BRP closed out FY26 with stronger-than-expected fourth-quarter results, fueled by new product momentum, retail growth, and market share gains in key North American segments — trends that analysts say should carry into the new model year.
For BRP dealers, the takeaway is clear: retail demand remains resilient, inventory is improving, and fresh product introductions are driving showroom traffic.
BRP reported Q4 revenue of $2.46 billion (CAD), up 16% year-over-year driven by a favorable off-road vehicle mix and increased shipments of both ORVs and PWCs.
North American retail sales rose 12% in the quarter, with gains led by snowmobiles, aided by improved snow conditions, and continued share growth in both ORV and snowmobiles.
CEO Denis Le Vot pointed to new product launches as a key catalyst.
“In the fourth quarter, we recorded a strong retail performance in ORV and snowmobiles in North America, fueled by the success of our new product introductions,” Le Vot says.
That product momentum is particularly relevant for dealers, as BRP’s lineup updates are translating directly into retail gains — especially in the competitive UTV category.
Martin Landry, managing director at Stifel Canada, said BRP’s quarter exceeded expectations, with earnings supported by stronger-than-anticipated revenue and disciplined cost control. “Sales were boosted by successful product introductions, such as the new Defender side-by-side and new ATVs,” Landry notes, highlighting the impact of BRP’s latest launches on dealer floors.
According to Landry, the company is seeing notable share gains in North America, particularly in ATVs, where BRP retail sales increased in the low-teens percentage range despite overall industry softness.
He also pointed to a standout performance from the new Defender HD11 SxS, which helped drive ORV share gains and should continue contributing through the first half of FY-27.
BRP ended the fiscal year with North American network inventory down 17% YOY — a key metric for dealers following several years of elevated inventory levels. The reduction signals improved alignment between supply and retail demand, helping support pricing and margins at the dealership level.
At the same time, BRP reported higher gross margins in the quarter, benefiting from favorable pricing and product mix, though partially offset by tariffs; warranty costs and provisions tied to its EV business.
One notable headwind in the quarter was a $232.5 million impairment tied to BRP’s electric vehicle and light mobility assets, reflecting broader challenges in the EV and micromobility space. While the charge weighed on operating income, it did not overshadow the company’s core powersports performance, which remains the primary driver for dealers.
In its initial FY27 outlook, BRP projected revenue to reach between $8.9 billion and $9.15 billion, and projected Q1 EBITDA to increase by 40% YOY. However, BRP says it is suspending its full-year FY27 guidance following the recent amendment of Section 232 tariffs.
For BRP, the amendment leads to a 25% tariff on the total value of imported snowmobiles and most ORV models, replacing the previous 50% tariff. The company currently estimates the potential tariff cost to be more than $500 million for the remainder of 2026.
“Like many manufacturers, we are operating in a highly volatile and unpredictable tariff environment that continues to create uncertainty across the market,” Le Vot says. “Despite the material burden of these tariff changes, we expect that, with our solid balance sheet, the agility of our teams and the strong start of the year, we will be able to manage our business through this challenge.”
BRP and its analysts report that dealership traffic has remained steady. It’s an encouraging sign for dealers heading into the 2027 model year. BRP’s results point to key trends: New products are driving retail growth, especially in UTVs; Inventory levels are normalizing, improving margin stability; and retail demand remains solid, even amid economic uncertainty.
Synchrony, a major financing partner for powersports dealers, ranked No. 1 on the Fortune 100 Best Companies to Work For list for 2026.
The ranking, compiled in partnership with Great Place To Work, reflects employee feedback and workplace culture metrics. Synchrony climbed from No. 37 in 2021 to the top spot this year and has ranked in the top five for the past three years.
A key factor in the company’s rise has been its approach to artificial intelligence, pairing employee access to AI tools with structured training and governance. According to Synchrony’s internal survey data, nearly 100% of senior leaders are using AI tools, and 90% of employees trust the company to use AI fairly and ethically. Moreover, 82% believe AI will drive new growth, and nearly 80% say AI will positively impact their careers.
The company has also worked with Great Place To Work to develop an “AI For All Index,” measuring employee sentiment and readiness around AI adoption.
“Our culture is built on trust — giving our people the freedom to innovate, experiment and apply technologies like AI in ways that make a real difference for our customers and partners,” says Brian Doubles, president and CEO of Synchrony.
Synchrony reported that its employee-first strategy has translated into $3.6 billion in net earnings in 2025 and continued partner growth across its financing network. The company supports tens of millions of consumers and hundreds of thousands of businesses, including powersports dealerships that rely on retail financing to drive unit sales and customer access.
“Trust in the organization is a leading indicator of business performance,” says Michael C. Bush, CEO of Great Place To Work. “When employees trust their leaders, they are more willing to embrace innovation.”
For powersports retailers, Synchrony remains a key financing provider, particularly through programs like the Synchrony Outdoors Card, which helps consumers finance major unit.
The company said its continued investment in AI, digital tools, and employee training is aimed at improving customer experience and expanding credit access.
DJ Casto, executive vice president and chief human resources officer, said the company’s approach centers on continuous improvement rather than perfection.
“We know a great workplace isn’t a perfect one, it’s one built on trust and continuous improvement.”
Torque Group has announced a series of updates to its Extended Service Contract (ESC) program, expanding coverage parameters and introducing new surcharge options to better align with today’s customized powersports units.
The enhancements apply to both new and used vehicles and reflect growing demand from dealers and customers for protection products that accommodate modified units.
Among the most notable changes is a significant increase in allowable lift and tire specifications under ESC coverage. Previously, coverage was limited to lift kits and tires up to three inches over stock.
Under the updated program, eligibility now extends to lift kits up to 10 inches, and tires up to 36 inches in diameter.
Torque Group noted that add-on lift components — including spacers, aftermarket suspension arms, sway bars, shocks, extended swing arms, roll cages and portal units — are not covered. In addition, all modifications must be completed by a dealer or authorized repair facility and selected at the time of contract purchase.
The company also introduced new surcharge-based coverage options designed to address specific vehicle applications and performance upgrades.
A snowplow coverage option is $50 for vehicles with plows up to 84 inches, though plow equipment and attachments themselves are not included under the contract.
The company has also added a Screamin’ Eagle coverage option for $250. The coverage applies to vehicles outfitted with the performance kit by the factory or an authorized Harley-Davidson dealer prior to the agreement purchase date. Any modifications made after the contract is issued would result in cancellation of the agreement.
The updates come as customization continues to play a larger role in powersports purchasing decisions, particularly in side-by-side and V-twin segments.
By expanding ESC eligibility to accommodate more heavily modified units, Torque Group is providing dealers with additional F&I opportunities — particularly for customers investing in lift kits, larger tires or performance upgrades.
As unit customization becomes more common, F&I products are evolving alongside it. Torque Group’s expanded ESC coverage and new surcharge options aim to give dealers more flexibility to protect modified units while capturing additional revenue at the point of sale.
Horsepower Financial Services and CFMOTO have expanded their partnership to introduce a national leasing program for off-road vehicles, a move aimed at giving dealers a new tool to drive showroom conversions and customer retention.
The program marks one of the first large-scale efforts to bring leasing into the ORV market, offering an alternative ownership path for customers.
Horsepower Financial said its leasing model is designed to help riders access vehicles with lower upfront costs while keeping dealerships at the center of the transaction.
“This is more than a leasing innovation — it’s a turning point for powersports,” says Leanne Richards, VP of client development.
For dealers, the program is positioned as a way to increase approval rates, convert more traffic, and create repeat business through lease return cycles.
Jake Mirabal, VP of sales at CFMOTO, said the program aligns with growing demand for affordability and accessibility among powersports buyers.
“Riders want performance, value, and accessibility,” Mirabal adds. “This program gives our authorized dealers a new way to help customers access the vehicles they want, strengthening the dealership network and supporting growth.”
As financing innovation continues to evolve across powersports, the Horsepower–CFMOTO partnership signals a broader push toward flexible ownership models.
If widely adopted, leasing could become an increasingly important lever for dealers looking to move inventory, attract new riders, and build longer-term customer relationships.