Polaris Reports Q3 All Segment Sales Up By 7%; Indian Unit Sales Tracking Market at Down Mid-Single Digit Percent
Polaris Third Quarter results saw sales of $1,842m, up seven percent compared to last year; adjusted sales were $1,838m; Q3 reported diluted loss per share was $0.28; adjusted diluted net income per share was $0.41.
Primary factors affecting Q3 sales were higher than expected shipments and ORV mix; Q3 year-to-date operating cash flow was $562m; Q3 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 CEO Mike Speetzen commented that "I'm incredibly proud of the Polaris team - their efforts are reflected in this quarter's performance. Polaris delivered strong third quarter results with $1.8bn 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."
In remarks to analysts when these fiscals were released, Speetzen added clarity to the remarks that accompanied the announcement of the sale of a majority position in Indian Motorcycle by further emphasising that the benefits of the deal were increasing capital availability for ORV operations availability and increasing the return they feel they can achieve on that capital.
Rather than suggesting the decision was driven by negativity about Indian Motorcycle as such, he confirmed that it was more a question of the challenges facing the motorcycle industry in general. He stated that the deal "allows us to focus on our most promising, high margin higher growth opportunities."
Reporting worldwide sales were $1,842m, up seven percent versus Q3 of 2024. North America sales of $1,586m represented 86 percent of total Company sales and increased eight percent from $1,473m in 2024.
International sales of $256m represented 14 percent of total Company sales and increased two percent versus Q3 of 2024.
Total Company Q3 sales of 2025 were positively impacted by product mix. Gross profit margin increased six basis points to 20.6 percent for Q3, 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 Q3 of 2024.
Operating expenses were $380m in Q3 of 2025 compared to $313m in Q3 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 Q3 of 2025 compared to Q3 of 2024.
For Q3, net loss attributable to Polaris was $16m, or $0.28 net loss per diluted share, compared to net income attributable to Polaris of $28m, or $0.49 per diluted share, in Q3 of 2024. Adjusted net income attributable to Polaris for the quarter was $23m, and adjusted EPS was $0.41.
Third quarter 2025 results included a $42.3m impairment charge related to certain property and equipment assets in the Company's On Road segment.
On Road segment sales were driven by lower volumes and continued market softness. PG&A sales increased six percent. Gross profit margin performance was driven by negative product mix, partially offset by strong performance at Aixam (Quadricycles, Aix-les-Bains, France).
North America unit retail sales for Indian Motorcycle were down mid-single digits percent. Estimated North America unit retail sales for the comparable motorcycle industry were down mid-single digits percent.
Off Road segment sales were driven by positive product mix in off-road vehicles. PG&A sales increased 22 percent; gross profit margin performance was driven by positive product mix and operational efficiencies.
Polaris North America ORV unit retail sales were up nine percent. Estimated North America industry ORV unit retail sales were up low-single digits percent.
Marine segment sales were driven by increased volumes of entry-level pontoon. Gross profit margin performance was impacted by negative mix.
2025 BUSINESS OUTLOOK
The Company reintroduced updated 2025 full year adjusted sales and adjusted EPS guidance. The Company now expects 2025 adjusted sales to be between $6.9bn to $7.1bn and adjusted EPS down by approx. -$0.05.
