Polaris down 12%, withdraws guidance
For the first quarter, Polaris reported worldwide sales of $1,536 million, down 12 percent versus the first quarter of 2024. North America sales of $1,290 million represented 84 percent of total company sales and decreased 11 percent from $1,444 million in 2024.
Polaris North America ORV sales were off 11 percent, on lower volumes in snow and off-road. It said that estimated industry ORV sales were down single digits.
“Results from this recent quarter were in line with our expectations, as we continued to prioritize supporting our dealer network and managing a prolonged industry downturn. While consumer uncertainty and a dynamic tariff environment are near-term hurdles, we are thoughtfully navigating these challenges. Our team continues to make progress on the strategic efforts within our control, from innovation and quality advancements in our lineup to our operational efficiency and working capital efforts,” said Mike Speetzen, CEO of Polaris Inc.
Polaris is withdrawing full year 2025 company sales and adjusted earnings guidance.
Tariffs
In its financial presentation, Polaris highlighted what it sees as unfair conditions from tariffs. The company said it is U.S. headquartered and assembled but has large tariff exposure due to sourcing parts and components from overseas. It said new rules have created environment where competition has less tariff impact, largest impact due to inputs for U.S. assembly.
The reduce the negative impact of tariffs, Polaris said it will address supply chain and manufacturing, by “taking actions to reduce China sourcing by 30% by year-end.” And it will work “to increase percentage of USMCA qualified shipments. It also plans increased government affairs efforts, meeting with congressional and administration members.
CEO Michael Speetzen explained that pricing will remain unchanged through May despite bearing higher costs than competitors. The focus is on internal cost management and supply chain adjustments, with significant progress in reducing Chinese content. The company is not relying on price increases as a relief measure and is exploring other avenues, including ongoing negotiations with the administration.
2025 Outlook
The Company withdrawing full year 2025 guidance due to trade and economic uncertainty. It introduced second quarter 2025 sales guidance of $1.6 billion to $1.8 billion.
