Polaris(US:PII)2026-01-27 00:01Sales Performance - Fourth quarter 2025 sales were $1,922 million, a 9% increase compared to the fourth quarter of 2024, with North America sales of $1,623 million representing 84% of total sales[7] - Full year 2025 sales were $7,152 million, approximately flat compared to the previous year, while adjusted sales were $7,143 million[8] - Sales for Q4 2025 reached $1,921.9 million, a 9.5% increase from $1,755.4 million in Q4 2024[30] - Parts, Garments and Accessories (PG&A) sales increased by 22% in the fourth quarter, contributing positively to overall sales performance[16] - Adjusted sales for the full year 2025 were $7,142.8 million, slightly down from $7,174.7 million in 2024[30] Profitability and Loss - The fourth quarter reported diluted loss per share was $5.34, compared to a net income of $0.19 per diluted share in the fourth quarter of 2024[11] - Gross profit for the twelve months ended December 31, 2025, was $1,368.7 million, down 6.7% from $1,466.8 million in 2024[24] - Gross profit for Q4 2025 was $384.2 million, compared to $357.9 million in Q4 2024, reflecting a 7.4% increase[30] - Net loss attributable to Polaris Inc. for the twelve months ended December 31, 2025, was $465.5 million, compared to a net income of $110.8 million in 2024[24] - Adjusted EPS for Q4 2025 was $0.08, down from $0.92 in Q4 2024[30] Operating Expenses - Operating expenses for the fourth quarter were $724 million, a significant increase of 128% from $318 million in the fourth quarter of 2024[10] - Total operating expenses for Q4 2025 were $724.0 million, significantly higher than $318.2 million in Q4 2024, primarily due to a $288.1 million loss on disposal group held for sale[24] Cash Flow and Assets - Cash and cash equivalents decreased to $138.0 million as of December 31, 2025, from $287.8 million in 2024[26] - Total current assets fell to $2,206.6 million in 2025, down from $2,632.4 million in 2024[26] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $741.0 million, a significant increase from $268.2 million in 2024[28] - The company reported a net cash used for investing activities of $139.5 million in 2025, compared to $270.9 million in 2024[28] - Adjusted free cash flow for 2025 was $605.4 million, compared to $64.7 million in 2024[33] Future Outlook - The company expects 2026 sales to increase by 1% to 3% compared to 2025, with adjusted diluted EPS projected to be between $1.50 and $1.60[14] - Polaris anticipates that its long-term growth plan will focus on innovation, efficient operations, and a strong dealer network to drive profitable growth[5] - The company anticipates approximately $32 million in restructuring and acquisition-related costs for 2026[40] Impairment and Charges - Fourth quarter results included impairment and other charges of $288 million related to the Indian Motorcycle business, primarily non-cash charges[12] - The company recorded impairment charges of $53.9 million in Q4 2025 and $155.9 million for the full year[38] - Loss on disposal group held for sale amounted to $288.1 million in Q4 2025 and $330.4 million for the full year[39] Market Share - Polaris gained market share in all segments for full-year 2025, with retail sales for powersports up 9% excluding Youth compared to last year[8] Gross Profit Margin - The gross profit margin for the fourth quarter decreased by 40 basis points to 20.0%, primarily due to tariffs and net pricing pressures[9] EBITDA - Adjusted EBITDA for Q4 2025 was $98.1 million, with an adjusted EBITDA margin of 5.1%[31]