José Boisjoli’s resume in BRP
According to Boisjoli’s tenure, the organization did not know about other CEOs, and its revenue and market share tripled, so every three PowerSports products sold worldwide bear the BRP logo.
Boisjoli – A training engineer who drove from the town for half an hour, obtained his first snowmobile at the age of 10 and joined Bombardier Inc. in 1989. In its 2013 IPO, BRP demonstrated BRP, which has more than doubled its head count to 16,500 employees over the past decade.
Challenges facing BRP
As the desire for outdoor activities sparked a sales boom during the sales boom, buyers responded to inflation and interest rate gains by retreating from expensive leisure purchases.
Now, Tit-for-Tat tariffs have raised costs, and, more shockingly, for Boisjoli, a method of consumption for observation has been cultivated.
“The biggest risk for all of us in the industry is the uncertainty it creates in customer confidence. Many are on the fence and they are waiting for better visibility before they can buy our products,” he told analysts on a conference call Thursday.
Buy Canada and tariffs
He said all BRP vehicles made in Canada and Mexico are in compliance with the North American trade agreement, which allows U.S. buyers to avoid a 25% tariff (a U.S. court ruled on Wednesday that they were illegal, but their fate remains valid, and the federal appeals court freezes the decision Thursday).
That compliance is key, because about 60% of BRP revenue comes from most of the stock sold in the U.S., 70% of Mexico’s total production occurs in southern Rio Grande or Canada or people with ski trails and some of its Can-Am tricycles.
But the U.S. tariffs on other countries, especially China, which faces about 30% of its responsibilities, will cut revenue by $60 million to $70 million this year. The dents come from their parts, accessories and clothing sections “as well as some of our U.S. suppliers, which in turn affects us.”
BRP’s Health Income Report
Still, BRP reported first-quarter profit soared to $161 million, 279% from a year ago, the first triple-digit gain since 2023. The company attributes the leap to lower operating costs and good foreign exchange rates for long-term debt denominated in the United States.
Healthier profit margins, along with a new product scheduled for August, helped the company’s share price rise nearly 13% on Thursday, up $56 on the Toronto Stock Exchange. The stock is down 37% from a year ago.
BRP received record retail sales in Canada in the first quarter, thanks in large part to the playoff snowmobile purchase. But, more broadly, sales in most product lines have decreased by 7% year-on-year as consumers tighten their inventory accumulation in wallets and dealers.
Like other economies, there is uncertainty in BRP
National Bank analyst Cameron Doerksen said the BRP “maybe in the earnings slot.”
“However, there are still risks to how consumer demand will eventually recover and the tariff situation remains dangerous,” he said in a note to investors.
This uncertainty is reflected in the decision of the BRP to continue to postpone the financial outlook for the year.
“Things are still difficult to predict in the second half of this year,” Boyce Holley said.
On Thursday, BRP reported total revenue of $1.85 billion in the first quarter, compared with just $2 billion in the previous year.
According to standardization, BRP made $0.47 per diluted share in the three months ended April 30, compared with $1.58 a year ago in the same period. However, according to financial markets LSEG data and analytics companies, the results exceeded expectations of $0.40 per share.
When asked which part of the top level gives him the greatest pride, Boyce Joley insisted on the numbers: “We have two product lines that are profitable, and two products were not profitable in 2003. Today, we have seven profitable product lines.”
