Tear Sheet: Bombardier Recreational Products Inc.

S&P Global macroeconomists expect (based on Nov 2024 forecasts) both Canadian and U.S. inflation to ease and for interest rates to gradually recede in 2025 from the high levels of 2024. However, we do not expect a significant increase in retail demand for powersports. We believe a tough macroeconomic environment will persist and consumers will continue to defer big-ticket item purchases in the next 12 months. such as RVs, boats, motorcycles, and ATVs. Therefore, similar to its peers, we expect BRP?s operating performance to remain pressured. We expect BRP to exit fiscal 2025 (ended January 2025) with a 20%-25% decline in revenue and a 40% decline in EBITDA. We expect these pressures to continue at least until the first half

...February 12, 2025 Bombardier Recreational Products Inc. (BRP) and the powersports industry continue to operate against a backdrop of weak retail demand. S&P Global macroeconomists expect (based on Nov 2024 forecasts) both Canadian and U.S. inflation to ease and for interest rates to gradually recede in 2025 from the high levels of 2024. However, we do not expect a significant increase in retail demand for powersports. We believe a tough macroeconomic environment will persist and consumers will continue to defer big-ticket item purchases in the next 12 months. such as RVs, boats, motorcycles, and ATVs. Therefore, similar to its peers, we expect BRP's operating performance to remain pressured. We expect BRP to exit fiscal 2025 (ended January 2025) with a 20%-25% decline in revenue and a 40% decline in EBITDA. We expect these pressures to continue at least until the first half of fiscal 2026 (ending January 2026), and we forecast a 10%-12% further decline in EBITDA from 2025 levels. As a result,...

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