Overview
- BRP reported Thursday that first-quarter revenue rose to $2.39 billion while net profit fell to $127.3 million for the quarter ended April 30.
- Diluted earnings were $1.73 per share versus $2.19 a year earlier, and on an adjusted basis BRP earned $1.83 per share compared with $0.47 a year ago.
- The company reinstated full-year guidance on Thursday and now expects normalized earnings of $3.00 to $3.50 per diluted share and revenue of $9.125 billion to $9.375 billion.
- BRP says recent U.S. changes to Section 232 tariffs, which apply a 25 percent levy to the full value of finished goods containing certain metals, are the main reason for the cut in its profit outlook because they raise costs on products sold into the U.S.
- Management says it has identified about $200 million of mitigation actions but warned the tariff shift has already weighed on the stock and will pressure near-term margins and profitability, with wider trade-policy moves and USMCA talks posing further risk.