10 • July 2025 • Powersports Business
www . PowersportsBusiness . com
REVENUE Revenue decreased by $153 million, or 7.7%, to $1.85 billion for the three months ending April 30, compared to $2 billion for the corresponding period last year.
with retail sales holding steady compared to Q1 last year,” says José Boisjoli, president and CEO of BRP.
BRP released its first-quarter financial results on May 29 and reported a 7.7% drop in revenue compared to last year’s Q1 results, as the company says it tries to focus on reducing network inventory levels in seasonal products.
“Looking ahead, given the uncertainty, we are still refraining from making financial projections at this time. In the short term, although demand remains soft due to a challenging macro environment, our strong product portfolio and leaner inventory levels position us favorably for a rebound. Over the longer term, our decision to double down on our core powersports activities , combined with our team’s ingenuity and our commitment to pushing technology and innovation, provides the foundations for sustained leadership,” adds Boisjoli.
BRP, maker of Ski-Doo and other powersports brands, reported its North American retail sales were flat compared to last year, resulting from strong end-of-season retail in snowmobiles, offset by a decrease in year-round products retail. (Photo: BRP)
Revenue from year-round products fell by $52 million, or 4.5%, to $1.1 billion for the three months, compared to $1.16 billion during the period last year. Revenue from seasonal products decreased by $115.9 million , or 21.7%, to $419.2 million, compared to $535.1 million in last year’s Q1.
All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on the quarterly reports section of BRP’s website.
on reducing network inventory levels in seasonal products.
“We delivered a sound first-quarter performance despite the current context, with results in line with expectations. Driven by a solid end-of-season in snowmobiles , we slightly outperformed the North American powersports industry
The loss in revenue was also due to higher sales programs across most product lines, but partially offset by favorable pricing across most product lines. The decrease includes a favorable foreign exchange rate variation of $33 million.
The decline in revenue was primarily due to a lower volume sold across most product lines, because of the industry’s slowdown in year-round products and continued focus
NORTH AMERICAN RETAIL SALES BRP’s North American retail sales were flat for the three months ending April 30, compared to the same period last year. Seasonal products retail sales were up, driven by strong end-of-season retail in snowmobiles following late snowfall, offset by a decrease in year-round products retail sales mainly due to the industry’s slowdown.
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North American year-round products retail sales declined on a percentage basis in the low-teens range compared to the same three-month period last year. The year-round products industry sales also dropped on a percentage basis in the mid-single digits over the same period.
North American seasonal products retail sales increased on a percentage basis in the high−20s range compared to the same time last year. The seasonal products industry sales increased on a percentage basis in the lowteens range over the same period.
GROSS PROFIT Gross profit decreased by $126.9 million, or 24.3%, to $394.8 million for the three months, compared to $521.7 million it earned during the same period last year. Gross profit margin percentage were down by 470 basis points to 21.4% for the three-month period, compared to 26.1% last year.
The drop in gross profit and gross profit margin percentage was the result of a lower volume of units sold, higher sales programs, and decreased leverage of fixed costs due to reduced production. The declines were partially offset by favorable pricing across most product lines and production efficiencies. The decrease in gross profit includes an unfavorable foreign exchange rate variation of $10 million.
NET INCOME Net income increased by $118.5 million, or 278.8%, to $161 million for the three-month period, compared to $42.5 million for the same period a year ago. The gain in net income was primarily due to a favorable foreign exchange rate variation on the U.S.-denominated long-term debt and lower operating expenses. The increase was partially offset by lower operating income resulting from a lower gross profit and gross profit margin.
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OPERATING EXPENSES Operating expenses decreased by $30.5 million , or 9.2%, to $300.9 million for the threemonth period, compared to $331.4 million for the same period last year. The decrease in operating expenses was mainly attributable to lower general and administrative expenses due to cost optimization, lower sales and marketing expenses, and lower restructuring and reorganization costs. The decrease in operating expenses includes an unfavorable foreign exchange rate variation of $13 million.
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