Polaris reports 20 percent sales drop

Polaris released its full-year 2024 financials on Jan. 28, reporting a year-over-year sales drop of 20%; its Q4 worldwide sales of $1,755 million were off 23% compared to Q4 2023. North America sales represented 84% of that total. The manufacturer reported diluted earnings per share of $1.95, down 78 percent versus last year. The Minnesota-based maker of ATVs, UTVs, snowmobiles, motorcycles and boats attributed the sales decline to lower inventory due to planned reductions in shipments “as we actively managed dealer inventory in a subdued retail environment.”

CEO Mike Speetzen added, “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.”

Sales by segment (in millions of USD)

• Off-Road: Q4 2024, $1,437.2; Q4 2023, $1,916.8 (Change -25%)
• On Road: Q4 2024, $180.8; Q4 2023, $229.2 (Change, -21%)
• Marine Q4 2024, $137.4; Q4 2023, $143.2 (Change, -4%)

Off Road segment results were primarily driven by these factors:

• Sales were driven by lower volume due to planned shipment reductions as we actively managed dealer inventory in a subdued retail environment.
• Parts, Garments and Accessories (PG&A) sales decreased 13 percent.
• Gross profit margin performance was driven by operational efficiencies and lower costs somewhat offset by negative mix, finance interest, and absorption.
• Polaris North America ORV unit retail sales were flat. Estimated North America industry ORV unit retail sales were up mid-single digits percent.

2025 Outlook

Polaris said it expects 2025 sales to be down 1 to 4% versus 2024. It expects margin headwinds from negative mix, planned reductions in production leading to negative absorption in addition to the restoration of its employee profit-sharing program. Polaris expects to offset some of that by continuing progress with its lean and efficient operations strategy.