Polaris Reports 20% Sales Drop in 2024

By Tamara Parker • Tuesday, February 18 15:17 • Permanent Link

Polaris Inc. has recently released its 10-K report, providing a detailed overview of its financial performance for the year 2024. The company, which designs, engineers, manufactures, and markets powersports vehicles globally, operates through three segments: Off-Road, On-Road, and Marine. Its product offerings include off-road vehicles, snowmobiles, motorcycles, and boats, along with a range of accessories.

In 2024, Polaris reported sales of $7.2 billion, marking a 20% decrease from 2023. The company's gross profit decreased by 25% to $1.5 billion, with net income from continuing operations attributable to Polaris Inc. at $110.8 million, a significant decline from $502.8 million in 2023. Adjusted EBITDA for 2024 was $635.4 million, down from $1,020.9 million in 2023.

Polaris' sales by geographic region in 2024 were as follows: $5,629.0 million in the United States (a 21% decrease from 2023), $446.2 million in Canada (a 24% decrease from 2023), and $1,100.2 million in other countries (a 10% decrease from 2023).

The Off-Road segment, which accounted for 79% of total sales, saw a decrease of 18% in sales, primarily due to lower ORV and snowmobile shipments. The On-Road segment, accounting for 14% of total sales, experienced a 17% decrease in sales, attributed to reduced shipments across its product portfolio. The Marine segment, representing 7% of total sales, reported a significant 37% decrease in sales due to reduced shipments.

Polaris also provided additional information on its end markets for 2024, including details on retail sales and dealer inventories for its Off-Road, On-Road, and Marine segments.

The company uses non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, to supplement its consolidated financial statements, providing insight into its core operating performance. These measures aim to identify underlying trends that could be masked by certain expenses and provide useful information about Polaris' financial performance.

Polaris Inc.'s 10-K report offers a comprehensive view of its financial performance in 2024, highlighting the challenges and opportunities the company faced throughout the year. The market has reacted to these announcements by moving the company's shares 1.6% to a price of $45.81. For more information, read the company's full 10-K submission here.

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