BRP North America sales down 21%

A decline in year-round and seasonal product retail sales contributed to an overall decrease in Canadian powersports manufacturer Bombardier Recreational Products ’ North American retail sales in the fourth quarter of fiscal 2025. North American retail sales fell 21% year over year for the quarter ended Jan. 31, 2025, according to BRP’s earnings release today. Year-round product retail sales fell “in the low-teens" percentage YoY, while seasonal product retail sales declined in the “low-30s” percentage YoY. BRP did not include specific sales figures. Sales declines by segment By segment, North American retail sales YoY declined: “About 10%” for side-by-side vehicles; “About 10%” for all-terrain vehicles; “About 30%” for three-wheel vehicles; In the “mid-single digit %” for personal watercraft; “About 40%” for pontoons; and In the “low 30%” range for snowmobiles. [caption id="attachment_58350112" align="aligncenter" width="1920"]<img class="wp-image-58350112 size-full" src="https://www.autofinancenews.net/wp-content/uploads/2025/03/316240800-scaled-e1743020850604.jpg" alt="Bombardier Recreational Products Inc.'s (BRP) Sea-Doo water vehicles are displayed at the company's stand during the Sydney International Boat Show in Sydney, Australia, on Thursday, Aug. 3, 2017. The show runs through to Aug. 7. Photographer: Brendon Thorne/Bloomberg" width="1920" height="1280" /> (Courtesy/Bloomberg)[/caption] For the full year, North American retail sales decreased 15% YoY, and dipped: In the “mid-single digit %” for side-by-side vehicles; In the “low-single digit %” for all-terrain vehicles; In the “high-teen %” for three-wheel vehicles; In the “low 20%” range for personal watercraft; In the “high 30%” range for pontoons; and In the “low 30%” range for snowmobiles. Inventory declines 13% BRP’s North American dealer inventory declined 13% YoY in Q4, or 18% when excluding snowmobiles that were affected by building supply due to late snowfall, according to the release. While snowmobile supply increased 9% YoY, inventory across all other product lines declined YoY — with inventory down 32% for both three-wheel vehicles and Sea-Doo Switch units, according to the earnings presentation. “We remain focused on the disciplined execution of our inventory reduction plan to support our dealers and protect the value of our brand,” Chief Executive Jose Boisjoli said on the company’s earnings call today. BRP in Q3 announced that it would scale back in the marine business and in October began the process of selling the marine businesses Alumacraft , Manitou and Telwater . Those sales are expected to close between the end of Q1 and the beginning of Q2, Boisjoli said. “Our strategy is to double down on our powersport leadership position. We will focus our effort and investment on our core activities and capitalize on attractive, long-term growth opportunities,” he said. Revenues down 19.7% Total revenues fell 19.7% YoY to CA $2.1 billion ($1.5 billion) in Q4, “primarily due to a lower volume sold across all product lines, as a result of softer demand , as well as higher sales programs,” according to the release. For fiscal year 2025, total revenue decreased 21.4% YoY to $5.5 billion. For Q4, BRP reported: Year-round product revenue, accounting for 54% of the total, decreased 17.4% YoY to $771.3 million, largely due to lower unit sales amid softer consumer demand and unfavorable product mix, offset by favorable pricing across all product lines; Seasonal products revenue, which made up 32% of total revenue, declined 28.9% YoY to $475.1 million due to lower sales and unfavorable mix in snowmobile, offset by favorable product mix on personal watercraft and Sea-Doo pontoon units; and Revenues across parts, accessories and apparel (PA&A) and OEM engines ticked down 0.7% YoY to $205.5 million, driven by a dip in demand in PA&A and offset by better product mix on OEM engines and favorable pricing on product lines. Editor’s note: All amounts have been converted to U.S. dollars. Tariffs to have minimal impact Meanwhile, tariffs on Canada and Mexico are expected to have minimal impact as most of BRP’s parts and accessories that are produced in those countries are exempt from the 25% import tariff, according to the presentation. BRP also has “limited exposure” to goods being imported to the United States from China or to goods that are exported from the U.S. to other countries. Although, there may be some impact from tariffs on steel and aluminum imports into the U.S., according to BRP. Tariffs, as they are today, would have an impact of an estimated $40 million on BRP’s business, Sebastien Martel , chief financial officer, said during the call. He noted the situation is “fluid.” “Like many North American companies, we have optimized our manufacturing footprint supply chain over the years based on the free trade agreements between Canada, United States and Mexico,” Martel said. “We currently have operations in the supply chain across all three countries and, consequently, the ongoing tariff disputes are impacting our business, our suppliers and our customers. The cost is relatively small, as the exposure is mostly limited to our [parts and accessories] business.” Shares of BRP Inc. [Nasdaq: DOOO] were trading up 7.6% from market open to CA $38.23 at market close today. BRP has a market capitalization of CA $4 billion. Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here .

BRP North America sales down 21%

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