VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Tuesday, December 30, 2025
BRP Inc.
DOO · Toronto Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
BRP Inc. is a global powersports OEM best known for Ski-Doo/Lynx snowmobiles, Sea-Doo watercraft and Can-Am on- and off-road vehicles. Its core moat is brand trust in several oligopolistic vehicle categories, reinforced by a large dealer/service network and recurring installed-base parts/accessories revenue. Based on FY2025 continuing-operations mix, revenue is concentrated in Year-Round Products (~55%), Seasonal Products (~30%) and PA&A/OEM Engines (~15%). BRP has been divesting its Marine boat businesses while retaining Sea-Doo PWCs/Switch and jet propulsion systems as core powersports activities.
Primary segment
Powersports - Year-Round Products
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 6 tags
Updated 2025-12-30
Segments
Powersports - Year-Round Products
ATV and recreational/utility side-by-side vehicles (SSV/UTV); 3-wheeled on-road vehicles
Revenue
55%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Powersports - Seasonal Products
Snowmobiles and personal watercraft (PWC) OEM market
Revenue
30.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Powersports - Parts, Accessories & Apparel; OEM Engines & Gearboxes
Aftermarket parts, accessories and apparel (PA&A) for BRP vehicles; OEM powertrain components (Rotax engines, Pinion gearboxes)
Revenue
14.7%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Marine Boats Businesses (Divestiture/Discontinued)
Recreational boats and marine parts/apparel (e.g., Telwater/Quintrex) under divestiture
Revenue
—
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Powersports - Year-Round Products
ATV and recreational/utility side-by-side vehicles (SSV/UTV); 3-wheeled on-road vehicles
FY2025 revenue share from SEC Form 40-F Exhibit 99.1 revenue-mix chart: https://www.sec.gov/Archives/edgar/data/1748797/000119312525063142/g897078g00v03.jpg
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Can-Am brand portfolio + broad model lineup supports premium positioning; management reports #2 global positions in ATV and recreational SSV.
Erosion risks
- Promotional intensity and price competition
- Low-cost entrants expanding in North America
- Electrification transition execution risk
Leading indicators
- Dealer inventory levels (ATV/SSV)
- Average selling price vs promotions
- Warranty/recall rates on new platforms
Counterarguments
- Dealers are generally not exclusive and can steer buyers to rival brands
- Large rivals invest heavily and can match product performance over time
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Large dealer + distributor footprint supports reach, merchandising and after-sales service; dealers required to provide warranty service and stock service parts.
Erosion risks
- Dealer consolidation and multi-branding
- Direct-to-consumer shift in discovery/lead gen
- Dealer financing stress during downturns
Leading indicators
- Dealer count and coverage
- Dealer inventory turns
- Time-to-repair / service capacity metrics
Counterarguments
- Dealers are not required to deal exclusively in BRP products
- Competitors often share the same dealer channel
Powersports - Seasonal Products
Snowmobiles and personal watercraft (PWC) OEM market
FY2025 revenue share from SEC Form 40-F Exhibit 99.1 revenue-mix chart: https://www.sec.gov/Archives/edgar/data/1748797/000119312525063142/g897078g00v03.jpg
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Ski-Doo/Lynx and Sea-Doo brands are positioned as market leaders; management states leading global market-share positions in both snowmobiles and PWCs.
Erosion risks
- Warm winters and climate variability (snowmobiles)
- Consumer discretionary downturns
- Competitors close technology/performance gap
Leading indicators
- Seasonal retail registrations/shipments
- Inventory levels and promotional intensity
- Market-leader commentary in filings/presentations
Counterarguments
- Demand is volatile; even strong brands can face heavy discounting in weak seasons
- Polaris, Yamaha and Kawasaki have strong brand equity and R&D budgets
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Installed base drives recurring PA&A and service demand; BRP highlights PA&A as a stable year-round revenue stream and relies on dealers for service parts/warranty work.
Erosion risks
- Third-party aftermarket parts and online competition
- Longer replacement cycles reduce parts turnover
Leading indicators
- PA&A revenue per active unit (attachment)
- Service parts fill rates
- Gross margin trend in PA&A
Counterarguments
- Aftermarket is price-transparent; owners can choose third-party accessories/parts
- Dealer incentives can shift toward competing product lines
Powersports - Parts, Accessories & Apparel; OEM Engines & Gearboxes
Aftermarket parts, accessories and apparel (PA&A) for BRP vehicles; OEM powertrain components (Rotax engines, Pinion gearboxes)
FY2025 revenue share from SEC Form 40-F Exhibit 99.1 revenue-mix chart: https://www.sec.gov/Archives/edgar/data/1748797/000119312525063142/g897078g00v03.jpg
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Recurring revenue from service parts, replacement and accessories linked to installed base; BRP describes PA&A as a stable year-round revenue source.
Erosion risks
- Third-party aftermarket and e-commerce price pressure
- Higher durability of products reduces parts turnover
Leading indicators
- PA&A revenue growth vs vehicle unit shipments
- PA&A gross margin trend
- Dealer/service-part fill rates
Counterarguments
- Many accessories are substitutable; brand premium may not hold in prolonged promotions
- Online channels make it easier for consumers to bypass OEM parts
Design In Qualification
Demand
Design In Qualification
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Rotax engines/propulsion systems are sold to third-party OEMs (e.g., karts, recreational aircraft and jet boats); design-in, validation and certification cycles increase switching costs.
Erosion risks
- OEMs verticalize powertrain or switch suppliers at platform refresh
- Electrification reduces demand for ICE-based powertrains
Leading indicators
- New engine platform wins/disclosures
- Regulatory emissions requirements impacting engine demand
- OEM engine revenue concentration
Counterarguments
- Large OEM buyers can multi-source and have leverage on pricing/terms
- Switching can occur at major redesign cycles
Marine Boats Businesses (Divestiture/Discontinued)
Recreational boats and marine parts/apparel (e.g., Telwater/Quintrex) under divestiture
BRP initiated a process to sell its Marine businesses (excluding Sea-Doo PWCs/Switch and jet propulsion systems) and has pursued divestitures; Telwater sale faced regulatory opposition (ACCC) as of Dec 2025.
Brand Trust
Demand
Brand Trust
Strength: 2/5 · Durability: fragile · Confidence: 3/5 · 2 evidence
Marine boat brands have local recognition, but BRP is divesting and regulatory outcomes can dictate ownership/strategy (e.g., Telwater).
Erosion risks
- Fragmented competition and limited differentiation
- Input-cost volatility (aluminum) and cyclical demand
- Regulatory/antitrust approvals affecting divestitures
Leading indicators
- Divestiture progress and proceeds
- Regulatory decisions (e.g., ACCC)
- Segment reporting as discontinued/continuing operations
Counterarguments
- BRP is actively exiting the segment, implying limited strategic advantage
- Boat OEMs compete on price/features with low switching costs
Evidence
Management estimates that the Corporation's global ATV market share in season 2024 reflected a number two position.
Supports brand strength/competitive position in the ATV market.
Management estimates that the Corporation's share of the global recreational SSV market in season 2024 reflected a number two market share position.
Supports brand/positioning in side-by-side vehicles (SSV).
As at the date hereof, BRP has approximately 2,400 dealers and 140 distributors globally.
Scale of channel supports distribution advantages in a specialty dealer model.
Management estimates that the Corporation holds the leading market-share position of the global snowmobile market.
Direct management claim of leadership position (supports brand moat in snowmobiles).
Management estimates that the Corporation holds the leading market-share position of the global PWC market.
Direct management claim of leadership position (supports brand moat in PWCs).
Showing 5 of 10 sources.
Risks & Indicators
Erosion risks
- Promotional intensity and price competition
- Low-cost entrants expanding in North America
- Electrification transition execution risk
- Dealer consolidation and multi-branding
- Direct-to-consumer shift in discovery/lead gen
- Dealer financing stress during downturns
Leading indicators
- Dealer inventory levels (ATV/SSV)
- Average selling price vs promotions
- Warranty/recall rates on new platforms
- Dealer count and coverage
- Dealer inventory turns
- Time-to-repair / service capacity metrics
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
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