BRP halts FY27 outlook as US tariff shift triggers $500M cost hit

BRP Inc. has decided to pause its full-year FY27 guidance after recent changes to US tariffs on steel, aluminium and copper imports.

The shift came into effect on April 6 and changes how duties are applied. Instead of taxing just the metal content, the new setup applies a 25 per cent tariff on the full value of imported snowmobiles and most off-road vehicles. Earlier, the rate was higher, 50 per cent, but only on the metal portion.

That difference matters. For BRP, it means a much bigger cost base. The company estimates the added tariff impact could go beyond USD 500 million for the rest of the year, before any adjustments or cost controls.

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CEO Denis Le Vot didn’t sound surprised by the situation, but did flag the uncertainty.

“Like many manufacturers, we are operating in a highly volatile and unpredictable tariff environment…” he said.

For now, the company is leaning on its balance sheet and internal flexibility to deal with the pressure. Le Vot added that despite the hit, BRP expects to keep operations steady and continue moving forward.

The bigger issue is visibility. With tariffs shifting and no clear long-term direction, putting out a full-year forecast becomes tricky. That’s essentially why the guidance has been suspended.

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About BRP Inc.

BRP operates in the powersports and propulsion space, with products that include Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am vehicles, Quintrex boats and Rotax engines used across different applications.

The company sells across more than 110 countries and has around 17,000 employees. For the year ending January 31, 2026, it reported CAD 8.4 billion (USD 6.09 billion) in revenue.

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