Polaris Inc. reported a significant decline in financial performance for the second quarter of 2025, with total sales of $1,852.7 million, down 6% from $1,961.2 million in the same period last year. The decrease in revenue was attributed to reduced shipments, an unfavorable product mix, and lower net pricing driven by increased promotional costs. Gross profit also fell by 15% to $359.2 million, resulting in a gross margin of 19.4%, down from 21.6% in the prior year. The company recorded a net loss of $79.3 million, or $1.39 per diluted share, compared to a net income of $68.7 million, or $1.21 per diluted share, in the second quarter of 2024.
The financial results for the first half of 2025 mirrored the quarterly trends, with total sales declining 8% to $3,388.5 million from $3,697.6 million in the previous year. Gross profit for the six-month period decreased by 20% to $604.2 million. The company’s operating expenses increased by 20% in the second quarter, primarily due to a $52.6 million goodwill impairment charge related to its On Road segment, alongside higher general and administrative costs. Adjusted EBITDA for the quarter was $119.0 million, a 40% decrease from $198.1 million in the prior year.
In terms of operational developments, Polaris experienced a decrease in shipments across its Off Road and On Road segments, with Off Road sales dropping 8% and On Road sales declining by 1%. However, Marine sales increased by 16% due to higher shipments. The company’s sales in the United States, which accounted for 79% of total sales, decreased by 5% in the second quarter. The company also noted a significant reduction in dealer inventories, which fell by 18% for Off Road vehicles.
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 tariff policies may adversely affect profitability for the remainder of fiscal 2025. Despite these challenges, Polaris remains committed to its strategic initiatives, including product development and geographic expansion, and believes that its existing cash balances and cash flows will be sufficient to fund operations and capital requirements in the near term.
About Polaris Inc.
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