Thursday, March 26, 2026 · Pre-Market Earnings
BRP Inc. (DOO) reported its fourth-quarter and full-year fiscal 2026 results before the opening bell on Thursday, delivering double-digit revenue growth and a raised dividend — while absorbing a significant write-down on its electric vehicle portfolio.
Q4 FY2026 Highlights
- Revenue: $2.46 billion — up approximately 16% year-over-year, driven by new model launches across Ski-Doo, Sea-Doo, and Can-Am product lines.
- Net income: $45.8 million for the quarter.
- EV impairment charge: $232.5 million — BRP booked a non-cash write-down related to its electric vehicle development programs, weighing on headline earnings.
- Dividend increase — the company raised its quarterly dividend, signaling confidence in cash generation.
- FY27 guidance: positive — management pointed to continued momentum, with new model introductions expected to sustain revenue growth into the next fiscal year.
What Drove the Beat
The top-line strength came from BRP’s bet on new powersports models — a strategy that paid off as consumers continued to embrace recreational vehicles. Ski-Doo snowmobile and Sea-Doo watercraft lines saw particularly strong demand, while the Can-Am off-road and on-road lineup benefited from model refreshes timed for the fiscal year-end selling season.
The 16% revenue jump is a meaningful turnaround from the prior fiscal year, when BRP reported a roughly 20% revenue decline as post-pandemic inventory corrections hit the powersports industry hard. The FY2026 rebound confirms the sector’s normalization is intact.
The EV Shadow
The headline story is tempered by a $232.5 million impairment on BRP’s electric vehicle programs. The write-down reflects the broader industry recalibration around EV timelines and costs — a theme playing out across automotive, commercial vehicle, and now powersports companies. BRP has been investing in electric versions of its recreational vehicles, but rising development costs and softer-than-expected consumer adoption curves appear to have prompted the charge.
Importantly, the impairment is non-cash and does not affect operational free cash flow — which is why management felt comfortable raising the dividend in the same breath.
Also Reporting Pre-Market: Commercial Metals (CMC)
Commercial Metals Company (CMC) posted mixed Q2 fiscal 2026 results. The steel and metals manufacturer reported EPS of $1.16, missing the consensus estimate of $1.34 by $0.18. Revenue came in at $2.13 billion, slightly above the $2.11 billion estimate. CMC’s EPS miss reflects ongoing margin pressure in North American steel markets, though the revenue beat suggests demand volumes remain resilient.
Market Context
BRP trades on the Toronto Stock Exchange (TSX: DOO) and Nasdaq (NASDAQ: DOO). With a market cap of approximately $4.8 billion, it is one of Canada’s most prominent consumer discretionary companies and a bellwether for North American recreational spending — a category that tends to correlate with household balance sheet health and consumer confidence.
For Latin American investors tracking North American consumer trends, BRP’s results offer a useful data point: despite macro uncertainty, discretionary spending on recreational goods remained robust through the quarter, with management optimistic enough to return more capital to shareholders.
This is a developing story. All figures are preliminary and sourced from company press releases and public wire reports. mercados.lat covers pre-market and post-market earnings for companies with relevance to global and Latin American investors.
