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(Bloomberg) -- BRP Inc.’s earnings came in ahead of analyst expectations, pushing the stock to its best intraday performance of the year.
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But the Canadian maker of Ski-Doo snowmobiles and Sea-Doo jet skis warned that its outlook is in flux, as the Trump administration’s proposed tariffs could deliver a $40 million hit to the business if they stay in place all year. The Quebec-based company is deferring its fiscal 2026 guidance because of the uncertainty.
Canadian traded shares of BRP were up 7.5% to C$54.59 by 11:38 a.m. in Toronto. The stock closed Tuesday at its lowest level since June 2020.
BRP’s customers are staying on the sidelines even though its products are more affordable now than they would be after tariffs are imposed, Chief Executive Officer Jose Boisjoli said on a call with analysts on Wednesday. “That uncertainty is a bigger overhang than the potential opportunity of buying a product with no tariffs today,” he said. “So, it says a lot about how the consumer is feeling.”
BRP reported adjusted earnings of 98 Canadian cents per share in its fiscal fourth quarter, compared with an average estimate of 87 Canadian cents in a Bloomberg analysts survey. Revenue of C$2.1 billion fell by double digits from a year ago but beat expectations of C$1.97 billion.
The company topped expectations across all of its segments, Desjardins Securities, most which was driven by its off-road vehicle segment pricing, analyst Benoit Poirier said. Year-round products earned C$1.1 billion, which also was higher than estimates.
A slowdown in discretionary consumer spending has been weighing on BRP, as customers hold off on buying big ticket items. Trump’s threat to impose 25% tariffs on steel and aluminum products added to the company’s woes, sending the stock price down 25% this year.
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