10 • February 2025 • Powersports Business

Polaris has released its fourth quarter and full-year 2024 results . In Q4 , the company reported worldwide sales of $ 1,755 million , down 23 % versus Q4 of 2023 .

North America sales of $ 1,481 million represented 84 % of total company sales and decreased 26 % from $ 1,995 million in 2023 . The North American market share was flattish across all three segments ;

International sales of $ 274 million represented 16 % of total sales and decreased 7 % versus the fourth quarter of 2023 ; and

Due to planned shipment reductions , lower volumes impacted total sales in Q4 as the company managed dealer inventory .

Polaris ’ Q4 net income decreased 90 % compared to Q4 of 2023 . Adjusted net income attributable for the quarter was $ 52 million , down 54 % compared to Q4 2023 . Gross profit margin decreased 44 basis points to 20.4 % for Q4 versus 2023 . The adjusted gross profit margin of 21.1 % increased by nine basis points were mostly driven by lean operational strategies .

Polaris ’ North America sales represented 84 percent of total company sales and decreased 26 percent compared to 2023 .

Polaris reported that operating expenses were $ 318 million in Q4 compared to $ 357 million in Q4 of 2023 due to a lower cost spend across the business . Operating expenses , as a percentage of sales , of 18.1 % were up 254 basis points in the fourth quarter of 2024 compared to Q4 of 2023 .

“ I ’ m proud of the Polaris team ’ s disciplined focus on making progress within the areas we can control ,” says CEO Mike Speetzen . “ We were relentless in our efforts , resulting in continued innovation leadership with our products , a 16 % reduction in ORV dealer inventory , and an operational efficiency savings goal exceeding over $ 100 million … 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 .”

OFF ROAD SEGMENT :

Sales were driven by lower volume due to planned shipment reductions as we actively managed dealer inventory in a subdued retail environment ; PG & A sales decreased by 13 %; Gross profit margin performance was driven by operational efficiencies and lower costs , somewhat offset by negative mix , finance interest and absorption ; and

Polaris North America ORV unit retail sales were flat . Estimated North American industry ORV unit retail sales were up midsingle digits percent .

ON-ROAD SEGMENT : Sales were driven by lower volumes ; PG & A sales decreased 15 %; Gross profit margin performance was driven by a favorable comparable last year and operational efficiencies , partially offset by a mixed headwind ; and

North America unit retail sales for Indian Motorcycle were flat . Estimated North American unit retail sales for the comparable motorcycle industry were down by a high-single-digit percentage .

MARINE SEGMENT :

Sales were driven by lower volume due to planned shipment reductions as we actively managed dealer inventory in a subdued retail environment ; and

Gross profit margin performance was impacted by a decrease in sales volumes , resulting in decreased leverage of manufacturing costs .

2025 OUTLOOK Polaris expects 2025 sales to be down 1−4 % versus 2024 , margin headwinds from the negative mix , planned reductions in production leading to negative absorption , and the restoration of the employee profit-sharing program . These are expected to be offset by progress with Polaris ’ s lean and efficient operations strategy .