The Valcourt-based company saw revenue growth driven primarily by strong demand and increased shipments of off-road vehicles. However, the surge in top-line figures was overshadowed by a 940-basis-point drop in gross profit margin, which fell to 11.7%. The company cited the impact of U.S. tariffs on steel, aluminum, and copper imports, alongside a $74.8 million charge related to a supplier’s financial difficulties, as primary drags on quarterly earnings.

Despite the bottom-line hit, CEO Denis Le Vot expressed confidence in the company’s trajectory, pointing to market share gains in the North American off-road sector. BRP is betting on a aggressive product release cycle, pledging major off-road announcements every six months for the next four years to maintain momentum. Looking ahead, the company has raised its full-year guidance for normalized diluted earnings per share to a range of $4.00 to $4.50, though it warns that third-quarter performance may face a 50% to 60% decline compared to the previous year due to persistent tariff headwinds.