In This Article:
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Revenue: $7.8 billion for the fiscal year.
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Normalized EBITDA: $1 billion.
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Normalized EPS: $4.68.
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Inventory Reduction: Total North American powersport inventory reduced by 18%.
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Q4 Revenue: Down 20% to $2.1 billion.
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Gross Profit: $429 million with a margin of 20.5%.
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Normalized EBITDA for Q4: $240 million.
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Normalized EPS for Q4: $0.98.
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Free Cash Flow: Over $450 million from continuing operations.
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Net Leverage Ratio: 2.6 times.
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Year-Round Products Revenue: Down 17% to $1.1 billion in Q4.
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Seasonal Products Revenue: Down 29% to $678 million in Q4.
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Parts, Accessories, and Apparel Revenue: Down 1% to $293 million in Q4.
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BRP Inc (NASDAQ:DOOO) achieved over $200 million in lean savings for the year, improving operational efficiency.
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The company ended the year with $7.8 billion in revenue, normalized EBITDA of $1 billion, and a normalized EPS of $4.68, all within their revised guidance range.
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BRP Inc (NASDAQ:DOOO) significantly reduced network inventory levels, achieving an 18% reduction in North American powersport inventory, aligning with their objective of 15% to 20%.
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The company maintained strong demand for high-end products, such as the Defender cab, gaining about 2 points of market share in the utility segment.
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BRP Inc (NASDAQ:DOOO) introduced several new models and expanded into new segments, including the launch of the Can-Am electric motorcycle, positioning the business for long-term success.
Negative Points
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BRP Inc (NASDAQ:DOOO) experienced a 20% decline in Q4 revenues to $2.1 billion, primarily due to lower shipments and higher sales programs.
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The company faced a challenging macroeconomic environment with softer industry demand and continued pressure on consumer demand.
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BRP Inc (NASDAQ:DOOO) saw a 21% decline in North American powersports retail in Q4, with a notable 30% drop in 3-wheel vehicle retail.
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The ongoing tariff disputes and changing geopolitical dynamics have created an unpredictable operating and demand environment, impacting consumer confidence.
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The company refrained from issuing guidance for fiscal '26 due to the uncertainty surrounding tariffs and consumer demand, making it difficult to forecast with confidence.
Q & A Highlights
Q: How do you view the industry inventory backdrop and competitive pricing when contemplating revenue and margin growth? A: Sebastien Martel, CFO, explained that BRP proactively reduced production and shipments to manage inventory levels, starting the year in a better position than some competitors. However, other OEMs have higher noncurrent inventory, which may lead to more incentives in the second quarter. BRP expects more normalized inventory levels by the back half of Q2 and into the second half of the year.