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Powersports Business • October 2026 • 11 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.

DEALER INVENTORY REMAINS IN CHECK 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.

PWC REMAINS A WEAK SPOT North American PWC segment declined at a low-singledigit 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 %.

BRP said the increase in revenue was driven primarily by higher ORV shipments to support retail demand and a favorable side-byside mix from new-model introductions.( Images: BRP)

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.

TARIFF PRESSURE REMAINS SIGNIFICANT 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.

FULL-YEAR OUTLOOK 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-thanexpected 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

See BRP ORV, Page 14