BRP Inc. (NASDAQ:DOO), a leading Canadian company specializing in the design, manufacture, and sale of powersports vehicles and marine products, recently received a vote of confidence from RBC Capital. On May 29, 2026, RBC Capital reiterated its "Outperform" rating for the stock, signaling a positive investment outlook. The bank also increased its price target for the BRP stock to C$113.00 from C$107.00, reflecting optimism in the company's future financial performance.
This positive market outlook is strongly supported by BRP's recent financial performance. For its first quarter of fiscal year 2027, BRP reported impressive revenues of approximately $2.40 billion. This marks a significant 29.5% increase from the previous year, primarily driven by higher shipments of its popular Off-Road Vehicles and Personal Watercraft, showcasing strong market demand for its products.
As highlighted by Zacks, the company also surpassed profit expectations, delivering a strong earnings report. BRP announced quarterly earnings of $1.33 per share, which was substantially higher than the estimated $0.75 per share. This represents an earnings surprise of over 77% and demonstrates robust profitability compared to the same period last year, reinforcing BRP's financial strength.
Despite strong revenue growth, net income saw a decrease of 20.9% to $127.30 million. However, a clearer picture of BRP's underlying operational performance emerges when examining normalized metrics. The company's normalized diluted earnings per share, which excludes one-time items, increased to $1.83. Furthermore, normalized EBITDA, a key measure of operational profitability, also grew significantly by 66.5% to $334.40 million, indicating healthy core business operations.
Looking forward, BRP has proactively adjusted its full-year guidance to account for new tariff costs, demonstrating prudent financial management. The company now expects full-year revenues to be between $9.10 billion and $9.40 billion. It also projects normalized diluted earnings per share to be between $3.00 and $3.50, reflecting its active strategy in managing potential financial challenges and maintaining a stable market outlook.
