The Globe and Mail reports in its Friday, Dec. 5, edition that BRP is beating earnings expectations despite a recent trough in dealer orders and renewed trade uncertainty.
A Canadian Press dispatch to The Globe reports that BRP boosted its third quarter profits by 150 per cent year-over-year to $76.5-million on the back of off-road-vehicles. Its revenue grew 14 per cent to $2.25-billion. It raised its revenue forecast for the year to $8.3-billion compared with earlier projections of $8.15-billion to $8.3-billion.
Chief executive officer Jose Boisjoli acknowledged that anxious consumers are watching their wallets, particularly for lower-end products, but said he expected demand to pick up, especially if U.S. interest rates decrease as expected.
"Dealers are obviously always concerned with the macroeconomic. Have we reached the trough? Some speculate that we have," he told analysts on a conference call Thursday.
"But obviously as we see rates come down the level of appetite from dealers is also increasing to take on more inventory." Uncertainty around cross-border trade remains a source of angst at the Quebec-based company, given that roughly 60 per cent of its revenue comes from the United States.
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