BRP reported stronger-than-expected first-quarter fiscal 2027 results, driven by higher off-road vehicle shipments, favorable product mix and disciplined inventory management. However, the company must still navigate ongoing tariff pressures.
The parent company of Can-Am, Sea-Doo, Ski-Doo and Lynx generated revenue of CA$2.39 billion during the quarter ended April 30, a 29.5% increase from the same period a year ago. Normalized EBITDA rose 66.5% to CA$334.4 million as gross margins improved and promotional activity eased compared with last year.
“We delivered Q1 financial results above expectations, driven by higher volumes, disciplined cost management, strong overall execution and a more favorable promotional environment,” says Denis Le Vot, president and CEO of BRP. “We also sustained our solid retail momentum across key ORV segments, as new product introductions in the second half of last year contributed to additional market share gains.”
For dealers, one of the most encouraging indicators was BRP’s continued focus on inventory discipline. During the earnings call, executives reported dealer inventory was down 3% year-over-year, reflecting what the company described as improved alignment between wholesale shipments and retail demand.
North American retail sales, however, declined 7% overall during the quarter. The comparison was heavily affected by a strong snowmobile season the year before. Excluding snowmobiles, BRP reported North American retail sales increased approximately 2%.
The company said its year-round products business, which includes Can-Am off-road vehicles, continued to outperform the overall market. North American year-round product retail sales increased at a mid-single-digit rate while the industry grew only in the low-single digits. BRP also reported market share gains in the ORV segment, including a three-point gain in premium side-by-side models.
Meanwhile, the personal watercraft segment faced continued pressure from elevated levels of discounted carryover inventory across the industry.
Despite broader economic concerns and uncertainty surrounding tariffs, BRP executives said consumer demand remains resilient in many key categories.
“We haven’t seen significant shifts in demand, particularly in North America,” CFO Sébastien Martel told analysts during the earnings call. He noted that ORV trends remain strong and that snowmobile pre-orders are up roughly 50% from a year ago.
International markets also contributed to the quarter’s performance. BRP reported retail sales growth of 10% in Europe, the Middle East and Africa, while Latin American sales increased 7%, led by record performances in Brazil and Mexico.
While the quarter exceeded expectations, tariffs remain a significant concern for the manufacturer. BRP revised its fiscal 2027 outlook to incorporate expected tariff-related costs, though executives emphasized that mitigation efforts are already underway.
“As tariff policies shifted significantly during the quarter, our teams moved quickly to define mitigation measures to reduce their impact,” Le Vot notes. “Looking ahead, we are focused on navigating these headwinds while also protecting our long-term growth prospects.”
Management said its strategy to handle the headwinds includes improving operational efficiencies, selective pricing actions, reduced discretionary spending and prioritization of key growth investments. Executives indicated they are avoiding drastic long-term manufacturing changes until trade policies become clearer.
Despite the tariff uncertainty, BRP maintained a positive outlook for its dealer network and product portfolio.
“Thanks to our engaged dealer network, valued suppliers and leading-edge product lineups, we are confident in our ability to further strengthen our position in the future,” Le Vot adds.
BRP now expects fiscal 2027 revenue to range between CA$9.1 billion and CA$9.4 billion. The company also expects to generate more than CA$600 million in free cash flow during the year while continuing to invest in new products, technology and dealer support initiatives.
Publicly traded powersports retailer RideNow Group is joining the small-cap Russell 2000 Index and the broad-market Russell 3000 Index as part of the indexes’ 2026 reconstitution, the company announced.
For RideNow, membership in the US all-cap Russell 3000 Index guarantees automatic inclusion in the small-cap Russell 2000 Index, as well as the appropriate growth and value style indexes.
The Russell indexes rank eligible U.S. companies by total market capitalization, allowing investors to track the performance of distinct market segments, ensuring indexes remain an accurate reflection of the current market. The reconstituted indexes took effect after equity markets closed on June 26.
“We are incredibly proud to join the Russell 2000 and 3000 indexes,” says Michael Quartieri, chairman, CEO, and president of RideNow. “This inclusion marks an important milestone for us and validates our hard work over the last year, as well as reinforces our strategic path forward.”
Over the past several months, RideNow has been gaining footing after sales slightly slumped in 2025. At its latest earnings call, the company reported profitability and same-store growth in Q4 2025, even as full-year revenue and new unit sales declined.
Most recently, in May, RideNow expanded its borrowing capacity, securing an additional $35 million in floorplan financing to support OEM relationships. This comes on the heels of the dealership group’s highly successful 2026 Bike Week that saw Daytona Beach-area RideNow dealerships increase unit sales by 30% compared to last year.
Yamaha Motor Finance Corporation, U.S.A. (YMFUS) announced June 1 that it has completed a $400 million asset-backed securitization transaction designed to strengthen its ability to finance dealer inventory across its powersports and marine dealer network.
The transaction, known as YMMT II 2026-A, is backed by receivables generated through dealer inventory loans secured by new Yamaha powersports and marine products. According to the company, the offering marks several industry milestones, including YMFUS’s first term asset-backed securitization and the first dealer floorplan asset-backed securities (ABS) transaction backed by powersports and marine collateral from a captive finance company.
The company says the deal also represents the first dealer floorplan ABS transaction containing powersports and marine receivables since 2015.
For Yamaha dealers, the financing move provides the company with additional funding capacity to support inventory needs as the manufacturer continues to grow its retail and commercial finance operations.
“This inaugural dealer floorplan ABS complements YMFUS’s existing bank facilities and increases our resilience and ability to support our dealers’ inventory needs today and in the future,” says Kevin Duck, president of Yamaha Motor Finance Corporation, U.S.A.
Duck noted that YMFUS currently supports more than 2,000 Yamaha dealers nationwide.
“YMFUS has established a strong foundation supporting 2,000-plus Yamaha dealers across the United States and we look forward to continue expanding our capabilities, strengthening partnerships, and delivering long-term value across the Yamaha ecosystem,” he notes.
The securitization attracted significant investor interest, with Yamaha reporting more than $2 billion in orders from over two dozen institutional investors. The strong demand highlights confidence in Yamaha’s dealer financing platform and broader powersports and marine business.
The offering consisted of three classes of notes rated by Moody’s Investors Service and Fitch Ratings. The Class A-1 notes received Aaa/AAA ratings, while the Class B notes were rated Aa3/AA and the Class C notes received A2/A ratings.
Mizuho Securities USA LLC served as structuring agent and joint bookrunner. J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. also acted as joint bookrunners for the transaction.
The completion of the securitization gives Yamaha another source of capital beyond traditional bank lending facilities, providing additional flexibility to fund dealer floorplan financing and support inventory availability throughout its nationwide dealer network.