Review of BRP Inc.

DEC 11, 2025 - DOO has experienced an industry downturn that lasted longer than expected due to weak consumer spending. To address the downturn, DOO’s management proactively right-sized network inventory and protected brand value and dealer profitability. With that said, this is an industry-wide issue rather than company-specific challenges, as the company managed to maintain leadership in market share across the portfolio. Management has refocused all resources on one goal: extending the leadership position in powersports and has positioned the company to rapidly ramp up production to meet demand once the industry recovers, with limited investments required. The company has successfully managed downturn cycles in the past and is positioned to do it again this time. There are early signs of a turnaround as the most recent quarter could mark the bottom in this cycle. To be conservative, for now we are maintaining our rating at “B”.