BRP PRESENTS ITS THIRD QUARTER RESULTS FOR FISCAL YEAR 2026

Core Insights - The company reported strong financial results for the third quarter and nine-month periods ended October 31, 2025, with significant increases in revenue, profitability, and free cash flow, driven by new product launches and market share gains in North America [3][8][12]. Recent Events - The company received NASDAQ approval to change its ticker symbol from "DOOO" to "DOO," effective December 8, 2025, aligning its stock market symbols across TSX and NASDAQ [2]. Financial Highlights - Revenues for the three-month period increased by 14.0% to CAD 2,250.3 million compared to CAD 1,973.5 million in the same period last year [6][14]. - Gross profit rose by 24.4% to CAD 541.2 million, with a gross profit margin of 24.1%, up from 22.0% [6][16]. - Net income surged by 150.0% to CAD 76.5 million, while normalized EBITDA increased by 21.3% to CAD 325.6 million [6][19]. - For the nine-month period, revenues increased by 3.5% to CAD 5,985.4 million, with net income rising by 156.0% to CAD 294.6 million [23][25]. Fiscal Year 2026 Guidance - The company has increased its guidance for FY26, projecting total revenues of approximately CAD 8,300 million and normalized diluted earnings per share of around CAD 5.00 [9][10]. - Key assumptions for FY26 include adjusted depreciation expenses of approximately CAD 445 million and net financing costs of around CAD 190 million [10]. Product Performance - Year-Round Products accounted for 56% of Q3 FY26 revenues, with a 22.1% increase to CAD 1,265.6 million, driven by higher unit sales and favorable product mix [14][21]. - Seasonal Products revenues decreased by 1.6% to CAD 606.2 million, primarily due to lower Snowmobile sales [21]. - Revenues from PA&A and OEM Engines increased by 17.8% to CAD 378.5 million, attributed to higher sales volume [21]. Retail Sales Trends - North American retail sales decreased by 4% for the three-month period, impacted by lower Seasonal Products sales, although SSV retail saw market share gains [13][15]. Cash Flow and Capital Expenditures - The company generated CAD 784.3 million in net cash flows from operating activities for the nine-month period, a significant increase from CAD 402.5 million in the previous year [27]. - Capital expenditures totaled CAD 196.9 million, focusing on new product introductions and software infrastructure modernization [28].