Polaris Inc. · NYSE:PII
Polaris — Q1 2025 Earnings Presentation
20 slides from Polaris's earnings presentation, Apr 29, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation April 29, 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: First Quarter 2025 Overview
First Quarter 2025 Overview Total Company Results(1) First Quarter Drivers Q1’25 Y/Y Change • Sales in line with expectations driven by a planned reduction in shipments and higher promotions Sales $1,536M 12% • Margins pressured by elevated promotions and negative FX somewhat offset by lower warrant
Slide 4: North America Retail Trends and Sentiment
North America Retail Trends and Sentiment • Retail Trends in Q1 ORV Recreation and Utility Retail o ORV Utility down high-single digits %, Recreation down high- In Units -3% -11% 3% -4% 0% teens % o Japanese OEMs continue to offer elevated promotions driving short-term share dynamics in ORV o Snowmo
Slide 5: Greater Tariff Impact Due to Our U.S. Footprint
Greater Tariff Impact Due to Our U.S. Footprint We are the only American TARIFFS Polaris Major Powersports Company: • Reciprocal • Additional China • Mexico and Manufacturing Canada • Retaliatory • Steel/Aluminum Locations in USA U.S. Headquartered U.S. Manufacturer New rules have created enviro
Slide 6: Current Tariff Picture and Mitigation Strategy
Current Tariff Picture and Mitigation Strategy Estimated 2025 Tariff Impact by Country or Region 4-Pronged Tariff Mitigation Strategy Tariff % $ Millions • Supply Chain and Manufacturing o Taking actions to reduce China sourcing by 30% by year-end China 145% $200 - $240 o Working to increase percent
Slide 7: Longer-Term Strategy Remains in Place
Longer-Term Strategy Remains in Place Controlling What We Can Control • Operational Efficiencies o Ahead of plan with favorable plant spend o Materials and Logistics running favorable • Innovation o Continue to focus on product innovation • Working Capital o Ahead of plan to lower finished goods • D
Slide 8: Q1 2025 Financial Results
Q1 2025 Financial Results Sales Financial Highlights (Y/Y) • Quarterly sales of $1.5B, down 12% $1,736 $1,536 o Lower volumes due to planned cuts in shipments ($166) ($15) ($19) o Higher promotions led to negative net price o International sales down 16% o PG&A sales flat Q1 2024 Volume Mix/ FX Q1 2
Slide 9: Off Road Q1 Summary
Off Road Q1 Summary Q1 Results & Y/Y Change Q1 PII Call-outs Q1’25 Y/Y Change • N.A. ORV Retail down 11% y/y o Abnormally volatile retail quarter with double-digit swings m/m Sales $1,199M 10% o Dealer inventory remains below prior year • Lost market share in Off Road Wholegoods North America 14% PG
Slide 10: On Road Q1 Summary
On Road Q1 Summary Q1 Results & Y/Y Change Q1 PII Call-outs Q1’25 Y/Y Change • Sales lower due to planned reduction in shipments • N.A. Indian Motorcycle retail was down low-teens % Y/Y Sales $222M 20% • Indian Motorcycle gained over a point of share in N.A. Wholegoods North America • Heavyweight cl
Slide 11: Marine Q1 Summary
Marine Q1 Summary Q1 Results & Y/Y Change Q1 PII Call-outs Q1’25 Y/Y Change • As planned, lower shipments pressured sales results • Dealer inventory down ~20% y/y Sales $115M 7% • Modest share gain in Pontoons • Continue "Build to Order" model Gross Profit 12.4% 312 bps • Margins negatively impacted
Slide 12: Financial Position
Financial Position 2025 Capital Deployment Priorities Q1 Key Financial Metrics $ in millions #1 Priority – Cash Preservation Cash $292 Executing on recession playbook Capex $36 #2 Priority – Pay Down Debt Actions to reduce net leverage ratio Total Debt $2,056 #3 Priority – Dividends Dividends $38 Di
Slide 13: Second Quarter Planning Assumptions
Second Quarter Planning Assumptions • Second quarter sales expected to be between $1.6 billion to $1.8 billion • Retail demand remains pressured with elevated promotions • Shipments lower than retail o Cut shipments to Canada and Europe o Actively managing dealer inventory • Supply chain continues t
Slide 14: Closing Comments
Closing Comments • Executing on our tariff mitigation strategy • Implemented recession playbook given current uncertainty • Remain committed to actively managing dealer inventory • Continue to launch innovative products that deliver on customer needs and strong value propositions • Focus on executin
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix • Non-GAAP Reconciliations – Total Company • Non-GAAP Reconciliations – Net Income to Adjusted EBITDA • Non-GAAP Reconciliations – Segments / Cash Flow Q1'25 Earnings 4/29/25 16
Slide 17: 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 March 31, Full Year 2025 2024 2024 Sales 1,535.8 1,736.4 7,175.4 Product wind downs (1) 0.5 — (0.7) Adjusted sales 1,53
Slide 18: 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 March 31, Full Year 2025 2024 2024 Adjusted sales 1,536.3 1,736.4 7,174.7 Net (loss) income (66.7) 3.9 111.2 Provision for income taxes (4.4) 3.8 29.6
Slide 19: 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 March 31, Three months ende
Slide 20: Non-GAAP Reconciliations – Segments
Non-GAAP Reconciliations – Segments Reconciliation of GAAP Segment Sales to Non-GAAP Segment Sales (In Millions, Unaudited) Three months ended March 31, 2025 2024 On Road segment sales $ 221.8 $ 277.2 Product wind down (1) (2.9) — Adjusted On Road segment sales 218.9 277.2 Adjustments: (1) Represent