VALCOURT, QC - BRP (NASDAQ:DOOO) Inc. (TSX: DOO) (NASDAQ: DOOO), a global leader in powersports products, announced today its decision to sell its Marine businesses, including Alumacraft, Manitou, Telwater, and its Marine parts, accessories, and apparel operations. The sale will not affect its Sea-Doo personal watercraft, Sea-Doo Switch (NYSE:SWCH) pontoons, and jet propulsion systems.
Facing a challenging economic environment, the company has opted to concentrate on its Powersports Year-Round Products, Seasonal Products, Parts, Accessories, and Apparel portfolio, along with its Original Equipment Manufacturer (OEM) Engine business. "After careful consideration and given the current dynamics of both the Marine and Powersports industries, we have decided to double down on our core Powersports activities and to sell our Marine businesses," stated José Boisjoli, President and CEO of BRP.
BRP aims to reinforce its position as a leading global Powersports OEM by focusing on growth opportunities within the Powersports industry and enhancing its margin profile. The company is confident this strategic shift will promote long-term success.
The sale process is expected to be completed in the first quarter of Fiscal Year 2026. BRP anticipates no impact on its current Fiscal Year 2025 guidance and will not comment on the progress of the sale. National Bank Financial Inc. has been retained to assist with the sale process.
This announcement contains forward-looking statements regarding the sale, its timeline, and the expected outcomes for the company's core Powersports activities. These statements are subject to risks, uncertainties, and assumptions, particularly in the current economic climate.
BRP, with a history of over 80 years, is known for its significant consumer focus and innovative products. Its portfolio includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, and Rotax engines for karts and recreational aircraft. The company, which is committed to responsible growth, is also developing electric models for its existing product lines. BRP reported annual sales of CA$10.4 billion and employs close to 20,000 people worldwide.
The information in this article is based on a press release statement from BRP Inc .
InvestingPro Insights
BRP Inc.'s decision to sell its Marine businesses and focus on its core Powersports activities comes at a time when the company is facing some financial headwinds. According to InvestingPro data, BRP's revenue growth has declined by 17.83% over the last twelve months, with a more pronounced quarterly revenue drop of 33.7% in Q2 2025. This strategic shift aligns with the company's need to streamline operations and improve profitability in a challenging economic environment.
Despite these challenges, BRP maintains a solid financial foundation. The company boasts a market capitalization of $4.17 billion and has demonstrated profitability over the last twelve months. An InvestingPro Tip reveals that management has been aggressively buying back shares, which could signal confidence in the company's future prospects and potentially support the stock price.
Investors should note that BRP's P/E ratio stands at 23.57, with an adjusted forward P/E of 15.21, suggesting that the market still has positive expectations for the company's earnings potential. Additionally, BRP has maintained dividend payments for 8 consecutive years and has raised its dividend for 3 consecutive years, as highlighted by another InvestingPro Tip. This commitment to shareholder returns may be reassuring to investors during this transition period.
For those interested in a deeper analysis of BRP's financial health and future prospects, InvestingPro offers 11 additional tips, providing a more comprehensive view of the company's position in the market.
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