BRP Inc. (NASDAQ:DOO) posted first-quarter results on Thursday that came in well ahead of Wall Street expectations, sending shares up 8.62% in premarket trading as investors reacted positively to stronger earnings and upgraded full-year guidance.
The recreational vehicle manufacturer reported adjusted earnings per share of $1.83, significantly above analyst expectations of $0.82. Revenue totaled $2.39 billion, surpassing the consensus forecast of $1.54 billion.
Quarterly revenue increased 29.5% from a year earlier, supported by stronger shipments of off-road vehicles and personal watercraft, along with a more favorable sales mix within the company’s ORV business.
BRP also introduced fiscal 2027 guidance that exceeded analyst projections. The company forecast adjusted EPS between $3.00 and $3.50, with the midpoint of $3.25 coming in above the consensus estimate of $2.60.
Revenue guidance for the year was set between $9.12 billion and $9.37 billion, also well ahead of analyst expectations of approximately $6.5 billion. The midpoint of the forecast stands at $9.25 billion.
“We delivered Q1 financial results above expectations, driven by higher volumes, disciplined cost management, strong overall execution and a more favourable promotional environment,” said Denis Le Vot, President and CEO of BRP.
Management said its updated annual outlook includes the expected impact of additional tariff-related costs after accounting for mitigation efforts.
For the second quarter of fiscal 2027, BRP expects adjusted diluted EPS to decline by roughly $1.60 to $1.65 compared with the same quarter last year. The anticipated drop is primarily tied to tariff impacts, the timing of personal watercraft shipments, and higher tax incentives recorded during the prior-year period.
Adjusted EBITDA climbed 66.5% year-over-year to $334.4 million, compared with $200.8 million in the same quarter last year.
North American powersports retail sales declined 7% from a year earlier, largely reflecting a particularly strong end-of-season snowmobile market in the prior year. Despite the decline, BRP said it continued gaining market share in the off-road vehicle segment.
During the quarter, the company generated $425.5 million in operating cash flow and returned $62.7 million to shareholders through dividends and share buybacks.