Polaris (NYSE:PII) reported a fourth-quarter net loss of $303.6 million on Tuesday, a sharp reversal from the prior year, as the company absorbed massive non-cash impairment charges.
The Medina, Minnesota-based powersports leader recorded a loss of $5.34 per share on a GAAP basis, primarily driven by charges associated with its Indian Motorcycle business, which has been classified as held for sale.
Despite the heavy reported loss, the company’s underlying performance exceeded Wall Street expectations.
Excluding non-recurring and asset impairment costs, adjusted earnings were $0.08 per share, topping the Zacks consensus estimate of $0.06.
Fourth-quarter revenue rose 9% year-over-year to $1.92 billion, surpassing analyst forecasts of $1.84 billion.
The company's core Off-Road segment, which includes its popular RANGER and RZR side-by-sides, was the primary engine of growth.
Sales in this segment climbed 11% to $1.6 billion, fueled by higher shipment volumes and a more profitable product mix.
Polaris also reported significant market share gains across its ORV (excluding Youth), Snow, and Marine segments during the quarter.
This momentum helped the company close out a challenging 2025 with $7.15 billion in total revenue, though the full-year net loss totaled $465.5 million.
Looking ahead, Polaris issued a 2026 outlook that anticipates a return to steady, profitable growth.
The company expects full-year sales to increase by 1% to 3% compared to 2025 levels.
More importantly, management projects adjusted diluted earnings per share in the range of $1.50 to $1.60, signaling a recovery from the adjusted loss of $0.01 per share recorded for the full year 2025.