8 • May 2026 • Powersports Business
FINANCE www. PowersportsBusiness. com
BRP tops Q4 expectations with strong retail, but tariff risks halt guidance for FY27
BRP closed out FY26 with stronger-thanexpected 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.
RETAIL STRENGTH & PRODUCT MIX 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.
MOMENTUM DRIVEN BY NEW UNITS Martin Landry, managing director at Stifel Canada, said BRP’ s quarter exceeded expectations, with earnings supported by strongerthan-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.
DEALER FINANCIAL SNAPSHOT
BRP reported fourth-quarter revenue of $ 2.46 billion( CAD), up 16 % year-over-year.( File photo)
INVENTORY IMPROVES 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.
See BRP, Page 10
NORTHWEST-1.6 % Parts Department-1.5 % Service Department-4.6 % Major Units-4 % Overall
WEST
2.2 % Parts Department 3.5 % Service Department 4.5 % Major Units 4.1 % Overall
UNITED STATES
1.8 % Parts Department 5.1 % Service Department 4 % Major Units 3.9 % Overall
MIDWEST 1.6 % Parts Department 5.1 % Service Department 3.1 % Major Units 3.2 % Overall
SOUTH
3.9 % Parts Department 8.7 % Service Department 8.2 % Major Units 8 % Overall
NORTHEAST-0.3 % Parts Department 2.3 % Service Department-1.7 % Major Units-1.2 % Overall
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MARCH 2026 VS. MARCH 2025
In March, dealers nationwide saw a combined 3.9 % increase in sales compared to the same month last year, according to composite data from more than 1,800 U. S. dealers that use Lightspeed DMS. In major unit sales, the South had the largest increase, 8.2 %, followed by the West, 4.5 %, and the Midwest, 3.1 %. Both the Northwest, 4.6 %, and the Northeast, 1.7 %, were down for the month. In services, the South rose 8.7 %, followed
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by the Midwest, which gained 5.1 %. Also in the black were the West, up 3.5 %, and the Northeast, up 2.3 %. The Northwest was down 1.5 %. In parts sales, the South had the largest increase at 3.9 %, followed by the West and Midwest, up 2.2 % and 1.6 %, respectively. For combined sales, the South had the largest increase at 8 %, with the West, 4.1 %, and the Midwest, 3.2 %, also seeing gains for the month. The Northwest was down 4 %, followed by the Northeast, down 1.2 %. |
PARTS SALES Parts revenue was up at 994 dealerships and down at 904.
SERVICE SALES Service revenue was up at 1047 dealerships and down at 809.
MAJOR UNIT SALES Major unit revenue was up at 891 dealerships and down at 734.
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FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data, contact: lightspeeddms. com
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