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BRP Inc. DOO-T is putting the bulk of its marine business up for sale as it wrestles with a postpandemic brew of softening consumer demand and greater competition.

Barely five years after jumping back into boat manufacturing, the Canadian maker of Ski-Doo snowmobiles and Can-Am off-road vehicles said in a statement Thursday that, in light of a “challenging economic context,” it has decided to channel its efforts and investments into those core businesses.

Valcourt, Que.-based BRP said it is launching a sales process for the Alumacraft, Manitou and Telwater brands, as well as the marine parts, accessories and apparel unit. It will keep all assets related to its Sea-Doo personal watercraft, Sea-Doo Switch pontoon boats and jet propulsion systems.

“Over the past few years, we have built a solid foundation by investing in the development of innovative marine products and upgrading the production facilities,” BRP chief executive officer José Boisjoli said in the statement. “We believe that these iconic brands can offer attractive value creation opportunities for a new owner.”

The sales process underscores the depth of the challenges now facing BRP, which saw a major boost for its products during the pandemic but is now reeling from a pullback in discretionary spending. Powersports vehicles are often the first thing to go when consumers cut back, and at the moment retailers are offering sweeter deals to stoke sales and get inventory out the door.

Last month, BRP slashed its profit forecast for the year by 54 per cent, saying it now expects earnings per share to come in between $2.75 and $3.25, down from a previous forecast of $6 to $7. The manufacturer also lowered its revenue forecast for the year to between $7.8-billion and $8-billion, down from $8.6-billion to $8.9-billion.

The decision to sell the boat business follows BRP’s move earlier this month to disband a small team in Bromont, Que., working on electric bicycle and other urban mobility projects. Both businesses were previously thought to be potential long-term growth drivers, according to Stifel analyst Martin Landry.

The developments “suggest that management does not see a rapid recovery in industry conditions,” Mr. Landry said in a research note. Revenues from the marine segment peaked at $560-million in 2020 and were projected to come in at half that amount this year, he said. He estimates the business represented a drag of $1.50 on fiscal 2025 earnings per share.

BRP used to make sport boats for pursuits such as waterskiing. It exited that market but waded back into boat manufacturing around 2018 with a new focus on recreational aluminum boats, the kind used by anglers and outdoorspeople who would typically also buy its all-terrain vehicles.

It subsequently made three major acquisitions worth an estimated $300-million combined: Lansing, Mich.-based Triton Industries Inc., the maker of Manitou pontoon watercraft; St. Peter, Minn.-based Alumacraft Boat, known for its aluminum fishing boats; and Telwater Pty. Ltd., Australia’s biggest maker of aluminum boats.

BRP is controlled by Bombardier Inc.’s founding family and Bain Capital, which together held roughly 56 per cent of the total voting power as of April. Caisse de dépôt et placement du Québec is also a major shareholder.

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