BRP stock gained 1.82 percent as tariffs cut Q2 profit

BRP stock was last at CAD 79.81 on the Toronto Stock Exchange on October 6, 2026 at 4:00 p.m. ET, up 1.82 percent from CAD 78.38. The move came as investors weighed strong sales growth against tariff-driven pressure on profitability.

Revenue growth meets tariff pressure

According to The Canadian Press on September 3, 2026, BRP reported Q2 fiscal 2027 revenue of CAD 2.24 billion for the quarter ended July 31, up from CAD 1.89 billion a year earlier. That 18.5 percent increase contrasted with a CAD 136.8 million net loss, compared with a CAD 57.1 million profit in the prior-year quarter.

The normalized result also turned negative at CAD 0.18 per diluted share, versus normalized earnings of CAD 0.92 a year earlier. The gap shows why revenue growth alone is not currently translating into predictable earnings for the powersports manufacturer.

Guidance rises while margins weaken

BRP raised fiscal 2027 revenue guidance to CAD 9.225 billion-9.475 billion from CAD 9.125 billion-9.375 billion, while normalized diluted EPS guidance increased to CAD 4.00-4.50 from CAD 3.00-3.50, according to The Canadian Press. The higher outlook is a quantified counterpoint to the quarterly loss, but it does not remove the near-term earnings risk.

AlphaSense reported that Q2 gross margin fell to 11.7 percent from 21.1 percent a year earlier, a decline of 940 basis points. The same report said normalized EBITDA dropped 34.9 percent to CAD 138.8 million, linking the weaker profitability to tariffs and supplier-related costs.

Analysts see higher value

Marketscreener lists an Outperform consensus from 20 analysts and an average target of CAD 103.07. Against the October 6 price of CAD 79.81, that target lies 29.1 percent above the price, while the source also shows a recent Desjardins target of CAD 112 dated September 4, 2026, according to Marketscreener. The valuation debate therefore centers on whether product demand can offset tariff costs before the next earnings report.

Zacks identifies December 3, 2026 as BRP's next earnings date and gives a consensus estimate of CAD 0.57 per share for the quarter ending October 2026. That checkpoint will test whether the Q2 revenue trend can withstand the tariff effects already reflected in management's outlook.

BRP stock remains below its yearly high

BRP stock was last at CAD 79.81 on October 6, 2026, within its CAD 67.11-112.26 52-week range. The Toronto-listed company had a market capitalization of CAD 5.8 billion and volume of 241,635 shares at the same timestamp.

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