BRP crushes Q2 earnings, beats estimates, and raises FY26 guidance

BRP (DOO-TSX) FY2Q26 Quick Take from BMO Capital Markets. While other vendors will possibly wrap up 2025 in the red, BRP crushed yesterday's earnings call and continue to prove that partnering with your dealers is the right model. While I still strongly believe that no powersports OEM should be a public company, in the current climate BRP is really the only one that has chosen to make long-term decisions that are right for the company and their dealers, even when those decisions could have a negative short-term impact on share price. Recent projects I've done with dealers continue to show wide variations in profitability by brand. The smart dealers will continue to remain focused on these metrics and will drive business to their partners, while placing the vendors in time-out, giving these bad actors plenty of time to consider their life choices. In summary: BRP crushed expectations this quarter. Normalized EPS came in at $0.92 vs. $0.47 est., with revenue and EBITDA both beating the Street. Even more surprising—they reinstated FY2026 guidance, well ahead of estimates, driven by new product launches and continued channel inventory right-sizing. 📊 Highlights: - Revenue: $1.89B (+4%) vs. $1.79B est. - EBITDA: $213M (-9%), still a beat vs. Street at $204M - Dealer inventory: down -20% y/y across all lines; ORV down -15% y/y - NA retail: -11% overall; SxS, ATV, 3-wheel, PWC, and Switch all declined double digits FY2026 Guidance: - Revenue $8.15–$8.3B - EBITDA $1.04–$1.09B - EPS $4.25–$4.75 (Street $3.51) Margins remain under tariff pressure, but DOO is still gaining ORV share. The back half of FY26 looks strong with +10% revenue and +40% EPS growth expected. Biggest takeaway → BRP is balancing launches, profitability, and inventory discipline better than most. If you'd like to read the full analysis, check out the attached PDF... #Powersports #BRP #Dealers #Motorcycles #SxS #ATV #PWC #InventoryManagement #NPDA