loss per share ([1][2])of $0.18, a decrease of $1.10 per\nshare, and diluted loss per share of $1.88, a decrease of $2.67 per share,\ncompared to last year;\n * North American Powersports retail sales increased by 1% compared to last year;\n * Market share gains for ORV in North America;\n * Increasing full year-end guidance for Normalized diluted earnings per share\n([1][2]) at $4.00 to $4.50;\n * The Company announces\nplanned financial leadership transition\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3130494490&u=https%3A%2F%2Fnews.brp.com%2Fnews-releases%2Fnews-release-details%2Fbrp-announces-planned-financial-leadership-transition&a=planned+financial+leadership+transition)\n\n.\nRecent events – Highlights from Club BRP 2027\n\n * Demonstrating its ambition to become North America's leading off-road brand,\nthe Company committed to major product announcements every six months for the\nnext four years.\n * The Company continued to bolster its offering with several industry-firsts and\ninnovative products, namely the all-new limited-edition Sea-Doo RXP-X Senna\n350 equipped with the most powerful PWC engine from the factory, an upgraded\nSpark lineup delivering more horsepower and the addition of the new Spark X\nmodel with premium features, the second-generation Can-Am Defender HD10 as\nwell as the most significant evolution of the Can-Am Ryker platform since its\ninitial launch.\n * The Company also launched BRP Financial Services, its new branded retail\nfinancing program in the United States.\nVALCOURT, QC, Sept. 3, 2026 /PRNewswire/ -- BRP Inc. (TSX: DOO) (NASDAQ: DOO)\ntoday reported its financial results for the three- and six-month periods\nended July 31, 2026. All financial information is in Canadian dollars unless\notherwise noted. The complete financial results are available on SEDAR+\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=467436239&u=https%3A%2F%2Fwww.sedarplus.ca%2F&a=SEDAR%2B)\n and EDGAR\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=823603074&u=https%3A%2F%2Fwww.sec.gov%2F&a=EDGAR)\n as well as in the section Quarterly Reports\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3519160124&u=https%3A%2F%2Fnews.brp.com%2Ffinancial-information%2Fquarterly-reports&a=Quarterly+Reports)\n of BRP's website.\n\n\"Our second-quarter financial results exceeded expectations, reflecting\ndisciplined execution and increased ORV shipments to support sustained retail\nmomentum. Given our strong performance in ORV leading to additional market\nshare gains, and reduced net tariff costs, we are raising our full-year\nguidance,\" said Denis Le Vot, President and CEO of BRP.\n\n\"Looking ahead, we remain focused on navigating through the volatile\ngeopolitical and trade environment and advancing our long-term growth\nprospects. Our recent Club BRP dealer event allowed us to showcase innovative\ninitiatives that strengthen our competitive position, including a commitment\nto releasing major off-road product news every six months for the next four\nyears. This will be instrumental in achieving our goal of making Can-Am the\nnumber one ORV brand in North America and being the undeniable OEM of choice\nfor dealers and riders,\" concluded Mr. Le Vot.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n ([2])   Earnings (loss) per share is defined as \"EPS\".\n\n \n Financial Highlights ([3])\n\n (in millions of Canadian dollars, except per share data and margin)  Three-month periods ended                      Six-month periods ended\n                                                                           July 31,                    July 31,           July 31,                    July 31,\n\n       2026\n      2025\n        2026\n       2025\n\n Revenues                                                             $2,236.8                     $1,888.2          $4,628.6                     $3,735.1\n Gross Profit                                                         262.5                        397.7             824.1                        792.5\n Gross Profit Margin (%)                                              11.7 %                       21.1 %            17.8 %                       21.2 %\n Operating Income (Loss)                                              (50.0)                       90.4              175.5                        184.3\n Normalized EBITDA ([1])                                              138.8                        213.2             473.2                        414.0\n Net (Loss) Income                                                    (136.8)                      57.1              (9.5)                        218.1\n Normalized Net Income (Loss) ([1])                                   (13.0)                       66.9              121.5                        101.5\n Diluted EPS ([2])                                                    (1.88)                       0.79              (0.12)                       2.98\n Normalized Diluted EPS ([1] [2])                                     (0.18)                       0.92              1.66                         1.39\n Net Income (Loss) from Discontinued Operations                       2.7                          (33.6)            4.3                          (44.5)\n Basic Weighted Average Number of Shares                              72,756,365                   73,040,187        72,950,539                   73,036,072\n Diluted Weighted Average Number of Shares ([4])                      72,756,365                   73,616,757        72,950,539                   73,569,234\n\nFISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK\n\nThe Company has increased its FY27 guidance as follows, which supersedes all\nprior financial guidance statements made by the Company:\n Financial Metric                                  FY26      FY27 Guidance ([6])\n Revenues\n Year-Round Products                               $4,802.4  $5,475 to $5,600\n Seasonal Products                                 2,291.5   2,375 to 2,450\n PA&A, OEM Engines and Others                      1,348.8   1,375 to 1,425\n Total Company Revenues                            8,442.7   9,225 to 9,475\n Normalized EBITDA ([1])                           1,103.4   1,025 to 1,075\n Normalized Earnings per Share - Diluted ([1][2])  5.21      $4.00 to $4.50\n Net Income                                        $340.4    $160 to $195\n\nOther assumptions for FY27 Guidance\n • Depreciation Expenses Adjusted:                   ~$450M (Compared to $448M in FY26)\n • Net Financing Costs Adjusted:                     ~$180M (Compared to $188M in FY26)\n • Effective tax rate ([1] [5]):                     ~26.5% (Compared to 17.6% in FY26)\n • Weighted average number of shares – diluted:      ~73M shares (Compared to 73.1M in FY26)\n • Capital Expenditures:                             ~$390M (Compared to $341M in FY26)\n\nFY27 Quarterly Outlook( [6])\n\nThe Company expects Q3 Fiscal 2027 Normalized diluted earnings per share\n([1]) to be down approximately 50% to 60% versus the same three-month period\nin Fiscal 2026, mainly due to the increased tariff impact.\n ([1])      See \"Non-IFRS Measures\" section of this press release.\n ([2])      Earnings (loss) per share is defined as \"EPS\".\n ([3])      Figures are on a continuing basis.\n ([4])      The weighted average number of diluted shares outstanding used in calculating\n            Normalized diluted EPS ([1][2]) for the six-month period ended July 31, 2026\n            was 73,529,444. The difference in the weighted average number of diluted\n            shares outstanding used in calculating diluted EPS is explained by a reported\n            net loss under IFRS Measures for the same period.\n ([5])      Effective tax rate based on Normalized Earnings before Normalized Income Tax.\n ([6])      Please refer to the \"Caution Concerning Forward-Looking Statements\" and \"Key\n            Assumptions\" sections of this press release for a summary of important risk\n            factors that could affect the above guidance and of the assumptions underlying\n            this Fiscal Year 2027 guidance.\n\nSECOND QUARTER RESULTS\n\nThe three-month period ended July 31, 2026 marked the second consecutive\nquarter of Fiscal 2027 with double-digit revenue growth compared to the same\nperiod last year. The increase in revenues was primarily driven by higher ORV\nshipments to support retail demand and a favourable SSV mix resulting from the\nintroduction of new models. Revenue growth was partially offset by lower PWC\ndeliveries, mostly reflecting units that were shipped earlier in the first\nquarter. Gross profit and gross profit margin decreased compared to last year,\nprimarily due to the impacts of Section 232 tariffs on Steel, Aluminum and\nCopper imports into the United States, as well as the effect of a supplier\nfinancial restructuring. The supplier financial restructuring represented an\nunfavourable impact of $74.8 million or 330 bps on gross profit and gross\nprofit margin respectively. These impacts were partially offset by the\npositive effects of higher volumes and lower sales programs mainly in ORV.\n\nThe Company's North American retail sales were up 1% for the three-month\nperiod ended July 31, 2026 compared to the same period last year. The increase\nin retail sales was driven by positive industry trends in SSV and market share\ngains in ORV, which were partially offset by lower retail sales in Seasonal\nProducts.\n\nRevenues\nRevenues increased by $348.6 million, or 18.5%, to $2,236.8 million for the\nthree-month period ended July 31, 2026, compared to $1,888.2 million for the\ncorresponding period ended July 31, 2025. The increase in revenues was\nprimarily due to a higher volume of units sold in ORV to support retail demand\nand a favourable SSV product mix resulting from the introduction of new\nmodels. The increase was partially offset by a lower volume of units sold in\nPWC, mostly reflecting units that were shipped earlier in the first quarter.\nThe increase includes a favourable foreign exchange rate variation of $46\nmillion.\n\n * Year-Round Products (66% of Q2-FY27 revenues): Revenues from Year-Round\nProducts increased by $371.3 million, or 33.3%, to $1,485.1 million for the\nthree-month period ended July 31, 2026, compared to $1,113.8 million for the\ncorresponding period ended July 31, 2025. The increase in revenues from\nYear-Round Products was primarily attributable to a higher volume of units\nsold in ORV to support retail demand and a favourable SSV product mix\nresulting from the introduction of new models. The increase was also\nattributable to lower sales programs across all product lines. The increase\nincludes a favourable foreign exchange rate variation of $37 million.\n * Seasonal Products (19% of Q2-FY27 revenues): Revenues from Seasonal Products\ndecreased by $42.0 million, or 8.9%, to $427.7 million for the three-month\nperiod ended July 31, 2026, compared to $469.7 million for the corresponding\nperiod ended July 31, 2025. The decrease in revenues from Seasonal Products\nwas primarily attributable to a lower volume of units sold in PWC, mostly\nreflecting units that were shipped earlier in the first quarter. The decrease\nwas partially offset by lower sales programs in Snowmobile. The decrease\nincludes a favourable foreign exchange rate variation of $5 million.\n * PA&A, OEM Engines and Others (15% of Q2-FY27 revenues): Revenues from\nPA&A, OEM Engines and Others increased by $19.3 million, or 6.3%, to\n$324.0 million for the three-month period ended July 31, 2026, compared to\n$304.7 million for the corresponding period ended July 31, 2025. The increase\nin revenues from PA&A, OEM Engines and Others was primarily attributable\nto a higher volume of PA&A sold, coupled with favourable pricing. The\nincrease was partially offset by unfavourable product mix in OEM Engines. The\nincrease includes a favourable foreign exchange rate variation of $4 million.\nNorth American Retail Sales\n\nThe Company's North American retail sales increased by 1% for the three-month\nperiod ended July 31, 2026 compared to the same period last year. The increase\nin retail sales was driven by positive industry trends in SSV and market share\ngains in ORV, which were partially offset by lower retail sales in Seasonal\nProducts.\n\n * North American Year-Round Products retail sales increased on a percentage\nbasis in the low-single digits compared to the three-month period ended July\n31, 2025. The Year-Round Products industry sales increased in the low-single\ndigits over the same period.\n * North American Seasonal Products retail sales decreased on a percentage basis\nin the low-single digits compared to the three-month period ended July 31,\n2025. The Seasonal Products industry sales increased on a percentage basis in\nthe low-single digits over the same period.\nGross profit\nGross profit decreased by $135.2 million, or 34.0%, to $262.5 million for the\nthree-month period ended July 31, 2026, compared to $397.7 million for the\nthree-month period ended July 31, 2025. Gross profit margin percentage\ndecreased by 940 basis points to 11.7% for the three-month period ended July\n31, 2026, compared to 21.1% for the three-month period ended July 31, 2025.\nGross profit and gross profit margin decreased compared to last year,\nprimarily due to the impacts of Section 232 tariffs on Steel, Aluminum and\nCopper imports into the United States, as well as the effect of a supplier\nfinancial restructuring. These impacts were partially offset by the positive\neffects of higher volumes and lower sales programs mainly in ORV. The decrease\nin gross profit includes a favourable foreign exchange rate variation of $17\nmillion.\n\nOperating Expenses\nOperating expenses increased by $5.2 million, or 1.7%, to $312.5 million for\nthe three-month period ended July 31, 2026, compared to $307.3 million for the\nthree-month period ended July 31, 2025. The increase in operating expenses was\nmainly attributable to higher investments in R&D to support product\ndevelopment, partially offset by lower G&A expenses due to a special\nlong-term incentive program and the costs associated with executive management\ntransition during the three-month period ended July 31, 2025. The increase in\noperating expenses includes an unfavourable foreign exchange rate variation of\n$1 million.\n\nNormalized EBITDA ([1])\nNormalized EBITDA ([1]) decreased by $74.4 million, or 34.9%, to $138.8\nmillion for the three-month period ended July 31, 2026, compared to $213.2\nmillion for the three-month period ended July 31, 2025. The decrease in\nNormalized EBITDA ([1]) was primarily due to lower gross profit combined with\nincreased operating expenses.\n\nNet (Loss) Income\nNet income decreased by $193.9 million, or 339.6%, to $(136.8) million for the\nthree-month period ended July 31, 2026, compared to $57.1 million for the\nthree-month period ended July 31, 2025. The decrease in net income was\nprimarily due to lower gross profit, an unfavourable foreign exchange rate\nvariation on the U.S. denominated long-term debt and increased operating\nexpenses.\n\nNormalized Net (Loss) Income ([1])\nNormalized net income ([1]) decreased by $79.9 million, or 119.4%, to $(13.0)\nmillion for the three-month period ended July 31, 2026, compared to $66.9\nmillion for the three-month period ended July 31, 2025. The decrease in\nNormalized net income ([1]) was due to lower gross profit combined with\nincreased operating expenses.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n\nNet Income (Loss) from Discontinued Operations\nNet income from discontinued operations increased by $36.3 million, or 108.0%,\nto $2.7 million for the three-month period ended July 31, 2026, compared to a\nnet loss of $(33.6) million for the three-month period ended July 31, 2025.\nThe increase in net income from discontinued operations was primarily due to\nthe closing of the sales of Alumacraft's and Manitou's assets during the\nthree-month periods ended July 31, 2025 and October 31, 2025 respectively.\n\nSIX-MONTH PERIOD ENDED JULY 31, 2026\n\nRevenues\nRevenues increased by $893.5 million, or 23.9%, to $4,628.6 million for the\nsix-month period ended July 31, 2026, compared to $3,735.1 million for the\ncorresponding period ended July 31, 2025. The increase in revenues was\nprimarily due to a higher volume of units sold across most product lines and\nfavourable product mix in ORV. The increase was also attributable to lower\nsales programs and favourable pricing across most product lines. The increase\nincludes a favourable foreign exchange rate variation of $31 million.\n\nNormalized EBITDA ([1])\nNormalized EBITDA ([1]) increased by $59.2 million, or 14.3%, to $473.2\nmillion for the six-month period ended July 31, 2026, compared to $414.0\nmillion for the six-month period ended July 31, 2025. The increase in\nNormalized EBITDA ([1]) was primarily due to higher gross profit, partially\noffset by increased operating expenses.\n\nNet (Loss) Income\nNet income decreased by $227.6 million, or 104.4%, to $(9.5) million for the\nsix-month period ended July 31, 2026, compared to $218.1 million for the\nsix-month period ended July 31, 2025. The decrease in net income was primarily\ndue to an unfavourable foreign exchange rate variation on the U.S. denominated\nlong-term debt and to a higher income tax expense.\n\nNormalized Net Income ([1])\nNormalized net income ([1]) increased by $20.0 million, or 19.7%, to $121.5\nmillion for the six-month period ended July 31, 2026, compared to $101.5\nmillion for the six-month period ended July 31, 2025. The increase in\nNormalized net income ([1]) was primarily due to higher gross profit,\npartially offset by increased operating expenses.\n\nNet Income (Loss) from Discontinued Operations\nNet income from discontinued operations increased by $48.8 million, or 109.7%,\nto $4.3 million for the six-month period ended July 31, 2026, compared to\n$(44.5) million for the six-month period ended July 31, 2025. The increase in\nnet income from discontinued operations was primarily due to the closing of\nthe sales of Alumacraft's and Manitou's assets during the three-month periods\nended July 31, 2025 and October 31, 2025 respectively.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n\nLIQUIDITY AND CAPITAL RESOURCES\n\nConsolidated net cash flows generated from operating activities totaled $686.8\nmillion for the six-month period ended July 31, 2026, compared to $373.1\nmillion generated for the six-month period ended July 31, 2025. The increase\nwas mainly due to favourable changes in working capital and lower income taxes\npaid, partially offset by lower profitability. The favourable changes in\nworking capital were driven by higher provisions and a decrease in trade\nreceivables, partially offset by an increase in inventories.\n\nThe Company invested $126.2 million of its liquidity in capital expenditures\nfor the introduction of new products and modernization of the Company's\nsoftware infrastructure to support future growth.\n\nDuring the six-month period ended July 31, 2026, the Company also returned\n$231.7 million to its shareholders through quarterly dividend payouts and\nshare repurchase programs.\n\nDividend\nOn September 2, 2026, the Company's Board of Directors declared a quarterly\ndividend of $0.25 per share for holders of its multiple voting shares and\nsubordinate voting shares. The dividend will be paid on October 13, 2026 to\nshareholders of record at the close of business on September 29, 2026.\n\nCONFERENCE CALL AND WEBCAST PRESENTATION\n\nToday at 9 a.m. ET, BRP Inc. will host a conference call and webcast\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3518842141&u=https%3A%2F%2Fwww.icastpro.ca%2Faxr7z5&a=conference+call+and+webcast)\n to discuss its FY27 second quarter results. The call will be hosted by Denis\nLe Vot, President and CEO, and Sébastien Martel, CFO. To listen to the\nconference call by phone (event number 36525), please dial 1 800 717-1738\n(toll-free in North America). Click here for International numbers\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=1475940922&u=https%3A%2F%2Fdrive.google.com%2Ffile%2Fd%2F1s6VzI9okqKNRVeDPvK2E_UHSWn4D4mJR%2Fview%3Fusp%3Ddrive_link&a=International+numbers)\n.\n\nThe Company's second quarter FY27 webcast presentation is posted in the\nQuarterly Reports\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3519160124&u=https%3A%2F%2Fnews.brp.com%2Ffinancial-information%2Fquarterly-reports&a=Quarterly+Reports)\n section of BRP's website.\n\nAbout BRP\nBRP Inc. is a global leader in the world of powersports products and\npowertrains, built on over 80 years of ingenuity, innovation, and intensive\nconsumer focus. Through its portfolio of industry-leading and distinctive\nbrands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and\npontoons, Can-Am on- and off-road vehicles, Quintrex boats as well as Rotax\nengines for karts, recreational aircraft and jet boats, BRP unlocks\nexhilarating adventures and provides access to experiences across different\nplaygrounds. The Company completes its product lines with a dedicated parts,\naccessories and apparel portfolio to fully optimize the riding experience.\nHeadquartered in Quebec, Canada, BRP had annual sales of CA$8.4 billion from\nover 110 countries and employed close to 17,000 driven, resourceful people as\nof January 31, 2026.\n\nwww.brp.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=2999583238&u=http%3A%2F%2Fwww.brp.com%2F&a=www.brp.com)\n\nLinkedIn\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3464607993&u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fbrp&a=LinkedIn)\n\nSki-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Quintrex and the BRP logo are\ntrademarks of Bombardier Recreational Products Inc. or its affiliates. All\nother trademarks are the property of their respective owners.\n\nCAUTION CONCERNING FORWARD-LOOKING STATEMENTS\nCertain statements in this press release, including, but not limited to,\nstatements relating to the Company's revised Fiscal Year 2027 Guidance and\nrelated assumptions (including without limitation Revenues, Normalized EBITDA,\nNormalized Earnings per Share – Diluted, Net Income, Depreciation Expenses\nAdjusted, Net Financing Costs Adjusted, Effective Tax Rates, Weighted Average\nNumber of Shares – diluted, and Capital Expenditures), statements relating\nto the declaration and payment of dividends, statements relating to its\nprospects, expectations, anticipations, estimates and intentions, results,\nlevels of activity, performance, objectives, targets, goals, achievements,\npriorities and strategies, financial position, market position, including its\nambition to become North America's leading off-road brand and commitment to\nmake major product announcements every six months for the next four years,\ncapabilities, competitive strengths and beliefs, the prospects and trends of\nthe industries in which the Company operates, the expected demand for products\nand services in the markets in which the Company competes, research and\nproduct development activities, including projected design, characteristics,\ncapacity or performance of future products and their expected scheduled entry\nto market, expected financial requirements and the availability of capital\nresources and liquidity, the anticipated benefits and impacts associated with\nBRP Financial Services, its new branded retail financing program in the United\nStates, the Company's ability to complete its process for the sale of Telwater\nas expected and to manage and mitigate the risks associated therewith, at\nexpected cost levels and expected proceeds, the expected impact of the\nsupplier financial restructuring, ongoing geopolitical instability in the\nMiddle East, including the impact of ongoing volatility in global oil and\nenergy prices, the expected impact of tariffs, duties and other trade\nrestrictions, and the Company's ability to manage such tariff's exposure,\nincluding through incremental mitigation measures, potential supply chain\ndisruptions, inflationary pressures, and broader macroeconomic conditions or\nany other future events or developments and other statements in this press\nrelease that are not historical facts constitute forward-looking statements\nwithin the meaning of applicable securities laws. The words \"may\", \"will\",\n\"would\", \"should\", \"could\", \"expects\", \"forecasts\", \"plans\", \"intends\",\n\"trends\", \"indications\", \"anticipates\", \"believes\", \"estimates\", \"outlook\",\n\"predicts\", \"projects\", \"likely\" or \"potential\" or the negative or other\nvariations of these words or other comparable words or phrases, are intended\nto identify forward-looking statements.\n\nForward-looking statements are presented for the purpose of assisting readers\nin understanding certain key elements of the Company's current objectives,\ngoals, targets, strategic priorities, expectations and plans, and in obtaining\na better understanding of the Company's business and anticipated operating\nenvironment. Readers are cautioned that such information may not be\nappropriate for other purposes; readers should not place undue reliance on\nforward-looking statements contained herein. Forward-looking statements, by\ntheir very nature, involve inherent risks and uncertainties and are based on a\nnumber of assumptions, both general and specific. Such forward-looking\nstatements are not guarantees of future performance and involve known and\nunknown risks, uncertainties and other factors which may cause the actual\nresults or performance of the Company or the industry to be materially\ndifferent from the outlook or any future results or performance implied by\nsuch statements.\n\nIn addition, many factors could cause the Company's actual results, level of\nactivity, performance or achievements or future events or developments to\ndiffer materially from those expressed or implied by the forward-looking\nstatements, including, without limitation, the following factors, which are\ndiscussed in greater detail under the heading \"Risk Factors\" of the Company's\nmanagement's discussion and analysis for Fiscal 2026 (the \"2026 MD&A\") for\nthe fiscal year ended on January 31, 2026 and in other continuous disclosure\nmaterials filed from time to time with Canadian securities regulatory\nauthorities and the Securities and Exchange Commission: economic conditions\nthat impact consumer spending; inability to attract, hire and retain the\nservices of key employees, including members of its management team, or\nqualified employees, including employees who possess specialized market\nknowledge and technical skills; failure of the Company's information\ntechnology systems, difficulties in the continued implementation of its ERP\nsystem or a security breach or cyber-attack; international sales and\noperations subject it to additional risks; inability to successfully execute\nits strategic plan; any decline in the social acceptability of the Company or\nof the Company's products or any increased restrictions on the access or the\nuse of the Company's products in certain locations; supply problems,\ntermination or interruption of supply arrangements or increases in the cost of\nmaterials; indebtedness with no assurance that the Company will be able to pay\nits indebtedness as it becomes due; any unavailability of additional capital;\nfluctuations in foreign currency exchange rates; unfavourable weather\nconditions, and climate change, seasonal nature of the Company's business and\nsome of its products; reliance on a network of independent dealers and\ndistributors to manage the retail distribution of its products and failure to\nestablish or maintain the appropriate level of dealers and distributors;\ninability of dealers and distributors to secure adequate access to capital;\ninability to comply with laws, rules and regulations regarding product safety,\nhealth, environmental, noise pollution, privacy matters and other issues;\npotential vulnerability of connected products to cyber-attacks; the Company's\nlarge fixed cost base; intense competition in all product lines and any\nfailure to compete effectively against competitors or any failure to meet\nconsumers' evolving expectations; any failure to maintain an effective system\nof internal control over financial reporting; reliance upon the continued\nstrength of its reputation and brands; adverse determination in any\nsignificant product liability claim against the Company; significant product\nrepair and/or replacement due to product warranty claims or product recalls;\nfailure to carry adequate insurance coverage; failure to successfully manage\ninventory levels, both at the Company's and the dealers' and distributors'\nlevels, inability to protect the Company's intellectual property; the\nCompany's inability to successfully execute its manufacturing strategy or to\nadjust to fluctuating customer demand as a result of manufacturing capacity\nconstraints; increased freight and shipping costs or disruptions in\ntransportation and shipping infrastructure; covenants contained in agreements\nto which the Company is a party affecting and, in some cases, significantly\nlimiting or prohibiting the manner in which the Company operates its\nbusinesses; impact of tax matters and changes in tax laws; impairment of the\ncarrying value of goodwill and intangibles with indefinite useful life;\ndeterioration in relationships with the Company's non-unionized and unionized\nemployees; pension plan liability; natural disasters, unusually adverse\nweather, epidemic or pandemic outbreaks, boycotts and geo-political events;\nvolatility in the market price for the Subordinate Voting Shares; dependence\non the earnings of its subsidiaries and the distribution of those earnings to\nBRP Inc.; the significant influence of Beaudier Group and Bain Capital; and\nfuture sales of Subordinate Voting Shares by Beaudier Group, Bain Capital,\ndirectors, officers or senior management of the Company. These factors are not\nintended to represent a complete list of the factors that could affect the\nCompany; however, these factors should be considered carefully. Unless\notherwise stated, the forward-looking statements contained in this press\nrelease are made as of the date of this press release and the Company has no\nintention and undertakes no obligation to update or revise any forward-looking\nstatements to reflect future events, changes in circumstances, or changes in\nbeliefs, unless required by applicable securities regulations. In the event\nthat the Company does update any forward-looking statements contained in this\npress release, no inference should be made that the Company will make\nadditional updates with respect to that statement, related matters or any\nother forward-looking statement. The forward-looking statements contained in\nthis press release are expressly qualified by this cautionary statement.\n\nKEY ASSUMPTIONS\nThe Company made a number of economic, market and operational assumptions in\npreparing and making certain forward-looking statements contained in this\nPress Release, including without limitation the following assumptions:\nindustries in both Seasonal and Year-Round Products consistent with current\ntrends and continuously challenging macroeconomic and geopolitical\nenvironments; expected market share volatility; main currencies in which the\nCompany operates will remain at near current levels; there will be no\nsignificant changes in tax laws or treaties applicable to the Company; the\nsupply base will remain able to support product development and planned\nproduction rates on commercially acceptable terms in a timely manner; the\nabsence of unusually adverse weather conditions, especially in peak seasons.\nBRP cautions that its assumptions may not materialize, and that the currently\nchallenging macroeconomic and geopolitical environments in which it evolves,\nincluding specifically the uncertainty around the potential evolution of\ntariffs, duties and other trade restrictions (and any retaliatory measures),\nas well as the ongoing instability in the Middle East and its potential\nnegative impact on the global economy, may render such assumptions, although\nbelieved reasonable at the time they were made, subject to greater\nuncertainty. These assumptions reflect certain U.S. tariffs currently in\neffect; however, they do not fully incorporate the potential expansion of U.S.\ntariffs, including tariffs on all imports from Canada and Mexico, and\npotential retaliatory tariffs. Given the fast-evolving situation and the high\ndegree of uncertainty around the duration of a potential trade war, it is\ndifficult to predict how the effects would flow through the economy. New and\nexisting tariffs could significantly affect the outlooks for economic growth,\nconsumer spending, inflation and the Canadian dollar.\n\nNON-IFRS MEASURES\nThis press release makes reference to certain non-IFRS measures. These\nmeasures are not recognized measures under IFRS, do not have a standardized\nmeaning prescribed by IFRS and are therefore unlikely to be comparable to\nsimilar measures presented by other companies. Rather, these measures are\nprovided as additional information to complement those IFRS measures by\nproviding further understanding of the Company's results of operations from\nmanagement's perspective. Accordingly, they should not be considered in\nisolation nor as a substitute for analysis of the Company's financial\ninformation reported under IFRS. The Company uses non-IFRS measures including\nthe following:\n Non-IFRS measures                                    Definition                                                                      Reason for use\n Normalized EBITDA                                    Net income before financing costs, financing income, income tax expense         Assist investors in determining the financial performance of the Company's\n                                                      (recovery), depreciation expense and normalized elements.                       operating activities on a consistent basis by excluding certain non-cash\n                                                                                                                                      elements such as depreciation expense, impairment charge, foreign exchange\n                                                                                                                                      gain or loss on the Company's long-term debt denominated in U.S. dollars and\n                                                                                                                                      foreign exchange gain or loss on certain of the Company's lease liabilities.\n                                                                                                                                      Other elements, such as restructuring and wind-down costs, non-recurring gain\n                                                                                                                                      or loss and acquisition-related costs, may be excluded from net income in the\n                                                                                                                                      determination of Normalized EBITDA as they are considered not being reflective\n                                                                                                                                      of the operational performance of the Company.\n\n Normalized net income                                Net income before normalized elements adjusted to reflect the tax effect on     In addition to the financial performance of operating activities, this measure\n                                                      these elements                                                                  considers the impact of investing activities, financing activities and income\n                                                                                                                                      taxes on the Company's financial results.\n\n Normalized income tax expense                        Income tax expense adjusted to reflect the tax effect on normalized elements    Assist investors in determining the tax expense relating to the normalized\n                                                      and to normalize specific tax elements                                          items explained above, as they are considered not being reflective of the\n                                                                                                                                      operational performance of the Company.\n\n Normalized effective tax rate                        Based on Normalized net income before Normalized income tax expense             Assist investors in determining the effective tax rate including the\n                                                                                                                                      normalized items explained above, as they are considered not being reflective\n                                                                                                                                      of the operational performance of the Company.\n\n Normalized earnings per share – basic and diluted    Calculated by dividing the Normalized net income by the weighted average        Assist investors in determining the normalized financial performance of the\n                                                      number of shares – basic and diluted                                            Company's activities on a per share basis.\n\n Free cash flow                                       Cash flows from operating activities less additions to PP&E and intangible      Assist investors in assessing the Company's liquidity generation abilities\n                                                      assets                                                                          that could be available for shareholders, debt repayment and business\n                                                                                                                                      combination, after capital expenditure\n\n \n\nThe Company believes non-IFRS measures are important supplemental measures of\nfinancial performance because they eliminate items that have less bearing on\nthe Company's financial performance and thus highlight trends in its core\nbusiness that may not otherwise be apparent when relying solely on IFRS\nmeasures. The Company also believes that securities analysts, investors and\nother interested parties frequently use non-IFRS measures in the evaluation of\ncompanies, many of which present similar metrics when reporting their results.\nManagement also uses non-IFRS measures in order to facilitate financial\nperformance comparisons from period to period, prepare annual operating\nbudgets, assess the Company's ability to meet its future debt service, capital\nexpenditure and working capital requirements and also as a component in the\ndetermination of the short-term incentive compensation for the Company's\nemployees. Because other companies may calculate these non-IFRS measures\ndifferently than the Company does, these metrics are not comparable to\nsimilarly titled measures reported by other companies.\n\nThe Company refers the reader to the tables below for the reconciliations of\nthe non-IFRS measures presented by the Company to the most directly comparable\nIFRS measure.\n\nReconciliation Tables ([2]\n)The following tables present the reconciliation of non-IFRS measures compared\nto their respective IFRS measures:\n                                                                       Three-month periods     Six-month periods ended\n                                                                       ended\n (in millions of Canadian dollars)                                     July 31,    July 31,    July 31,      July 31,\n\n2026\n2025\n2026\n2025\n\n Net (loss) income                                                     $(136.8)    $57.1       $(9.5)        $218.1\n Normalized elements\n Foreign exchange loss (gain) on long-term debt and lease liabilities  73.7        7.0         82.7          (121.6)\n Costs related to business combinations( [3])                          1.0         3.3         2.1           6.4\n Special long-term incentive program ([4])                             —           4.4         —             4.4\n Executive management transition cost ([5])                            —           2.5         —             2.5\n Supplier financial restructuring ([6])                                74.8        —           74.8          —\n Other elements ([7])                                                  —           1.0         —             1.9\n Income tax adjustment ([1] [8])                                       (25.7)      (8.4)       (28.6)        (10.2)\n Normalized net income (loss) ([1])                                    (13.0)      66.9        121.5         101.5\n Normalized income tax expense (recovery) ([1])                        (5.3)       (12.4)      45.1          3.4\n Financing costs adjusted ([1])                                        50.3        50.5        94.9          97.1\n Financing income                                                      (5.4)       (3.3)       (8.5)         (4.6)\n Depreciation expense adjusted ([1])                                   112.2       111.5       220.2         216.6\n Normalized EBITDA ([1])                                               $138.8      $213.2      $473.2        $414.0\n\n ([1])    See \"Non-IFRS Measures\" section.\n ([2])    Figures are on a continuing basis.\n ([3])    Transaction costs and depreciation of intangible assets related to business\n          combinations.\n ([4])    Incremental fair value recorded as a result of a special long-term incentive\n          program.\n ([5])    Includes the impact of accelerated vesting of executive management stock\n          options.\n ([6])    Includes the costs associated to a supplier financial restructuring.\n ([7])    Other elements include transaction costs associated with the sale of the\n          Marine businesses and restructuring costs.\n ([8])    Income tax adjustment is related to the income tax on Normalized elements\n          subject to tax and for which income tax has been recognized and to the\n          adjustment related to the impact of foreign currency translation from Mexican\n          operations.\n\nThe following table ([2]) presents the reconciliation of items as included in\nthe Normalized net income ([1]) and Normalized EBITDA ([1]) compared to\nrespective IFRS measures as well as the Normalized EPS – basic and diluted\n([1]) calculation.\n (in millions of Canadian dollars, except per share data)            Three-month periods ended       Six-month periods ended\n                                                                     July 31,       July 31,         July 31,      July 31,\n\n2026\n2025\n2026\n2025\n\n Depreciation expense reconciliation\n Depreciation expense                                                $112.9         $113.0           $221.6        $219.5\n Depreciation of intangible assets related to business combinations  (0.7)          (1.5)            (1.4)         (2.9)\n Depreciation expense adjusted ([1])                                 $112.2         $111.5           $220.2        $216.6\n Income tax expense reconciliation\n Income tax expense (recovery)                                       $(31.0)        $(20.8)          $16.5         $(6.8)\n Income tax adjustment ([3])                                         25.7           8.4              28.6          10.2\n Normalized income tax expense (recovery) ([1])                      $(5.3)         $(12.4)          $45.1         $3.4\n Financing costs reconciliation\n Financing costs                                                     $50.6          $50.5            $95.6         $97.1\n Other                                                               (0.3)          —                (0.7)         —\n Financing costs adjusted ([1])                                      $50.3          $50.5            $94.9         $97.1\n\n Normalized EPS - basic ([1]) calculation\n Normalized net income (loss) ([1])                                  $(13.0)        $66.9            $121.5        $101.5\n Non-controlling interests                                           0.2            0.8              0.8           0.9\n Weighted average number of shares - basic                           72,756,365     73,040,187       72,950,539    73,036,072\n Normalized EPS - basic ([1])                                        $(0.18)        $0.93            $1.68         $1.40\n Normalized EPS - diluted ([1]) calculation\n Normalized net income (loss) ([1])                                  $(13.0)        $66.9            $121.5        $101.5\n Non-controlling interests                                           0.2            0.8              0.8           0.9\n Weighted average number of shares - diluted ([4])                   72,756,365     73,616,757       73,529,444    73,569,234\n Normalized EPS - diluted ([1])                                      $(0.18)        $0.92            $1.66         $1.39\n\n ([1])    See \"Non-IFRS Measures\" section.\n ([2])    Figures are on a continuing basis.\n ([3])    Income tax adjustment is related to the income tax on Normalized elements\n          subject to tax and for which income tax has been recognized and to the\n          adjustment related to the impact of foreign currency translation from Mexican\n          operations.\n ([4])    The weighted average number of diluted shares outstanding used in calculating\n          Normalized diluted EPS ([1]) for the six-month period ended July 31, 2026 was\n          73,529,444. The difference in the weighted average number of diluted shares\n          outstanding used in calculating diluted EPS is explained by a reported net\n          loss under IFRS Measures for the same period.\n\nThe following table presents the reconciliation of consolidated net cash flows\ngenerated from operating activities to free cash flow ([1]).\n (in millions of Canadian dollars)                   Six-month periods ended\n                                                     July 31,      July 31,\n\n2026\n2025\n Net cash flows generated from operating activities  $686.8        $373.1\n Additions to property, plant and equipment          (105.5)       (115.5)\n Additions to intangible assets                      (21.9)        (18.4)\n Free cash flow( [1])                                $559.4        $239.2\n Free cash flow from continuing operations ([1])     $560.4        $301.9\n Free cash flow from discontinued operations ([1])   $(1.0)        $(62.7)\n\n ([1])  See \"Non-IFRS Measures\" section.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/brp-presents-its-second-quarter-results-for-fiscal-year-2027-302868425.html\n(https://www.prnewswire.com/news-releases/brp-presents-its-second-quarter-results-for-fiscal-year-2027-302868425.html)\n\nSOURCE BRP Inc.\n\n\n\nFor media enquiries: Emilie Proulx, Media Relations, media@brp.com; For investor relations: Philippe Deschênes, Investor Relations, philippe.deschenes@brp.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1788141/BRP-Inc-BRP-PRESENTS-ITS-SECOND-QUARTER-RESULTS-FOR-FISCAL-YEAR.jpg?id=OA2927495\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPnb0wpkLa","title":"BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2027","author":"PR Newswire","ticker":"DOO","created":"2026-09-03T10:00:05.465Z","tickers":["DOO"],"exchange":"NASDAQ","article_body":"BRP PRESENTS ITS SECOND QUARTER RESULTS FOR FISCAL YEAR 2027\n\nPR Newswire\n\nVALCOURT, QC, Sept. 3, 2026\n\nHighlights\n\n * Revenues of $2,236.8 million, an increase of 18.5% compared to last year,\nprimarily driven by higher ORV shipments and favourable SSV mix;\n * Net loss of $136.8 million, a decrease of $193.9 million compared to last\nyear;\n * Normalized EBITDA ([1]) of $138.8 million, a decrease of 34.9% compared to\nlast year;\n * Normalized diluted loss per share ([1][2])of $0.18, a decrease of $1.10 per\nshare, and diluted loss per share of $1.88, a decrease of $2.67 per share,\ncompared to last year;\n * North American Powersports retail sales increased by 1% compared to last year;\n * Market share gains for ORV in North America;\n * Increasing full year-end guidance for Normalized diluted earnings per share\n([1][2]) at $4.00 to $4.50;\n * The Company announces\nplanned financial leadership transition\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3130494490&u=https%3A%2F%2Fnews.brp.com%2Fnews-releases%2Fnews-release-details%2Fbrp-announces-planned-financial-leadership-transition&a=planned+financial+leadership+transition)\n\n.\nRecent events – Highlights from Club BRP 2027\n\n * Demonstrating its ambition to become North America's leading off-road brand,\nthe Company committed to major product announcements every six months for the\nnext four years.\n * The Company continued to bolster its offering with several industry-firsts and\ninnovative products, namely the all-new limited-edition Sea-Doo RXP-X Senna\n350 equipped with the most powerful PWC engine from the factory, an upgraded\nSpark lineup delivering more horsepower and the addition of the new Spark X\nmodel with premium features, the second-generation Can-Am Defender HD10 as\nwell as the most significant evolution of the Can-Am Ryker platform since its\ninitial launch.\n * The Company also launched BRP Financial Services, its new branded retail\nfinancing program in the United States.\nVALCOURT, QC, Sept. 3, 2026 /PRNewswire/ -- BRP Inc. (TSX: DOO) (NASDAQ: DOO)\ntoday reported its financial results for the three- and six-month periods\nended July 31, 2026. All financial information is in Canadian dollars unless\notherwise noted. The complete financial results are available on SEDAR+\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=467436239&u=https%3A%2F%2Fwww.sedarplus.ca%2F&a=SEDAR%2B)\n and EDGAR\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=823603074&u=https%3A%2F%2Fwww.sec.gov%2F&a=EDGAR)\n as well as in the section Quarterly Reports\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3519160124&u=https%3A%2F%2Fnews.brp.com%2Ffinancial-information%2Fquarterly-reports&a=Quarterly+Reports)\n of BRP's website.\n\n\"Our second-quarter financial results exceeded expectations, reflecting\ndisciplined execution and increased ORV shipments to support sustained retail\nmomentum. Given our strong performance in ORV leading to additional market\nshare gains, and reduced net tariff costs, we are raising our full-year\nguidance,\" said Denis Le Vot, President and CEO of BRP.\n\n\"Looking ahead, we remain focused on navigating through the volatile\ngeopolitical and trade environment and advancing our long-term growth\nprospects. Our recent Club BRP dealer event allowed us to showcase innovative\ninitiatives that strengthen our competitive position, including a commitment\nto releasing major off-road product news every six months for the next four\nyears. This will be instrumental in achieving our goal of making Can-Am the\nnumber one ORV brand in North America and being the undeniable OEM of choice\nfor dealers and riders,\" concluded Mr. Le Vot.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n ([2])   Earnings (loss) per share is defined as \"EPS\".\n\n \n Financial Highlights ([3])\n\n (in millions of Canadian dollars, except per share data and margin)  Three-month periods ended                      Six-month periods ended\n                                                                           July 31,                    July 31,           July 31,                    July 31,\n\n       2026\n      2025\n        2026\n       2025\n\n Revenues                                                             $2,236.8                     $1,888.2          $4,628.6                     $3,735.1\n Gross Profit                                                         262.5                        397.7             824.1                        792.5\n Gross Profit Margin (%)                                              11.7 %                       21.1 %            17.8 %                       21.2 %\n Operating Income (Loss)                                              (50.0)                       90.4              175.5                        184.3\n Normalized EBITDA ([1])                                              138.8                        213.2             473.2                        414.0\n Net (Loss) Income                                                    (136.8)                      57.1              (9.5)                        218.1\n Normalized Net Income (Loss) ([1])                                   (13.0)                       66.9              121.5                        101.5\n Diluted EPS ([2])                                                    (1.88)                       0.79              (0.12)                       2.98\n Normalized Diluted EPS ([1] [2])                                     (0.18)                       0.92              1.66                         1.39\n Net Income (Loss) from Discontinued Operations                       2.7                          (33.6)            4.3                          (44.5)\n Basic Weighted Average Number of Shares                              72,756,365                   73,040,187        72,950,539                   73,036,072\n Diluted Weighted Average Number of Shares ([4])                      72,756,365                   73,616,757        72,950,539                   73,569,234\n\nFISCAL YEAR 2027 REVISED GUIDANCE & OUTLOOK\n\nThe Company has increased its FY27 guidance as follows, which supersedes all\nprior financial guidance statements made by the Company:\n Financial Metric                                  FY26      FY27 Guidance ([6])\n Revenues\n Year-Round Products                               $4,802.4  $5,475 to $5,600\n Seasonal Products                                 2,291.5   2,375 to 2,450\n PA&A, OEM Engines and Others                      1,348.8   1,375 to 1,425\n Total Company Revenues                            8,442.7   9,225 to 9,475\n Normalized EBITDA ([1])                           1,103.4   1,025 to 1,075\n Normalized Earnings per Share - Diluted ([1][2])  5.21      $4.00 to $4.50\n Net Income                                        $340.4    $160 to $195\n\nOther assumptions for FY27 Guidance\n • Depreciation Expenses Adjusted:                   ~$450M (Compared to $448M in FY26)\n • Net Financing Costs Adjusted:                     ~$180M (Compared to $188M in FY26)\n • Effective tax rate ([1] [5]):                     ~26.5% (Compared to 17.6% in FY26)\n • Weighted average number of shares – diluted:      ~73M shares (Compared to 73.1M in FY26)\n • Capital Expenditures:                             ~$390M (Compared to $341M in FY26)\n\nFY27 Quarterly Outlook( [6])\n\nThe Company expects Q3 Fiscal 2027 Normalized diluted earnings per share\n([1]) to be down approximately 50% to 60% versus the same three-month period\nin Fiscal 2026, mainly due to the increased tariff impact.\n ([1])      See \"Non-IFRS Measures\" section of this press release.\n ([2])      Earnings (loss) per share is defined as \"EPS\".\n ([3])      Figures are on a continuing basis.\n ([4])      The weighted average number of diluted shares outstanding used in calculating\n            Normalized diluted EPS ([1][2]) for the six-month period ended July 31, 2026\n            was 73,529,444. The difference in the weighted average number of diluted\n            shares outstanding used in calculating diluted EPS is explained by a reported\n            net loss under IFRS Measures for the same period.\n ([5])      Effective tax rate based on Normalized Earnings before Normalized Income Tax.\n ([6])      Please refer to the \"Caution Concerning Forward-Looking Statements\" and \"Key\n            Assumptions\" sections of this press release for a summary of important risk\n            factors that could affect the above guidance and of the assumptions underlying\n            this Fiscal Year 2027 guidance.\n\nSECOND QUARTER RESULTS\n\nThe three-month period ended July 31, 2026 marked the second consecutive\nquarter of Fiscal 2027 with double-digit revenue growth compared to the same\nperiod last year. The increase in revenues was primarily driven by higher ORV\nshipments to support retail demand and a favourable SSV mix resulting from the\nintroduction of new models. Revenue growth was partially offset by lower PWC\ndeliveries, mostly reflecting units that were shipped earlier in the first\nquarter. Gross profit and gross profit margin decreased compared to last year,\nprimarily due to the impacts of Section 232 tariffs on Steel, Aluminum and\nCopper imports into the United States, as well as the effect of a supplier\nfinancial restructuring. The supplier financial restructuring represented an\nunfavourable impact of $74.8 million or 330 bps on gross profit and gross\nprofit margin respectively. These impacts were partially offset by the\npositive effects of higher volumes and lower sales programs mainly in ORV.\n\nThe Company's North American retail sales were up 1% for the three-month\nperiod ended July 31, 2026 compared to the same period last year. The increase\nin retail sales was driven by positive industry trends in SSV and market share\ngains in ORV, which were partially offset by lower retail sales in Seasonal\nProducts.\n\nRevenues\nRevenues increased by $348.6 million, or 18.5%, to $2,236.8 million for the\nthree-month period ended July 31, 2026, compared to $1,888.2 million for the\ncorresponding period ended July 31, 2025. The increase in revenues was\nprimarily due to a higher volume of units sold in ORV to support retail demand\nand a favourable SSV product mix resulting from the introduction of new\nmodels. The increase was partially offset by a lower volume of units sold in\nPWC, mostly reflecting units that were shipped earlier in the first quarter.\nThe increase includes a favourable foreign exchange rate variation of $46\nmillion.\n\n * Year-Round Products (66% of Q2-FY27 revenues): Revenues from Year-Round\nProducts increased by $371.3 million, or 33.3%, to $1,485.1 million for the\nthree-month period ended July 31, 2026, compared to $1,113.8 million for the\ncorresponding period ended July 31, 2025. The increase in revenues from\nYear-Round Products was primarily attributable to a higher volume of units\nsold in ORV to support retail demand and a favourable SSV product mix\nresulting from the introduction of new models. The increase was also\nattributable to lower sales programs across all product lines. The increase\nincludes a favourable foreign exchange rate variation of $37 million.\n * Seasonal Products (19% of Q2-FY27 revenues): Revenues from Seasonal Products\ndecreased by $42.0 million, or 8.9%, to $427.7 million for the three-month\nperiod ended July 31, 2026, compared to $469.7 million for the corresponding\nperiod ended July 31, 2025. The decrease in revenues from Seasonal Products\nwas primarily attributable to a lower volume of units sold in PWC, mostly\nreflecting units that were shipped earlier in the first quarter. The decrease\nwas partially offset by lower sales programs in Snowmobile. The decrease\nincludes a favourable foreign exchange rate variation of $5 million.\n * PA&A, OEM Engines and Others (15% of Q2-FY27 revenues): Revenues from\nPA&A, OEM Engines and Others increased by $19.3 million, or 6.3%, to\n$324.0 million for the three-month period ended July 31, 2026, compared to\n$304.7 million for the corresponding period ended July 31, 2025. The increase\nin revenues from PA&A, OEM Engines and Others was primarily attributable\nto a higher volume of PA&A sold, coupled with favourable pricing. The\nincrease was partially offset by unfavourable product mix in OEM Engines. The\nincrease includes a favourable foreign exchange rate variation of $4 million.\nNorth American Retail Sales\n\nThe Company's North American retail sales increased by 1% for the three-month\nperiod ended July 31, 2026 compared to the same period last year. The increase\nin retail sales was driven by positive industry trends in SSV and market share\ngains in ORV, which were partially offset by lower retail sales in Seasonal\nProducts.\n\n * North American Year-Round Products retail sales increased on a percentage\nbasis in the low-single digits compared to the three-month period ended July\n31, 2025. The Year-Round Products industry sales increased in the low-single\ndigits over the same period.\n * North American Seasonal Products retail sales decreased on a percentage basis\nin the low-single digits compared to the three-month period ended July 31,\n2025. The Seasonal Products industry sales increased on a percentage basis in\nthe low-single digits over the same period.\nGross profit\nGross profit decreased by $135.2 million, or 34.0%, to $262.5 million for the\nthree-month period ended July 31, 2026, compared to $397.7 million for the\nthree-month period ended July 31, 2025. Gross profit margin percentage\ndecreased by 940 basis points to 11.7% for the three-month period ended July\n31, 2026, compared to 21.1% for the three-month period ended July 31, 2025.\nGross profit and gross profit margin decreased compared to last year,\nprimarily due to the impacts of Section 232 tariffs on Steel, Aluminum and\nCopper imports into the United States, as well as the effect of a supplier\nfinancial restructuring. These impacts were partially offset by the positive\neffects of higher volumes and lower sales programs mainly in ORV. The decrease\nin gross profit includes a favourable foreign exchange rate variation of $17\nmillion.\n\nOperating Expenses\nOperating expenses increased by $5.2 million, or 1.7%, to $312.5 million for\nthe three-month period ended July 31, 2026, compared to $307.3 million for the\nthree-month period ended July 31, 2025. The increase in operating expenses was\nmainly attributable to higher investments in R&D to support product\ndevelopment, partially offset by lower G&A expenses due to a special\nlong-term incentive program and the costs associated with executive management\ntransition during the three-month period ended July 31, 2025. The increase in\noperating expenses includes an unfavourable foreign exchange rate variation of\n$1 million.\n\nNormalized EBITDA ([1])\nNormalized EBITDA ([1]) decreased by $74.4 million, or 34.9%, to $138.8\nmillion for the three-month period ended July 31, 2026, compared to $213.2\nmillion for the three-month period ended July 31, 2025. The decrease in\nNormalized EBITDA ([1]) was primarily due to lower gross profit combined with\nincreased operating expenses.\n\nNet (Loss) Income\nNet income decreased by $193.9 million, or 339.6%, to $(136.8) million for the\nthree-month period ended July 31, 2026, compared to $57.1 million for the\nthree-month period ended July 31, 2025. The decrease in net income was\nprimarily due to lower gross profit, an unfavourable foreign exchange rate\nvariation on the U.S. denominated long-term debt and increased operating\nexpenses.\n\nNormalized Net (Loss) Income ([1])\nNormalized net income ([1]) decreased by $79.9 million, or 119.4%, to $(13.0)\nmillion for the three-month period ended July 31, 2026, compared to $66.9\nmillion for the three-month period ended July 31, 2025. The decrease in\nNormalized net income ([1]) was due to lower gross profit combined with\nincreased operating expenses.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n\nNet Income (Loss) from Discontinued Operations\nNet income from discontinued operations increased by $36.3 million, or 108.0%,\nto $2.7 million for the three-month period ended July 31, 2026, compared to a\nnet loss of $(33.6) million for the three-month period ended July 31, 2025.\nThe increase in net income from discontinued operations was primarily due to\nthe closing of the sales of Alumacraft's and Manitou's assets during the\nthree-month periods ended July 31, 2025 and October 31, 2025 respectively.\n\nSIX-MONTH PERIOD ENDED JULY 31, 2026\n\nRevenues\nRevenues increased by $893.5 million, or 23.9%, to $4,628.6 million for the\nsix-month period ended July 31, 2026, compared to $3,735.1 million for the\ncorresponding period ended July 31, 2025. The increase in revenues was\nprimarily due to a higher volume of units sold across most product lines and\nfavourable product mix in ORV. The increase was also attributable to lower\nsales programs and favourable pricing across most product lines. The increase\nincludes a favourable foreign exchange rate variation of $31 million.\n\nNormalized EBITDA ([1])\nNormalized EBITDA ([1]) increased by $59.2 million, or 14.3%, to $473.2\nmillion for the six-month period ended July 31, 2026, compared to $414.0\nmillion for the six-month period ended July 31, 2025. The increase in\nNormalized EBITDA ([1]) was primarily due to higher gross profit, partially\noffset by increased operating expenses.\n\nNet (Loss) Income\nNet income decreased by $227.6 million, or 104.4%, to $(9.5) million for the\nsix-month period ended July 31, 2026, compared to $218.1 million for the\nsix-month period ended July 31, 2025. The decrease in net income was primarily\ndue to an unfavourable foreign exchange rate variation on the U.S. denominated\nlong-term debt and to a higher income tax expense.\n\nNormalized Net Income ([1])\nNormalized net income ([1]) increased by $20.0 million, or 19.7%, to $121.5\nmillion for the six-month period ended July 31, 2026, compared to $101.5\nmillion for the six-month period ended July 31, 2025. The increase in\nNormalized net income ([1]) was primarily due to higher gross profit,\npartially offset by increased operating expenses.\n\nNet Income (Loss) from Discontinued Operations\nNet income from discontinued operations increased by $48.8 million, or 109.7%,\nto $4.3 million for the six-month period ended July 31, 2026, compared to\n$(44.5) million for the six-month period ended July 31, 2025. The increase in\nnet income from discontinued operations was primarily due to the closing of\nthe sales of Alumacraft's and Manitou's assets during the three-month periods\nended July 31, 2025 and October 31, 2025 respectively.\n ([1] )  See \"Non-IFRS Measures\" section of this press release.\n\nLIQUIDITY AND CAPITAL RESOURCES\n\nConsolidated net cash flows generated from operating activities totaled $686.8\nmillion for the six-month period ended July 31, 2026, compared to $373.1\nmillion generated for the six-month period ended July 31, 2025. The increase\nwas mainly due to favourable changes in working capital and lower income taxes\npaid, partially offset by lower profitability. The favourable changes in\nworking capital were driven by higher provisions and a decrease in trade\nreceivables, partially offset by an increase in inventories.\n\nThe Company invested $126.2 million of its liquidity in capital expenditures\nfor the introduction of new products and modernization of the Company's\nsoftware infrastructure to support future growth.\n\nDuring the six-month period ended July 31, 2026, the Company also returned\n$231.7 million to its shareholders through quarterly dividend payouts and\nshare repurchase programs.\n\nDividend\nOn September 2, 2026, the Company's Board of Directors declared a quarterly\ndividend of $0.25 per share for holders of its multiple voting shares and\nsubordinate voting shares. The dividend will be paid on October 13, 2026 to\nshareholders of record at the close of business on September 29, 2026.\n\nCONFERENCE CALL AND WEBCAST PRESENTATION\n\nToday at 9 a.m. ET, BRP Inc. will host a conference call and webcast\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3518842141&u=https%3A%2F%2Fwww.icastpro.ca%2Faxr7z5&a=conference+call+and+webcast)\n to discuss its FY27 second quarter results. The call will be hosted by Denis\nLe Vot, President and CEO, and Sébastien Martel, CFO. To listen to the\nconference call by phone (event number 36525), please dial 1 800 717-1738\n(toll-free in North America). Click here for International numbers\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=1475940922&u=https%3A%2F%2Fdrive.google.com%2Ffile%2Fd%2F1s6VzI9okqKNRVeDPvK2E_UHSWn4D4mJR%2Fview%3Fusp%3Ddrive_link&a=International+numbers)\n.\n\nThe Company's second quarter FY27 webcast presentation is posted in the\nQuarterly Reports\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3519160124&u=https%3A%2F%2Fnews.brp.com%2Ffinancial-information%2Fquarterly-reports&a=Quarterly+Reports)\n section of BRP's website.\n\nAbout BRP\nBRP Inc. is a global leader in the world of powersports products and\npowertrains, built on over 80 years of ingenuity, innovation, and intensive\nconsumer focus. Through its portfolio of industry-leading and distinctive\nbrands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and\npontoons, Can-Am on- and off-road vehicles, Quintrex boats as well as Rotax\nengines for karts, recreational aircraft and jet boats, BRP unlocks\nexhilarating adventures and provides access to experiences across different\nplaygrounds. The Company completes its product lines with a dedicated parts,\naccessories and apparel portfolio to fully optimize the riding experience.\nHeadquartered in Quebec, Canada, BRP had annual sales of CA$8.4 billion from\nover 110 countries and employed close to 17,000 driven, resourceful people as\nof January 31, 2026.\n\nwww.brp.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=2999583238&u=http%3A%2F%2Fwww.brp.com%2F&a=www.brp.com)\n\nLinkedIn\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4766477-1&h=3464607993&u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fbrp&a=LinkedIn)\n\nSki-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Quintrex and the BRP logo are\ntrademarks of Bombardier Recreational Products Inc. or its affiliates. All\nother trademarks are the property of their respective owners.\n\nCAUTION CONCERNING FORWARD-LOOKING STATEMENTS\nCertain statements in this press release, including, but not limited to,\nstatements relating to the Company's revised Fiscal Year 2027 Guidance and\nrelated assumptions (including without limitation Revenues, Normalized EBITDA,\nNormalized Earnings per Share – Diluted, Net Income, Depreciation Expenses\nAdjusted, Net Financing Costs Adjusted, Effective Tax Rates, Weighted Average\nNumber of Shares – diluted, and Capital Expenditures), statements relating\nto the declaration and payment of dividends, statements relating to its\nprospects, expectations, anticipations, estimates and intentions, results,\nlevels of activity, performance, objectives, targets, goals, achievements,\npriorities and strategies, financial position, market position, including its\nambition to become North America's leading off-road brand and commitment to\nmake major product announcements every six months for the next four years,\ncapabilities, competitive strengths and beliefs, the prospects and trends of\nthe industries in which the Company operates, the expected demand for products\nand services in the markets in which the Company competes, research and\nproduct development activities, including projected design, characteristics,\ncapacity or performance of future products and their expected scheduled entry\nto market, expected financial requirements and the availability of capital\nresources and liquidity, the anticipated benefits and impacts associated with\nBRP Financial Services, its new branded retail financing program in the United\nStates, the Company's ability to complete its process for the sale of Telwater\nas expected and to manage and mitigate the risks associated therewith, at\nexpected cost levels and expected proceeds, the expected impact of the\nsupplier financial restructuring, ongoing geopolitical instability in the\nMiddle East, including the impact of ongoing volatility in global oil and\nenergy prices, the expected impact of tariffs, duties and other trade\nrestrictions, and the Company's ability to manage such tariff's exposure,\nincluding through incremental mitigation measures, potential supply chain\ndisruptions, inflationary pressures, and broader macroeconomic conditions or\nany other future events or developments and other statements in this press\nrelease that are not historical facts constitute forward-looking statements\nwithin the meaning of applicable securities laws. The words \"may\", \"will\",\n\"would\", \"should\", \"could\", \"expects\", \"forecasts\", \"plans\", \"intends\",\n\"trends\", \"indications\", \"anticipates\", \"believes\", \"estimates\", \"outlook\",\n\"predicts\", \"projects\", \"likely\" or \"potential\" or the negative or other\nvariations of these words or other comparable words or phrases, are intended\nto identify forward-looking statements.\n\nForward-looking statements are presented for the purpose of assisting readers\nin understanding certain key elements of the Company's current objectives,\ngoals, targets, strategic priorities, expectations and plans, and in obtaining\na better understanding of the Company's business and anticipated operating\nenvironment. Readers are cautioned that such information may not be\nappropriate for other purposes; readers should not place undue reliance on\nforward-looking statements contained herein. Forward-looking statements, by\ntheir very nature, involve inherent risks and uncertainties and are based on a\nnumber of assumptions, both general and specific. Such forward-looking\nstatements are not guarantees of future performance and involve known and\nunknown risks, uncertainties and other factors which may cause the actual\nresults or performance of the Company or the industry to be materially\ndifferent from the outlook or any future results or performance implied by\nsuch statements.\n\nIn addition, many factors could cause the Company's actual results, level of\nactivity, performance or achievements or future events or developments to\ndiffer materially from those expressed or implied by the forward-looking\nstatements, including, without limitation, the following factors, which are\ndiscussed in greater detail under the heading \"Risk Factors\" of the Company's\nmanagement's discussion and analysis for Fiscal 2026 (the \"2026 MD&A\") for\nthe fiscal year ended on January 31, 2026 and in other continuous disclosure\nmaterials filed from time to time with Canadian securities regulatory\nauthorities and the Securities and Exchange Commission: economic conditions\nthat impact consumer spending; inability to attract, hire and retain the\nservices of key employees, including members of its management team, or\nqualified employees, including employees who possess specialized market\nknowledge and technical skills; failure of the Company's information\ntechnology systems, difficulties in the continued implementation of its ERP\nsystem or a security breach or cyber-attack; international sales and\noperations subject it to additional risks; inability to successfully execute\nits strategic plan; any decline in the social acceptability of the Company or\nof the Company's products or any increased restrictions on the access or the\nuse of the Company's products in certain locations; supply problems,\ntermination or interruption of supply arrangements or increases in the cost of\nmaterials; indebtedness with no assurance that the Company will be able to pay\nits indebtedness as it becomes due; any unavailability of additional capital;\nfluctuations in foreign currency exchange rates; unfavourable weather\nconditions, and climate change, seasonal nature of the Company's business and\nsome of its products; reliance on a network of independent dealers and\ndistributors to manage the retail distribution of its products and failure to\nestablish or maintain the appropriate level of dealers and distributors;\ninability of dealers and distributors to secure adequate access to capital;\ninability to comply with laws, rules and regulations regarding product safety,\nhealth, environmental, noise pollution, privacy matters and other issues;\npotential vulnerability of connected products to cyber-attacks; the Company's\nlarge fixed cost base; intense competition in all product lines and any\nfailure to compete effectively against competitors or any failure to meet\nconsumers' evolving expectations; any failure to maintain an effective system\nof internal control over financial reporting; reliance upon the continued\nstrength of its reputation and brands; adverse determination in any\nsignificant product liability claim against the Company; significant product\nrepair and/or replacement due to product warranty claims or product recalls;\nfailure to carry adequate insurance coverage; failure to successfully manage\ninventory levels, both at the Company's and the dealers' and distributors'\nlevels, inability to protect the Company's intellectual property; the\nCompany's inability to successfully execute its manufacturing strategy or to\nadjust to fluctuating customer demand as a result of manufacturing capacity\nconstraints; increased freight and shipping costs or disruptions in\ntransportation and shipping infrastructure; covenants contained in agreements\nto which the Company is a party affecting and, in some cases, significantly\nlimiting or prohibiting the manner in which the Company operates its\nbusinesses; impact of tax matters and changes in tax laws; impairment of the\ncarrying value of goodwill and intangibles with indefinite useful life;\ndeterioration in relationships with the Company's non-unionized and unionized\nemployees; pension plan liability; natural disasters, unusually adverse\nweather, epidemic or pandemic outbreaks, boycotts and geo-political events;\nvolatility in the market price for the Subordinate Voting Shares; dependence\non the earnings of its subsidiaries and the distribution of those earnings to\nBRP Inc.; the significant influence of Beaudier Group and Bain Capital; and\nfuture sales of Subordinate Voting Shares by Beaudier Group, Bain Capital,\ndirectors, officers or senior management of the Company. These factors are not\nintended to represent a complete list of the factors that could affect the\nCompany; however, these factors should be considered carefully. Unless\notherwise stated, the forward-looking statements contained in this press\nrelease are made as of the date of this press release and the Company has no\nintention and undertakes no obligation to update or revise any forward-looking\nstatements to reflect future events, changes in circumstances, or changes in\nbeliefs, unless required by applicable securities regulations. In the event\nthat the Company does update any forward-looking statements contained in this\npress release, no inference should be made that the Company will make\nadditional updates with respect to that statement, related matters or any\nother forward-looking statement. The forward-looking statements contained in\nthis press release are expressly qualified by this cautionary statement.\n\nKEY ASSUMPTIONS\nThe Company made a number of economic, market and operational assumptions in\npreparing and making certain forward-looking statements contained in this\nPress Release, including without limitation the following assumptions:\nindustries in both Seasonal and Year-Round Products consistent with current\ntrends and continuously challenging macroeconomic and geopolitical\nenvironments; expected market share volatility; main currencies in which the\nCompany operates will remain at near current levels; there will be no\nsignificant changes in tax laws or treaties applicable to the Company; the\nsupply base will remain able to support product development and planned\nproduction rates on commercially acceptable terms in a timely manner; the\nabsence of unusually adverse weather conditions, especially in peak seasons.\nBRP cautions that its assumptions may not materialize, and that the currently\nchallenging macroeconomic and geopolitical environments in which it evolves,\nincluding specifically the uncertainty around the potential evolution of\ntariffs, duties and other trade restrictions (and any retaliatory measures),\nas well as the ongoing instability in the Middle East and its potential\nnegative impact on the global economy, may render such assumptions, although\nbelieved reasonable at the time they were made, subject to greater\nuncertainty. These assumptions reflect certain U.S. tariffs currently in\neffect; however, they do not fully incorporate the potential expansion of U.S.\ntariffs, including tariffs on all imports from Canada and Mexico, and\npotential retaliatory tariffs. Given the fast-evolving situation and the high\ndegree of uncertainty around the duration of a potential trade war, it is\ndifficult to predict how the effects would flow through the economy. New and\nexisting tariffs could significantly affect the outlooks for economic growth,\nconsumer spending, inflation and the Canadian dollar.\n\nNON-IFRS MEASURES\nThis press release makes reference to certain non-IFRS measures. These\nmeasures are not recognized measures under IFRS, do not have a standardized\nmeaning prescribed by IFRS and are therefore unlikely to be comparable to\nsimilar measures presented by other companies. Rather, these measures are\nprovided as additional information to complement those IFRS measures by\nproviding further understanding of the Company's results of operations from\nmanagement's perspective. Accordingly, they should not be considered in\nisolation nor as a substitute for analysis of the Company's financial\ninformation reported under IFRS. The Company uses non-IFRS measures including\nthe following:\n Non-IFRS measures                                    Definition                                                                      Reason for use\n Normalized EBITDA                                    Net income before financing costs, financing income, income tax expense         Assist investors in determining the financial performance of the Company's\n                                                      (recovery), depreciation expense and normalized elements.                       operating activities on a consistent basis by excluding certain non-cash\n                                                                                                                                      elements such as depreciation expense, impairment charge, foreign exchange\n                                                                                                                                      gain or loss on the Company's long-term debt denominated in U.S. dollars and\n                                                                                                                                      foreign exchange gain or loss on certain of the Company's lease liabilities.\n                                                                                                                                      Other elements, such as restructuring and wind-down costs, non-recurring gain\n                                                                                                                                      or loss and acquisition-related costs, may be excluded from net income in the\n                                                                                                                                      determination of Normalized EBITDA as they are considered not being reflective\n                                                                                                                                      of the operational performance of the Company.\n\n Normalized net income                                Net income before normalized elements adjusted to reflect the tax effect on     In addition to the financial performance of operating activities, this measure\n                                                      these elements                                                                  considers the impact of investing activities, financing activities and income\n                                                                                                                                      taxes on the Company's financial results.\n\n Normalized income tax expense                        Income tax expense adjusted to reflect the tax effect on normalized elements    Assist investors in determining the tax expense relating to the normalized\n                                                      and to normalize specific tax elements                                          items explained above, as they are considered not being reflective of the\n                                                                                                                                      operational performance of the Company.\n\n Normalized effective tax rate                        Based on Normalized net income before Normalized income tax expense             Assist investors in determining the effective tax rate including the\n                                                                                                                                      normalized items explained above, as they are considered not being reflective\n                                                                                                                                      of the operational performance of the Company.\n\n Normalized earnings per share – basic and diluted    Calculated by dividing the Normalized net income by the weighted average        Assist investors in determining the normalized financial performance of the\n                                                      number of shares – basic and diluted                                            Company's activities on a per share basis.\n\n Free cash flow                                       Cash flows from operating activities less additions to PP&E and intangible      Assist investors in assessing the Company's liquidity generation abilities\n                                                      assets                                                                          that could be available for shareholders, debt repayment and business\n                                                                                                                                      combination, after capital expenditure\n\n \n\nThe Company believes non-IFRS measures are important supplemental measures of\nfinancial performance because they eliminate items that have less bearing on\nthe Company's financial performance and thus highlight trends in its core\nbusiness that may not otherwise be apparent when relying solely on IFRS\nmeasures. The Company also believes that securities analysts, investors and\nother interested parties frequently use non-IFRS measures in the evaluation of\ncompanies, many of which present similar metrics when reporting their results.\nManagement also uses non-IFRS measures in order to facilitate financial\nperformance comparisons from period to period, prepare annual operating\nbudgets, assess the Company's ability to meet its future debt service, capital\nexpenditure and working capital requirements and also as a component in the\ndetermination of the short-term incentive compensation for the Company's\nemployees. Because other companies may calculate these non-IFRS measures\ndifferently than the Company does, these metrics are not comparable to\nsimilarly titled measures reported by other companies.\n\nThe Company refers the reader to the tables below for the reconciliations of\nthe non-IFRS measures presented by the Company to the most directly comparable\nIFRS measure.\n\nReconciliation Tables ([2]\n)The following tables present the reconciliation of non-IFRS measures compared\nto their respective IFRS measures:\n                                                                       Three-month periods     Six-month periods ended\n                                                                       ended\n (in millions of Canadian dollars)                                     July 31,    July 31,    July 31,      July 31,\n\n2026\n2025\n2026\n2025\n\n Net (loss) income                                                     $(136.8)    $57.1       $(9.5)        $218.1\n Normalized elements\n Foreign exchange loss (gain) on long-term debt and lease liabilities  73.7        7.0         82.7          (121.6)\n Costs related to business combinations( [3])                          1.0         3.3         2.1           6.4\n Special long-term incentive program ([4])                             —           4.4         —             4.4\n Executive management transition cost ([5])                            —           2.5         —             2.5\n Supplier financial restructuring ([6])                                74.8        —           74.8          —\n Other elements ([7])                                                  —           1.0         —             1.9\n Income tax adjustment ([1] [8])                                       (25.7)      (8.4)       (28.6)        (10.2)\n Normalized net income (loss) ([1])                                    (13.0)      66.9        121.5         101.5\n Normalized income tax expense (recovery) ([1])                        (5.3)       (12.4)      45.1          3.4\n Financing costs adjusted ([1])                                        50.3        50.5        94.9          97.1\n Financing income                                                      (5.4)       (3.3)       (8.5)         (4.6)\n Depreciation expense adjusted ([1])                                   112.2       111.5       220.2         216.6\n Normalized EBITDA ([1])                                               $138.8      $213.2      $473.2        $414.0\n\n ([1])    See \"Non-IFRS Measures\" section.\n ([2])    Figures are on a continuing basis.\n ([3])    Transaction costs and depreciation of intangible assets related to business\n          combinations.\n ([4])    Incremental fair value recorded as a result of a special long-term incentive\n          program.\n ([5])    Includes the impact of accelerated vesting of executive management stock\n          options.\n ([6])    Includes the costs associated to a supplier financial restructuring.\n ([7])    Other elements include transaction costs associated with the sale of the\n          Marine businesses and restructuring costs.\n ([8])    Income tax adjustment is related to the income tax on Normalized elements\n          subject to tax and for which income tax has been recognized and to the\n          adjustment related to the impact of foreign currency translation from Mexican\n          operations.\n\nThe following table ([2]) presents the reconciliation of items as included in\nthe Normalized net income ([1]) and Normalized EBITDA ([1]) compared to\nrespective IFRS measures as well as the Normalized EPS – basic and diluted\n([1]) calculation.\n (in millions of Canadian dollars, except per share data)            Three-month periods ended       Six-month periods ended\n                                                                     July 31,       July 31,         July 31,      July 31,\n\n2026\n2025\n2026\n2025\n\n Depreciation expense reconciliation\n Depreciation expense                                                $112.9         $113.0           $221.6        $219.5\n Depreciation of intangible assets related to business combinations  (0.7)          (1.5)            (1.4)         (2.9)\n Depreciation expense adjusted ([1])                                 $112.2         $111.5           $220.2        $216.6\n Income tax expense reconciliation\n Income tax expense (recovery)                                       $(31.0)        $(20.8)          $16.5         $(6.8)\n Income tax adjustment ([3])                                         25.7           8.4              28.6          10.2\n Normalized income tax expense (recovery) ([1])                      $(5.3)         $(12.4)          $45.1         $3.4\n Financing costs reconciliation\n Financing costs                                                     $50.6          $50.5            $95.6         $97.1\n Other                                                               (0.3)          —                (0.7)         —\n Financing costs adjusted ([1])                                      $50.3          $50.5            $94.9         $97.1\n\n Normalized EPS - basic ([1]) calculation\n Normalized net income (loss) ([1])                                  $(13.0)        $66.9            $121.5        $101.5\n Non-controlling interests                                           0.2            0.8              0.8           0.9\n Weighted average number of shares - basic                           72,756,365     73,040,187       72,950,539    73,036,072\n Normalized EPS - basic ([1])                                        $(0.18)        $0.93            $1.68         $1.40\n Normalized EPS - diluted ([1]) calculation\n Normalized net income (loss) ([1])                                  $(13.0)        $66.9            $121.5        $101.5\n Non-controlling interests                                           0.2            0.8              0.8           0.9\n Weighted average number of shares - diluted ([4])                   72,756,365     73,616,757       73,529,444    73,569,234\n Normalized EPS - diluted ([1])                                      $(0.18)        $0.92            $1.66         $1.39\n\n ([1])    See \"Non-IFRS Measures\" section.\n ([2])    Figures are on a continuing basis.\n ([3])    Income tax adjustment is related to the income tax on Normalized elements\n          subject to tax and for which income tax has been recognized and to the\n          adjustment related to the impact of foreign currency translation from Mexican\n          operations.\n ([4])    The weighted average number of diluted shares outstanding used in calculating\n          Normalized diluted EPS ([1]) for the six-month period ended July 31, 2026 was\n          73,529,444. The difference in the weighted average number of diluted shares\n          outstanding used in calculating diluted EPS is explained by a reported net\n          loss under IFRS Measures for the same period.\n\nThe following table presents the reconciliation of consolidated net cash flows\ngenerated from operating activities to free cash flow ([1]).\n (in millions of Canadian dollars)                   Six-month periods ended\n                                                     July 31,      July 31,\n\n2026\n2025\n Net cash flows generated from operating activities  $686.8        $373.1\n Additions to property, plant and equipment          (105.5)       (115.5)\n Additions to intangible assets                      (21.9)        (18.4)\n Free cash flow( [1])                                $559.4        $239.2\n Free cash flow from continuing operations ([1])     $560.4        $301.9\n Free cash flow from discontinued operations ([1])   $(1.0)        $(62.7)\n\n ([1])  See \"Non-IFRS Measures\" section.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/brp-presents-its-second-quarter-results-for-fiscal-year-2027-302868425.html\n(https://www.prnewswire.com/news-releases/brp-presents-its-second-quarter-results-for-fiscal-year-2027-302868425.html)\n\nSOURCE BRP Inc.\n\n\n\nFor media enquiries: Emilie Proulx, Media Relations, media@brp.com; For investor relations: Philippe Deschênes, Investor Relations, philippe.deschenes@brp.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1788141/BRP-Inc-BRP-PRESENTS-ITS-SECOND-QUARTER-RESULTS-FOR-FISCAL-YEAR.jpg?id=OA2927495\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-09-03T10:00:05.528287058Z","server_sent_at_ms":1788429605528},"received_at":"2026-09-03T10:00:05.810Z","source_url":"https://www.prnewswire.com/news-releases/brp-presents-its-second-quarter-results-for-fiscal-year-2027-302868425.html"},"analysis":{"id":"123684","press_release_id":"134799","analysis_json":{"industry":{"label":"Leisure Products","sector":"Consumer Discretionary"},"redFlags":["Gross margin compressed 940bps to 11.7% on Section 232 tariffs plus a $74.8M supplier financial restructuring impact","Q3 FY27 normalized diluted EPS guided down ~50-60% YoY due to increased tariff impact","FY27 Normalized EBITDA guidance ($1,025M-$1,075M) sits below FY26 actual of $1,103.4M","Effective tax rate assumption jumps to ~26.5% from 17.6% in FY26","Planned financial leadership transition announced alongside results","Guidance does not fully incorporate potential expansion of U.S. tariffs on all imports from Canada and Mexico"],"eventType":"earnings","narrative":"BRP's Q2 fiscal 2027 revenue rose 18.5% year-over-year to $2,236.8 million Canadian, driven by higher ORV shipments and favourable side-by-side vehicle mix, and management raised FY27 normalized diluted EPS guidance to $4.00-$4.50.\n\nThe topline strength masked severe margin pressure: BRP swung to a net loss of $136.8 million from $57.1 million net income a year earlier, with gross margin down 940bps to 11.7% on Section 232 tariffs on steel, aluminum and copper imports plus a $74.8 million supplier financial restructuring hit.\n\nNormalized EBITDA fell 34.9% to $138.8 million, and the company warned that Q3 fiscal 2027 normalized diluted EPS will be down roughly 50% to 60% year-over-year, mainly due to increased tariff impact.\n\nAlongside results, BRP declared a $0.25 quarterly dividend, returned $231.7 million to shareholders in the first half, announced a planned financial leadership transition, and launched BRP Financial Services, its new branded retail financing program in the United States.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise masked by tariff pain: 18.5% revenue growth and raised FY27 EPS guidance, but a Q3 EPS outlook down 50-60% on Section 232 tariffs."},"keyFigures":{"guidance":"FY27 raised: total revenues $9,225M-$9,475M (vs FY26 $8,442.7M); Normalized EBITDA $1,025M-$1,075M; Normalized diluted EPS raised to $4.00-$4.50; Net income $160M-$195M. Q3 FY27 normalized diluted EPS expected down ~50% to 60% YoY, mainly due to increased tariff impact.","revenueYoy":"18.5%","customDimensions":{"currency":"CAD","gross_margin":"11.7%","gross_profit":262500000,"six_month_fcf":559400000,"capex_guidance":"~$390M vs $341M in FY26","q3_eps_outlook":"down ~50% to 60% YoY","normalized_ebitda":138800000,"dividend_per_share":0.25,"gross_margin_change":"-940bps YoY","normalized_ebitda_yoy":"-34.9%","six_month_revenue_yoy":"23.9%","h1_shareholder_returns":231700000,"na_retail_sales_growth":"1%","effective_tax_rate_assumption":"~26.5% vs 17.6% in FY26","six_month_operating_cash_flow":686800000,"supplier_restructuring_impact":"$74.8 million / 330bps on gross profit"}},"quotedText":"Given our strong performance in ORV leading to additional market\nshare gains, and reduced net tariff costs, we are raising our full-year\nguidance","namedEntities":{"people":[{"name":"Denis Le Vot","role":"President and CEO of BRP"},{"name":"Sébastien Martel","role":"CFO"}],"products":["Sea-Doo RXP-X Senna 350","Spark X","Can-Am Defender HD10","Can-Am Ryker","BRP Financial Services","Ski-Doo","Lynx","Sea-Doo","Can-Am","Rotax","Quintrex"],"companies":[{"name":"BRP Inc.","ticker":"DOO","relationship":"filer"},{"name":"Alumacraft","relationship":"divested business"},{"name":"Manitou","relationship":"divested business"},{"name":"Telwater","relationship":"divestiture process pending"}],"dollarAmounts":[{"amount":"$2,236.8 million","context":"Q2 FY27 revenue, up 18.5% YoY"},{"amount":"$136.8 million","context":"Q2 FY27 net loss vs $57.1M net income last year"},{"amount":"$138.8 million","context":"Q2 normalized EBITDA, down 34.9% YoY"},{"amount":"$74.8 million","context":"unfavourable impact of supplier financial restructuring on gross profit"},{"amount":"$4.00 to $4.50","context":"raised FY27 normalized diluted EPS guidance"},{"amount":"$9,225 to $9,475","context":"FY27 total company revenue guidance"},{"amount":"$0.25","context":"quarterly dividend per share declared, payable October 13, 2026"},{"amount":"$231.7 million","context":"returned to shareholders in H1 FY27 via dividends and buybacks"},{"amount":"$559.4","context":"six-month free cash flow (millions CAD)"},{"amount":"$686.8 million","context":"six-month net cash flows from operating activities"},{"amount":"$4,628.6 million","context":"six-month revenue, up 23.9% YoY"}]},"materialImpact":{"score":4,"reasoning":"Strong 18.5% revenue growth and a raised FY27 normalized diluted EPS guidance ($4.00-$4.50), but the quarter swung to a $136.8M net loss with gross margin down 940bps on Section 232 tariffs, normalized EBITDA down 34.9%, and Q3 EPS guided down 50-60% YoY. A genuinely two-sided report for a mid-cap household brand."},"tickerRelevance":{"others":[],"primary":"DOO"},"globalImportance":48,"audienceRelevance":45,"eventTypeSecondary":["guidance_update","executive_change"],"importanceComponents":{"macroAngle":"Section 232 steel/aluminum/copper tariff exposure","tickerTier":"mid-cap","eventGravity":"earnings with guidance raise offset by tariff-driven margin collapse and Q3 EPS warning","sectorWeight":"consumer discretionary / powersports","householdBrandBoost":true,"retailFavoriteBoost":"moderate"}},"event_type":"earnings","event_type_secondary":["guidance_update","executive_change"],"sentiment":"mixed","material_impact_score":4,"narrative":"BRP's Q2 fiscal 2027 revenue rose 18.5% year-over-year to $2,236.8 million Canadian, driven by higher ORV shipments and favourable side-by-side vehicle mix, and management raised FY27 normalized diluted EPS guidance to $4.00-$4.50.\n\nThe topline strength masked severe margin pressure: BRP swung to a net loss of $136.8 million from $57.1 million net income a year earlier, with gross margin down 940bps to 11.7% on Section 232 tariffs on steel, aluminum and copper imports plus a $74.8 million supplier financial restructuring hit.\n\nNormalized EBITDA fell 34.9% to $138.8 million, and the company warned that Q3 fiscal 2027 normalized diluted EPS will be down roughly 50% to 60% year-over-year, mainly due to increased tariff impact.\n\nAlongside results, BRP declared a $0.25 quarterly dividend, returned $231.7 million to shareholders in the first half, announced a planned financial leadership transition, and launched BRP Financial Services, its new branded retail financing program in the United States.","key_figures":{"guidance":"FY27 raised: total revenues $9,225M-$9,475M (vs FY26 $8,442.7M); Normalized EBITDA $1,025M-$1,075M; Normalized diluted EPS raised to $4.00-$4.50; Net income $160M-$195M. Q3 FY27 normalized diluted EPS expected down ~50% to 60% YoY, mainly due to increased tariff impact.","revenueYoy":"18.5%","customDimensions":{"currency":"CAD","gross_margin":"11.7%","gross_profit":262500000,"six_month_fcf":559400000,"capex_guidance":"~$390M vs $341M in FY26","q3_eps_outlook":"down ~50% to 60% YoY","normalized_ebitda":138800000,"dividend_per_share":0.25,"gross_margin_change":"-940bps YoY","normalized_ebitda_yoy":"-34.9%","six_month_revenue_yoy":"23.9%","h1_shareholder_returns":231700000,"na_retail_sales_growth":"1%","effective_tax_rate_assumption":"~26.5% vs 17.6% in FY26","six_month_operating_cash_flow":686800000,"supplier_restructuring_impact":"$74.8 million / 330bps on gross profit"}},"named_entities":{"people":[{"name":"Denis Le Vot","role":"President and CEO of BRP"},{"name":"Sébastien Martel","role":"CFO"}],"products":["Sea-Doo RXP-X Senna 350","Spark X","Can-Am Defender HD10","Can-Am Ryker","BRP Financial Services","Ski-Doo","Lynx","Sea-Doo","Can-Am","Rotax","Quintrex"],"companies":[{"name":"BRP Inc.","ticker":"DOO","relationship":"filer"},{"name":"Alumacraft","relationship":"divested business"},{"name":"Manitou","relationship":"divested business"},{"name":"Telwater","relationship":"divestiture process pending"}],"dollarAmounts":[{"amount":"$2,236.8 million","context":"Q2 FY27 revenue, up 18.5% YoY"},{"amount":"$136.8 million","context":"Q2 FY27 net loss vs $57.1M net income last year"},{"amount":"$138.8 million","context":"Q2 normalized EBITDA, down 34.9% YoY"},{"amount":"$74.8 million","context":"unfavourable impact of supplier financial restructuring on gross profit"},{"amount":"$4.00 to $4.50","context":"raised FY27 normalized diluted EPS guidance"},{"amount":"$9,225 to $9,475","context":"FY27 total company revenue guidance"},{"amount":"$0.25","context":"quarterly dividend per share declared, payable October 13, 2026"},{"amount":"$231.7 million","context":"returned to shareholders in H1 FY27 via dividends and buybacks"},{"amount":"$559.4","context":"six-month free cash flow (millions CAD)"},{"amount":"$686.8 million","context":"six-month net cash flows from operating activities"},{"amount":"$4,628.6 million","context":"six-month revenue, up 23.9% YoY"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-03T10:06:43.297Z","global_importance":48,"audience_relevance":45,"importance_components":{"macroAngle":"Section 232 steel/aluminum/copper tariff exposure","tickerTier":"mid-cap","eventGravity":"earnings with guidance raise offset by tariff-driven margin collapse and Q3 EPS warning","sectorWeight":"consumer discretionary / powersports","householdBrandBoost":true,"retailFavoriteBoost":"moderate"}},"durationMs":168807,"modelName":"glm-4.7"}}