The Valcourt-based company saw revenue growth driven primarily by strong demand and increased shipments of off-road vehicles. However, the surge in top-line figures was overshadowed by a 940-basis-point drop in gross profit margin, which fell to 11.7%. The company cited the impact of U.S. tariffs on steel, aluminum, and copper imports, alongside a $74.8 million charge related to a supplier’s financial difficulties, as primary drags on quarterly earnings.
BRP Reports Second Quarter Loss Amidst Tariff Pressures
BRP Inc. posted a net loss of $136.8 million for the second quarter of fiscal 2027, as the manufacturer of Can-Am and Sea-Doo vehicles grappled with significant Section 232 import tariffs and costs linked to a supplier financial restructuring, even as total revenues climbed 18.5% to $2.24 billion.
Despite the bottom-line hit, CEO Denis Le Vot expressed confidence in the company’s trajectory, pointing to market share gains in the North American off-road sector. BRP is betting on a aggressive product release cycle, pledging major off-road announcements every six months for the next four years to maintain momentum. Looking ahead, the company has raised its full-year guidance for normalized diluted earnings per share to a range of $4.00 to $4.50, though it warns that third-quarter performance may face a 50% to 60% decline compared to the previous year due to persistent tariff headwinds.
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