Financial and Operational Highlights
- Second quarter sales were $1,853 million, down 6 percent compared to last year.
- Second quarter reported diluted loss per share was $1.39; adjusted diluted net income per share was $0.40.
- Primary factors affecting second quarter sales were lower volumes due to planned shipment reductions, negative product mix and lower net pricing driven by higher promotional spend.
- Second quarter year-to-date operating cash flow was over $400 million.
- Second quarter market share gains in off-road vehicles (ORV), motorcycles and marine.
- Powersports retail sales for the quarter were flat versus last year. ORV retail sales were up 1 percent.
- Polaris is continuing to withhold full year 2025 Company sales and adjusted earnings guidance.
Key Financial Data
(in millions, except per share data)
| Quarter ended June 30, 2025 | Reported YOY % Chg. | Adjusted* YOY % Chg. |
|---|---|---|
| Sales | $1,852.7 (-6%) | $1,847.9 (-6%) |
| Gross profit margin | 19.4% (-223 bps) | 19.5% (-232 bps) |
| Total operating expenses | $394.9 (20%) | |
| Net (loss) income attributable to Polaris | $(79.3) (NM) | $22.9 (-71%) |
| Net (loss) income attributable to Polaris margin | -4.3% (-779 bps) | |
| Adjusted EBITDA margin* | 6.4% (-366 bps) | |
| Diluted EPS attributable to Polaris | $(1.39) (NM) | $0.40 (-71%) |
NM = Not meaningful
*Note: the results and guidance in this release, including the highlights above, include references to non-GAAP operating measures, which are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP / non-GAAP measures can be found at the end of this release.
CEO Commentary
Amid a global macroeconomic environment that remains dynamic, the Polaris team has maintained an unwavering focus on advancing our strategy and delivering for customers and dealers. Polaris’ second quarter performance is the result of our disciplined execution. There are many successes in the quarter to celebrate, such as revenue exceeding our expectations, gaining market share, achieving our highest second quarter operating cash flow in over 5 years, and surpassing pre-pandemic benchmarks in plant efficiency through our lean efforts. I truly believe today’s endeavors build tomorrow’s successes, and thus expect Polaris is well-positioned to emerge stronger and achieve our long-term plans for growth, industry-leading innovation, and greater earnings power.
— Mike Speetzen, Chief Executive Officer of Polaris Inc.
Performance Summary (Reported)
MINNEAPOLIS (July 29, 2025) — Polaris Inc. (NYSE: PII) (the "Company") today released second quarter 2025 results. For the second quarter, the Company reported worldwide sales of $1,853 million, down 6 percent versus the second quarter of 2024. North America sales of $1,584 million represented 85 percent of total Company sales and decreased 6 percent from $1,677 million in 2024. International sales of $269 million represented 15 percent of total Company sales and decreased 5 percent versus the second quarter of 2024. Total Company sales in the second quarter of 2025 were negatively impacted by lower volumes due to planned shipment reductions, negative product mix and lower net pricing driven by higher promotional spend.
Gross profit margin decreased 223 basis points to 19.4 percent for the second quarter, as compared to the second quarter of 2024. Adjusted gross profit margin of 19.5 percent decreased 232 basis points primarily driven by negative product mix and lower net pricing driven by higher promotional spend partially offset by favorable operational costs, as compared to the second quarter of 2024.
Operating expenses were $395 million in the second quarter of 2025 compared to $330 million in the second quarter of 2024 primarily due to a non-cash goodwill impairment and increased general and administrative expenses. Operating expenses, as a percentage of sales, was 21.3 percent, up 450 basis points in the second quarter of 2025 compared to the second quarter of 2024.
For the second quarter, net loss attributable to Polaris was $79 million, or $1.39 net loss per diluted share, compared to net income attributable to Polaris of $69 million, or $1.21 per diluted share. Adjusted net income attributable to Polaris for the quarter was $23 million, and adjusted EPS was $0.40.
Second quarter results included a $52.6 million goodwill impairment associated with the Company’s On Road segment due to continued decline in financial performance and prolonged deterioration of industry conditions, in addition to a $49.4 million impairment related to a strategic investment recorded in Other expense (income), net.
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445
