Polaris (PII) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

Jan. 27, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Michael Speetzen

• Chief Financial Officer — Robert Mack

Michael Speetzen: Thanks, J.C. Good morning, everyone, and convey you for joining america today. I'd similar to commencement by acknowledging the resiliency of our Polaris squad and the subject of our strategy. These are qualities that transformed a challenging twelvemonth and 1 that genuinely reflects the spot and resoluteness of our business. While tariffs represented the astir important situation we person seen since the pandemic, we delivered astir everything we said we would bash and past some. We navigated hard headwinds successful 2025 portion inactive delivering stock gains, innovation, prime and operational improvements, portfolio realignments and strategical milestones that presumption america for semipermanent success. We achieved stock gains successful each segments past year, including off-road vehicles, snowmobiles, pontoons and motorcycles.

This reflects some our committedness to innovation and the spot of our trader partnerships. In ORV, we launched respective caller products from the RZR XPS to the all-new worth tier Ranger 500. We besides launched the industry's largest touchscreen successful the caller Razer Pro R and our mill racing squad had an awesome twelvemonth of apical podium finishes. In fact, earlier this month, our Polaris mill racing squad proved erstwhile again what our vehicles and drivers are susceptible of, lasting astatine the apical of the Dakar podium for the 3rd consecutive year. A genuinely astonishing and unthinkable achievement.

In marine, we refreshed our flagship Bennington QX enactment and the all-new Godfrey sandpan models earned Boating Magazine's Pontoon of the Year. The past fewer years of merchandise launches crossed our concern person demonstrated our committedness to innovation and further solidified our enactment successful powersports, and our aboriginal merchandise innovation pipeline remains full. Next, we made advancement successful executing against our determination to importantly trim our vulnerability to China. We acceptable a extremity of lowering China-based walk by 80% from astir 18% of worldly outgo of goods sold successful 2024, to beneath 5% by year-end 2027. This translation has 3 cardinal benefits.

It lowers tariff disbursal nether the existent policies, minimizes the hazard associated with melodramatic swings successful regulatory policy, and creates a much localized proviso concatenation with improved moving superior and faster effect times. We ended 2025 with China-based walk of astir 14% of worldly outgo of goods sold and are connected way to thrust our vulnerability down adjacent further successful 2026. Operationally, we delivered much than $60 cardinal successful savings arsenic our manufacturing translation continues. We're seeing the interaction successful areas similar improved cleanable build, little levels of rework, improved labour ratio and reduced inventory. I'm incredibly arrogant of our operations squad for everything they've done to get america to this point.