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BRP Inc. is raising its full-year guidance despite tariff impact on its quarterly gross profit and its anticipated lower diluted earnings per share in the upcoming quarter due to increased tariff impact.

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The maker of Ski-Doo snowmobile released its second quarter results on Thursday, reporting an 18.5 per cent increase in revenues to $2.24 billion compared to last year, primarily driven by higher Off-Road Vehicles (ORV) shipments to support retail demand.

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“Given our strong performance in ORV leading to additional market share gains, and reduced net tariff costs, we are raising our full-year guidance,” said chief executive Denis Le Vot, noting that the second-quarter financial results exceeded company expectations. “Looking ahead, we remain focused on navigating through the volatile geopolitical and trade environment and advancing our long-term growth prospects.”

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The company reported a net loss of $136.8 million, down $193.9 million from a net income of $57.1 million in the previous year. It also reported $262.5 million in gross profit, a 34-per-cent drop from the prior year.

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It said the drop in gross profit and gross profit margin was primarily due to the impacts of Section 232 tariffs on steel, aluminum and copper imports into the United States, as well as the effect of a supplier financial restructuring. The decrease in gross profit also includes a favourable foreign exchange rate variation of $17 million.

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BRP announced on Thursday that chief financial officer Sébastien Martel will retire from his role, effective Oct. 1, and be succeeded by Minh Thanh Tran. Martel will remain with the company as executive adviser to the CEO to help with the financial leadership transition until his retirement in April 2027. The company said Tran’s appointment is part of a long-planned succession strategy.

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