BRP Inc. reported second-quarter revenue of $2.24 billion, an 18.5% increase year over year. However, normalized diluted earnings per share (EPS) swung to a $0.18 loss from a $0.92 profit in the same period last year, primarily due to tariffs and higher costs. Despite the earnings pressure, demand remained strong, especially for off-road vehicles. Can-Am gained significant market share in North American side-by-sides and ATVs, while retail sales in the Asia Pacific region grew 8%.
Driven by robust demand and a favorable product mix, BRP raised its full-year revenue guidance to a range of $9.23 billion to $9.475 billion. The company also increased its normalized EPS outlook to $4 to $4.50. However, tariffs are weighing heavily on margins, with gross margin declining 940 basis points to 11.7%. BRP expects a net tariff exposure of $200 million for the fiscal year.
