VALCOURT, QC - BRP (NASDAQ:DOOO) Inc. (TSX: DOO) (NASDAQ: DOOO), a global leader in powersports products and propulsion systems, announced today the resignation of Ms. Estelle Métayer from its Board of Directors. Métayer, who has been a part of the board since 2014, stepped down due to personal reasons.
José Boisjoli, Chair of the Board of Directors, expressed gratitude for Métayer's decade-long service, highlighting her strategic insights and leadership, which were instrumental in guiding the company through significant milestones. He credited her with contributing to the company's governance and strategic direction.
In her parting remarks, Métayer thanked the shareholders for their trust and expressed pride in contributing to BRP's growth and innovation.
BRP Inc (TSX:DOO) . boasts a diverse portfolio that includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on and off-road vehicles, and more. The company, which prides itself on an 80-year legacy of ingenuity, has been focusing on electric models to complement its existing product lines.
The company, headquartered in Quebec, Canada, reports annual sales of CA$10.4 billion and employs approximately 20,000 people worldwide. BRP's commitment to responsible growth is evident in its ventures across more than 130 countries.
This corporate update is based on a press release statement from BRP Inc. detailing the board change.
In other recent news, BRP Inc. disclosed its second-quarter fiscal year 2025 results, which met expectations but were accompanied by a significant cut in the company's guidance. This adjustment was due to weaker-than-anticipated retail trends, necessitating more aggressive production cuts and increased promotional activity. As a result, BMO (TSX:BMO) Capital Markets and Baird both reduced their price targets for BRP, while maintaining an Outperform rating.
BRP reported a revenue of $1.8 billion, normalized EBITDA of $199 million, and normalized EPS at $0.61. The company managed to decrease network inventory by 13% and targets a further reduction of 15% to 20% by the end of the fiscal year. In response to economic pressures, BRP announced deeper production cuts to maintain dealer health.
Despite an 18% downturn in North American retail sales, BRP remains committed to expanding in the electric vehicle market. The company adjusted its yearly guidance, projecting revenues between $7.8 billion and $8 billion, normalized EBITDA between $890 million and $940 million, and normalized EPS between $275 million and $325 million. According to analysts from BMO Capital Markets and Baird, this period of correction in production and inventory levels may continue for another 12 to 18 months.
InvestingPro Insights
As BRP Inc. (NASDAQ: DOOO) navigates this transition in its Board of Directors, recent financial data from InvestingPro offers additional context to the company's current position. Despite the recent board change, BRP has demonstrated a commitment to shareholder value. An InvestingPro Tip reveals that management has been aggressively buying back shares, which often signals confidence in the company's future prospects.
However, the company faces some headwinds. InvestingPro Data shows that BRP's revenue growth in the last twelve months as of Q2 2025 was -17.83%, with a more pronounced quarterly revenue decline of -33.7% in Q2 2025. This aligns with another InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
On a positive note, BRP maintains a strong market position with a market capitalization of $4.28 billion USD. The company's dividend policy remains stable, with an InvestingPro Tip highlighting that BRP has maintained dividend payments for 8 consecutive years. This consistency in shareholder returns could be reassuring to investors during this period of board transition and challenging market conditions.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for BRP Inc., providing a deeper understanding of the company's financial health and market position.
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