Financial Data and Key Metrics Changes - In Q2 2025, sales decreased by 6% due to the ongoing downturn in the power sports industry and increased promotions [7][20] - Adjusted EPS was $0.40, down year over year but above consensus expectations [9][20] - Free cash flow generated was approximately $290 million, marking a strong performance [19][25] Business Line Data and Key Metrics Changes - Off-road sales declined by 8%, driven by lower whole goods volume and increased promotions [21] - Marine sales increased by 16%, supported by new boat shipments, particularly the entry-level Bennington pontoon [25] - On-road sales were down 1%, with Indian motorcycles showing mid-single-digit growth [24][25] Market Data and Key Metrics Changes - Retail was flat year over year, with growth in Ranger crossover and Indian motorcycles [11][12] - Dealer inventory levels improved, with Polaris maintaining DSOs around 110 days, below historical norms [23][24] - The company gained market share across all segments, including ORV, despite aggressive promotions from competitors [12][13] Company Strategy and Development Direction - The company is focused on innovation and operational efficiencies, targeting $40 million in operational efficiencies for 2025 [9][35] - A new product, the Polaris Ranger 500, is being launched to capture a significant portion of the utility vehicle market [31][32] - The company is actively working on a four-pronged tariff mitigation strategy to reduce exposure and maintain competitiveness [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current challenges and positioning for long-term success despite macroeconomic uncertainties [10][29] - The company is monitoring tariff developments closely and will reevaluate guidance once there is greater clarity [10][11] - Management noted that while the macroeconomic environment remains uncertain, disciplined execution and strong cash flow generation position the company well [29][30] Other Important Information - The company recognized a non-cash goodwill impairment charge related to the On Road segment due to ongoing industry conditions [22] - The company has approximately $1 billion of liquidity available through its revolving credit facility [27] Q&A Session All Questions and Answers Question: How is the company preparing for potential changes in USMCA? - The company is aware of potential renegotiations and is working to reduce sourcing from China while increasing manufacturing in the U.S. and Mexico to align with USMCA [38][40] Question: Can the company win at lower price points given current trade policies? - The company believes it can maintain margins on the new Ranger 500, which is priced competitively and expected to attract new customers [47][49] Question: What is the expected annualized tariff impact next year? - The company estimates an annualized tariff impact of around $230 million, which could be reduced further through ongoing mitigation efforts [56][58] Question: How is retail performing month to month? - Retail performance was stable throughout the quarter, with the utility segment holding up well, and management is optimistic about future sales as economic conditions stabilize [70][72] Question: What factors are driving share gains in ORV? - Share gains are attributed to strong product offerings and improved inventory levels among competitors, allowing the company to capitalize on its innovative products [109]

Core Insights - Polaris Inc reported revenue of $1.85 billion for the quarter ended June 2025, a decrease of 5.5% year-over-year, but exceeded the Zacks Consensus Estimate of $1.74 billion by 6.39% [1] - The company's EPS was $0.40, significantly lower than $1.38 in the same quarter last year, but represented a surprise of 700% compared to the consensus estimate of $0.05 [1] Financial Performance Metrics - Polaris Inc's stock has returned +21.7% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change, and currently holds a Zacks Rank 2 (Buy) [3] - Marine sales reached $155.3 million, exceeding the average estimate of $121.46 million by analysts, marking a year-over-year increase of 15.8% [4] - On-Road sales were reported at $289 million, slightly below the average estimate of $264.9 million, reflecting a year-over-year decline of 1.5% [4] - Off-Road sales totaled $1.41 billion, surpassing the average estimate of $1.35 billion, but showed a year-over-year decrease of 8.2% [4] - Gross profit for Marine was $26.6 million, significantly higher than the estimated $16.73 million [4] - Corporate gross profit was reported at -$11.6 million, falling short of the estimated $9.95 million [4] - Off-Road gross profit was $288.2 million, exceeding the average estimate of $266.84 million [4] - On-Road gross profit was $56 million, above the estimated $48.4 million [4]

Financial Performance - Adjusted sales were $1848 million, a 6% year-over-year increase[9] - Adjusted gross profit margin was 19.5%, up 232 bps year-over-year[9] - Adjusted EPS was $0.40, a 71% year-over-year increase[9] - The company generated approximately $290 million in free cash flow in Q2[52] Segment Performance - Off-Road Vehicle (ORV) North America retail sales increased by 1% year-over-year[33] - On Road North America Indian Motorcycle retail sales increased by low-double digits % year-over-year[40] - Marine sales increased by 16% year-over-year[42] Tariff Impact - The updated estimate for the 2025 tariff impact is $120-$130 million[19] - The company aims to reduce China spending to the U S by approximately 35% by year-end[22] Inventory and Outlook - Dealer inventory is down 13% year-over-year and down 16% excluding Snow and Youth[12] - Third quarter sales are expected to be between $16 billion to $18 billion[53]

分组1 - Polaris Inc reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $1.38 per share a year ago, representing an earnings surprise of +700.00% [1] - The company posted revenues of $1.85 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.39%, although this is a decrease from year-ago revenues of $1.96 billion [2] - Polaris Inc has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] 分组2 - The stock has underperformed the market, losing about 14.1% since the beginning of the year compared to the S&P 500's gain of 8.6% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The estimate revisions trend for Polaris Inc was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] 分组3 - Current consensus EPS estimate for the coming quarter is -$0.20 on revenues of $1.66 billion, and -$0.97 on revenues of $6.75 billion for the current fiscal year [7] - The Automotive - Domestic industry, to which Polaris Inc belongs, is currently in the bottom 32% of Zacks industries, which may impact stock performance [8]

Core Insights - Polaris reported Q2 fiscal 2025 non-GAAP revenue of $1,847.9 million, exceeding analyst estimates of $1,710.2 million, while non-GAAP EPS was $0.40, significantly higher than the consensus of close to zero but down 71% year-over-year [1][2] - The company faced weaker profitability with shrinking margins attributed to higher promotional costs and a challenging product mix, despite management's claims of operational discipline and market share gains [1][5] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.40, compared to an estimate of $0.00 and $1.38 in Q2 2024, reflecting a 71% decline [2] - Non-GAAP revenue decreased by 5.8% year-over-year from $1,961.2 million in Q2 2024 [2] - Adjusted EBITDA margin fell to 6.4% from 10.1% in Q2 2024, a decline of 3.7 percentage points [2][8] - Off Road revenue was $1,408.4 million, down 8.2% from the previous year, while On Road revenue decreased by 1.5% to $289.0 million; Marine revenue grew by 15.8% to $155.3 million [2][6] Business Overview - Polaris specializes in powersports equipment, including off-road vehicles, motorcycles, and marine products, supported by a distribution network of over 2,500 dealers in North America and more than 1,500 internationally [3] Strategic Focus - The company's strategy emphasizes continuous product innovation, maintaining market share leadership, leveraging its distribution network, and diversifying revenue streams across its segments [4] Market Dynamics - Polaris achieved better-than-expected revenue and earnings despite a 6% decline in total sales year-over-year, with retail market share gains reported in core categories [5] - The Off Road segment contributed 76% of revenue but experienced an 8% decline due to reduced volumes and increased promotional activity [6] Operational Challenges - The Marine segment was the only major segment to post revenue growth, increasing by 16%, although profitability decreased due to a less favorable mix of boat types sold and rising operational costs [7] - The adjusted EBITDA margin dropped significantly, and the company recorded a GAAP net loss of $79.3 million compared to a net income of $68.7 million in Q2 2024 [8] Regulatory Environment - Ongoing challenges from tariffs and trade policies are significant, with expected tariff costs for 2025 projected to be less than $225 million, primarily deferred until late 2025 or into 2026 [9] - The company is diversifying its supplier base, aiming to shift approximately 30% of parts sourcing out of China by the end of 2025 to mitigate tariff impacts [9] Future Outlook - Polaris has withheld full fiscal 2025 revenue and earnings guidance due to uncertainties related to tariffs and demand shifts, but has provided a Q3 2025 sales outlook of $1.6 billion to $1.8 billion [10] - The company reported year-to-date operating cash flow of $403.5 million and adjusted free cash flow of $343.8 million for the first half of 2025, ending the quarter with $324.3 million in cash [11]

Core Viewpoint - Polaris Inc. reported its second quarter 2025 financial results, highlighting its ongoing leadership in the powersports industry and commitment to product innovation and customer experience [1]. Financial Results - The financial results for the second quarter of 2025 were released and are available on the Company's Investor Relations website [1]. - The earnings release will be furnished with the Securities and Exchange Commission on a Form 8-K [1]. Conference Call and Webcast - A conference call with analysts and investors is scheduled for today at 9:00 a.m. CT, providing an opportunity for further discussion on the financial results [2]. - Access to the call and webcast can be made through the Webcast link on the Company's website or by dialing specific numbers for U.S. and international participants [2]. Company Overview - Polaris Inc. is recognized as a global leader in the powersports sector, with a history dating back to 1954 [3]. - The Company offers a diverse range of high-quality products, including off-road vehicles, snowmobiles, motorcycles, and boats, serving nearly 100 countries worldwide [3].

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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Core Insights - Polaris Inc. announced the 2025 recipients of the Polaris Fund for Outdoor Recreation Grants in partnership with the National Forest Foundation, aimed at supporting outdoor recreation and trail conservation [1][4] - Over $113,000 in funding will be allocated to five initiatives across various National Forest locations in Arizona, California, New Hampshire, Colorado, and Kentucky [2][7] - The Polaris Fund for Outdoor Recreation was established in 2021 with a commitment of $5 million over five years to support trail creation, restoration, and reforestation projects [4][9] Funding Initiatives - Navigate Responsibly Project in Coconino National Forest, Arizona: Funding will improve visitor navigation and protect natural resources through new signage [7] - Snowmobile Park Improvements in Lassen National Forest, California: Grant will support updated trail markers and winter recreation maps to enhance safety and access [7] - Snowmobile Bridge Improvements in White Mountain National Forest, New Hampshire: Funding will repair two snowmobile trail bridges to ensure safe winter access [7] - Alpine Loop Trail Kiosks in GMUG National Forest, Colorado: Grant will replace kiosks and update information to improve visibility and orientation for visitors [7] - Phase 1: Land Between the Lakes NRA in Turkey Bay OHV Area, Kentucky: Funding will initiate various safety and access improvements for off-highway vehicle users [7]

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].