Polaris Stock Is Rallying After Hours: What's Fueling The Move?

Core Viewpoint - Polaris Inc plans to divest its majority stake in Indian Motorcycle to focus on more profitable growth areas, with the transaction expected to close in Q1 2026 [2][3]. Group 1: Transaction Details - Polaris has entered into a definitive agreement to sell a majority stake in Indian Motorcycle to Carolwood LP, an independent private equity firm [2]. - The separation is projected to increase Polaris' annualized adjusted EBITDA by approximately $50 million and adjusted earnings by about $1 per share [3]. - Polaris will retain a small equity position in Indian Motorcycle post-transaction, with Mike Kennedy appointed as CEO of the new independent entity [4]. Group 2: Financial Performance - Polaris anticipates third-quarter sales to be at the high end of its guidance range of $1.6 billion to $1.8 billion, with adjusted earnings expected between 31 cents and 41 cents per share, significantly higher than previous expectations [5]. - Following the announcement, Polaris shares rose by 12.45% in after-hours trading, reaching $69 [6].