Polaris Inc.

Consolidated Results of Operations

The consolidated results of operations were as follows:

Sales:

The increase in sales for the quarter was primarily driven by increased shipments and higher net pricing, partially offset by reduced motorcycle shipments as a result of the Indian Motorcycle divestiture on February 2, 2026.

The components of the consolidated sales change were as follows:

Sales by geographic region were as follows:

Sales in the United States increased during the quarter primarily as a result of increased ORV shipments and PG&A sales, partially offset by reduced motorcycle shipments as a result of the Indian Motorcycle divestiture.

Sales in Canada decreased during the quarter primarily due to reduced snowmobile and motorcycle shipments, partially offset by increased ORV shipments. Currency rate movements had a favorable impact of four percentage points on quarter-to-date sales.

Sales in other countries decreased during the quarter primarily due to reduced motorcycle shipments in Europe, partially offset by increased ORV shipments. Currency rate movements had a favorable impact of nine percentage points on quarter-to-date sales.

Cost of Sales:

The following table reflects our cost of sales in dollars and as a percentage of sales:

Cost of sales increased during the quarter primarily due to increased sales volumes driving higher purchased materials and increased labor costs, as well as incremental tariff charges. These increases were partially offset by reduced depreciation and amortization expense.

Gross Profit:

Gross profit for the quarter, as a percentage of sales, increased primarily as a result of favorable product mix, higher net pricing, favorable operational costs and lower finance interest, partially offset by incremental tariff charges.

Operating Expenses:

Operating expenses, in absolute dollars and as a percentage of sales, increased for the quarter primarily due to higher general and administrative expenses, the loss recorded as a result of the sale of the Indian Motorcycle business, and impairment and other charges recorded for certain assets classified as held for sale.

Income from Financial Services:

Income from financial services decreased for the quarter, primarily due to lower retail credit income and lower wholesale financing income from Polaris Acceptance due to reduced dealer inventory levels and interest rates.

Interest Expense:

Interest expense decreased for the quarter primarily as a result lower average debt levels.

Other (income) expense, net:

Other income increased during the quarter primarily as a result of incremental income received under transition services agreements following the Indian Motorcycle divestiture. Other (income) expense is also impacted by currency exchange rate movements and the corresponding effects on currency transactions related to our international subsidiaries.

Benefit for income taxes:

The income tax benefit for the quarter was $10.5 million or 18.1% of the loss before income taxes, compared to an income tax benefit of $4.4 million or 6.1% of the loss before income taxes for the first quarter of 2025. The tax provision benefit for the quarter was primarily the result of the pretax loss generated, including tax benefits related to impairment charges recorded, partially offset by unfavorable adjustments related to share-based compensation.

Adjusted EBITDA:

Adjusted EBITDA, in absolute dollars and as a percentage of sales, increased during the quarter primarily as a result of favorable product mix, higher net pricing and increased shipments, partially offset by higher general and administrative expenses.

Weighted average diluted shares outstanding:

Weighted average diluted shares outstanding increased for the quarter, primarily due to share issuances within and between the comparable quarterly periods.

Cash Dividends:

We paid a regular cash dividend of $0.68 per common share on March 16, 2026 to holders of record at the close of business on March 2, 2026.

Segment Results of Operations

In the first quarter of 2026, the Company began management of its portfolio of businesses under a new basis following the divestiture of the Indian Motorcycle business. All historical results were reclassified for comparability, including the results of the divested Indian Motorcycle business, which is included in corporate and corporate costs and other.

The summary that follows provides a discussion of the results of operations of each of our three reportable segments, Polaris Powersports, Marine, and Aixam & Goupil. Each of these reportable segments is comprised of various product offerings that serve multiple end markets. We evaluate performance based on sales and gross profit. Corporate and corporate costs and other includes revenues and costs of previously divested businesses including Indian Motorcycle, income and costs related to TSA and supply agreements, and costs that are not allocated to reportable segments, including certain manufacturing costs, the impacts of certain foreign currency transactions, and certain incentive compensation costs and related adjustments.

Our sales and gross profit by reportable segment, which includes the respective PG&A, as well as amounts related to corporate and other activities, were as follows:

Polaris Powersports:

Polaris Powersports sales, inclusive of PG&A sales, increased for the quarter, primarily as a result of increased ORV shipments in the United States and higher PG&A sales. The average per unit sales price for the Polaris Powersports reportable segment increased approximately five percent for the quarter primarily as a result of product mix and higher net pricing.

Sales to customers outside of North America increased seven percent for the quarter primarily as a result of higher utility ORV shipments.

Gross profit, as a percentage of sales, increased during the quarter primarily as a result of favorable product mix, higher net pricing, favorable operating costs and lower finance interest, partially offset by incremental tariff charges.

Additional information on our end markets for the quarter:

•Polaris North America utility unit retail sales up high-single digits percent

•Polaris North America recreation excluding youth unit retail sales down high-single digits percent

•Total Polaris North America ORV excluding youth unit retail sales up low-single digits percent

•Estimated North America industry ORV excluding youth unit retail sales up low-single digits percent

•Total Polaris North America ORV excluding youth dealer inventories flat

•Polaris North America snowmobile unit retail sales for the 2025-2026 season ending March 31, 2026 up mid-twenties percent

•Estimated North America industry snowmobile unit retail sales for the 2025-2026 season ending March 31, 2026 up low-single digits percent

•Total Polaris North America snowmobile dealer inventories down approximately 57 percent

Marine:

Marine sales increased during the quarter primarily due to increased shipments and favorable product mix. The average per unit sales price for the Marine reportable segment increased approximately 10 percent for the quarter, primarily due to product mix and higher net pricing.

Gross profit, as a percentage of sales, increased for the quarter primarily as a result of favorable product mix and higher net pricing, partially offset by incremental tariff charges.

Additional information on our end markets for the quarter:

•Polaris U.S pontoon unit retail sales down low-double digits percent

•Estimated U.S. industry pontoon unit retail sales down low-double digits percent

•Polaris U.S deck boat unit retail sales down low-thirties percent

•Estimated U.S. industry deck boat unit retail sales down mid-twenties percent

Aixam & Goupil

Aixam & Goupil sales, inclusive of PG&A sales, increased for the quarter primarily as a result of increased Goupil shipments and PG&A sales.

Gross profit, as a percentage of sales, increased during the quarter primarily as a result of product mix.

Corporate

Corporate includes revenues and costs of previously divested businesses including Indian Motorcycle, income and costs related to transition services and supply agreements, and costs that are not allocated to reportable segments, including certain manufacturing costs, the impacts of certain foreign currency transactions, and certain incentive compensation costs and related adjustments. Corporate sales and gross profit decreased for the quarter as a result of the Indian Motorcycle divestiture on February 2, 2026.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net loss, excluding interest expense, income tax expense, depreciation and amortization, and certain other non-cash, non-recurring, or non-operating items impacting net loss from time to time. For example, costs associated with certain corporate restructuring activities, such as acquisitions and divestitures, are included as non-GAAP adjustments. We use the non-GAAP financial measure of Adjusted EBITDA Margin, which is defined as Adjusted EBITDA divided by adjusted net sales. We believe that Adjusted EBITDA and Adjusted EBITDA Margin help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude from Adjusted EBITDA and Adjusted EBITDA Margin.

We believe that these measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Adjusted EBITDA has limitations and should not be considered in isolation from, as a substitute for, or more meaningful than, net loss as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance. Our presentation of Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as an inference that our results will be unaffected by unusual or non-recurring items.

The following table presents a reconciliation of net loss, the most comparable GAAP financial measure, to Adjusted EBITDA for each of the periods presented:

(1)Represents amortization expense for intangible assets acquired through business combinations and asset acquisitions

(2) Represents adjustments for corporate restructuring

(3)Represents adjustments related to product wind downs

(4) Represents adjustments for certain class action litigation-related expenses

(5) Represents impairment charges related to a strategic investment held by the Company

(6) Represents charges attributable to payments made in support of a distressed supplier

(7) Represents the loss associated with the Company’s divestiture of the Indian Motorcycle business, as well as impairment and other charges recorded to report certain held for sale assets at fair value less an amount of estimated transaction costs