11:58 AM EDT, 05/29/2025 (MT Newswires) -- (Adds comment and updates shares.)

BRP (DOO.TO) shares were last seen up 12% after the company on Thursday reported that its fiscal first-quarter normalized profit dropped amid softer consumer demand but topped expectations.

Normalized profit, excluding most one-time items, was $34.6 million, or $0.47 per share, in the quarter ended April 30,down from $120.5 million, or $1.58. The result exceeded the $0.34 earnings per share consensus estimate compiled by FactSet.

Revenue for the recreational-vehicle manufacturer also fell to $1.85 billion from $2 billion, and was higher than the $1.74 billion consensus estimate compiled by FactSet. Normalized EBITDA was $200.8 million, a decline from $307.4 million.

"Looking ahead, given the uncertainty, we are still refraining from making financial projections at this time. In the short-term, although demand remains soft due to a challenging macro environment, our strong product portfolio and leaner inventory levels position us favourably for a rebound," said chief executive Jose Boisjoli.

The company said Boisjoli will retire at the end of the fiscal year and also step down as board chair, the company said. BRP's board is conducting a search for his replacement.

BRP's board also declared a quarterly dividend of $0.215 per share to be paid on July 14 to shareholders of record at the close of business on June 30.

National Bank of Canada maintained its sector-perform rating and $61.00 price target on the company's shares following the earnings.

The bank said BRP's "better-than-expected" first-quarter results and flat retail are encouraging, but its near-term outlook remains challenging due to the uncertain tariff situation, continued consumer weakness, and high industry inventory levels.

The company's shares were last seen up $5.93 to $55.63 on the Toronto Stock Exchange.

Price: 55.67, Change: +5.97, Percent Change: +12.01