Financial Performance - Total sales for Q3 2025 reached $1,841.6 million, a 6.9% increase from $1,722.4 million in Q3 2024[11] - Gross profit for Q3 2025 was $380.3 million, compared to $354.6 million in Q3 2024, reflecting a gross margin improvement[11] - Net loss for Q3 2025 was $15.7 million, a significant decline from a net income of $27.6 million in Q3 2024[11] - Operating income for Q3 2025 was $20.4 million, down from $66.1 million in Q3 2024, indicating operational challenges[11] - For the nine-month period ended September 30, 2025, Polaris Inc. reported a net loss of $161.5 million compared to a net income of $100.4 million for the same period in 2024[20] - The company reported a comprehensive loss of $12.7 million for Q3 2025, compared to a comprehensive income of $29.4 million in Q3 2024[14] - The Company reported total sales of $1,841.6 million for the three months ended September 30, 2025, an increase from $1,722.4 million in the same period of 2024, representing a growth of approximately 6.9%[84] - The gross profit for the three months ended September 30, 2025, was $380.3 million, up from $354.6 million in the same period of 2024, indicating a growth of about 7.2%[84] - The Company reported a total gross profit of $984.5 million for the nine months ended September 30, 2025, compared to $1,108.9 million for the same period in 2024, reflecting a decrease of approximately 11.2%[84] Revenue Breakdown - Revenue from Wholegoods in Q3 2025 is $1,335.6 million, up from $1,302.3 million in Q3 2024, representing a growth of 2.5%[37] - Revenue from PG&A in Q3 2025 is $506.0 million, compared to $420.1 million in Q3 2024, marking an increase of 20.4%[37] - Total revenue for Q3 2025 is $1,841.6 million, an increase of 6.9% from $1,722.4 million in Q3 2024[37] - For the nine months ended September 30, 2025, total revenue is $5,230.1 million, down 3.5% from $5,420.0 million in the same period of 2024[38] - Total revenue from the United States for Q3 2025 is $1,503.6 million, an increase from $1,356.1 million in Q3 2024, representing a growth of 10.9%[37] Expenses and Liabilities - Research and development expenses for Q3 2025 were $92.8 million, up from $84.1 million in Q3 2024, indicating a focus on innovation[11] - Depreciation and amortization expenses for the nine months ended September 30, 2025, were $218.9 million, up from $206.8 million in 2024[20] - Total current assets decreased to $2,603.2 million as of September 30, 2025, from $2,632.4 million at the end of 2024[9] - Total liabilities increased to $4,145.0 million as of September 30, 2025, compared to $4,224.7 million at the end of 2024[9] - Accrued expenses increased to $1,266.0 million as of September 30, 2025, compared to $1,259.7 million at the end of 2024, reflecting a slight increase of 0.2%[35] Shareholder Information - The company declared a dividend of $0.67 per share for Q3 2025, compared to $0.66 per share in Q3 2024[17] - The company declared and paid aggregate dividends of $2.01 per share for the nine-month period ended September 30, 2025, compared to $1.98 per share for the same period in 2024[20] - Cash dividends declared and paid per common share for the three months ended September 30, 2025, were $0.67, compared to $0.66 for the same period in 2024, reflecting a 1.5% increase[62] - Cash dividends declared and paid per common share for the nine months ended September 30, 2025, were $2.01, compared to $1.98 for the same period in 2024, reflecting a 1.5% increase[62] Cash Flow and Financing - Operating activities generated net cash of $562.3 million for the nine months ended September 30, 2025, a significant increase from $61.9 million in 2024[20] - The company repurchased and retired common shares totaling $2.4 million during the nine months ended September 30, 2025, compared to $82.3 million in 2024[20] - The company had open letters of credit totaling $60.8 million as of September 30, 2025, primarily related to inventory purchases[47] - The company issued $500 million of 6.95% Senior Notes in November 2023, with net proceeds of approximately $492 million after fees[53] - The company was in compliance with all financial covenants as of September 30, 2025, including an interest coverage ratio of not less than 3.00 to 1.00[51] Asset Management - Total current assets decreased to $2,603.2 million as of September 30, 2025, from $2,632.4 million at the end of 2024[9] - The Company’s inventories as of September 30, 2025, total $1,697.3 million, a decrease from $1,741.5 million at the end of 2024, indicating a reduction of 2.5%[35] - Trade receivables decreased by $25.6 million in 2025, while inventories increased by $77.1 million[20] - Cash, cash equivalents, and restricted cash at the end of the period were $351.5 million, an increase from $306.4 million at the end of September 2024[20] Impairment and Charges - The company recorded an impairment charge of $144.3 million during the nine months ended September 30, 2025, due to certain asset valuations[20] - An impairment charge of $52.6 million was recorded for the On Road reporting unit during the nine months ended September 30, 2025, resulting in no remaining goodwill balance for that unit[58] - The company reported a goodwill impairment of $52.6 million in the On Road segment, contributing to the overall decrease in goodwill[60] Future Outlook - Future outlook remains cautious due to ongoing market challenges and operational adjustments needed to return to profitability[11] - The Company expects estimated pre-tax charges of approximately $275 million to $325 million related to the sale of a majority stake in the Indian Motorcycle business, with net charges expected to be between $230 million and $280 million after tax benefits[85] - The Company expects the adoption of ASU 2023-09 to require additional income tax disclosures but will not have a material impact on consolidated financial statements[32] - The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025, reinstates 100% bonus depreciation and immediate expensing of domestic R&E expenditures, but is not expected to materially impact future financial statements[33]

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Financial Data and Key Metrics Changes - Sales for the third quarter were $1.8 billion, representing a 7% increase driven by stronger shipments and a solid mix of off-road vehicles [4][21] - Adjusted EBITDA margin was under pressure compared to last year due to increased tariffs and normalized incentive compensation [7][22] - Adjusted EPS came in at $0.41, influenced by a strong mix and operational efficiencies, partially offset by tariffs [8][22] - Operating cash flow for the quarter was $159 million, with year-to-date cash flow exceeding $560 million [22][25] Business Line Data and Key Metrics Changes - Off-road vehicle (ORV) sales rose 8%, supported by a richer mix of vehicles and strong commercial volume [22] - Marine sales increased by 20%, driven by positive shipments of new boats, including the new entry-level Bennington pontoon [24] - On-road sales were down 3%, impacted by ongoing softness in the motorcycle market [24] Market Data and Key Metrics Changes - North American retail rose 9%, leading to approximately 3 points of market share gain in ORV [5][22] - Dealer inventory decreased by 21% year over year, with aged units down approximately 60% relative to six months ago [6][23] - International sales grew by 2%, led by strength in Europe [21] Company Strategy and Development Direction - The company announced the sale of a majority stake in Indian Motorcycle to focus on core business areas with the greatest potential for profitable growth [4][16] - The strategy includes enhancing customer experience through rider-driven innovation and maintaining a strong dealer network [13][17] - The company is committed to reducing reliance on China for parts, aiming for an 80% reduction in China spend by 2027 [20][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic environment and achieving strong earnings and returns for shareholders [4][8] - The company is closely monitoring consumer health indicators and expects sales to grow sequentially in Q4, despite anticipated headwinds from mix and operating expenses [8][28] - Management highlighted the importance of innovation and dealer engagement in maintaining market share and driving future growth [79][81] Other Important Information - The company expects the Indian Motorcycle transaction to be accretive to adjusted EBITDA by approximately $50 million and adjusted EPS by approximately $1 post-separation [18] - The gross tariff impacts for the year rose by $10 million since July, with an expected total impact of approximately $90 million [19][28] Q&A Session Summary Question: What drove ORV retail strength and share gains in the quarter? - Management attributed the strength to right-sized inventory, a broad product lineup, and improved quality leading to lower warranty costs [36][38] Question: Any early thoughts on fiscal 2026? - The Indian Motorcycle deal is expected to significantly impact revenue and EBITDA, with tariffs anticipated to increase costs in 2026 [40][42] Question: What is the consumer profile for the Ranger 500? - The Ranger 500 appeals to new customers, including those transitioning from other brands or looking for entry-level options [46][48] Question: Concerns about demand pull-forward from the FAC program? - Management indicated that the FAC program did not drive significant incremental spend and that retail trends remain strong [54][56] Question: What are the expectations for tariffs in 2026? - Tariffs are expected to exceed $200 million in 2026, with ongoing efforts to mitigate their impact [57][59]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $1.8 billion, representing a 7% increase driven by stronger shipments and a solid mix of off-road vehicles [4][21] - Adjusted EBITDA margin was under pressure compared to last year due to increased tariffs and normalized incentive compensation [7][22] - Adjusted EPS came in at $0.41, influenced by a strong mix and operational efficiencies, partially offset by tariffs [8][22] - Operating cash flow for the quarter was $159 million, with year-to-date cash flow exceeding $560 million [22][25] Business Line Data and Key Metrics Changes - Off-road vehicle (ORV) sales rose 8%, supported by a richer mix of vehicles and strong commercial volume [22] - Marine sales increased by 20%, driven by positive shipments of new boats, including the entry-level Bennington pontoon [24] - On-road sales decreased by 3%, impacted by ongoing softness in the motorcycle market [24] Market Data and Key Metrics Changes - North American retail rose 9%, leading to approximately 3 points of market share gain in ORV [5][23] - Dealer inventory decreased by 21% year-over-year, with aged units down approximately 60% relative to six months ago [6][23] - International sales grew by 2%, led by strength in Europe [21] Company Strategy and Development Direction - The company announced the sale of a majority stake in Indian Motorcycle to focus on core business areas with the greatest potential for profitable growth [4][16] - The strategy includes enhancing customer experience through rider-driven innovation and maintaining a strong dealer network [17][32] - The company is committed to reducing reliance on China for parts, aiming for an 80% reduction in China spend by 2027 [20][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic environment and expects to deliver strong earnings and higher returns for shareholders [4][8] - The company is closely monitoring consumer health indicators and anticipates sequential sales growth in Q4, despite challenges in certain segments [8][28] - Management highlighted the importance of operational efficiencies and innovation in driving future growth [7][32] Other Important Information - The company expects the Indian Motorcycle transaction to be accretive to adjusted EBITDA by approximately $50 million and adjusted EPS by approximately $1 post-separation [16][18] - The gross tariff impacts for the year rose by $10 million since July, with an expected total impact of approximately $90 million [19][20] - The company remains committed to maintaining investment-grade credit metrics and balancing investments for growth with debt paydown [27] Q&A Session Summary Question: What drove ORV retail strength and share gains in the quarter? - Management attributed the strength to right-sized inventory, a broad product offering, and improved quality leading to lower warranty costs [35][36] Question: Any early thoughts on fiscal 2026? - The Indian Motorcycle deal is expected to significantly impact revenue and EBITDA, while tariffs are projected to increase in 2026 [39][42] Question: What is the consumer profile for the RANGER 500? - The RANGER 500 appeals to new customers, including those who previously used golf carts or other brands, providing an entry point into the Polaris product line [46][47] Question: Concerns about demand pull-forward from the FAC program? - Management indicated that the FAC program did not drive significant incremental spend and noted continued strength in retail for October [54][55] Question: What are the expectations for tariffs in 2026? - Tariffs are expected to exceed $200 million in 2026, with ongoing efforts to mitigate costs through reduced sourcing from China [57][58]

Financial Data and Key Metrics Changes - Sales for the third quarter were $1.8 billion, representing a 7% increase driven by stronger shipments and a solid mix of off-road vehicles [4][18] - Adjusted EBITDA margin was under pressure compared to last year due to increased tariffs and normalized incentive compensation [6][20] - Adjusted EPS came in at $0.41, influenced by a strong mix and operational efficiencies, partially offset by tariffs [7][20] - Operating cash flow for the quarter was $159 million, with year-to-date cash flow exceeding $560 million [20][24] Business Line Data and Key Metrics Changes - Off-road vehicle (ORV) sales rose approximately 8%, supported by a richer mix of vehicles and strong commercial volume [20] - Marine sales increased by 20%, driven by positive shipments of new boats, including the new entry-level Bennington pontoon [22] - On-road sales were down 3%, impacted by ongoing softness in the motorcycle market [22] Market Data and Key Metrics Changes - North American retail rose 9%, led by strong off-road performance, resulting in a 3-point market share gain in ORV [5][21] - International sales grew by 2%, primarily driven by strength in Europe [18] Company Strategy and Development Direction - The company announced the sale of a majority stake in Indian Motorcycle to focus on core business areas with the greatest potential for profitable growth [4][14] - The company is committed to enhancing customer experience through rider-driven innovation and plans to invest in high-return opportunities [15][29] - The company aims to reduce its reliance on China for parts and components, targeting an 80% reduction in China spend by 2027 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate the current economic environment and deliver strong earnings and returns for shareholders [4][6] - The company is closely monitoring consumer health indicators and expects sales to grow sequentially in Q4, despite anticipated headwinds from mix and operating expenses [7][25] - Management indicated that the expected sale of Indian Motorcycle will free up resources for higher growth and margin opportunities [15][29] Other Important Information - Dealer inventory is down 21% year-over-year, with aged units in dealer inventory reduced by approximately 60% relative to six months ago [5][21] - The Polaris Factory Authorized Clearance program successfully engaged customers and drove increased dealership visits [8][49] Q&A Session Summary Question: What drove ORV retail strength and share gains in the quarter? - Management attributed the strength to right-sized inventory, a broad product lineup, and improved quality leading to lower warranty costs [32][33] Question: Any early thoughts on fiscal 2026? - The Indian Motorcycle deal is expected to have a significant impact, adding approximately $50 million in EBITDA and $1 in EPS, while tariffs are projected to increase costs [36][39] Question: What is the consumer profile for the Ranger 500? - The Ranger 500 appeals to new customers, including those who previously used golf carts or other brands, providing an entry point into the Polaris product line [41][43] Question: Concerns about demand pull-forward from the FAC program? - Management indicated that the FAC program did not drive significant incremental spend and that retail trends remain strong [48][50] Question: What are the margin drivers for Q4 and 2026? - Warranty costs are expected to remain favorable, while operational efficiencies and product mix will continue to be key drivers [69][71]

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Safe Harbor & Non-GAAP Measures Except for historical information contained herein, the matters set forth in this presentation 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 sourc ...

Core Insights - Polaris Inc reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, but down from $0.73 per share a year ago, representing an earnings surprise of +10.81% [1] - The company achieved revenues of $1.84 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.81% and up from $1.72 billion year-over-year [2] - Polaris Inc has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the latest quarter was +10.81%, and the company had a remarkable surprise of +700% in the previous quarter [1] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $1.73 billion, and for the current fiscal year, it is $0.08 on revenues of $6.88 billion [7] Stock Performance - Polaris Inc shares have increased approximately 23.6% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations of continued outperformance in the near future [6] Industry Outlook - The Automotive - Domestic industry, to which Polaris Inc belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Polaris Inc. reported its third quarter 2025 financial results, which are available on the Company's Investor Relations website and will be furnished to the SEC [1] - The Company will hold a conference call with analysts and investors to discuss the results [2] - Polaris is recognized as a global leader in powersports, offering a diverse range of products and services since its founding in 1954 [2] Financial Results - The third quarter financial results were released through an earnings release posted on the Company's Investor Relations website [1] - The earnings release will be submitted to the Securities and Exchange Commission on a Form 8-K [1] Conference Call Details - The conference call and webcast can be accessed via the Webcast link on the Company's website or by dialing specific numbers for U.S. and international participants [2] - Related presentation materials and a replay of the webcast will be available on the Company's website [2] Company Overview - Polaris Inc. is a pioneer in product breakthroughs in the powersports industry, with a product lineup that includes various off-road vehicles, motorcycles, and boats [2] - The Company serves nearly 100 countries globally and enhances the riding experience with a robust portfolio of parts, garments, and accessories [2] Strategic Moves - Polaris announced its decision to separate Indian Motorcycle into a standalone company and will sell a majority stake to Carolwood LP [4]

Core Insights - Applied Digital has successfully achieved Ready for Service (RFS) for the first phase (50 MW) of its Polaris Forge 1 AI Factory Campus in Ellendale, North Dakota, marking a significant milestone in scaling its AI infrastructure to meet demand [1][3] - The Polaris Forge 1 Campus is set to deliver a fully leased 400 MW critical IT load deployment for CoreWeave, with an estimated $11 billion in anticipated lease revenue over approximately 15 years [2] Company Performance - The CEO of Applied Digital highlighted the team's capability to convert complex AI Factory designs into operational facilities with speed and precision, establishing a new standard for data centers [3] - The COO emphasized the strategic planning and execution that enabled the timely delivery of the first building, with plans to deliver an additional 50 MW by the end of the year [4] Infrastructure and Efficiency - Polaris Forge 1 is designed to expand to 1 gigawatt (GW) to meet increasing demands for AI and high-performance computing, featuring proprietary designs that include liquid cooling and power distribution innovations [4] - The efficiencies from the facility's design, combined with North Dakota's climate and renewable power access, are projected to yield $2.7 billion in lifecycle cost savings over 30 years [4] Recent Developments - The announcement follows a $5 billion AI Factory lease agreement with a U.S.-based investment-grade hyperscaler at the Polaris Forge 2 Campus in Harwood, North Dakota [5] - Polaris Forge 1 has been recognized as Capacity Magazine's Data Center of the Month for October 2025, highlighting its operational excellence [5] Company Overview - Applied Digital, founded in 2021 and headquartered in Dallas, TX, specializes in designing, building, and operating high-performance data centers for AI, cloud, networking, and blockchain workloads [6]