Polaris (PII) 47th Annual Raymond James Institutional Investor Conference summary

Leadership and Strategic Positioning

• Maintains leadership in powersports, off-road, and marine, holding #1 market share in off-road vehicles and pontoons, and #2 in snowmobiles globally, with a focus on innovation and operational excellence.

• Introduced approximately 40 new vehicles and registered over 800 patents since 2023, demonstrating a strong commitment to innovation.

• Restructured into three core segments: Polaris Powersports, Marine, and Aixam & Goupil, following the divestiture of Indian Motorcycle, to enhance channel alignment and operational clarity.

• Streamlined operations and unified sales channels to reduce complexity, improve dealer support, and enhance customer experience.

• Focused on core, high-margin businesses and portfolio optimization for long-term growth.

Financial Performance and Guidance

• Updated 2026 guidance reflects the earlier-than-expected Indian Motorcycle separation, with sales projected at $7.15B–$7.30B and revenue now projected flat to up 2%.

• Adjusted EBITDA margin expected to improve by 100–140 bps, with adjusted EPS raised to $1.60–$1.70 and earnings per share guidance raised by $0.10 on both ends.

• Organic revenue growth stands at 8% after adjusting for divestitures, despite a flat retail environment.

• Achieved nearly 40% incremental margins, attributed to operational improvements and quality initiatives.

• Operating expenses targeted to decrease ~5% year-over-year, with capex unchanged at ~$220 million.

Operational Improvements and Risk Management

• Focused on operational efficiency, lean manufacturing, and plant execution, resulting in significant progress and healthy dealer inventory.

• Improved working capital performance and dealer health, with ongoing efforts to simplify business processes.

• Quality improvements led to over $20 million in warranty savings and record-high Net Promoter Scores.

• Successfully executing transition service agreements related to the Indian Motorcycle separation.

• Actively managing risks related to tariffs, supply chain, and market volatility.