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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Financial Performance - Adjusted sales reached $1,838 million, a 7% increase year-over-year[9] - Adjusted gross profit margin was 20.7%, up 8 bps[9] - Adjusted EPS was $0.41, a 44% increase[9] - The company generated $142 million in free cash flow in Q3[39, 58] Segment Performance - Off-Road Vehicle (ORV) North America retail sales increased by 9% year-over-year[9, 42] - On Road segment sales increased 3% year-over-year to $229 million[44] - Marine segment sales increased 20% year-over-year to $103 million[49] Strategic Initiatives - Polaris is selling a majority stake in Indian Motorcycle to Carolwood LP[27] - The company is implementing a 4-pronged tariff mitigation strategy[28] - Polaris expects to reduce China spending by approximately 80% relative to 2024 levels[31] Outlook - The company expects adjusted sales to be between $6.9 billion and $7.1 billion for the full year 2025[61] - The estimated P&L tariff impact from new tariffs is expected to be approximately $90 million[31, 61]

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]

Core Insights - Hurricane Boats has redesigned the classic Yacht Series Hurricane SunDeck 2690 for the 2026 model year, emphasizing a blend of style, comfort, and new technology for an exceptional on-water experience [1][2]. Product Features - The SunDeck 2690 measures 26 feet, 4 inches in length with a 9-foot beam, designed for confident cruising on larger bodies of water and rated for up to 450 horsepower, offering generous capacity and performance [2]. - Updated furniture and helm enhance comfort and intuitive control, allowing users to focus on enjoyment and connection with family and friends [3]. - Key features include enhanced comfort with Soft Touch vinyl and Cool Touch seating, a standard 9-inch display with an optional 12-inch upgrade, and a digital switching system for audio and lighting control [5]. - A newly designed lockable glove box provides organization and security for personal items, while a new doggie bowl and mat cater to pets [5]. Additional Updates - The 2026 model year introduces a new "Patio" option for select FunDeck models, adding an extended platform for relaxation [5]. - A new RL (Rear Lounge) layout in the FunDeck lineup allows passengers to lounge comfortably facing the rear, enhancing the overall on-water experience [5].

Core Viewpoint - Polaris Inc (PII) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts raising earnings estimates [1][3]. Earnings Estimate Revisions - The trend of increasing earnings estimate revisions reflects growing analyst optimism regarding Polaris Inc's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.37 per share, showing a year-over-year decline of 49.3%. However, the Zacks Consensus Estimate has increased by 44.83% over the last 30 days due to two upward revisions [6]. - For the full year, the expected earnings are $0.08 per share, indicating a significant year-over-year decline of 97.5%. Despite this, the trend remains positive with two upward revisions and no negative changes [7]. Zacks Rank and Performance - Polaris Inc currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on the historical success of this rating system [8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - The stock has gained 19.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Polaris Inc despite an increase in revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Polaris Inc is expected to report quarterly earnings of $0.18 per share, reflecting a significant year-over-year decline of 75.3%. Revenues are projected to be $1.79 billion, which is a 4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Polaris Inc is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +101.82%. This suggests a bullish outlook from analysts [12]. Historical Performance - In the last reported quarter, Polaris Inc exceeded expectations by posting earnings of $0.40 per share against an expected $0.05, achieving a surprise of +700.00%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Industry Context - In comparison, Ford Motor Company is expected to report earnings of $0.38 per share, indicating a year-over-year decline of 22.5%, with revenues projected at $42.26 billion, down 1.9% from the previous year [18].