BRP Inc. (TSX: DOO, NASDAQ: DOOO) has renewed its normal course issuer bid (NCIB) to repurchase up to 3,131,256 subordinate voting shares over a twelve‑month period beginning December 10, 2025 and ending December 9, 2026. The program represents roughly 10 % of the company’s public float of 31,312,560 shares as of December 2, 2025, and daily purchases are capped at 44,267 shares, or 25 % of average daily volume, with weekly block purchases limited to shares not owned by insiders. An automatic share purchase plan (APP) has also been put in place, allowing BRP to buy shares outside blackout periods while staying within regulatory limits.
BRP’s Q3 2025 earnings delivered a striking beat, with earnings per share of CAD 1.59 versus consensus estimates of CAD 0.889. Revenue rose to CAD 2.25 billion, up 14 % year‑over‑year and exceeding the estimated CAD 1.5 billion by 50 %. The strong results were driven by robust demand in the company’s core powersports segments, effective inventory rightsizing that reduced excess dealer stock, and pricing power that allowed the firm to maintain margins despite modest cost inflation. The company’s gross profit margin expanded to 24.1 %, up 210 basis points from the previous quarter, reflecting a favorable mix shift toward higher‑margin high‑end models and disciplined cost management.
Management raised its full‑year 2026 guidance, projecting total revenues of CAD 8.3 billion—at the top of the prior range of CAD 8.15 billion to CAD 8.30 billion—and normalized earnings per share of approximately CAD 5.00, up from the earlier guidance of CAD 4.25 to CAD 4.75. The upward revision signals confidence that demand will remain strong, that the company’s inventory strategy will continue to protect margins, and that cost controls will keep operating leverage intact. CEO José Boisjoli highlighted the company’s ability to adapt to softer market conditions by adjusting shipments to reduce network inventory, a move that protects dealer relationships and preserves brand value while positioning the firm for future growth.
The renewal of the NCIB follows a period in which BRP did not repurchase any shares under the previous bid that expired on December 9, 2025. The decision to restart the program reflects the company’s strong cash position and its intent to return value to shareholders while maintaining flexibility in its capital structure. The program’s size—10 % of the float—underscores the firm’s confidence in its long‑term cash generation capabilities and its commitment to shareholder returns.
Investors responded positively to the earnings beat and the guidance upgrade, interpreting the results as evidence of effective execution and a resilient business model. The company’s focus on high‑end product segments, disciplined inventory management, and strategic investments in electric models positions it well for continued growth in the powersports market.
The share‑repurchase program, coupled with the robust earnings and guidance, signals that BRP is in a strong financial position to support shareholder value while navigating a high debt‑to‑equity ratio and ongoing market headwinds. The program demonstrates the company’s confidence in its cash flow generation and its willingness to use excess cash to enhance shareholder returns.
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