Polaris Inc. reported a significant decline in its financial performance for the first quarter of 2025, with total sales reaching $1,535.8 million, a decrease of 12% from $1,736.4 million in the same period last year. The company's gross profit also fell by 26% to $245.0 million, down from $330.3 million, primarily due to decreased shipments across all segments and lower net pricing driven by higher promotional costs. The net loss attributable to Polaris was $66.8 million, or $(1.17) per diluted share, compared to a net income of $3.8 million, or $0.07 per diluted share, in the first quarter of 2024.
The decline in sales was attributed to reduced shipments and unfavorable currency exchange rate movements, which negatively impacted pricing. Sales in the United States, which accounted for 78% of total sales, decreased by 11%, while sales in Canada and other countries also saw declines of 4% and 16%, respectively. The Off Road segment, which includes all-terrain vehicles and side-by-sides, experienced a 10% drop in sales, while the On Road segment saw a 20% decrease, primarily due to reduced shipments in Europe. The Marine segment's sales decreased by 7%.
Operationally, Polaris reported a decrease in total operating expenses, which fell to $303.2 million from $313.2 million, driven by lower selling and marketing expenses. However, the company faced increased interest expenses, which rose to $34.1 million from $31.9 million, reflecting higher debt levels. The company’s Adjusted EBITDA also decreased significantly, falling to $52.7 million from $110.0 million in the prior year, indicating a 52% decline in operational profitability.
Looking ahead, Polaris is closely monitoring macroeconomic conditions, including the impact of tariffs and inflation on its supply chain and consumer demand. The company anticipates that ongoing trade tensions and potential tariff modifications could adversely affect its profitability for the remainder of fiscal 2025. Despite these challenges, Polaris remains committed to implementing measures to mitigate these impacts and is focused on maintaining its operational capabilities and product offerings. The company continues to evaluate its strategic initiatives and market conditions to navigate the current economic landscape effectively.
About Polaris Inc.
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