BRP’s Q4 and Full-Year 2025 Results Reveal More Pain

The name of the earnings game in powersports right now is “pain abatement.” The two biggest names, Polaris and Can-Am, are suffering through another evolution of “the new normal” now that customer demand has severely softened. On the Canadian side, the adjustment has taken another hit out of parent company BRP’s numbers for Q4 that ended January 31, 2025, and the full 2025 financial year.

The drops are just as stout on average as those for BRP’s Q3 figures, when it reported global revenue down almost 18%, new revenue down just under 70%, and profit down 33%. In Q4, global revenues declined 19.7% to $1475 million (all figures converted from Canadian dollars to USD), net income fell into the abyss, showing a loss of $31.3 million, while gross profit of $301.9 million represents a 35% drop, and a profit margin of 20.5% is down 5% from the same period the year before.

For the full financial year, 2025 global revenues of $5505 million equate to a 21.5% decline from 2024, gross profit of $1247 million is a 33% drop, and net income of $44.1 million is a glaring 93.3% plummet from 2024.

Sales of year-round products like UTVs and ATVs came down 17% globally. In North America, retail sales of all product lines retreated overall by 21%. BRP attributed the drop here to softer UTV sales because of competition from “high noncurrent inventory from other OEMs,” and the precarious snowmobile market.

Speaking of inventory, the good news is that BRP production managers and dealers, and the marketing department continue making headway with reducing excess inventory. Units in stock of all product lines in North America dropped by 13%. If snowmobiles weren’t included, that stock drop would be 18%, but snowmobile inventory went up thanks to another late and uneven winter.

BRP President and CEO José Boisjoli said, “Over the longer term, our strategic decision to double down on Powersports should allow us to solidify our industry leadership by pushing innovation further and capitalizing on growth opportunities.” That powersports focus, announced last October, is marked by BRP selling its North American boat business, Alumacraft, to Bryton Marine Group, and selling its Australian boat business, Telwater, to Yamaha Motor Australia.

However, the view ahead is murky. Thanks to the trade and tariff disputes picking up around the world, BRP declined to offer any guidance for the 2026 fiscal year.

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