Polaris Industries Inc. Earnings Report

NEW YORK – Polaris (NYSE:PII) Industries Inc. reported third-quarter earnings that missed analyst expectations and lowered its full-year outlook, causing shares to drop over 5% in early trading on Tuesday.

The powersports vehicle manufacturer posted adjusted earnings per share of $0.73, falling short of the $0.90 analyst estimate. Revenue for the quarter was $1.72 billion, below the consensus forecast of $1.77 billion and down from the same period last year.

Polaris cited persistent macroeconomic headwinds, including inflation, higher interest rates, and weakening consumer confidence, as factors impacting its performance. The company shipped fewer units to manage dealer inventory in response to lower retail demand.

> Mike Speetzen, CEO of Polaris: “The retail environment remained challenging in the third quarter. We're taking decisive actions to align our production with demand and reduce dealer inventory levels.”

For the full year 2024, Polaris now expects sales to decline approximately 20% compared to 2023, worse than its previous guidance of a 17% to 20% drop. The company also revised its adjusted EPS outlook, projecting a 65% decline from 2023 levels, down from an earlier forecast of a 56% to 62% decrease.

North American retail sales fell 7% in the quarter, with a modest loss in market share within off-road vehicles, motorcycles, and pontoons. Dealer inventory decreased 1% from the end of 2023, or 6% excluding snow and youth products.

Looking ahead to 2025, Polaris anticipates continued challenges in the retail environment but expects dealers to feel more comfortable with their inventory positions. The company plans to expand its market presence through innovation and to keep driving operational efficiencies.

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