BRP Inc. (DOOO): PESTLE Analysis [Nov-2025 Updated]

The powersports market is facing a reality check, and BRP Inc. is right in the middle of it. You need to look past the 21.4% revenue drop in fiscal year 2025 and see the strategic pivot: a massive $300 million electric investment battling high dealer inventory and persistent tariff risks. This isn't just a cyclical downturn; it's a forced evolution, and the company's long-term value hinges on how well they execute this shift.

Political Factors: Tariff Uncertainty and Geopolitical Risk

The biggest near-term risk to BRP Inc. isn't a product flaw; it's a trade policy decision. The uncertainty around potential new US tariffs on imports from Canada, Mexico, Europe, and China is real, and it's why management delayed their fiscal year 2026 financial forecast in March 2025. That's a clear signal of market volatility.

Geopolitical conflicts, like the Russia/Ukraine situation, still inject supply chain and inflation volatility into the cost of goods. The good news is their supply chain structure largely avoided serious implications from some 2025 US levies. Still, you can't build a stable model when a politician's tweet can change your cost structure overnight. The tariff risk is an unquantifiable headwind.

Economic Factors: Post-Boom Reality and Debt Exposure

The economic reality is stark: the powersports demand bubble burst. Full fiscal year 2025 revenue came in at CA$7,829.7 million, marking a 21.4% decrease year-over-year. This wasn't just a slowdown; weak consumer demand and bloated dealer inventory caused North American retail sales to plummet 21% in FY2025.

Plus, the company carries a significant debt load of approximately $2,925.1 million as of January 31, 2025. In this higher-for-longer interest rate environment, that debt increases their financial exposure. They are focusing capital by strategically divesting the Marine business (keeping Sea-Doo and Switch), which is a smart move to shore up the core Powersports segment. It's time to be lean.

Sociological Factors: Lifestyle Shift and Untapped Demographics

The market is shifting from panic-buying to lifestyle-driven purchases. The post-pandemic demand bubble has burst, with new rider entrance levels returning to pre-COVID norms. This means BRP Inc. must now compete on experience and personalization, which is good for their premium accessories business.

There's a massive, untapped growth opportunity in demographic targeting. Only 21% of all riders are women, so the 'Women of On-Road' program is a clear, actionable path to expand their customer base. They're also backing their values, committing to invest 1% of pre-tax profits in community support by 2025 as part of the CSR25 program. Honestly, social relevance drives long-term brand equity.

Technological Factors: The $300 Million Electrification Pivot

This is where BRP Inc. is playing offense. They are investing $300 million over five years to electrify all existing product lines by the end of 2026. This isn't a pilot program; it's a full-scale pivot.

The launch of the all-electric Can-Am Pulse and Can-Am Origin motorcycles, plus the 2026 Can-Am Outlander Electric ATV, shows real product momentum. Crucially, they developed a proprietary, in-house Rotax E-Power system. This vertical integration gives them a cost and performance advantage over competitors relying on third-party electric powertrains. They defintely have the product chops.

Legal Factors: Compliance and Governance Structure

Operating globally means navigating a maze of evolving regulations, from environmental standards to noise pollution limits. The powersports industry inherently carries an ongoing risk exposure from product liability claims, product recalls, and warranty costs, which must be constantly managed through strong quality control.

Governance is also a factor. Major shareholders like Beaudier Group and Bain Capital hold significant voting power (49.0% and 27.1%, respectively), which impacts key strategic and governance decisions. Also, compliance with international trade laws and potential tariff changes directly affects their global operations, tying back to the Political risks. The legal landscape is a cost of doing business.

Environmental Factors: Climate Risk and the 2035 Electric Goal

Environmental factors are not abstract for BRP Inc.; they are a direct threat to the bottom line, specifically the Seasonal Products segment (Ski-Doo, Lynx). Reduced snow reliability due to climate change is a clear business risk you need to factor in when valuing that segment.

The company is responding with aggressive targets. Their long-term goal is to have 50% of units sold as electric by 2035, which is the core driver behind their product development spending. Introducing electric models also meets rising consumer eco-consciousness and helps them comply with increasingly stringent European emissions policies. This is a strategic necessity, not just a marketing effort.

Finance: draft a 13-week cash view factoring in the $300 million electrification spend by Friday.

BRP Inc. (DOOO) - PESTLE Analysis: Political factors

US Tariff Uncertainty and Delayed Financial Forecast

The immediate political uncertainty in the U.S. trade landscape forced BRP Inc. to delay its financial forecast for fiscal year 2026 (FY2026) in March 2025. This decision was a direct response to the whipsawing U.S. tariff threats, which exacerbated an already weak consumer demand environment. Chief Financial Officer Sébastien Martel pointed to the uncertainty surrounding potential tariff changes, noting that the trade limbo was a bigger overhang than any immediate purchasing opportunity for consumers. The company was still refraining from issuing official guidance as of its Q1 FY2026 report in May 2025. That's a clear signal of volatility.

The consumer pullback, influenced by this political uncertainty, contributed to BRP Inc. swinging to a $44.5 million loss in the fourth quarter of fiscal year 2025 (Q4 FY2025), a sharp drop from a $302.8 million profit in the prior year period. North American retail sales dropped 21% year-over-year in that quarter, largely due to lower demand for snowmobiles and off-road vehicles.

Risk of New US Tariffs Impacting Cost of Goods

The risk of new U.S. tariffs remains a primary political threat to BRP Inc.'s cost of goods. While the company has a favorable manufacturing footprint, a broad application of tariffs would significantly impact its bottom line. The U.S. had already imposed 25% levies on non-compliant imports from Canada and Mexico.

BRP Inc. estimated that the overall tariffs in effect, including the 25% duties on steel and aluminum, could cost the company an estimated $40 million if they persisted throughout the fiscal year. To put that into perspective, this potential tariff hit alone would amount to approximately 64% of the company's full-year FY2025 net profit of $62.7 million (in Canadian dollars). The threat of further, more punitive tariffs on Mexican-made goods, which account for a substantial portion of BRP Inc.'s production, is a critical near-term risk.

Geopolitical Conflicts and Supply Chain Volatility

Beyond direct trade policy, broader geopolitical conflicts continue to introduce supply chain and inflation volatility. Global supply chain risk surveys in 2025 consistently cited geopolitical factors as a top concern for over 55% of businesses, up from 35% in 2023. The ongoing Russia/Ukraine situation, coupled with other chokepoint disruptions like the Red Sea crisis, drives up procurement and transport costs for raw materials and finished goods.

This macro-level instability translates to higher input costs for BRP Inc., which relies on a global network for components. While the company has not provided a specific dollar value for the Russia/Ukraine impact in FY2025, the general rise in global inflation, cited by 55% of businesses as a top risk, directly pressures BRP Inc.'s gross margin. You defintely have to factor in this background noise.

Favorable Supply Chain Structure Mitigating Tariff Implications

BRP Inc.'s strategic supply chain structure has been its strongest defense against serious tariff implications from some 2025 U.S. levies. The company has successfully leveraged the United States-Mexico-Canada Agreement (USMCA) to its advantage.

• U.S. Revenue Exposure: Approximately 60% of BRP Inc.'s total revenue is generated in the U.S. market.
• Production Footprint: About 70% of the company's total production, which supplies the U.S. market, is manufactured in Mexico or Canada.
• USMCA Compliance: This high percentage of North American production means that 60% of U.S.-bound vehicles are compliant with USMCA rules, effectively avoiding the blanket 25% tariffs imposed on non-compliant countries.

The company's exposure to tariffs on imports from China into the U.S. is limited, and the impact of the 25% steel and aluminum tariffs is mostly confined to its parts and accessories business. To further mitigate risk, BRP Inc. began front-loading shipments and renting U.S. warehouse space in December 2024, creating about a month-long supply buffer ahead of potential tariff deadlines. This proactive inventory management is a smart tactical move.

BRP Inc. (DOOO) - PESTLE Analysis: Economic factors

The economic picture for BRP Inc. in the 2025 fiscal year (FY2025, ended January 31, 2025) was defintely challenging, reflecting the broader slowdown in discretionary consumer spending across North America. The key takeaway is that BRP proactively sacrificed near-term revenue to protect its dealer network and brand equity, a smart long-term move, but one that exposed the company to higher financing costs.

Full fiscal year 2025 (ended Jan 31, 2025) revenue dropped to CA$7,829.7 million, a 21.4% decrease year-over-year.

The headline number tells the story: BRP's total revenue for FY2025 fell to CA$7,829.7 million, a steep 21.4% drop from the previous year. This isn't just a market blip; it's a direct consequence of the company's strategic decision to reduce shipments and clear out network inventory, a necessary move to stabilize the dealer channel after the post-pandemic boom. The decrease in revenue was primarily due to a lower volume of units sold across all product lines, reflecting softer overall consumer demand.

To put the scale of the revenue decline into perspective, here is the quick math on the year-over-year change:

Weak consumer demand and high dealer inventory led to a 21% drop in North American retail sales in FY2025.

The core issue for BRP was the consumer. Higher interest rates and persistent inflation made big-ticket recreational purchases-like a new Can-Am or Ski-Doo-much less appealing. This weak consumer demand, coupled with the industry-wide hangover of high dealer inventory, drove North American retail sales down by 21% in the fourth quarter of FY2025. The company deliberately reduced its own shipments to help dealers, which meant BRP took a short-term market share hit, but it protected the long-term health of its dealer network.

Focusing on inventory, the company made solid progress in one area, but not all:

• North American network inventory decreased by 13% overall.
• Excluding snowmobiles, the inventory reduction was even better at 18%.
• Snowmobile inventory actually increased due to lower-than-expected industry retail volumes caused by late snowfall, showing how weather can also hit a balance sheet.

High long-term debt of approximately $2,925.1 million as of January 31, 2025, increases interest rate exposure.

BRP's balance sheet carries a significant debt load, which is a major economic risk in a rising rate environment. As of January 31, 2025, the total long-term debt stood at CA$2,925.1 million. This debt is largely composed of U.S. dollar-denominated Term Loans (B-1, B-2, and B-3), which exposes the company to both interest rate hikes and foreign exchange risk.

The cost of this debt is material, especially on the U.S. dollar tranches:

• Term Loan B-1 (due May 2027) had a contractual interest rate of 6.41%.
• Term Loan B-2 (due December 2029) had a contractual interest rate of 7.06%.
• Term Loan B-3 (due January 2031) had a contractual interest rate of 7.06%.

Here's the quick math: with over $2.9 billion in long-term debt, even a small increase in the effective interest rate translates to millions in extra financing costs. In October 2025, the company proactively addressed this by amending and repricing its term loans, reducing the long-term debt by US$200 million and cutting the interest rate on Term Loan B-2 and B-3 tranches by 50 basis points, a smart move to manage future interest expense.

Strategic divestiture of the Marine business (excluding Sea-Doo and Switch) focuses capital on the core Powersports segment.

In a challenging economic climate, BRP made a clear strategic decision to cut the cord on non-core, money-losing assets. The company initiated the process to sell its Marine businesses-namely Alumacraft, Manitou, and Telwater-in late 2024. This move excludes the highly profitable Sea-Doo personal watercraft and Sea-Doo Switch pontoons.

The economic logic is simple: divestiture allows BRP to 'double down' on its core Powersports segment, which includes Ski-Doo, Can-Am, and Rotax engines. This refocusing is designed to improve the company's margin profile and channel capital toward higher-growth, higher-margin opportunities within its core business. The sale of Alumacraft assets closed on May 1, 2025, and the definitive agreement to sell Telwater was announced on April 1, 2025, showing this strategy is already in execution.

BRP Inc. (DOOO) - PESTLE Analysis: Social factors

Post-pandemic demand bubble has burst, with new rider entrance levels returning to pre-COVID norms.

The surge in demand for powersports vehicles that started during the pandemic has defintely normalized, which is the biggest near-term social headwind for BRP Inc. The market is now experiencing softer demand, especially as high interest rates make discretionary, big-ticket purchases more expensive for consumers.

For the full fiscal year 2025 (FY25), BRP's total revenues dropped by 21.4% to $7,829.7 million (CA\$), or approximately $5,794.0 million (US\$). This decline reflects a significant correction in consumer behavior. In the fourth quarter of FY25 alone, North American retail sales decreased by 21% compared to the prior year, a clear signal that the rush of new riders entering the market has slowed considerably, returning volumes closer to historical averages.

Growing consumer preference for personalization and lifestyle-driven outdoor activities boosts demand for premium accessories.

While unit sales are under pressure, a powerful social trend is the growing preference for personalization and a lifestyle-driven approach to outdoor recreation. People want their vehicles to be an extension of their identity, so they spend more on Parts, Accessories, and Apparel (PA&A) and premium features.

The overall Powersports PA&A and OEM Engines segment revenue was down by about 5% to 7% in FY25, but this was largely due to the overall volume decline and high network inventory levels, particularly in Snowmobile products. Here's the quick math: the segment's Q3 FY25 revenue was $303.4 million (CA\$), a 5.7% decrease from the prior year. Still, this decrease was partially offset by favorable pricing on PA&A, which shows consumers are still willing to pay a premium for high-margin, personalized items. This is a critical margin-defense strategy.

• Focus on lifestyle: BRP is capitalizing on the broader social shift towards adventurous, self-directed outdoor activities.
• Actionable insight: The willingness to pay for premium accessories offsets some of the volume-driven gross profit pressure.

The 'Women of On-Road' program targets a significant growth opportunity, as only 21% of all riders are women.

The powersports industry has a huge gender gap-only about 21% of all on-road riders are women. BRP's 'Women of On-Road' (WOOR) program is a direct, successful response to this social imbalance, and it's a clear growth driver.

The program focuses on inclusivity and education, and it's working. The Can-Am On-Road brand, which includes the Spyder and Ryker three-wheel vehicles, has achieved a female ownership rate of 34%, which is significantly higher than the industry average. Specifically, nearly 40% of Can-Am Ryker owners are female. That's a massive outperformance.

The WOOR online community is also strong, boasting over 18,000 members, which creates a powerful, self-sustaining social network that drives new sales. This demographic shift is a long-term tailwind that is already translating into market share gains for the Can-Am brand.

Commitment to invest 1% of pre-tax profits in community support by 2025 as part of the CSR25 program.

BRP's Corporate Social Responsibility (CSR25) program includes a firm commitment to reinvest 1% of its annual pre-tax profits in community support by 2025. This commitment is a key social factor, bolstering brand reputation and appealing to socially-conscious consumers and employees.

Based on the company's full-year FY25 financial results, the Income before income taxes from continuing operations was $152.4 million (CA\$). Here's the quick math: 1% of that amount translates to a committed community investment of $1.524 million (CA\$), or approximately $1.13 million (US\$).

The primary focus of this investment is on programs like 'Ride Out Intimidation,' which aligns the company's philanthropic efforts directly with its core social goal of making the riding experience more inclusive and safer for everyone.

BRP Inc. (DOOO) - PESTLE Analysis: Technological factors

The technological landscape for BRP Inc. (DOOO) in 2025 is defined by a decisive, in-house pivot to electrification and a clear focus on design-driven innovation. This isn't just a reaction to the market; it's a strategic move to build a proprietary, vertically integrated electric powertrain, which is the defintely the right play to control performance and cost.

The company is committing substantial capital to this shift, plus its design excellence is now getting global recognition. This technological push is a significant near-term opportunity, but it also carries the risk of high upfront investment costs impacting short-term profitability, as seen in the broader industry.

$300 million investment over five years to electrify all existing product lines by the end of 2026

BRP is backing its electric vehicle (EV) vision with a major financial commitment, earmarking $300 million over five years to electrify every existing product line by the end of 2026. This investment covers product development, specialized equipment, infrastructure, and production tooling. It's a massive capital expenditure (CAPEX) push, and we saw the company invest $425.5 million (CAD) in CAPEX for new products and software modernization during the twelve-month period ended January 31, 2025 (Fiscal Year 2025).

This spending is strategically split between expanding the Rotax electric power unit development in Austria and establishing a dedicated Electric Vehicle Development Centre in Valcourt, Quebec. The goal is to control the core technology, which is crucial for a powersports company where performance is everything.

Launched the all-electric Can-Am Pulse and Can-Am Origin motorcycles, and the 2026 Can-Am Outlander Electric ATV

The investment is already yielding concrete, market-ready products. The 2025 Can-Am Pulse (a naked bike for city riding) and the 2025 Can-Am Origin (a dual-sport adventure bike) officially launched, with deliveries starting in early 2025. The launch of these two-wheelers reclaims the Can-Am motorcycle heritage after decades away from the segment.

Furthermore, BRP is expanding its electric footprint into the utility segment with the unveiling of the 2026 Can-Am Outlander Electric ATV in late 2025. This all-terrain vehicle is a key move to electrify the off-road vehicle (ORV) category, a core business for the company.

Here's a quick look at the launch-year specifications for the new electric models:

Developed a proprietary, in-house Rotax E-Power system for a vertically integrated electric powertrain advantage

The backbone of this technological shift is the proprietary Rotax E-Power system. This is a modular electric powerpack technology developed completely in-house, covering the charger, battery pack, inverter, and high-performance electric motor. This vertical integration is a major competitive advantage, allowing BRP to optimize the entire system for the demanding conditions of powersports-from extreme heat to cold.

The Rotax E-Power architecture is designed for scalability across all product lines, including the Can-Am two-wheelers, the Outlander ATV, and even the four Ski-Doo and Lynx electric snowmobiles already in the lineup. This consistency simplifies manufacturing, reduces long-term R&D costs, and ensures a uniform, high-torque performance experience for the rider.

• Builds a competitive moat (a sustainable advantage) against competitors who rely on third-party suppliers.
• Enables liquid-cooling for the battery and motor, which is key to maintaining performance and extending battery life in high-stress applications.
• Features an industry-leading towing capacity of 1,830 lbs on the Outlander Electric, showcasing the instant torque advantage of the electric powertrain.

Design and Innovation team was named Red Dot: Design Team of the Year 2025, confirming product design excellence

Beyond the raw engineering of the Rotax E-Power system, BRP's commitment to design quality received a major external validation in 2025. The BRP Design & Innovation Team was crowned Red Dot: Design Team of the Year 2025, an honorary title for continuous excellence. This award is not for a single product but for the overall design philosophy and long-term impact on the industry, putting them in a league with past winners like Apple and Ferrari.

This focus on design excellence is a critical technological factor because it ensures that BRP's cutting-edge engineering is wrapped in a compelling, user-centric package. It's what translates a high-performance motor into a desirable consumer experience, which is essential for driving adoption of new electric product categories like the Can-Am Pulse and Origin.

BRP Inc. (DOOO) - PESTLE Analysis: Legal factors

Subject to Evolving Regulations Across Multiple Jurisdictions

You need to keep a close eye on the regulatory landscape, especially the environmental, privacy, and noise pollution standards, because BRP Inc.'s core products-snowmobiles, watercraft, and off-road vehicles-are directly in the crosshairs of these changes.

In the United States, for instance, there is a clear legislative push to re-engage on noise pollution. The proposed Quiet Communities Act of 2025 (H.R.5151), introduced in September 2025, aims to reestablish the Environmental Protection Agency's (EPA) Office of Noise Abatement and Control. This is a defintely a headwind, as stricter federal noise standards could force costly redesigns and re-engineering for products like Ski-Doo snowmobiles or Can-Am off-road vehicles to remain compliant in the lucrative North American market. Plus, the General Data Protection Regulation (GDPR) in Europe and various state-level privacy laws in the US continue to add complexity to how BRP manages customer data from its connected products and digital platforms.

Ongoing Risk Exposure from Product Liability, Recalls, and Warranty Costs

The powersports industry inherently carries significant exposure to product liability claims, product recalls, and warranty costs. This isn't a theoretical risk; it's a measurable financial reality that impacts your bottom line.

In the fiscal year ended January 31, 2025 (FY25), BRP Inc. reported that higher warranty costs were a contributing factor to the decline in gross profit. This increase in claims expense coincided with a challenging period where the company's gross profit margin dropped by 480 basis points in the fourth quarter of FY25 alone. The company records a provision for product warranties and product liability claims when products are sold, acknowledging the risk of bodily injury, property damage, or other injury that could arise from product defects or misuse. This means every unit sold carries an immediate, mandated financial liability.

Here's the quick math on the impact:

What this estimate hides is the long-tail risk of a major recall, which could dwarf the regular warranty costs and severely damage brand equity across all product lines.

The Influence of Major Shareholders Impacts Governance Decisions

BRP Inc. operates with a dual-class share structure, which means that the voting power is heavily concentrated among a few key shareholders, notably the Beaudier Group (representing the Beaudoin family) and Bain Capital. This structure is a critical legal and governance factor, as it insulates the company from hostile takeovers and allows the founding family to maintain strategic control.

As of late 2025, the voting power is split, giving these two groups significant sway over major corporate decisions, including board elections and strategic transactions:

• The Beaudier Group holds approximately 49.0% of the total voting power.
• Bain Capital and its affiliates hold approximately 24.4% of the total voting power, following a secondary offering that closed in September 2025.

The Multiple Voting Shares carry six votes each, compared to one vote for the Subordinate Voting Shares, which is why their ownership percentage is much lower than their voting power. This concentration of power simplifies decision-making but also limits the influence of public shareholders and mandates a close alignment with the interests of these two principal owners.

Need to Comply with International Trade Laws and Potential Tariff Changes

International trade laws and the constant threat of tariff changes are a major near-term financial risk for BRP Inc. because of its global manufacturing footprint and significant reliance on the US market for revenue.

The company's Chief Financial Officer (CFO) stated that approximately 70% of BRP's production stems from Mexico, making it highly vulnerable to US trade policy shifts, especially concerning the United States-Mexico-Canada Agreement (USMCA). This exposure is so material that the uncertainty surrounding global tariff disputes was cited as a primary reason for BRP Inc. deferring its full-year Fiscal 2026 financial guidance. The estimated cost of recently imposed tariffs is a material hit, anticipated to cost the company an estimated $40 million this year. Additionally, the US-EU trade deal in July 2025 imposed a flat 15% tariff on most EU-origin goods entering the US, which could impact products manufactured at BRP's facility in Austria, such as some of its snowmobiles.

The trade environment is not stable right now.

Action Item: Finance: Draft a contingency plan detailing the cost impact of a potential 10% universal US tariff on all imports by the end of the quarter.

BRP Inc. (DOOO) - PESTLE Analysis: Environmental factors

CSR25 Program Targets and Carbon Footprint Reduction

BRP Inc.'s environmental strategy is anchored by its Corporate Social Responsibility (CSR25) program, which aims to reduce the company's overall carbon footprint across both operations and products. This is a necessary move, honestly, as the powersports industry faces intense scrutiny over emissions.

The company initially pledged a significant investment of $300 million over five years, starting in 2021, to electrify its product lines by the end of 2026. However, a recent strategic pivot in October 2025 reflects a cooling in the electric vehicle market, leading BRP to reduce and cap its annual electrification investment at $25 million per year. This shift is a realistic response to market dynamics, but it slows the pace of their environmental transition.

The CSR25 program sets clear, long-term environmental goals:

• Achieve carbon-neutral facilities by 2030.
• Reach zero waste to landfill by 2030.
• Reduce CO2 emissions from the supply chain by 25% by 2035.
• Launch new internal combustion engine (ICE) models that emit less CO2 than their predecessors.

Long-Term Electric Goal Drives Product Development

The long-term goal remains ambitious: BRP intends to have 50% of its units sold as electric by 2035. This target is the main driver for product development, pushing the company to create electric alternatives for its core brands.

We've seen concrete product introductions in the 2025 model year, moving beyond the initial electric models launched for tour operators. For instance, the company added two new electric snowmobiles to its lineup for 2025: the Ski-Doo Expedition Electric and another Lynx Adventure Electric model. These models are specifically designed for multi-use applications like moving personnel at ski resorts and recreational use around cabins, demonstrating a focus on defining the right commercial use cases first.

Climate Change Risk to Seasonal Products Segment

Climate change poses a direct, material risk to BRP's business model, particularly its Seasonal Products segment, which includes Ski-Doo and Lynx snowmobiles. The simple math is: less snow means fewer sales.

This risk materialized significantly in the company's Fiscal Year 2025 (FY25) results. The Seasonal Products segment, which accounted for approximately 32% of Q4-FY25 revenues, saw a sharp decline.

Here's the quick math on the near-term impact, which is defintely a headwind:

The Q4-FY25 revenue decrease of $275.0 million in Seasonal Products was primarily attributed to lower volume sold and softer demand, a condition often exacerbated by unfavorable weather conditions and reduced snow reliability. This highlights the structural vulnerability of the business to climate-related risks.

Electric Models Meet Consumer and Regulatory Pressure

The introduction of electric models is a strategic response to two pressures: rising consumer eco-consciousness and increasingly stringent global emissions policies. Consumers, especially in core European markets, are demanding cleaner recreational options.

The shift to electric, especially in product categories like the Sea-Doo watercraft and Ski-Doo snowmobiles, helps BRP pre-empt future regulatory hurdles. While specific European emissions policies for powersports, such as the upcoming stages of the Euro 5 standards, continue to tighten limits on hydrocarbon and nitrogen oxide emissions for ICE vehicles, the zero-emission electric models offer full compliance. The Rotax E-POWER technology, which is the heart of their electric snowmobiles, provides an emissions-free, quiet, and smooth ride, directly addressing environmental concerns and noise pollution limits in sensitive areas.