The company behind Ski-Doo wants to burn more rubber, shred more pow, and ride fewer waves.
What happened: Québec-based BRP is planning to sell most of its marine-based businesses, including Alumacraft fishing boats, Manitou pontoon boats, and Australian boating leader Telwater. However, the company will hold onto its famous Sea-Doo brand.
- The company’s sales are down compared with its best-ever results in F2023, but the marine segment has fared the worst, with sales falling by more than half last quarter.
- BRP is shifting its focus to all-terrain toys, like its four-wheel off-roaders, and powersports vehicles (a term we just learned), like its flagship snowmobiles.
Why it matters: BRP was once a shining star in an otherwise bleak period for splashy consumer goods but cut its earnings guidance in two straight quarters this year amid softer sales. Shares have responded accordingly, and are down ~17.6% over the last six months.
- Boat demand generally has sunk from pandemic highs. Between 2021 and 2023, the number of new pleasure crafts licensed from April to December dropped by 18.4%.
Zoom out: Presaging its all-in powersports push, BRP announced last month it was reviving the historic Can-Am motorcycle brand with new all-electric models. Unlike boats, motorcycles are on a tear, with new registrations up 13.4% between 2022 and 2023.—QH