BRP Inc. Announces Renewal of Normal Course Issuer Bid
BRP Inc. (NASDAQ: DOOO) has unveiled its plan to renew its normal course issuer bid (NCIB), aiming to buy back up to 3,131,256 subordinate voting shares over the upcoming twelve-month period. This renewal comes after the Toronto Stock Exchange (TSX) approved the bid, which will start on December 10, 2025, and conclude no later than December 9, 2026. This represents roughly 10% of its public float, highlighting the company's commitment to enhance shareholder value.
Details of the Normal Course Issuer Bid
Conducted via the TSX or alternative eligible Canadian trading systems, the NCIB follows strict regulations. It will primarily involve open market transactions or may utilize other approved means like pre-arranged crosses and private agreements, ensuring compliance with all relevant securities laws.
Daily Purchase Limitations
Under TSX guidelines, BRP is authorized to buy a maximum of 44,267 subordinate voting shares daily, equivalent to 25% of the average daily trading volume calculated over the last six months. Additionally, weekly, BRP may execute specially defined block purchases, further optimizing its strategy for acquired shares that will subsequently be cancelled.
Pricing Strategy for Share Repurchases
The pricing of subordinate voting shares during repurchases will match the market value at the acquisition time, inclusive of brokerage fees. In instances of block purchases or other strategic acquisitions, shares may be obtained at a reduced price compared to current market values, allowing for added financial flexibility.
Automatic Share Purchase Plan
To streamline its share repurchase efforts, BRP has established an automatic share purchase plan (APP) with a specific broker. This plan enables BRP to continue acquiring subordinate voting shares even during periods when it typically wouldn't due to regulatory limitations. This proactive measure ensures adherence to TSX rules while allowing flexibility in share acquisition times. The APP will start on January 24, 2026, and will also include purchases made at the discretion of management outside pre-defined blackout periods.
Previous Share Buyback History
The previous NCIB, which concludes on December 9, 2025, saw no subordinate voting shares purchased by BRP through the TSX or eligible trading systems. However, during the prior set time frame, the company was permitted to buy back approximately 3,331,852 shares, affirming its strategic approach to maximizing shareholder return.
Rationale Behind the Share Buyback
BRP's Board of Directors endorses the renewed NCIB, believing that purchasing subordinate voting shares represents an effective way to utilize available cash to boost shareholder value. This strategy reflects the company's commitment to maintaining a healthy financial position while simultaneously rewarding its shareholders.
About BRP Inc.
BRP Inc. stands as a preeminent player in the powersports sector, boasting a legacy of over 80 years in innovation and consumer-centric development. The company produces a diverse range of products, including Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, and Can-Am vehicles, among others. Through elite brands and a dedicated portfolio of parts and accessories, BRP aims to enhance the consumer riding experience. Furthermore, the company is committed to sustainability and is actively engaged in developing electric versions of its product lines, enhancing its footprint as a responsible corporate entity.
Frequently Asked Questions
What is the purpose of the NCIB announced by BRP?
The NCIB allows BRP to repurchase its subordinate voting shares, which is a strategy to enhance shareholder value.
When will the new NCIB take effect?
The new NCIB is set to commence on December 10, 2025, and will run until December 9, 2026.
How many shares can BRP purchase under the NCIB?
BRP plans to buy back up to 3,131,256 subordinate voting shares, equivalent to about 10% of its public float.
What methodology will BRP use for these share buybacks?
Purchases will be conducted through open market transactions and may also include block purchases and private agreements, complying with TSX regulations.
What advantages does BRP see in this share repurchase plan?
BRP's Board believes buying back shares is an effective method to wisely use available cash and significantly increase shareholder value.
