Polaris Inc. · NYSE:PII
Polaris — Q4 2024 Earnings Presentation
22 slides from Polaris's earnings presentation, Jan 28, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 Earnings Presentation January 28, 2025
Slide 2: Safe Harbor & Non-GAAP Measures
Safe Harbor & Non-GAAP Measures Except for historical information contained herein, the matters set forth in this presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Poten
Slide 3: 2024 In Review
2024 In Review Off Road: RZR Pro, Full-size RANGER, Sportsman 2-Up, DYNAMIX Suspension in Snow ORV dealer inventory down 16% y/y with reduced shipments Continued On Road: Scout, Scout Sixty, new family of Protected Indian Motorcycles Elites Full-year retail down 8% y/y, ORV down 1% to Push Dealer In
Slide 4: Fourth Quarter and Full Year 2024 Overview
Fourth Quarter and Full Year 2024 Overview Total Company Results* Fourth Quarter Drivers • North America retail down 7%, excluding Snow Q4’24 Y/Y Change FY’24 Y/Y Change and Youth retail down 5% o Off Road retail down 7% Sales $1,755M 23% $7,175M 20% Utility down low-single digits Recreation up:
Slide 5: North America Retail Trends and Sentiment
North America Retail Trends and Sentiment • Retail Trends in Q4 ORV Recreation and Utility Retail o ORV Utility down low-single digits % In Units 7% 3% -4% -3% 0% o ORV Recreation up due to strong Youth sales and lower comparable • RZR continues to be down double digits o On Road pressure in heavywe
Slide 6: Refocus on Lean Within Our Plants
Refocus on Lean Within Our Plants Focus Areas Actions 2024 Results: • Realize improved average cost of commodities • ~$280 million in operational savings: ~$210 million in structural savings and ~$70 million in temporary savings Commodities • Execute hedges to protect magnitude of market moves • Lea
Slide 7: Q4 2024 Financial Results
Q4 2024 Financial Results Sales Financial Highlights (Y/Y) $2,289 • Quarterly sales of $1.8B, down 23% $66 $1,755 o Lower volumes due to planned cuts in shipments to actively ($593) ($7) manage dealer inventory in challenging retail environment o International sales down 7% o PG&A sales down 13% • A
Slide 8: Off Road Q4 Summary
Off Road Q4 Summary Q4 & FY 2024 Results Q4 PII Call-outs Q4’24 Y/Y Change FY’24 Y/Y Change • N.A. ORV: Retail was flat y/y; FY’24 down 1% • Lost modest market share in ORV; full-year share is down Sales $1,437M 25% $5,707M 18% less than 1 point o Share driven by aggressive promo by other OEMs Whole
Slide 9: On Road Q4 Summary
On Road Q4 Summary Q4 & FY 2024 Results Q4 PII Call-outs Q4’24 Y/Y Change FY’24 Y/Y Change • N.A. Indian Motorcycle retail was flat o Strong International growth Sales $181M 21% $988M 17% • Indian Motorcycle gained modest share in N.A. Wholegoods Wholegoods o Gained share in mid-size with new Indian
Slide 10: Marine Q4 Summary
Marine Q4 Summary Q4 & FY 2024 Results Q4 PII Call-outs Q4’24 Y/Y Change FY’24 Y/Y Change • Dealer inventory down over 20% y/y • Retail was slightly higher y/y in Bennington; however, the Sales $137M 4% $481M 37% fourth quarter is a very low seasonal quarter • New innovation resonating with dealers
Slide 11: Financial Position
Financial Position Operating Cash Flow Adjusted* Free Cash Flow $ in millions $ in millions ~$500 ~$350 $268 $65 FY 2024 FY 2025 FY 2024 FY 2025 Expectations Expectations 2025 Capital Deployment Priorities FY 2024 Key Financial Metrics $ in millions #1 Priority – Organic Investment Expect lower year
Slide 12: Full Year 2025 Guidance & Expectations
Full Year 2025 Guidance & Expectations Total Company Sales Segment Sales Initial 2025 Outlook Assumptions $ in Millions • More difficult first half versus second half Off Road Low-single digits o Production volumes lower as we actively manage dealer inventory 4% to 1% o Negative plant absorption • I
Slide 13: 2025 Key Focus Areas
2025 Key Focus Areas • Ongoing focus on the health of our dealer network o Actively manage dealer inventory o Expect the retail environment to remain challenging o Short-term share movements impacted by promotions from other OEMs • Innovation across all three segments • Continue to drive lean and op
Slide 14: Closing Comments
Closing Comments • Remain committed to actively managing dealer inventory • Expect current trends to persist • Continue to launch innovative products that deliver on customer needs and strong value propositions • Collaborating with dealers to help improve their profitability • Focusing on executing
Slide 15: Polaris
PssLARIS
Slide 16: Appendix
Appendix • FY 2024 Financial Results • Non-GAAP Reconciliations – Total Company • Non-GAAP Reconciliations – Net Income to Adjusted EBITDA • Non-GAAP Reconciliations – Segments / Cash Flow • 2025 Guidance Adjustments Q4/FY'24 Earnings 1/28/25 16
Slide 17: FY 2024 Financial Results
FY 2024 Financial Results Sales Financial Highlights (Y/Y) $8,934 • Full Year sales of $7.2B, down 20% $94 $7,175 o Lower volumes and negative net price ($1,842) ($11) o International sales down 10% o PG&A sales down 6% • Adjusted* EBITDA margin down 257 bps FY2023 Volume Mix/ FX FY2024 o Negative p
Slide 18: Non-GAAP Reconciliations – Total Company
Non-GAAP Reconciliations – Total Company Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Millions, Except Per Share Data; Unaudited) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 Sales $ 1,755.4 $ 2,289.2 $ 7,175.4 $ 8,934.4 Restruc
Slide 19: Non-GAAP Reconciliations – Net Income to Adjusted EBITDA
Non-GAAP Reconciliations – Net Income to Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (In Millions, Unaudited) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 Adjusted sales 1,754.7 2,289.2 7,174.7 8,934.4 Net income 10.8 103.3 111.2 502.7 Prov
Slide 20: Non-GAAP Reconciliations – Segments / Cash Flow
Non-GAAP Reconciliations – Segments / Cash Flow Reconciliation of GAAP Segment Gross Profit to Non-GAAP Reconciliation of GAAP Operating Cash Flow to Non-GAAP Segment Gross Profit Adjusted Free Cash Flow (In Millions, Unaudited) (In Millions, Unaudited) Three months ended December 31, Twelve months
Slide 21: Non-GAAP Reconciliations – Segments
Non-GAAP Reconciliations – Segments Reconciliation of GAAP Segment Sales to Non-GAAP Segment Sales (In Millions, Unaudited) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 On Road segment sales 180.8 229.2 987.8 1,184.6 Restructuring (1) (0.7) — (0.7) — Adjusted
Slide 22: 2025 Guidance Adjustments
2025 Guidance Adjustments 2025 adjusted guidance excludes the pre-tax effect of restructuring costs of approximately $10 million, and approximately $20 million for class action litigation-related expenses. Intangible amortization of approximately $18 million related to all acquisitions has also been