The Valcourt, Que.-based company reported stronger-than-expected off-road vehicle sales that helped offset the impact of U.S. tariffs. It had suspended its forecast in April. (The Logic)

Talking point: BRP had previously warned tariffs could cost it at least $500 million, but said Thursday its expected net tariff exposure has improved. Revenue rose 18.5 per cent year-over-year to $2.24 billion in the quarter ended July 31, but loss swung to $136.8 million as tariffs on steel, aluminum and copper squeezed margins. The quarter was its first to fully reflect the impact of changes to U.S. Section 232 tariffs, which impose a 25 per cent levy on the full value of certain finished goods containing those metals. The U.S. accounted for about 56 per cent of BRP’s revenue in its latest fiscal year. National Bank analyst Cameron Doerksen called the results and guidance increase “clear positives,” citing BRP’s market-share gains and new product rollout, though he expects year-over-year earnings to remain lower in coming quarters. BRP also announced that longtime CFO Sébastien Martel will retire from his position Oct. 1. Shares were down over four per cent by midday Thursday.

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