Financial and Operational Highlights
- Full year 2025 sales were $7,152 million, approximately flat compared to last year; adjusted sales were $7,143 million.
- Full year 2025 reported diluted loss per share was $8.18; adjusted diluted net loss per share was $0.01.
- Fourth quarter sales were $1,922 million, up nine percent compared to last year; adjusted sales were $1,921 million.
- Fourth quarter reported diluted loss per share was $5.34; adjusted diluted net income per share was $0.08.
- Primary factors affecting fourth quarter sales were higher shipments and higher mix within off-road vehicles (ORV) partially offset by lower net price.
- Polaris gained market share in all segments for full-year 2025.
- Polaris gained market share in ORV (excluding Youth), Snow and Marine during the fourth quarter.
- Powersports retail sales for the quarter were up nine percent excluding Youth versus last year.
MINNEAPOLIS — Polaris Inc. today released fourth quarter and full year 2025 results. For the fourth quarter, the Company reported worldwide sales of $1,922 million, up 9% vs. the fourth quarter of 2024. North America sales of $1,623 million represented 84% of total company sales and increased 10% from $1,481 million in 2024. International sales of $299 million represented 16% of total Company sales and increased 9% vs. the fourth quarter of 2024. Total Company sales in the fourth quarter of 2025 were positively impacted by higher shipment volumes to meet demand.
Commenting on the results, CEO Mike Speetzen says, "2025 may have brought headwinds outside our control, but the Polaris team met the year with resolve, a disciplined focus, and unwavering commitment to our dealers and riders. We delivered strong results for the year, gaining share across our segments, enhancing operations, achieving healthy dealer inventory levels, and advancing strategies that strengthen our foundation. Our long-term growth plan remains anchored in category-defining innovation, efficient operations, and a best-in-class dealer network. We believe these priorities position us to lead the industry, drive profitable growth and deliver strong returns for shareholders."
Gross profit margin decreased 40 basis points to 20.0% for the fourth quarter, as compared to the fourth quarter of 2024. Adjusted gross profit margin of 20.3% decreased 77 basis points primarily driven by tariffs and net price, partially offset by positive mix within ORV and volume.
Operating expenses were $724 million in the fourth quarter of 2025 compared to $318 million in the fourth quarter of 2024 primarily due to charges associated with the Indian Motorcycle business held for sale, the majority of which were non-cash charges. Operating expenses as a percentage of sales were 37.7 percent.
For the fourth quarter, net loss attributable to Polaris was $304 million, or $5.34 net loss per diluted share, compared to net income attributable to Polaris of $11 million, or $0.19 per diluted share, in the fourth quarter of 2024. Adjusted net income attributable to Polaris for the quarter was $4 million, and adjusted EPS was $0.08.
Fourth quarter 2025 results included impairment and other charges of $288 million, the majority of which were noncash charges, as a result of the Indian Motorcycle business being classified as held for sale, in addition to non-cash impairment charges of $54 million related to intangible assets associated with the Company's Off Road segment.
Off Road segment results were primarily driven by these factors:
- Sales were driven by higher volume and favorable mix within ORV, partially offset by lower net price.
- Parts, Garments and Accessories (PG&A) sales increased 22%.
- Gross profit margin performance was driven by pressure from tariffs and higher promotions, mostly offset by volume and operational efficiencies.
- Polaris North America ORV excluding Youth unit retail sales were up 5%. Estimated North America industry ORV excluding Youth unit retail sales were up low-single digits percent
2026 Business Outlook
The Company expects 2026 sales to be up 1-3% vs. 2025. The Company expects adjusted diluted EPS attributed to Polaris Inc. common stockholders to be between $1.50 and $1.60, relative to ($0.01) in 2025.
The Company has not provided a reconciliation of guidance for adjusted earnings per share in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include restructuring and realignment costs and acquisition integration costs that are difficult to predict in advance in order to include in a GAAP estimate.
