BRP Reports Mixed Second Quarter as Tariff Costs Weigh on Profits

The Quebec-based powersports giant faced substantial headwinds during the three-month period ending July 31, 2026. While the company saw strong performance in its off-road vehicle (ORV) segment—bolstered by higher shipment volumes and a favorable product mix—gross profit was hit hard by Section 232 tariffs on steel, aluminum, and copper imports. Additionally, a supplier financial restructuring created a $74.8 million drag on quarterly results.

Despite the bottom-line pressure, CEO Denis Le Vot emphasized that retail momentum remains steady, with North American retail sales up 1% year-over-year. To maintain this trajectory, the company has committed to a aggressive product release cadence, promising major off-road announcements every six months for the next four years. Looking ahead, BRP has updated its full-year guidance, projecting normalized diluted earnings per share between $4.00 and $4.50. The company is also initiating a leadership transition within its finance department to help steer through the ongoing geopolitical and trade volatility.