Indian Motorcycle Units Sales "Flat" in a 2024 Market Down High-Single Digits Percent
Polaris Inc has reported its Q4 and full year results for 2024, with Q4 On Road segment results delivering a -21% decline in segment sales revenues at $180.80m, from $229.2m for the year-ago, and -3.91% segment gross profit margin at 9.9% down from 13.8% for the year ago.
The decline in sales revenue was driven by reduced unit sales with North America unit retail sales for Indian Motorcycle "flat" in the context of estimated North America unit retail sales for the comparable motorcycle industry down high-single digits percent. So looked at through the Indian Motorcycle lens "flat" is the new "growth" at present.
On Road segment PG&A sales were down by -15%. The gross profit margin performance was driven by a favorable comparable last year and operational efficiencies, partially offset by a mix headwind.
Overall, Polaris' full year 2024 sales were $7,175m, down -20% compared to 2023. Fourth quarter sales were $1,755m, down -23% compared to 2023.
Primary factors said to have been affecting fourth quarter sales were lower volume due to "planned reductions in shipments as we actively managed dealer inventory in a subdued retail environment."
Fourth quarter North America market share was flattish across all three segments. Powersports retail sales for the quarter were down -7% versus 2023. Polaris announced 2025 full year sales expected to be down -1% to -4% with full year adjusted earnings per share expected to be down by approximately -65%. Full year 2024 reported diluted earnings per share was $1.95, down -78% versus last year; adjusted diluted earnings per share was $3.25, down -65% versus last year.
Mike Speetzen, Chief Executive Officer of Polaris Inc. is quoted as saying: "Amid a tough year for the powersports industry, I'm proud of the Polaris team's disciplined focus to make progress within the areas we can control.
"We were relentless in our efforts, resulting in continued innovation leadership with our products, a 16-percent reduction in ORV dealer inventory, and an operational efficiency savings goal that was exceeded by over $100m.
"Polaris has weathered storms before, and we believe we are positioning our organization to emerge from this downcycle even stronger. While I anticipate challenging headwinds will carry forward into 2025, we will remain focused on being a strong partner to our dealers, providing our riders with high quality products and working to deliver long-term value to shareholders."
"Off Road segment sales were driven by lower unit volume due to planned shipment reductions as we actively managed dealer inventory in a subdued retail environment." PG&A sales were down by -15%. Polaris North America ORV unit retail sales were flat. Estimated North America industry ORV unit retail sales were up mid-single digits percent. The Marine segment also saw lower volumes due to planned shipment reductions.
This was another quarter that saw the NYSE remaining unconvinced with Polaris' results. Back in October 2024 their share price dropped immediately dropped immediately in response to the company's Q3/YTS results, by around 10% - from $80.00 as trading opened down to around $72.20 by close. Set that against a 12-month high of $137 at the end of July last year and a post-pandemic high of $146 in April 2021.
By the time Polaris filed its Q4/FY2024 results in January 2025, the share price has atrophied further, to mid $50.00 territory, dropping from around $56.00 when trading opened on the day the results were released (January 28, 2025) to close at around $52.00, and headed south from there as the week continued.
www.polaris.com
