Polaris(US:PII)2025-10-28 20:01Financial 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]