As geopolitical tensions and trade wars continue to take a toll on investor sentiment in 2026, I think BRP (TSX: DOO) is becoming increasingly difficult for bargain hunters to ignore. DOO stock has fallen 16% this year and now trades nearly 28% below its 52-week high as U.S.-Canada trade tensions hit the powersports manufacturer from multiple directions.
Tariffs on steel, aluminum, and copper have already squeezed profitability, while newer trade measures have prompted BRP to stop shipping its Canadian-made Can-Am Spyder and Canyon vehicles to the United States. However, that doesn’t completely downgrade its long-term growth outlook, in my opinion.
Let’s take a closer look at BRP’s ongoing financial growth trends and other key fundamentals to figure out whether the ongoing tariff tumble could be a buying opportunity for long-term investors.
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BRP stock after the tariff shock
If you don’t know it already, headquartered in Valcourt, BRP makes powersports products under brands including Ski-Doo, Lynx, Sea-Doo, and Can-Am. Its operations also include Rotax engines as well as related parts, accessories, and apparel.
Currently, its stock trades at $81.21 per share, giving it a market cap of $3 billion and an annualised dividend yield of 1.2%. The shares have fallen 5.1% this month and 16% so far in 2026.
But this selloff comes while demand in an important part of BRP’s business has been improving. In the second quarter of its fiscal year 2027 (ended in July), the company’s revenue jumped about 19% year-over-year (YoY) to $2.2 billion. Higher off-road vehicle shipments and a favourable side-by-side vehicle mix were the main growth drivers in the latest quarter.
Its year-round products revenue performed even better, surging about 33% YoY to nearly $1.5 billion. Similarly, BRP’s North American powersports retail sales also edged up 1%, while it gained market share in off-road vehicles.
Tariffs are squeezing profits
Clearly, BRP’s ongoing sales trends are encouraging, but its profitability shows why the Canada-U.S. trade war might make investors worried.
The powersports manufacturer’s second-quarter gross profit fell 34% YoY to about $263 million, while gross margin dropped to 11.7% from 21.1%. BRP attributed much of that pressure to Section 232 tariffs on steel, aluminum, and copper imports into the United States. A supplier financial restructuring also reduced gross profit by $74.8 million.
As a result, the company’s normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) declined about 35% YoY to roughly $139 million. With this, it reported a net loss of about $137 million compared with a net profit of $57 million a year ago.
And trade pressures have intensified since those results. After new U.S. measures targeted additional Canadian recreational vehicles, BRP has decided to stop shipping its Canadian-made Can-Am Spyder and Can-Am Canyon three-wheeled vehicles to the U.S. market. That development adds another challenge for a business already dealing with tariff-related cost pressures.
Why the selloff could create an opportunity
Despite those risks, BRP’s broader performance gives investors reasons to keep this beaten-down stock on their radar. During the first six months of its fiscal year 2027, the company’s revenue climbed about 24% YoY to $4.6 billion, while normalized EBITDA rose 14% to $473 million.
On September 3, BRP raised its full-year normalized diluted earnings guidance to $4.00–$4.50 per share and projected revenue to $9.2–$9.5 billion. However, that outlook came before the latest escalation in trade tensions.
Even amid near-term tariff pressures, BRP is investing in its product pipeline. It plans major off-road product announcements every six months for the next four years as it works toward making Can-Am the leading off-road vehicle brand in North America.
That brings us back to whether BRP’s tariff tumble has created a buying opportunity. The stock is now nearly 28% below its 52-week high, even as BRP reports strong revenue growth, off-road market share gains, and much stronger cash generation.
While the latest trade restrictions could keep the shares volatile, for investors comfortable with that near-term uncertainty, the widening gap between BRP’s falling stock price and improving operating momentum makes this beaten-down TSX stock worth considering on the TSX today.
