BRP Inc. Reports Net Loss of 134.1 Million Canadian Dollars
The powersports vehicle maker generated 686.8 million Canadian dollars in net cash flows from operating activities for the six-month period ended July 31, 2026.
BRP Inc. (DOO), the designer and manufacturer of powersports vehicles, reported a net loss of 134.1 million Canadian dollars for the three-month period ended July 31, 2026. This follows a net income of 23.5 million Canadian dollars for the same period in the prior year.
Revenues for the three-month period rose to 2,236.8 million Canadian dollars, up from 1,888.2 million Canadian dollars in the prior-year period. However, the cost of sales increased more sharply, rising to 1,974.3 million Canadian dollars from 1,490.5 million Canadian dollars. This resulted in a gross profit of 262.5 million Canadian dollars, compared to 397.7 million Canadian dollars in the previous year.
Operating income for the quarter fell to a loss of 50.0 million Canadian dollars, compared to an operating income of 90.4 million Canadian dollars for the three-month period ended July 31, 2025. Total operating expenses for the period were 312.5 million Canadian dollars.
For the six-month period ended July 31, 2026, the company reported a net loss of 5.2 million Canadian dollars, compared to net income of 173.6 million Canadian dollars for the same period in 2025. Six-month revenues reached 4,628.6 million Canadian dollars, an increase from 3,735.1 million Canadian dollars in the prior year.
Cash flow from operations increased significantly over the six-month period. Net cash flows generated from operating activities totaled 686.8 million Canadian dollars, compared to 373.1 million Canadian dollars for the six-month period ended July 31, 2025. The company said this 313.7 million Canadian dollar increase was mainly due to lower income taxes paid and favorable changes in working capital, which were driven by a decrease in trade receivables and higher provisions. These gains were partially offset by lower profitability and an increase in inventories.
Free cash flow for the six-month period ended July 31, 2026, was 559.4 million Canadian dollars, compared to 239.2 million Canadian dollars for the same period in 2025.
Financing activities resulted in a net cash outflow of 341.0 million Canadian dollars for the six-month period. This included 195.3 million Canadian dollars used for the repurchase of subordinate voting shares and 36.4 million Canadian dollars paid in dividends.
As of July 31, 2026, the company held 647.8 million Canadian dollars in cash and cash equivalents, up from 427.1 million Canadian dollars on January 31, 2026.