BRP (TSX:DOO) Is Up 8.9% After Raising 2026 Guidance and Dividend - Has The Bull Case Changed?

• BRP Inc. recently reported third-quarter 2025 results showing higher sales of CA$2,250.3 million and a sharp increase in net income to CA$69.1 million, while also affirming a quarterly dividend of CA$0.215 per share payable on January 14, 2026.
• Alongside these results, management raised full-year 2026 guidance to US$8.30 billion in total revenues and US$440 million in net income, underscoring confidence that recent operational improvements and product demand trends can be sustained.
• Now we’ll examine how the upgraded 2026 earnings guidance reshapes BRP’s existing investment narrative and the assumptions behind it.

Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

BRP Investment Narrative Recap

To own BRP, you generally need to believe that demand for its powersports and marine products can hold up despite macro uncertainty and that its product innovation and electrification push can support earnings. The upgraded 2026 guidance reinforces that near term earnings momentum is intact, but it does not materially change the key near term catalyst, which remains the pace of retail demand recovery, or the biggest risk, which is a potential pullback in discretionary consumer spending.

The Q3 2025 results, with higher sales of CA$2,250.3 million and a sharp jump in net income to CA$69.1 million, are most relevant here because they underpin the higher 2026 revenue and net income guidance. Together, they support the catalyst that improved dealer inventory levels and new product launches, such as the latest Can Am Defender series, can translate into better pricing power and margins if retail trends cooperate.

Yet investors should be aware that if consumer demand weakens, BRP could still face prolonged discounting and margin pressure...

Read the full narrative on BRP (it's free!)

BRP's narrative projects CA$9.1 billion revenue and CA$594.8 million earnings by 2028. This requires 5.4% yearly revenue growth and about a CA$397 million earnings increase from CA$197.9 million today.

Uncover how BRP's forecasts yield a CA$103.94 fair value, in line with its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community value BRP between CA$44 and CA$128.33, highlighting a wide spread of individual assumptions about its prospects. As you weigh those views against the upgraded 2026 guidance, remember that any renewed macro pressure on discretionary spending could quickly test expectations for sustained revenue and earnings strength.

Explore 6 other fair value estimates on BRP - why the stock might be worth as much as 21% more than the current price!

Build Your Own BRP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your BRP research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free BRP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BRP's overall financial health at a glance.

Want Some Alternatives?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The latest GPUs need a type of rare earth metal called Dysprosium and there are only 36 companies in the world exploring or producing it. Find the list for free.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com