In a stunning reversal, BRP (TSX: DOO), Canada’s leading powersports vehicle manufacturer, has seen its shares surge by over 100% in just four months. From a steep decline to a robust recovery, the company behind iconic brands like Ski-Doo and Sea-Doo has captured market attention. But what lies behind this dramatic rebound—a short-lived rally or a fundamental turnaround?
After plummeting from a peak of $120 per share in the summer of 2023 to a low of $45 in April this year, BRP’s stock has now climbed back above $90, marking a spectacular recovery.
As Canada’s largest recreational vehicle maker, BRP faced a “perfect storm” over the past two years. Soaring interest rates, an economic slowdown, and escalating trade tensions among Canada, the U.S., and Mexico created significant headwinds. The $6.7 billion company struggled with bloated inventories amid weakening demand, leading to multiple quarters of declining sales and earnings losses.
Its flagship products—Ski-Doo snowmobiles, Sea-Doo watercraft, and Can-Am off-road vehicles—faced steep declines in a softening market. By April 2024, BRP’s stock had been cut in half, erasing more than 60% of its market value from its 2023 highs.
The turnaround began this summer, driven by three key factors. First, the impact of North American trade tariffs proved less severe than initially feared. Second, BRP delivered better-than-expected Q2 results and reinstated its year-end guidance, signaling that excess inventory was clearing and demand for new products was recovering.
The latest catalyst came with the announcement of BRP’s upcoming Investor Day on October 9, 2025, where the company will unveil a new strategic plan. With its long-time CEO set to step down, investors are eager to learn about the company’s future direction. The stock has risen another 7% over the past five trading sessions, reflecting growing market confidence.
Analysts note that, compared to historical levels, BRP’s stock remains undervalued. For investors tolerant of volatility, there may still be room for further gains. However, risks persist, including broader economic pressures and uncertainties surrounding the upcoming leadership transition.
Nevertheless, BRP’s impressive recovery highlights both the resilience of the company and the market’s sharp response to improving fundamentals. Investors will be closely watching the October earnings call for further clues about the company’s new strategic direction.
