Second Quarter 2025 Earnings Results July 29, 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS KEY FINANCIAL DATA | (in millions, except per share data) | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Quarter ended June 30, 2025 | | Reported | YOY % Chg. | | Adjusted* | YOY % Chg. | | Sales | $ | 1,852.7 | (6)% | $ | 1,847.9 | (6)% | | Gross profit margin | | 19.4 % | -223 bps | | 19.5 % | -232 bps | | Total operating expenses | $ | 394.9 | 20% | | | | | Net (loss) income attributable to Polaris | $ | ...

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MEDINA, Minn., July 16, 2025 /PRNewswire/ -- Today, Polaris Inc. (NYSE: PII), a global leader in powersports, in partnership with the National Forest Foundation (NFF), announced the 2025 recipients of the Polaris Fund for Outdoor Recreation Grants. The Grants are awarded to support outdoor recreation, trail conservation and promote responsible riding to help protect the nations' forests and surrounding lands.This year, more than $113,000 in funding will support five initiatives in various National Forest lo ...

Investment Rating - The report indicates a positive investment outlook for the all-terrain vehicle (ATV) industry, particularly highlighting the growth potential of Chinese manufacturers in the global market [2]. Core Insights - The ATV industry is experiencing a new wave of development opportunities driven by increasing global outdoor sports and leisure demand, with significant market expansion in mature markets like North America and Europe [2]. - Chinese ATV manufacturers are gaining market share internationally due to their cost-performance advantages and technological innovations, breaking the monopoly of international brands in the high-end market [2]. - The report provides a comprehensive analysis of the current state of the global and Chinese ATV industry, focusing on market size changes, brand competition, and the internationalization strategies of Chinese companies [2]. Summary by Sections Overview of ATV Development - The ATV segment has evolved from the introduction of the Honda US90 in 1970 to modern electric drive systems, categorized into three main types: ATV, UTV, and Go-kart [3]. Global Market Landscape - The global ATV market has developed into a competitive landscape dominated by Polaris (37%), traditional Japanese and American manufacturers (54%), and Chinese manufacturers (8%) [4]. - Chinese companies export over 95% of their products, with export volumes expected to grow from 102,500 units and $25.8 million in 2018 to an estimated 487,300 units and $1.2 billion in 2024, reflecting a compound annual growth rate exceeding 30% [4][18]. Market Trends - The global ATV market is shifting from B2B to B2C consumption, with the market size projected to increase from $21 billion in 2024 to $27.7 billion by 2030, led by North America [5]. - The Chinese market is also expected to grow from 14.4 billion yuan to 36.9 billion yuan during the same period, with rising export volumes and average prices [5]. Chinese ATV Industry Structure - The Chinese ATV market is characterized by a high degree of export orientation, with exports consistently accounting for over 95% of total sales from 2018 to 2024 [20]. - The leading company, Changan Power, holds a 72.62% share of the export market, with the top four companies collectively accounting for 97.08% of the export volume [24][25]. User Demographics and Market Shifts - The user demographic is shifting towards younger generations, with millennials now representing 30% of the user base, indicating a trend towards more diverse and younger consumers [42]. - The market is transitioning from a focus on commercial utility to personal leisure, with the share of recreational use increasing significantly over the past decade [36]. Future Market Projections - The global ATV market is expected to grow steadily, with North America maintaining a dominant position, and the average retail price projected to rise from $22,000 to $24,000 per unit by 2030 [50].

Group 1 - The market's immediate reaction to Polaris Inc.'s short-term challenges, particularly the $200 million tariff impact, may be obscuring the underlying value of the company [1] - Headline figures may appear alarming, but there is potential for recovery and growth in the company's fundamentals [1] Group 2 - The focus of the analysis is on resilient cash flows, capital allocation discipline, and sustainable dividend growth, which are critical for long-term investment strategies [1]

Core Insights - Polaris Inc. has amended its existing credit facilities to enhance financial flexibility and support long-term growth [1][2][3] - The company fully repaid $350 million of outstanding senior notes due in 2028, funded through revolving loans under its senior credit facilities [1] - The amendment includes modifications to financial covenants, allowing for more flexibility during a dynamic tariff environment [3][5] Financial Details - The maturity date of the incremental term loan has been extended to June 26, 2026 [5] - The covenant relief period is set from June 30, 2025, to June 30, 2026, with specific limitations on dividend payments and subsidiary-level debt [5] - Polaris can continue to pay regular quarterly dividends and repurchase shares to offset dilution from equity plans during the covenant relief period [5] Company Overview - Polaris Inc. is a global leader in powersports, offering a diverse range of products including off-road vehicles, motorcycles, and boats [4] - The company has been operational since 1954 and serves nearly 100 countries worldwide [4]

Core Viewpoint - Polaris Inc. will release its second quarter 2025 financial results on July 29, 2025, and will host a conference call to discuss these results [1][2]. Financial Results Announcement - The financial results will be available on the company's investor relations website at ir.polaris.com, with an alert issued via news wire when the materials are publicly accessible [2]. - A conference call and webcast will take place at 9:00 AM central time on the same day, hosted by the CEO Mike Speetzen and CFO Bob Mack [1][3]. Conference Call and Webcast Details - A slide presentation and webcast link will be posted on the Polaris Investor Relations website [3]. - To participate by phone, the U.S. dial-in number is 1-877-883-0383, and the international number is 1-412-902-6506, using access code 5182701 [3]. - A replay of the webcast will be available on the website or by phone using the U.S. number 1-877-344-7529 or the international number 1-412-317-0088 with access code 4835489 [3]. Company Overview - Polaris Inc. is a global leader in powersports, founded in 1954, offering a wide range of products including off-road vehicles, snowmobiles, motorcycles, and boats [4]. - The company serves nearly 100 countries worldwide and enhances the riding experience with a robust portfolio of parts, garments, and accessories [4].

Core Insights - Polaris is significantly expanding its partnership with the University of Minnesota to enhance safety education efforts, particularly in ATV and UTV safety programs, anticipating a three to fourfold increase in youth participation across Minnesota and pilot programs in Utah and Wisconsin [1][3] Group 1: Partnership and Program Expansion - The partnership with Polaris has supported safety displays at various events, reaching over 800,000 youth since its inception [2] - New pilot programs will be initiated in Wisconsin and Utah, where Minnesota 4-H will share resources to develop ATV and UTV safety programs [3][7] - An online safety course for youth is also in development as part of the expansion efforts [3] Group 2: Safety Education and Community Engagement - The Minnesota 4-H ATV and UTV Safety Program allows participants to become certified through the Minnesota Department of Natural Resources, focusing on responsible off-road vehicle operation and safety protocols [1][6] - The program aims to cultivate youth into leaders and ambassadors in their communities, promoting safe riding practices [4][6] Group 3: Organizational Background - Minnesota 4-H is the largest youth development program in the state, serving over 40,000 young people annually and designed to nurture youth into innovators and leaders [6] - Polaris, as a global leader in powersports, is committed to educating youth on safe riding practices and offers a wide range of vehicles and safety technologies [4][7]

Core Insights - The Polaris RZR Factory Racing team achieved a historic podium sweep at the 2025 SCORE Baja 500, with Brock Heger securing his seventh consecutive UTV overall victory, marking a rare three-peat for the team [1][2][5] Performance Highlights - Brock Heger led the race wire-to-wire, completing the 461-mile course without any issues, and finished eighth among all four-wheel vehicles [2][5] - Cayden MacCachren finished physically third but was elevated to second overall due to penalties assessed to another vehicle, contributing to the team's 1-2-3 finish [4][5] - Ethan Groom and Justin Morgan, who shared driving duties, initially crossed the finish line second but were placed third overall after post-race penalties [3][4] Team and Vehicle Performance - The RZR Pro R Factory demonstrated exceptional power, strength, and control throughout the race, solidifying its reputation as the vehicle to beat in the UTV category [5] - The team’s performance is attributed to the hard work of the RZR engineering team and the dedication of the drivers [5] Future Events - The Polaris RZR Factory Racing team will compete in the Best in the Desert Vegas to Reno race from August 13–16, 2025, which is the only race win that has eluded the factory team [7] Company Background - Polaris Inc. is a global leader in powersports, offering a wide range of off-road vehicles and related products, and has been in operation since 1954 [9]

Core Insights - Polaris Adventures has achieved a significant milestone of two million customer rides, reflecting the growing passion for outdoor adventure and the effectiveness of its network of over 250 local Outfitters [1][3][4] Company Overview - Polaris Adventures, launched in 2017, has become the leading powersports vehicle rental service in the U.S., partnering with locally owned small businesses to enhance local economies and accessibility to outdoor experiences [3][5] - The company offers a variety of powersports vehicles, including off-road vehicles, snowmobiles, and boats, aiming to introduce more people to outdoor adventures [4][8] Growth Metrics - The company surpassed one million rides in 2022 and has since doubled that number in less than three years, indicating rapid growth and expansion [4] - There are over 600 adventures available for customers, with 250 Outfitters operating across 41 states, making outdoor experiences accessible to a large population [6] Customer Engagement - Approximately 40% of riders are new to powersports, showcasing the company's ability to attract new customers to the industry [6] - The company emphasizes the importance of local knowledge provided by Outfitters, which enhances the customer experience by highlighting scenic routes and attractions [3][4] Innovations and Partnerships - Polaris Adventures has introduced a refreshed fleet of high-quality vehicles equipped with the latest safety and navigation technology to ensure a seamless riding experience [7] - The launch of Polaris Adventures Elite provides Outfitters with tools to run their businesses more efficiently, while a partnership with Sensible Weather offers a Weather Guarantee for customers [7]