Polaris Inc. (NYSE: PII) (the "Company") today released third quarter 2025 results. For the third quarter, the Company reported worldwide sales of $1,842 million, up seven percent versus the third quarter of 2024. North America sales of $1,586 million represented 86 percent of total Company sales and increased eight percent from $1,473 million in 2024. International sales of $256 million represented 14 percent of total Company sales and increased two percent versus the third quarter of 2024. Total Company sales in the third quarter of 2025 were positively impacted by product mix.
Financial and Operational Highlights
- Third quarter sales were $1,842 million, up seven percent compared to last year; adjusted sales were $1,838 million.
- Third quarter reported diluted loss per share was $0.28; adjusted diluted net income per share was $0.41.
- Primary factors affecting third quarter sales were higher than expected shipments and ORV mix.
- Third quarter year-to-date operating cash flow was $562 million.
- Third quarter market share gains in off-road vehicles (ORV) and motorcycles.
- Powersports retail sales for the quarter were up nine percent versus last year. ORV retail sales were up nine percent.
- Polaris is reintroducing full year 2025 Company adjusted sales and adjusted earnings guidance.
Key Financial Data
(in millions, except per share data)
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.
Gross profit margin increased six basis points to 20.6 percent for the third quarter, as compared to the third quarter of 2024. Adjusted gross profit margin of 20.7 percent decreased eight basis points primarily driven by tariffs and incentive compensation headwinds, partially offset by mix and operational efficiencies compared to the third quarter of 2024.
Operating expenses were $380 million in the third quarter of 2025 compared to $313 million in the third quarter of 2024 primarily due to a non-cash property and equipment impairment charge and increased general and administrative expenses. Operating expenses as a percentage of sales, were 20.6 percent, up 247 basis points in the third quarter of 2025 compared to the third quarter of 2024.
For the third quarter, net loss attributable to Polaris was $16 million, or $0.28 net loss per diluted share, compared to net income attributable to Polaris of $28 million, or $0.49 per diluted share, in the third quarter of 2024. Adjusted net income attributable to Polaris for the quarter was $23 million, and adjusted EPS was $0.41.
Third quarter 2025 results included a $42.3 million impairment charge related to certain property and equipment assets in the Company’s On Road segment.
“I’m incredibly proud of the Polaris team – their efforts are reflected in this quarter’s performance. Polaris delivered strong third quarter results with $1.8 billion in sales. In addition to the On Road and Marine businesses outpacing their respective industries, we achieved meaningful market share gains in Off Road in the quarter. Our operational discipline, dealer inventory alignment, and innovation pipeline have us positioned to deliver for dealers and customers, drive profitable growth and create greater value for our shareholders. Building on our current momentum, we remain committed to executing our long-term strategy and I am confident in the Polaris team’s ability to finish the year strong.” - Mike Speetzen, Chief Executive Officer of Polaris Inc.
Download the full report here.
