BRP’s off-road business continued to gain momentum in the second quarter of fiscal 2027, with strong Can-Am retail performance, market-share gains and healthy dealer inventory helping offset softer demand for personal watercraft.
For the quarter ended July 31, BRP reported revenue of $2.24 billion (CAD), up 18.5% from $1.89 billion a year earlier. The company said the increase was driven primarily by higher ORV shipments to support retail demand and a favorable side-by-side mix from new-model introductions. For North American powersports retailers, the more significant figure was retail sales, which increased 1% overall during the quarter. ORV market-share gains and continued strength in side-by-sides helped offset weaker seasonal-product sales.
BRP reported particularly strong results in the North American side-by-side and ATV categories. Side-by-side retail sales increased in the mid-single digits during the quarter, ahead of industry growth in the low-single digits. For the full season ended in June, Can-Am SSV retail sales increased at a high-single-digit rate, compared with mid-single-digit industry growth.
The company gained more than three percentage points of market share in current-model-year SSVs, reaching an all-time high and capturing nearly one-third of units sold in the category. The Defender HD11 was a major contributor, with retail sales in the utility-cab segment increasing more than 30%.
BRP said demand has been strong enough that it is expanding production capacity within its existing manufacturing footprint to increase availability of cab-equipped units. ATV performance was similarly strong. While the North American ATV industry declined at a low-single-digit rate during the quarter, Can-Am ATV sales increased at a mid-single-digit rate. Current-model-year ATV sales were up nearly 20%, allowing Can-Am to finish the season as the category’s leading brand in current-model-year sales.
BRP executives pointed to continued growth in utility-oriented side-by-sides as a major opportunity. The company said the utility-cab segment has more than quadrupled over the past six years and now represents nearly half of the utility SSV market.
That trend is influencing BRP’s product strategy, including the new Defender HD10 and XU models introduced for 2027.
BRP said its North American dealer inventory was up only 2% year over year at the end of the quarter, a level management characterized as healthy. Executives said ORV inventory was in a good position, at roughly 100 days, with cab-equipped units carrying significantly less inventory. Snowmobile inventory finished the season 30% below the prior year.
Personal watercraft is the primary inventory concern. PWC demand was softer than expected, and BRP said it is reducing shipments and production for the balance of the year. The goal is to prevent excess inventory from building at dealerships and improve the starting position for the next season.
“We are well balanced to make sure that we have enough inventory to support retail, but also the right amount of inventory to protect the dealer’s profitability,” CFO Sébastien Martel said during the company’s quarterly call.
North American PWC segment declined at a low-single-digit rate during the quarter, roughly in line with the industry. BRP said discounted carryover inventory from other manufacturers continued to pressure non-current-model sales. Current-model-year Sea-Doo performance, however, remained strong, with BRP’s market share increasing by more than six percentage points to above 60%.
Rather than chase weaker demand with additional shipments, BRP plans to reduce PWC deliveries for the remainder of the year. The strategy comes as BRP prepares dealers for its 2027 Sea-Doo lineup, including the new Spark X and limited-edition RXP-X Senna 350.
Tariffs continued to weigh heavily on BRP’s financial results. The company said the quarter included approximately $145 million in incremental net tariff costs compared with the same period last year. However, BRP has reduced its expected full-year tariff exposure to approximately $200 million, down from the $300 million figure discussed earlier in the fiscal year.
Two developments are helping: U.S. tariffs on ATVs under Section 232 have fallen from 25% to 15%, and several of BRP’s newer SSV models are not subject to the same Section 232 tariffs.
BRP expects approximately $225 million in tariff exposure on an annualized basis for the following fiscal year.
The company is also looking at product mix, manufacturing and other cost measures to reduce the impact of tariffs further.
Despite the tariff and inflation pressures, BRP raised its fiscal 2027 outlook following the first half of the year. The company now expects full-year revenue of $9.23 billion to $9.48 billion, compared with $8.44 billion in fiscal 2026. BRP also expects to generate more than $800 million in cash from operations after capital spending during the year.
BRP said the improved outlook reflects stronger-than-expected ORV demand, continued market-share gains and the reduced tariff burden. The company expects the third quarter to be more challenging, however, with tariffs and inflation expected to put additional pressure on results.
BRP also recently told dealers at Club BRP that it plans to introduce major off-road product announcements every six months for the next four years, underscoring the company’s focus on growing Can-Am’s position in the North American ORV market.
For dealers, the second-quarter results point to a two-speed powersports market: strong demand for utility-oriented ORVs and current-model-year products, contrasted with softer PWC demand and continued pressure from tariffs and transportation costs.
BRP’s response is to increase production where dealers are seeing demand, limit shipments where inventory is becoming a concern, and use new products and financing tools to support retail.
Powersports productivity solutions provider AppOne is partnering with dealer management system DX1 to help dealers simplify the financing process, improve operational efficiency, and deliver a better customer experience.
Through the integration of AppOne’s financing platform with DX1’s dealership management technology, dealers can more efficiently access lender programs, reduce manual data entry, and accelerate the credit application and funding process. The partnership supports dealers by creating a more connected workflow from vehicle selection through financing.
“At AppOne, we’re committed to helping dealers operate more efficiently while connecting them with the lenders and tools they need to succeed,” says AppOne President Chet Heughan. “Partnering with DX1 allows us to further streamline the financing experience for dealers and their customers.”
The two companies believe that by combining AppOne’s experience in recreational lending with DX1’s specialized dealership management capabilities, they are giving dealers a scalable solution that reduces administrative burden and improves productivity.
Fintech and lending firm Octane announced on Aug. 18 two key leadership appointments in its sales organization, one of which includes naming a senior vice president for its recent financing program partnership with BRP.
Octane named Steve Daum senior vice president of sales and recreational lending for BRP Financial Services, leading Octane’s Captive-as-a-Service relationship with BRP. In this role, he will drive adoption of BRP Financial Services and BRP’s white-labeled financing program. Daum will oversee a sales team focused on deepening relationships across BRP’s network of independent dealerships in the U.S. to increase originations.
Daum joined Octane in 2022 and was named SVP of sales in 2025. Under his leadership, Octane has grown its dealer network, signed new partnerships, expanded agreements with leading OEMs, and grown originations by over 200%. Additionally, he has helped the company increase its market share and enter new markets.
Octane’s other appointment was naming David Carlsen to SVP of sales and partnerships. In this role, he will lead a team of 25 sales professionals across Octane’s powersports and outdoor power equipment businesses.
Carlsen also joined Octane in 2022 and has introduced key automations to streamline the financing process. Before joining Octane, Carlsen held senior roles at a major captive finance institution.
BRP is launching its own branded retail financing program in the U.S., giving dealers another tool to support sales and customers a financing experience designed specifically around BRP products.
BRP Financial Services officially launched at the end of August and is being developed and administered through a long-standing relationship with fintech company Octane. The program will provide financing for new and used vehicles through BRP’s U.S. dealer network under the BRP Financial Services name.
The move marks a significant expansion of the companies’ relationship, which dates back 10 years. Octane will provide the technology, underwriting, funding and loan-servicing infrastructure behind the program through its Captive-as-a-Service platform. Octane’s in-house lender, Roadrunner Financial, will originate the loans, while Roadrunner Account Services will handle loan servicing.
For BRP dealers, the new program is intended to provide greater credit flexibility and a more integrated financing process at the point of sale.
“Our dealers are at the heart of everything we do and we are committed to making it easier for them to do business with us,” says David Baker, vice president and general manager, Powersports North America at BRP. “BRP Financial Services will provide financing solutions that support their sales growth, give them credit flexibility to close more deals, and strengthen their long-term customer relationships.”
The program is also positioned as a strategic initiative for BRP, rather than simply a new financing option. Benoit Chevrier, BRP vice president, finance and treasurer, said the branded finance operation is expected to improve operational efficiency while allowing the company to capitalize on opportunities within the powersports market.
“The launch of BRP Financial Services represents an important milestone for our business,” Chevrier adds. “It aligns with our long-term strategic objectives and positions the Company to capitalize on untapped opportunities within our industry.”
Octane’s Captive-as-a-Service platform allows BRP to operate a branded financing program without having to build and manage a traditional captive finance company from the ground up.
The platform combines technology, underwriting, loan processing and servicing, compliance and capital-markets execution. Octane also provides sales and marketing support designed to maintain a consistent BRP-branded experience throughout the financing and ownership process.
“This launch is the next evolution of our long-standing relationship with BRP,” says Jason Guss, Octane CEO and co-founder. “By combining our purpose-built technology platform and strong underwriting and capital markets track record, Captive-as-a-Service allows us to offer even more innovative and tailored solutions for our partners.”
Octane said the program will offer financing for both new and used vehicles, with flexible terms and promotions intended to support customer acquisition, repeat purchases and customer loyalty.
The company said it has surpassed $9 billion in aggregate loan originations and has issued more than $5 billion in asset-backed securities. Octane also has sold or secured commitments to sell $4.9 billion in loans through 13 whole-loan sales and forward-flow agreements.
Octane’s Captive-as-a-Service platform also has partners in the recreational vehicle, outdoor power equipment and automotive industries.
The launch gives BRP dealers access to a financing program carrying the OEM’s own branding, potentially creating a more unified customer experience from vehicle selection through financing and ownership.