BRP Inc. (NASDAQ:DOOO) Surpasses Earnings Estimates but Faces Revenue Shortfalls

• BRP Inc. (NASDAQ:DOOO) reported an EPS of $0.664, doubling the estimated $0.33, indicating strong earnings growth.
• The company's revenue of approximately $1.36 billion fell short of the estimated $1.78 billion, highlighting challenges in achieving profitability.
• Despite a significant reliance on debt financing, indicated by a debt-to-equity ratio of about 6.49, BRP Inc. maintains a reasonable level of liquidity with a current ratio of approximately 1.34.

BRP Inc. (NASDAQ:DOOO) is a well-known player in the recreational products industry, offering a range of vehicles and engines. The company is recognized for its innovative products and has a strong presence in the market. Despite facing competition from other industry giants, BRP Inc. continues to make strides in its financial performance.

On August 29, 2025, DOOO reported earnings per share (EPS) of $0.664, surpassing the estimated $0.33. This indicates a positive trend in the company's earnings growth. Despite the strong EPS, DOOO's revenue of approximately $1.36 billion fell short of the estimated $1.78 billion. 

The company's price-to-sales ratio stands at about 0.75, suggesting that its stock is valued at less than one times its sales. This could indicate that the market perceives the stock as undervalued. Additionally, the enterprise value to sales ratio is approximately 1.10, while the enterprise value to operating cash flow ratio is around 10.43, reflecting the company's valuation in relation to its cash flow.

DOOO's financial health is further illustrated by its debt-to-equity ratio of about 6.49, indicating a significant reliance on debt financing. However, the current ratio of approximately 1.34 suggests that the company has a reasonable level of liquidity to cover its short-term liabilities. Despite the challenges, BRP Inc. continues to navigate its financial landscape with strategic measures.