Covenant Relief Enhances Financial Flexibility and Supports Long-Term GrowthMINNEAPOLIS, July 2, 2025 /PRNewswire/ -- Polaris Inc. (NYSE: PII), the global leader in powersports, today announced that on June 27, 2025 it executed an amendment to its existing credit facilities, originally dated July 2, 2018. In addition, the company also fully repaid all $350 million of outstanding senior notes due 2028. The debt prepayment was funded through revolving loans under the company's senior credit facilities.The ame ...

MINNEAPOLIS, June 26, 2025 /PRNewswire/ -- Polaris Inc. (NYSE: PII) announced today that it will release its second quarter 2025 financial results on Tuesday, July 29, 2025, and will hold a conference call and webcast at 9:00 AM central time on the same day to discuss the results. The call will be hosted by Mike Speetzen, Chief Executive Officer, and Bob Mack, Chief Financial Officer.The financial results will be posted on the company's website at ir.polaris.com. The company will issue an alert over a news ...

Core Insights - Polaris is significantly expanding its partnership with the University of Minnesota to enhance safety education efforts, particularly in ATV and UTV safety programs, anticipating a three to fourfold increase in youth participation across Minnesota and pilot programs in Utah and Wisconsin [1][3] Group 1: Partnership and Program Expansion - The partnership with Polaris has supported safety displays at various events, reaching over 800,000 youth since its inception [2] - New pilot programs will be initiated in Wisconsin and Utah, where Minnesota 4-H will share resources to develop ATV and UTV safety programs [3][7] - An online safety course for youth is also in development as part of the expansion efforts [3] Group 2: Safety Education and Community Engagement - The Minnesota 4-H ATV and UTV Safety Program allows participants to become certified through the Minnesota Department of Natural Resources, focusing on responsible off-road vehicle operation and safety protocols [1][6] - The program aims to cultivate youth into leaders and ambassadors in their communities, promoting safe riding practices [4][6] Group 3: Organizational Background - Minnesota 4-H is the largest youth development program in the state, serving over 40,000 young people annually and designed to nurture youth into innovators and leaders [6] - Polaris, as a global leader in powersports, is committed to educating youth on safe riding practices and offers a wide range of vehicles and safety technologies [4][7]

Core Insights - The Polaris RZR Factory Racing team achieved a historic podium sweep at the 2025 SCORE Baja 500, with Brock Heger securing his seventh consecutive UTV overall victory, marking a rare three-peat for the team [1][2][5] Performance Highlights - Brock Heger led the race wire-to-wire, completing the 461-mile course without any issues, and finished eighth among all four-wheel vehicles [2][5] - Cayden MacCachren finished physically third but was elevated to second overall due to penalties assessed to another vehicle, contributing to the team's 1-2-3 finish [4][5] - Ethan Groom and Justin Morgan, who shared driving duties, initially crossed the finish line second but were placed third overall after post-race penalties [3][4] Team and Vehicle Performance - The RZR Pro R Factory demonstrated exceptional power, strength, and control throughout the race, solidifying its reputation as the vehicle to beat in the UTV category [5] - The team’s performance is attributed to the hard work of the RZR engineering team and the dedication of the drivers [5] Future Events - The Polaris RZR Factory Racing team will compete in the Best in the Desert Vegas to Reno race from August 13–16, 2025, which is the only race win that has eluded the factory team [7] Company Background - Polaris Inc. is a global leader in powersports, offering a wide range of off-road vehicles and related products, and has been in operation since 1954 [9]

Core Insights - Polaris Adventures has achieved a significant milestone of two million customer rides, reflecting the growing passion for outdoor adventure and the effectiveness of its network of over 250 local Outfitters [1][3][4] Company Overview - Polaris Adventures, launched in 2017, has become the leading powersports vehicle rental service in the U.S., partnering with locally owned small businesses to enhance local economies and accessibility to outdoor experiences [3][5] - The company offers a variety of powersports vehicles, including off-road vehicles, snowmobiles, and boats, aiming to introduce more people to outdoor adventures [4][8] Growth Metrics - The company surpassed one million rides in 2022 and has since doubled that number in less than three years, indicating rapid growth and expansion [4] - There are over 600 adventures available for customers, with 250 Outfitters operating across 41 states, making outdoor experiences accessible to a large population [6] Customer Engagement - Approximately 40% of riders are new to powersports, showcasing the company's ability to attract new customers to the industry [6] - The company emphasizes the importance of local knowledge provided by Outfitters, which enhances the customer experience by highlighting scenic routes and attractions [3][4] Innovations and Partnerships - Polaris Adventures has introduced a refreshed fleet of high-quality vehicles equipped with the latest safety and navigation technology to ensure a seamless riding experience [7] - The launch of Polaris Adventures Elite provides Outfitters with tools to run their businesses more efficiently, while a partnership with Sensible Weather offers a Weather Guarantee for customers [7]

Core Insights - Polaris Inc. released its 2024 Geared For Good Report, highlighting its commitment to being responsible stewards for employees, riders, communities, and the environment [1][2][3] THINK PRODUCT - Polaris introduced several new products, including the next generation of the Indian Scout, the 2025 RANGER lineup, and the Klim Freeride Helmet, while receiving multiple awards for innovation in 2024 [6] THINK PRODUCTION - The company achieved a 90% waste diversion rate from landfills at its Wyoming facility, meeting its 2035 goal ahead of schedule, and implemented a new liquid paint system that reduced natural gas usage significantly and avoided substantial CO2 emissions [6] THINK PLACES - Polaris awarded grants for trail enhancement projects in Texas and Arizona and donated $220,000 in TRAILS GRANTS to support trail stewardship and rider education across the U.S. and Canada [6] THINK PEOPLE - The company recorded its lowest Total Recordable Incident Rate (TRIR) in history at 0.30 for the second consecutive year and contributed over $6.4 million to local communities through various forms of donations in 2024 [6]

Financial Data and Key Metrics Changes - In Q1 2025, sales decreased by 12% due to reduced shipments aimed at managing dealer inventory amidst a downturn in the powersports market [5][6] - Adjusted EPS was negative $0.90, aligning with the midpoint of the guidance range provided earlier [6] - Gross profit margin declined by 147 basis points, primarily due to increased promotions and a prolonged downturn in the powersports sector [32] Business Line Data and Key Metrics Changes - Off-Road sales were down 10%, influenced by lower volume and higher promotions, although a favorable mix partially offset this decline [31] - On-Road sales decreased by 20%, driven by challenges in the motorcycle market and timing issues with engine deliveries [34] - Marine sales fell by 7%, consistent with planned reductions in shipments, while the pontoon industry experienced an 11% decline year-to-date [36] Market Data and Key Metrics Changes - North American retail sales were down 7%, with better performance in the utility segment compared to recreational products [6] - International business sales dropped 16% due to weak markets in both off-road and on-road segments [30] - Retail trends showed volatility, with significant month-to-month swings, attributed to high inflation and economic uncertainty [85] Company Strategy and Development Direction - The company has withdrawn its full-year guidance due to the fluid tariff environment and its potential impact on consumer spending [9] - A four-pronged tariff mitigation strategy has been implemented, focusing on supply chain adjustments, cost control, market reprioritization, and government advocacy [21] - The company aims to emerge stronger by maintaining close relationships with dealers and focusing on cash preservation [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment, emphasizing the importance of navigating through tariffs and economic uncertainty [5][9] - There is optimism regarding the potential for retail demand recovery, contingent on inventory levels stabilizing and consumer confidence improving [56] - The leadership remains committed to long-term strategies that prioritize innovation and operational efficiency [30][46] Other Important Information - The company reported its highest Q1 operating free cash flow in nine years, reflecting effective working capital management [28] - Warranty expenses have improved significantly, contributing positively to customer satisfaction and expected future margins [33][89] - The company is actively engaging with government officials to address tariff-related challenges and advocate for U.S. manufacturing interests [15][24] Q&A Session Summary Question: What role will pricing play in tariff mitigation efforts? - Management indicated that pricing will remain stable through May, as raising prices in a recessionary environment is challenging due to inelastic demand [49][50] Question: Where does the company stand in terms of inventory cleanup among competitors? - Management believes they are in the later innings of the inventory cleanup process, with some competitors still facing significant excess inventory [54][55] Question: What is the expected annualized impact from tariffs in 2026? - Management refrained from providing a specific number, emphasizing ongoing mitigation efforts and the complexity of the tariff environment [62][63] Question: How is the company planning shipment levels in light of retail demand? - The company plans to ship fewer units than retail to manage dealer inventory effectively, adjusting based on future retail strength [95][96] Question: What does the recession playbook entail? - The recession playbook focuses on cash preservation, working capital management, and deferring non-critical CapEx projects [100][101]