Polaris Inc.
For the period ended Oct 28, 2025. Filed Oct 28, 2025.
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Oct 28, 2025 · Filed Oct 28, 2025
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Contents
EX-99.1 · FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the matters set forth in this press release, including, but not limited to, the “2025 Business Outlook” and statements in “CEO Commentary” above are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the Company’s ability to successfully implement its manufacturing operations strategy and supply chain initiatives; the Company’s ability to successfully source necessary parts and materials on a timely basis; the ability of the Company to manufacture and deliver products to dealers to meet demand, including as a result of supply chain disruptions; the Company’s ability to identify and meet optimal dealer inventory levels; the Company’s ability to accurately forecast and sustain consumer demand; the Company’s ability to mitigate increasing input costs through pricing or other measures; the Company’s ability to complete the proposed separation of Indian Motorcycle in a successful and timely basis or at all; the Company’s ability to derive the expected benefits from the Indian Motorcycle separation including the separation being accretive, within the expected timeline or at all; the actual amount of pre-tax charges incurred in connection with the separation of our Indian Motorcycle business; product offerings, promotional activities and pricing strategies by competitors that may make our products less attractive to consumers; the Company’s ability to strategically invest in innovation and new products, including as compared to our competitors; economic conditions that impact consumer spending or consumer credit, including recessionary conditions and changes in interest rates; disruptions in manufacturing facilities; product recalls and/or warranty expenses; product rework costs; freight and tariff costs (tariff relief or ability to mitigate tariffs, particularly in light of policies of the current presidential administration and retaliatory actions in response thereto); environmental and product safety regulatory activity; effects of weather on the Company’s supply chain, manufacturing operations and consumer demand; commodity costs; changes to international trade policies and agreements; uninsured product liability and class action claims (including claims seeking punitive damages) and other litigation expenses incurred due to the nature of the Company’s business; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; uncertainty in the consumer retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; relationships with dealers and suppliers; and the general global economic, social and political environment. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements except as otherwise may be required by law.
The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and Europe compiled by the Company or Company estimates and other industry data sources. The Company relies on information that its dealers or other third parties supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this information is subject to change. Retail sales references to total Company retail sales includes only ORV, snowmobiles, On Road and Marine in North America and International unless otherwise noted.
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 3 |
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Third Quarter 2025 Earnings Results
| CONSOLIDATED STATEMENTS OF (LOSS) INCOME | ||||
|---|---|---|---|---|
| (In Millions, Except Per Share Data), (Unaudited) | ||||
| Three months ended September 30, | Nine months ended September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Sales | $1,841.6 | $1,722.4 | $5,230.1 | $5,420.0 |
| Cost of sales | 1,461.3 | 1,367.8 | 4,245.6 | 4,311.1 |
| Gross profit | 380.3 | 354.6 | 984.5 | 1,108.9 |
| Operating expenses: | ||||
| Selling and marketing | 126.7 | 127.6 | 368.9 | 386.6 |
| Research and development | 92.8 | 84.1 | 266.0 | 258.7 |
| General and administrative | 117.8 | 100.9 | 347.9 | 310.3 |
| Long-lived asset impairment | 42.3 | — | 42.3 | — |
| Goodwill impairment | — | — | 52.6 | — |
| Total operating expenses | 379.6 | 312.6 | 1,077.7 | 955.6 |
| Income from financial services | 19.7 | 24.1 | 64.6 | 71.5 |
| Operating income (loss) | 20.4 | 66.1 | (28.6) | 224.8 |
| Non-operating expense: | ||||
| Interest expense | 33.1 | 36.2 | 100.4 | 102.7 |
| Other (income) expense, net | (0.6) | (5.1) | 46.8 | (6.5) |
| (Loss) income before income taxes | (12.1) | 35.0 | (175.8) | 128.6 |
| Provision (benefit) for income taxes | 3.6 | 7.4 | (14.3) | 28.2 |
| Net (loss) income | (15.7) | 27.6 | (161.5) | 100.4 |
| Net (income) loss attributable to noncontrolling interest | (0.1) | 0.1 | (0.4) | (0.2) |
| Net (loss) income attributable to Polaris Inc. | $(15.8) | $27.7 | $(161.9) | $100.2 |
| Net (loss) income per share attributable to Polaris Inc. common shareholders: | ||||
| Basic | $(0.28) | $0.49 | $(2.84) | $1.77 |
| Diluted | $(0.28) | $0.49 | $(2.84) | $1.76 |
| Weighted average shares outstanding: | ||||
| Basic | 56.9 | 56.2 | 56.9 | 56.6 |
| Diluted | 56.9 | 56.5 | 56.9 | 56.9 |
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 4 |
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Third Quarter 2025 Earnings Results
| CONSOLIDATED BALANCE SHEETS | ||
|---|---|---|
| (In Millions), (Unaudited) | ||
| September 30, 2025 | September 30, 2024 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $335.5 | $291.3 |
| Trade receivables, net | 230.3 | 223.7 |
| Inventories, net | 1,697.3 | 1,998.9 |
| Prepaid expenses and other | 311.1 | 156.4 |
| Income taxes receivable | 29.0 | 57.9 |
| Total current assets | 2,603.2 | 2,728.2 |
| Property and equipment, net | 1,081.6 | 1,199.9 |
| Investment in finance affiliate | 127.6 | 140.0 |
| Deferred tax assets | 423.7 | 329.9 |
| Goodwill and other intangible assets, net | 874.7 | 958.1 |
| Operating lease assets | 118.8 | 131.5 |
| Other long-term assets | 75.8 | 142.1 |
| Total assets | $5,305.4 | $5,629.7 |
| Liabilities and Equity | ||
| Current liabilities: | ||
| Current financing obligations | $434.8 | $454.4 |
| Accounts payable | 808.8 | 700.7 |
| Accrued expenses | 1,266.0 | 1,057.5 |
| Other current liabilities | 37.9 | 40.1 |
| Total current liabilities | 2,547.5 | 2,252.7 |
| Long-term financing obligations | 1,299.8 | 1,725.6 |
| Other long-term liabilities | 297.7 | 296.5 |
| Total liabilities | $4,145.0 | $4,274.8 |
| Deferred compensation | 6.5 | 9.4 |
| Equity: | ||
| Total shareholders’ equity | 1,149.5 | 1,341.5 |
| Noncontrolling interest | 4.4 | 4.0 |
| Total equity | 1,153.9 | 1,345.5 |
| Total liabilities and equity | $5,305.4 | $5,629.7 |
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 5 |
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Third Quarter 2025 Earnings Results
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
|---|---|---|
| (In Millions), (Unaudited) | ||
| Nine months ended September 30, | ||
| 2025 | 2024 | |
| Operating Activities: | ||
| Net (loss) income | $(161.5) | $100.4 |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
| Depreciation and amortization | 218.9 | 206.8 |
| Noncash compensation | 49.1 | 38.4 |
| Noncash income from financial services | (32.3) | (41.4) |
| Deferred income taxes | (37.7) | (34.5) |
| Impairment charges | 144.3 | — |
| Other, net | (0.7) | (1.2) |
| Changes in operating assets and liabilities: | ||
| Trade receivables | (25.6) | 81.2 |
| Inventories | 77.1 | (191.3) |
| Accounts payable | 236.7 | (10.4) |
| Accrued expenses | (0.1) | (51.2) |
| Income taxes payable/receivable | (6.6) | (48.9) |
| Prepaid expenses and other, net | 100.7 | 14.0 |
| Net cash provided by operating activities | 562.3 | 61.9 |
| Investing Activities: | ||
| Purchase of property and equipment, net | (118.2) | (192.7) |
| Distributions from (investment in) finance affiliate, net | 41.4 | 42.4 |
| Investments in other affiliates | — | (5.2) |
| Acquisition of developed technology assets | — | (62.7) |
| Net cash used for investing activities | (76.8) | (218.2) |
| Financing Activities: | ||
| Borrowings under financing obligations | 1,835.8 | 2,844.3 |
| Repayments under financing obligations | (2,182.5) | (2,573.3) |
| Repurchase and retirement of common shares | (2.4) | (82.3) |
| Cash dividends to shareholders | (113.0) | (110.7) |
| Cash dividend to noncontrolling interest | (0.2) | (0.6) |
| Proceeds from stock issuances under employee plans | 3.1 | 5.4 |
| Net cash (used for) provided by financing activities | (459.2) | 82.8 |
| Impact of currency exchange rates on cash balances | 22.2 | (3.0) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 48.5 | (76.5) |
| Cash, cash equivalents and restricted cash at beginning of period | 303.0 | 382.9 |
| Cash, cash equivalents and restricted cash at end of period | $351.5 | $306.4 |
| The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets: | ||
| Cash and cash equivalents | $335.5 | $291.3 |
| Other long-term assets | 16.0 | 15.1 |
| Total | $351.5 | $306.4 |
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 6 |
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Third Quarter 2025 Earnings Results
| NON-GAAP RECONCILIATION OF RESULTS | ||||
|---|---|---|---|---|
| (In Millions, Except Per Share Data), (Unaudited) | ||||
| Three months ended September 30, | Nine months ended September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Sales | 1,841.6 | 1,722.4 | 5,230.1 | 5,420.0 |
| Product wind downs (3) | (3.6) | — | (7.9) | — |
| Adjusted sales | 1,838.0 | 1,722.4 | 5,222.2 | 5,420.0 |
| Gross profit | 380.3 | 354.6 | 984.5 | 1,108.9 |
| Restructuring (2) | — | 3.2 | 1.8 | 7.1 |
| Product wind downs (3) | 0.1 | — | 9.3 | — |
| Adjusted gross profit | 380.4 | 357.8 | 995.6 | 1,116.0 |
| Gross profit margin | 20.6% | 20.6% | 18.8% | 20.5% |
| Adjusted gross profit margin | 20.7% | 20.8% | 19.1% | 20.6% |
| (Loss) income before income taxes | (12.1) | 35.0 | (175.8) | 128.6 |
| Acquisition-related costs (1) | 0.1 | 0.5 | 0.1 | 1.2 |
| Restructuring (2) | 2.7 | 11.5 | 8.2 | 22.5 |
| Product wind downs (3) | 0.2 | — | 9.5 | — |
| Intangible amortization (4) | 4.4 | 4.4 | 13.2 | 13.3 |
| Class action litigation expenses (6) | 1.5 | 1.5 | 6.5 | 5.4 |
| Long-lived asset impairment (7) | 42.3 | — | 42.3 | — |
| Goodwill impairment (8) | — | — | 52.6 | — |
| Investment impairment (9) | — | — | 49.4 | — |
| Adjusted income before income taxes | 39.1 | 52.9 | 6.0 | 171.0 |
| Net (loss) income attributable to Polaris Inc. | (15.8) | 27.7 | (161.9) | 100.2 |
| Acquisition-related costs (1) | 0.1 | 0.3 | 0.1 | 0.9 |
| Restructuring (2) | 2.2 | 8.7 | 6.3 | 17.1 |
| Product wind downs (3) | 0.1 | — | 7.2 | — |
| Intangible amortization (4) | 3.4 | 3.3 | 10.1 | 10.1 |
| Class action litigation expenses (6) | 1.1 | 1.2 | 4.9 | 4.2 |
| Long-lived asset impairment (7) | 32.2 | — | 32.2 | — |
| Goodwill impairment (8) | — | — | 52.6 | — |
| Investment impairment (9) | — | — | 43.6 | — |
| Adjusted net income (loss) attributable to Polaris Inc.(10) | 23.3 | 41.2 | (4.9) | 132.5 |
| Diluted EPS attributable to Polaris Inc. | $(0.28) | $0.49 | $(2.84) | $1.76 |
| Acquisition-related costs (1) | $— | 0.01 | — | 0.02 |
| Restructuring (2) | 0.04 | 0.15 | 0.10 | 0.30 |
| Product wind downs (3) | — | — | 0.13 | — |
| Intangible amortization (4) | 0.06 | 0.06 | 0.18 | 0.18 |
| Class action litigation expenses (6) | 0.02 | 0.02 | 0.08 | 0.07 |
| Long-lived asset impairment (7) | 0.57 | — | 0.57 | — |
| Goodwill impairment (8) | — | — | 0.92 | — |
| Investment impairment (9) | — | — | 0.77 | — |
| Adjusted EPS attributable to Polaris Inc. (10) | $0.41 | $0.73 | $(0.09) | $2.33 |
| Adjusted sales | $1,838.0 | $1,722.4 | $5,222.2 | $5,420.0 |
| Net (loss) income | $(15.7) | $27.6 | $(161.5) | $100.4 |
| Provision (benefit) for income taxes | 3.6 | 7.4 | (14.3) | 28.2 |
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 7 |
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Third Quarter 2025 Earnings Results
| Interest expense | 33.1 | 36.2 | 100.4 | 102.7 |
|---|---|---|---|---|
| Depreciation | 66.7 | 68.4 | 201.0 | 190.9 |
| Intangible amortization (5) | 5.9 | 6.0 | 17.9 | 15.9 |
| Acquisition-related costs (1) | 0.1 | 0.5 | 0.1 | 1.2 |
| Restructuring (2) | 2.7 | 11.5 | 8.2 | 22.5 |
| Product wind downs (3) | 0.2 | — | 9.5 | — |
| Class action litigation expenses (6) | 1.5 | 1.5 | 6.5 | 5.4 |
| Long-lived asset impairment (7) | 42.3 | — | 42.3 | — |
| Goodwill impairment (8) | — | — | 52.6 | — |
| Investment impairment (9) | — | — | 49.4 | — |
| Adjusted EBITDA | $140.4 | $159.1 | $312.1 | $467.2 |
| Adjusted EBITDA Margin | 7.6% | 9.2% | 6.0% | 8.6% |
| (1) Represents adjustments for integration and acquisition-related expenses | ||||
| (2) Represents adjustments for corporate restructuring | ||||
| (3) Represents adjustments related to product wind downs, including the FTR product line within the Company's On Road segment and the Timbersled product line within the Company's Off Road segment | ||||
| (4) Represents amortization expense for intangible assets acquired through business combinations | ||||
| (5) Represents amortization expense for intangible assets acquired through business combinations and asset acquisitions | ||||
| (6) Represents adjustments for certain class action litigation-related expenses | ||||
| (7) Represents impairment charges related to certain property and equipment assets in the Company's On Road segment | ||||
| (8) Represents goodwill impairment charges associated with the Company's On Road segment | ||||
| (9) Represents impairment charges related to a strategic investment held by the Company | ||||
| (10) The Company used its estimated statutory tax rate of 23.8% for the non-GAAP adjustments in 2025 and 2024, except for non-deductible items | ||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 8 |
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Third Quarter 2025 Earnings Results
| RECONCILIATION OF GAAP OPERATING CASH FLOW TO NON-GAAP FREE CASH FLOW | ||
|---|---|---|
| (In Millions), (Unaudited) | ||
| Nine months ended September 30, | ||
| 2025 | 2024 | |
| Net cash provided by operating activities | $562.3 | $61.9 |
| Purchase of property and equipment, net | (118.2) | (192.7) |
| Distributions from (investment in) finance affiliate, net | 41.4 | 42.4 |
| Adjusted free cash flow | $485.5 | $(88.4) |
| NON-GAAP RECONCILIATION OF SEGMENT RESULTS | ||||
|---|---|---|---|---|
| (In Millions), (Unaudited) | ||||
| Three months ended September 30, | Nine months ended September 30, | |||
| SEGMENT GROSS PROFIT | 2025 | 2024 | 2025 | 2024 |
| Off Road segment gross profit | $336.3 | $297.4 | $815.9 | $852.6 |
| Restructuring (1) | — | 0.9 | 1.2 | 4.1 |
| Product wind down (2) | (0.7) | — | 6.2 | — |
| Adjusted Off Road segment gross profit | 335.6 | 298.3 | 823.3 | 856.7 |
| On Road segment gross profit | 36.7 | 39.9 | 128.4 | 161.4 |
| Product wind down (2) | 0.8 | — | 3.1 | — |
| Adjusted On Road segment gross profit | 37.5 | 39.9 | 131.5 | 161.4 |
| Marine segment gross profit | 11.8 | 10.6 | 52.7 | 56.9 |
| No adjustment | — | — | — | — |
| Adjusted Marine segment gross profit | 11.8 | 10.6 | 52.7 | 56.9 |
| Corporate gross profit | (4.5) | 6.7 | (12.5) | 38.0 |
| Restructuring (1) | — | 2.3 | 0.6 | 3.0 |
| Adjusted Corporate gross profit | (4.5) | 9.0 | (11.9) | 41.0 |
| Total gross profit | 380.3 | 354.6 | 984.5 | 1,108.9 |
| Restructuring (1) | — | 3.2 | 1.8 | 7.1 |
| Product wind downs (2) | 0.1 | — | 9.3 | — |
| Adjusted total gross profit | $380.4 | $357.8 | $995.6 | $1,116.0 |
| (1) Represents adjustments for corporate restructuring | ||||
| (2) Represents adjustments related to product wind downs, including the FTR product line within the Company's On Road segment and the Timbersled product line within the Company's Off Road segment | ||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 9 |
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Third Quarter 2025 Earnings Results
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