BRP Suspends FY27 Guidance as Tariff Changes May Add $500M Costs
BRP is suspending its FY27 guidance after U.S. Section 232 tariffs changed from a 50% metal-content charge to a 25% tariff on the total value of imported snowmobiles and off-road vehicles. BRP estimates this amendment could generate more than $500 million in incremental tariff costs before mitigation measures.
1. Suspension of FY27 Guidance
BRP has suspended its full-year FY27 guidance following the effective April 6 amendment to U.S. Section 232 tariffs, which replaces the previous 50% tariff on metal content with a 25% levy on the total value of imported snowmobiles and off-road vehicles.
2. Details of Tariff Amendment
The tariff amendment applies a uniform 25% rate to the total value of affected imports, expanding the base beyond just metal content and increasing exposure for key product lines including Ski-Doo, Sea-Doo and Can-Am models.
3. Estimated Financial Impact
BRP currently anticipates over $500 million in additional tariff costs for the remainder of FY27 before any mitigation measures are enacted, representing a significant headwind to profitability.
4. Company Response and Outlook
BRP cites its strong balance sheet, operational agility and a robust start to the year as factors in managing this challenge, but it will withhold updated financial targets until tariff impacts and mitigation actions are clearer.