Polaris Inc. released its second-quarter 2025 financial results on July 29, 2025, reporting a net loss of $79.3 million, compared to a net income of $68.7 million in the prior year's second quarter. Adjusted EPS for the quarter was -$1.39, significantly missing analyst expectations. Sales declined 6% year-over-year to $1,852.7 million.
Gross profit fell 15% to $359.2 million, with the gross profit margin contracting by 223 basis points to 19.4%. Adjusted EBITDA decreased 40% to $119.0 million, resulting in an adjusted EBITDA margin of 6.4%. The Off-Road segment saw an 8% sales decline, while On Road sales decreased 1%. Marine sales, however, increased 16% to $155.3 million.
Polaris reiterated its decision to withdraw full-year 2025 guidance due to persistent uncertainties. The company anticipates Q3 2025 sales between $1.6 billion and $1.8 billion, with adjusted EPS expected to be negative due to tariff impacts. Despite the challenging results, Polaris generated approximately $290 million in free cash flow during the quarter, and the all-in tariff rate on China spend reduced to approximately 55% from a previous 170%, with the estimated full-year 2025 net new tariff impact projected to be less than $225 million.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.