BRP North American retail sales dip 11% year over year

Canadian powersports manufacturer Bombardier Recreational Products ’ North American retail sales declined year over year in the third quarter of fiscal 2025 following softer demand and efforts to reduce yearend shipments. “Our retail performance was as anticipated, reflecting a challenging market dynamic due to soft industry trends and high level of promotional activity on non-current units from other OEMs,” Chief Executive Jose Boisjoli said on the company’s earnings call today. BRP did not provide sales figures but reported that North American retail sales fell 11% YoY in Q3, driven by declines in most product segments. North American retail sales were down 7% YoY, excluding snowmobiles , which fell by a percentage in the “mid-20s,” according to the earnings presentation. YoY declines by segment include: Side-by-side vehicle sales decreased by a percentage in the “mid-single-digits”; All-terrain vehicle sales fell by a percentage in the “mid-single-digits;” Three-wheel vehicle sales dipped by a percentage in the “low 30s;” and Pontoon sales, including the Sea-Doo Switch, declined by a percentage in the “low 30s.” Personal watercraft sales, however, increased by a percentage in the “low-single-digits,” according to the presentation. “As expected, we experienced a decline in [off-road vehicle] sales, as limited availability of non-current units reduced in market share resulted in market share losses and a soft start to the snowmobile season, which is typical after a year with unfavorable snow conditions,” Boisjoli said. “Meanwhile, personal watercraft had a better end of season than anticipated.” Inventory reductions fuel revenue declines BRP’s total revenue also declined in Q3 following double-digit YoY declines on year-round and seasonal products, according to the presentation. Total revenue came in at about CA $2 billion ($1.4 billion) in the quarter, down 18% YoY but up 6.2% compared with Q2. Year-round product revenue declined 12% YoY but rose 5% sequentially to $706.5 million in Q3, while seasonal product revenue fell 29% YoY but jumped 13.7% quarter over quarter to $435.2 million, according to the presentation. “In snowmobile, we proactively reduced production level, given higher inventory following last winter's unfavorable snow condition,” Boisjoli said. “Our retail is performing in line with the industry early in the season, despite a lower level of non-current inventory compared to our peers.” In addition to lower snowmobile production, BRP is working to reduce overall network inventory levels, which were down 10% year to date in Q3, according to the presentation. BRP hopes to see inventory levels down 15% to 20% at yearend, Boisjoli said. Inventory levels were down 8% YoY in the third quarter, according to the presentation. “We have remained focused on reducing network inventory and we are pleased with the solid progress made so far,” Boisjoli said. Scaling back on marine In Q3, BRP also announced plans to scale back on portions of its marine businesses , which was reclassified as “discontinued operations” in today’s earnings supplements. BRP is optimistic that the sale of Alumacraft , Manitou and Telwater will spur improved margins and additional cash flow for its core powersports business, according to the presentation. “After careful consideration and given the current dynamic of both the marine and powersports industry, we have decided to double-down on our core powersports activities,” Boisjoli said. “We aim to focus our effort and investment toward this business to capitalize on growth opportunity and continue to position BRP for long-term success.” Boisjoli added that the company could not comment further on the decision to pull back in marine given that the sales process is ongoing. Shares of BRP Inc. [Nasdaq: DOOO] were trading up 5.98% from market open to $51.42 at market close. BRP has a market capitalization of $3.7 billion. Editor's note: All amounts have been converted to U.S. dollars.

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