• Third quarter sales were $2,341 million, up 32% compared to last year
  • Third quarter reported diluted earnings per share from continuing operations was $3.17, up 69% vs. last year; adjusted diluted earnings per share from continuing operations was $3.25, up 64% vs. last year
  • Primary drivers in the quarter were higher volumes, strong pricing and favorable mix, supported by modest sequential improvement in supply chain
  • Retail sales for the quarter were down eight percent vs. last year despite strong performance in Motorcycles, primarily driven by continued supply chain challenges and softness in Recreation Off-Road demand

"We maintained our focus on executing for customers, dealers and shareholders," said Polaris CEO Mike Speetzen. "Our results were bolstered by easing supply chain headwinds that enabled us to increase ship volumes and take advantage of our strong pricing strategy, resulting in record sales in the quarter. We believe we are well positioned to meet our commitments for the year, while our team remains highly vigilant and agile should indicators point to shifts in consumer behavior or new market dynamics. Looking forward, our diverse portfolio, commitment to innovation, strong financial position and track record of successfully navigating in various operating environments gives me incredible confidence in Polaris’ ability to deliver long-term profitable growth and shareholder value."

Polaris reported worldwide sales of $2,341 million, up 32% vs. the third quarter of 2021. North America sales of $2,069 million represented 88% of total company sales and increased 35% from $1,532 million in 2021. International sales of $272 million represented 12% of total company sales and increased 10% vs. the third quarter in 2021. Sales in the third quarter of 2022 were propelled by accelerated shipments towards the latter part of the quarter, as well as higher pricing and favorable mix.

As reported, third quarter net income from continuing operations attributable to Polaris of $190 million increased 63% and diluted earnings per share from continuing operations of $3.17 increased 69% compared to the third quarter of 2021. Adjusted net income from continuing operations attributable to Polaris for the quarter was $195 million, up 58% and adjusted EPS was $3.25, up 64%, in each case as compared to the third quarter of 2021.

Gross profit margin increased 26 basis points to 23.9%. Adjusted gross profit margin of 23.9% increased 15 basis points driven by higher pricing.

Operating expenses were $317 million in the third quarter of 2022 compared to $273 million in the third quarter of 2021 due to higher sales and marketing and R&D expense. Operating expenses, as a percentage of sales, of 13.5% were down in the third quarter of 2022 compared to the third quarter of 2021.

Off-Road segment results were primarily driven by these factors:

  • Sales were driven by accelerated shipment volume, higher pricing and favorable product mix.
  • Parts, Garments and Accessories (PG&A) sales increased 18%.
  • Gross profit margin performance was driven by favorable pricing and higher volumes.
  • Polaris North America ORV unit retail sales were down high-single digits percent. Estimated North America industry ORV unit retail sales were up low-single digits percent.

The Company now expects 2022 sales to increase 15-16% vs. prior guidance of 13-16%. The Company expects adjusted diluted EPS from continuing operations attributed to Polaris Inc. common shareholders to be in the range of $10.10 to $10.30 for the full year 2022, unchanged from prior guidance.

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