Core Insights - BRP Inc. reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of +30.68% [1] - The company achieved revenues of $1.63 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 11.73% and up from $1.43 billion year-over-year [2] - BRP shares have increased by approximately 39.1% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.39 on revenues of $1.76 billion, and for the current fiscal year, it is $3.28 on revenues of $5.92 billion [7] - The estimate revisions trend for BRP was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Automotive - Original Equipment industry, to which BRP belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

VALCOURT, QC, Dec. 4, 2025 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) announces today that the Toronto Stock Exchange (the "TSX") has approved the renewal of its normal course issuer bid ("NCIB") to purchase for cancellation up to 3,131,256 subordinate voting shares over the twelve-month period commencing on December 10, 2025 and ending no later than December 9, 2026, representing approximately 10% of the public float of 31,312,560 subordinate voting shares as at December 2, 2025. As at December 2, ...

Highlights Recent events The Company obtained approval from the NASDAQ to change its ticker symbol from "DOOO" to "DOO", aligning its stock market symbols across both the TSX and the NASDAQ. The change will be effective as of market open on December 8, 2025. The Company has increased its FY26 guidance as follows, which supersedes all prior financial guidance statements made by the Company: VALCOURT, QC, Dec. 4, 2025 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) today reported its financial results for t ...

Core Points - BRP Inc. celebrated its fourth Yellow Day event on November 20, 2025, raising over CAD $300,000 to combat bullying [1][2] - The event saw participation from over 6,000 individuals, including employees, dealers, and partners, who wore yellow to promote awareness [1][2] - BRP has committed to donating for every public post featuring the hashtag RideOutIntimidation, leading to contributions to various anti-bullying organizations globally [2][3] Company Initiatives - The Yellow Day event is part of BRP's Ride Out Intimidation program, which aims to create safe environments in workplaces and communities [1][2] - BRP donated CAD $27,000 to five charities chosen by ambassadors, supporting their efforts against bullying [3] - Since 2022, BRP has invested over CAD $10 million in charitable contributions through its Ride Out Intimidation program [5] Community Engagement - Monuments and main roads in Australia were illuminated in yellow to raise awareness for Yellow Day, showcasing community solidarity [4] - BRP's Vice-President emphasized the importance of collective action in creating a world free from intimidation [2] Company Overview - BRP Inc. is a global leader in powersports products, with annual sales of CAD $7.8 billion and a workforce of approximately 16,500 as of January 31, 2025 [6][7] - The company is committed to responsible growth and is developing electric models for its product lines [6]

Core Points - BRP Inc. will hold its third quarter FY26 financial results conference call on December 4, 2025, at 9 am (ET) [1] - The press release regarding the financial results will be distributed on December 4 at approximately 6 am (ET) [2] - Business media can join the call but will not be allowed to ask questions; an archived recording will be available for 30 days after the event [3] Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience [4] - The company reported annual sales of CA$7.8 billion and operates in over 130 countries, employing approximately 16,500 people as of January 31, 2025 [4] - BRP's product portfolio includes brands such as Ski-Doo, Lynx, Sea-Doo, Can-Am, Quintrex, and Rotax, and the company is committed to developing electric models for its existing product lines [4]

Financial Performance - Total revenues for Q3 2025 reached $365.4 million, a 7.5% increase from $338.9 million in Q3 2024[22]. - Commissions and fees contributed $362.3 million to total revenues in Q3 2025, up from $335.2 million in Q3 2024, reflecting an 8.1% growth[22]. - Operating income for Q3 2025 was $3.2 million, a significant decrease from $15.4 million in Q3 2024, indicating a decline of 79.1%[22]. - Net loss attributable to Baldwin for Q3 2025 was $18.7 million, compared to a loss of $8.4 million in Q3 2024, representing a 123.5% increase in losses[22]. - Basic and diluted loss per share for Q3 2025 was $0.27, compared to $0.13 in Q3 2024, reflecting a 107.7% increase in loss per share[22]. - Total operating expenses for Q3 2025 were $362.2 million, up from $323.5 million in Q3 2024, marking a 12.0% increase[22]. - The company reported a comprehensive loss of $29.2 million for Q3 2025, compared to a comprehensive loss of $14.5 million in Q3 2024[22]. - For the nine months ended September 30, 2025, total revenues were $1.16 billion, an increase of 9.3% from $1.06 billion in the same period of 2024[22]. - The company experienced a net loss of $10.5 million for the nine months ended September 30, 2025, compared to a loss of $6.2 million for the same period in 2024[22]. Assets and Liabilities - Total assets increased to $3.794 billion as of September 30, 2025, up from $3.535 billion at December 31, 2024, representing a growth of 7.36%[15]. - Current liabilities decreased to $959.7 million from $1.056 billion, a reduction of 9.15%[15]. - Cash and cash equivalents slightly decreased to $89.7 million from $90.0 million, a decline of 0.38%[15]. - Intangible assets increased to $1.017 billion from $953.5 million, reflecting a growth of 6.69%[15]. - Goodwill rose to $1.516 billion from $1.412 billion, an increase of 7.36%[15]. - The current portion of contingent earnout liabilities decreased significantly from $142.9 million to $17.1 million, a drop of 88.01%[15]. - Total stockholders' equity attributable to Baldwin increased to $619.7 million from $583.2 million, a growth of 6.24%[15]. - The Baldwin Insurance Group's total stockholders' equity increased to $1,036,234,000 as of September 30, 2024, from $1,018,488,000 at December 31, 2023[29]. Cash Flow and Expenditures - Cash flows from operating activities resulted in a net cash used of $39,687,000 for the nine months ended September 30, 2025, compared to net cash provided of $53,754,000 in 2024[32]. - The company incurred capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024[32]. - Cash and cash equivalents at the end of the period were $325,944,000 for September 30, 2025, down from $344,716,000 at the same time in 2024[32]. - The company reported capital expenditures of $29,174,000 for the nine months ended September 30, 2025, compared to $28,897,000 in 2024, showing a slight increase[155]. Business Combinations and Acquisitions - The Company completed two business combinations for a total purchase price of $129.1 million during the nine months ended September 30, 2025[72]. - The Company acquired assets and equity interests from MultiStrat Group to enhance its reinsurance underwriting capabilities effective April 1, 2025[75]. - The Company acquired Hippo's Homebuilder Distribution Network to improve property and casualty insurance solutions for homebuilder clients effective July 1, 2025[75]. - Total revenues from business combinations for the three months ended September 30, 2025, were $12.2 million, with net income of $2.7 million[77]. - For the nine months ended September 30, 2025, total revenues from business combinations were $14.2 million, with net income of $2.7 million[77]. - The total consideration for Hippo's Homebuilder Distribution Network acquisition was $129.078 million, including cash consideration of $87.399 million[80]. - Recognized amounts of identifiable net assets acquired totaled $122.879 million, with goodwill recognized at $104.119 million[80]. Debt and Financing - The company has a revolving credit facility with commitments totaling $600 million, maturing on May 24, 2029[13]. - The company's long-term debt as of December 31, 2024 was $1.44 billion, which included a term loan facility of $840 million and a revolving credit facility of $600 million[96]. - As of September 30, 2025, the outstanding borrowings under the 2025 Term Loans were $1.004 billion with an interest rate of 6.64%[101]. - The Company provided for $75.0 million of incremental term B loans as part of the amendments to the 2024 Credit Agreement[285]. - The aggregate principal amount of the 2025 Term Loans was increased to $1.006 billion following the amendments to the 2024 Credit Agreement[288]. Shareholder Information - The company reported a total of 71,416,940 Class A common shares issued and outstanding as of September 30, 2025, compared to 67,979,419 shares at December 31, 2024[15]. - The weighted-average shares of Class A common stock outstanding increased to 68.6 million in Q3 2025 from 64.0 million in Q3 2024[22]. - Share-based compensation expense for the nine months ended September 30, 2025, was $51,772,000, up from $46,764,000 in 2024[32]. - Share-based compensation expense for the three months ended September 30, 2025 was $22.0 million, compared to $17.9 million for the same period in 2024, representing a year-over-year increase of approximately 22.9%[115]. - The total fair value of shares that vested and settled under the Plans was $52.0 million for the nine months ended September 30, 2025, compared to $36.7 million for the same period in 2024[114]. Market and Risk Management - The company is exposed to market risk through investments and borrowings, utilizing derivative instruments to mitigate risks related to rising interest rates[283]. - A floating-to-fixed interest rate swap agreement was entered into with a notional amount of $500.0 million, converting variable rate cash flows into fixed rate payments at 3.244%[286]. - The objective of the interest rate swap is to manage exposure to interest rate risk and provide predictability in interest expense[286]. - An increase of 100 basis points on the SOFR rate would have increased annual interest expense under the 2024 Credit Facility by $5.7 million[287]. - There have been no material changes in market risk from the information presented in the Annual Report on Form 10-K for the year ended December 31, 2024[288].

Revenue Growth - Total revenue for Q3 2025 increased by 8% year-over-year to $365.4 million, with organic revenue growth of 5%[1] - Year-to-date total revenue grew by 9% to $1.158 billion, with organic revenue growth also at 9%[11] - For the three months ended September 30, 2025, revenues increased to $365.4 million, up from $338.9 million in the same period of 2024, representing a growth of approximately 7.5%[37] - Organic revenue for the three months ended September 30, 2025, was $350.1 million, reflecting a growth of $15.2 million or 5% compared to the same period in 2024[39] - Organic revenue growth for the nine months ended September 30, 2025, was 9%, down from 16% in the same period of 2024, indicating a slowdown in growth[39] Net Loss and Earnings Per Share - Q3 2025 net loss was $30.2 million, resulting in a diluted loss per share of $0.27; adjusted diluted EPS was $0.31, a decrease of 6% year-over-year[5] - Year-to-date net loss amounted to $10.5 million, with a diluted loss per share of $0.12; adjusted diluted EPS increased by 11% year-over-year to $1.37[11] - The net loss for the three months ended September 30, 2025, was $30.2 million, compared to a net loss of $14.5 million in the same period of 2024, indicating a significant increase in losses[37] - Adjusted net income for the three months ended September 30, 2025, was $36.5 million, compared to $38.5 million in the same period of 2024, showing a decrease in adjusted net income[40] - The company reported an adjusted diluted EPS of $0.31 for the three months ended September 30, 2025, down from $0.33 in the same period of 2024[40] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for Q3 2025 was $72.5 million, maintaining the same level year-over-year, with an adjusted EBITDA margin of 19.8%[5] - Year-to-date adjusted EBITDA grew by 9% to $271.8 million, with an adjusted EBITDA margin of 23.5%[11] - Adjusted EBITDA for the three months ended September 30, 2025, was $72.5 million, slightly down from $72.8 million in the same period of 2024, resulting in an adjusted EBITDA margin of 19.8%[37] - The pro forma adjusted EBITDA for the nine months ended September 30, 2025, was $279.9 million, compared to $247.7 million in the same period of 2024, indicating a year-over-year increase[43] - Adjusted free cash flow for Q3 2025 increased by 26% year-over-year to $41.8 million[5] - Adjusted free cash flow for the three months ended September 30, 2025, was $41,810 thousand, compared to $33,180 thousand for the same period in 2024, reflecting a year-over-year increase of 4.9%[47] - For the nine months ended September 30, 2025, adjusted free cash flow was $76,257 thousand, down from $86,043 thousand in 2024, indicating a decrease of 11.3%[47] Financial Position and Assets - As of September 30, 2025, cash and cash equivalents were $89.7 million, with a borrowing capacity of $524 million under the revolving credit facility[6] - Total assets increased to $3,793,774, up from $3,534,731, representing a growth of 7.3%[21] - Current liabilities decreased to $959,713 from $1,056,434, a reduction of 9.2%[21] - Total stockholders' equity increased to $1,127,680 from $1,008,344, reflecting a growth of 11.8%[21] - Cash and cash equivalents at the end of the period were $325,944, down from $344,716, a decrease of 5.3%[23] Capital Expenditures and Payments - Capital expenditures for the nine months were $29,174, slightly up from $28,897 in 2024[23] - The company reported a significant payment of $85,090 for contingent earnout consideration, compared to $21,145 in the prior year[23] - The payment of contingent earnout consideration in excess of purchase price accrual for the nine months ended September 30, 2025, was $85,090 thousand, significantly higher than $21,145 thousand in 2024[47] - The payment of colleague earnout incentives for the nine months ended September 30, 2025, was $30,854 thousand, compared to $11,144 thousand in 2024, showing a substantial increase of 176.5%[47] Strategic Focus and Future Plans - The CEO highlighted ongoing optimization of the capital stack and continued de-levering as key drivers for long-term shareholder value[4] - The company continues to focus on strategic acquisitions and partnerships to enhance its market position and operational efficiency[48] - The financial results reflect the company's ongoing commitment to improving cash flow and managing operational expenses effectively[48] - The company plans to present fiduciary assets and liabilities separately on the consolidated balance sheets starting January 1, 2025, which will affect the calculation of adjusted free cash flow[35]

Core Viewpoint - BRP Inc. (DOOO) has shown a downtrend recently, losing 6.5% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to emerge [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength depends on its placement on the chart [6]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for DOOO, which is a positive fundamental indicator, as such trends are correlated with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 0.4% over the last 30 days, indicating strong agreement among analysts regarding the company's potential for better earnings [8]. - DOOO holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - QV Investors Inc. has initiated a new position in BRP, holding 482,623 shares valued at approximately $29.35 million as of September 30, 2025, representing 2.54% of the fund's U.S. equity AUM [1][2]. Company Overview - BRP, known for its powersports vehicles and marine products, reported trailing twelve-month revenue of $7.75 billion and a net loss of $37.6 million [2][3]. - The company's dividend yield stands at 0.95%, with shares priced at $64.42 as of October 29, 2025, reflecting a 25.8% increase over the past year, outperforming the S&P 500 by 7.89 percentage points [2][3]. Financial Performance - Despite macroeconomic challenges, BRP's revenue for the fiscal second quarter ending July 31 increased by 4% year-over-year to CA$1.9 billion [8]. - Net income rose by 36% year-over-year to CA$57.1 million, attributed to inventory adjustments [9]. - BRP anticipates fiscal year 2026 sales between CA$8.1 billion and CA$8.3 billion, up from CA$7.8 billion in the previous year [9]. Market Position - BRP operates a manufacturing and distribution model, leveraging a global network of independent dealers and OEM partnerships to reach a diverse customer base across North America, Europe, and Asia Pacific [4][5]. - The company is recognized as a leader in the powersports industry, indicating strong long-term investment potential [10].

Company Performance - BRP Inc. has returned 29.3% year-to-date, significantly outperforming the average gain of 13% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for BRP Inc.'s full-year earnings has increased by 26.3% over the past quarter, indicating improving analyst sentiment [3] Industry Context - BRP Inc. is part of the Auto-Tires-Trucks group, which ranks 10 within the Zacks Sector Rank, consisting of 99 companies [2] - Within the Automotive - Original Equipment industry, which includes 51 companies, BRP Inc. ranks 83 in the Zacks Industry Rank, with the average stock in this group gaining 3.7% this year [6] Competitive Landscape - Garrett Motion, another stock in the Auto-Tires-Trucks sector, has returned 93% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - Both BRP Inc. and Garrett Motion are expected to maintain solid performance in the Auto-Tires-Trucks sector [7]