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Fourth Quarter & Full Year 2025 Earnings Presentation January 27, 2026
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Q4 & FY'25 Earnings 1/27/26 2 Safe Harbor & Non-GAAP Measures Except for historical information contained herein, the matters set forth in this presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the Company’s ability to successfully implement its manufacturing operations strategy and supply chain initiatives; the Company’s ability to successfully source necessary parts and materials on a timely basis; the ability of the Company to manufacture and deliver products to dealers to meet demand, including as a result of supply chain disruptions; the Company’s ability to identify and meet optimal dealer inventory levels; the Company’s ability to accurately forecast and sustain consumer demand; the Company’s ability to mitigate increasing input costs through pricing or other measures; the Company’s ability to complete the proposed separation of Indian Motorcycle in a successful and timely basis or at all; the Company’s ability to derive the expected benefits from the Indian Motorcycle separation including the separation being accretive, within the expected timeline or at all; the actual amount of pre-tax charges incurred in connection with the separation of our Indian Motorcycle business; product offerings, promotional activities and pricing strategies by competitors that may make our products less attractive to consumers; the Company’s ability to strategically invest in innovation and new products, including as compared to our competitors; economic conditions that impact consumer spending or consumer credit, including recessionary conditions and changes in interest rates; disruptions in manufacturing facilities; product recalls and/or warranty expenses; product rework costs; freight and tariff costs (tariff relief or ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); environmental and product safety regulatory activity; effects of weather on the Company’s supply chain, manufacturing operations and consumer demand; commodity costs; changes to international trade policies and agreements; uninsured product liability and class action claims (including claims seeking punitive damages) and other litigation expenses incurred due to the nature of the Company’s business; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; uncertainty in the consumer retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; relationships with dealers and suppliers; and the general global economic, social and political environment. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements except as otherwise may be required by law. The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and Europe compiled by the Company or Company estimates and other industry data sources. The Company relies on information that its dealers or other third parties supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this information is subject to change. Retail sales references to total Company retail sales includes only off-road vehicles (ORV), snowmobiles, On Road and Marine in North America and International unless otherwise noted. This presentation contains certain non-GAAP financial measures, consisting of “adjusted" sales, gross profit margin, (loss) income before income taxes, net (loss) income attributed to Polaris Inc., diluted EPS attributed to Polaris Inc., EPS attributed to Polaris Inc., EBITDA, EBITDA Margin, and free cash flow as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, and to understand the performance of its ongoing operations and how management views the business. Reconciliations of reported GAAP historic measures to adjusted non-GAAP measures are included in the financial schedules contained in this presentation. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.
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Resilient Performance in 2025 Demonstrates the Strength of Our Strategy Q4 & FY'25 Earnings 1/27/26 3 2025 In Review Clear Innovation Leader • Gained share in all key segments • Off Road: RZR XP S, RANGER 500 • On Road: Scout Sixty and Roadmaster Elite families of Indian Motorcycles • Marine: Bennington QX, Godfrey Sanpan and Monaco Operational Improve- ments and Quality • $60M+ of operational benefits from clean build and lean initiatives • Improved warranty costs due to investment in quality • Initial MY26 quality metrics reflect further improvement Progress on Longer- Term Strategy • Indian Motorcycle separation on track to close Q1 2026 • Strong cash flow and improved net working capital position • Continue to lead the industry with new and innovative vehicles • Set up for higher incremental margins Navigated Tariffs • Reduced China spend by over $100M • Transition plans in place to reduce COGS from China to under 5% by year-end 2027 • Lobbying efforts in Washington progressing • Year-end financial results exceeded original 2025 guidance excluding tariffs
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Total Company Results* Fourth Quarter Drivers** Fourth Quarter and Full Year 2025 Overview Ended the Year with High Say/Do Ratio | Share Gains in ORV Ex-Youth, Snow and Marine Q4 & FY'25 Earnings 1/27/26 4 Q4’25 Y/Y Change FY’25 Y/Y Change Adjusted Sales $1,921M 9% $7,143M Flat Adjusted Gross Profit Margin 20.3% 77 bps 19.4% 131 bps Adjusted EBITDA Margin 5.1% 448 bps 5.7% 311 bps Adjusted EPS $0.08 91% ($0.01) $3.26 • North America retail up 9% o ORV retail up 5% Utility up 9% Recreation down 10% o Snow up 40% o On Road down low-double digits; Marine down low-teens digits • Gained market share in ORV, Snow and Marine • ORV dealer inventory down 9% y/y • Adjusted gross profit margin was negatively impacted by tariffs and net price somewhat offset by positive mix and volume • Adjusted EBITDA margin was negatively impacted by the normalization of incentive compensation and the timing of engineering costs *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, which can be found in the appendix of this presentation and on our website at www.ir.polaris.com. **Retail, market share and dealer inventory excludes Youth ORV
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ORV Recreation and Utility Retail* North America Retail Trends and Sentiment Dealer Inventory Aligned With Demand | Made Good Progress on Non-current Snow Inventory Q4 & FY'25 Earnings 1/27/26 5 • Retail Trends in Q4* o ORV Utility up 9% and Recreation down 10% ORV Utility continues its strong retail performance driving ~50% of total Polaris revenue Modest ORV share capture driven by innovation o Indian Motorcycle down high-single digits % o Marine down low-teens % as industry remains soft and dealers actively managing inventory • Dealer Sentiment o Dealers comfortable with their Polaris ORV inventory levels Under 100 days of inventory on hand at dealers • Dealer Inventory Backdrop* o Q4’25 Polaris ORV dealer inventory was down 9% y/y Heavier mix of current versus non-current inventory o Q4'25 Snowmobile inventory down over 40% y/y Decline driven by lower non-current inventory o Polaris ORV has lowest mix of non-current inventory at dealers in the industry In Units On Road and Marine Retail In Units Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 ORV Utility Recreation 9% 5% 10% Q4'25 Q1'25 Q2'25 Q3'25 Q4'25 On Road Marine LDD% Low Teens% *Retail, market share and dealer inventory excludes Youth ORV
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Adjusted* Sales Financial Highlights (Y/Y) Adjusted* EBITDA Q4 2025 Financial Results Quarterly Results Aligned with Expectations Q4 & FY'25 Earnings 1/27/26 6 • Adjusted* quarterly sales of $1.9B, up 9% o Higher shipments and better mix within ORV o Net price a headwind o International sales up 9% o PG&A sales up 20% • Adjusted* EBITDA margin down 448 bps o Tariffs and incentive compensation headwind $37 million of new tariff impact o Favorable mix and volume • Adjusted* EPS of $0.08 • Other items: o Net interest expense of $31M o Average outstanding diluted shares ~57M o $179 million in Cash Flow from Operations ($120 million FCF) *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, which can be found in the appendix of this presentation and on our website at www.ir.polaris.com. $1,755 $138 $10 $18 $1,921 Q4 2024 Volume Mix/ Net Price/ Cost FX Q4 2025 $168 $29 $3 ($71) $6 $98 ($37) Q4 2024 Volume Mix/ Net Price/ Ops Tariffs Operating Expenses FX Q4 2025 Margin 9.6% Margin 5.1%
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Q4’25 Y/Y Change FY’25 Y/Y Change Sales $1,596M 11% $5,713M Flat Gross Profit Margin 21.2% 18 bps 20.2% 12 bps Market Share* (N.A.) Off-Road Vehicles Snowmobiles (season-to-date) North America International** POLARIS INDUSTRY POLARIS INDUSTRY ORV 5% LOW-SINGLE DIGITS % LOW- TWENTIES % LOW-DOUBLE DIGITS % Utility HIGH-SINGLE DIGITS % Recreation LOW-DOUBLE DIGITS % Snowmobiles (season-to-date) HIGH- FORTIES % MID-TEENS % Q4 & FY 2025 Results Q4 PII Call-outs * Q4 Retail Sales * Off Road Q4 Summary Strong Key Retail Metrics | Operating More Efficiently Q4 & FY'25 Earnings 1/27/26 7 • N.A. ORV retail up 5% o Gained share in N.A. ORV in Q4 and FY with strength in Utility and Crossover • RANGER 500 and RZR Pro S continue to be received well • Robust Snow retail helped deplete non-current inventory • Operational savings continue to be realized • Margin pressure driven by tariffs and higher promotions, mostly offset by volume and operational efficiencies *Retail, market share and dealer inventory excludes Youth ORV **International retail data through November 2025 and based primarily on Europe Wholegoods 4% PG&A 10% Wholegoods 7% PG&A 22% N.A. 11% Int’l 8% N.A. Flat Int’l Flat
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Q4’25 Y/Y Change FY’25 Y/Y Change Sales $187M 4% $927M 6% *Adj. Gross Profit Margin 18.1% 186 bps 18.0% 127 bps Market Share (N.A.) Indian Motorcycles Indian Motorcycles North America International** POLARIS INDUSTRY POLARIS INDUSTRY Indian Motorcycle HIGH-SINGLE DIGITS % MID-SINGLE DIGITS % HIGH- THIRTIES % HIGH- TWENTIES % Q4 & FY 2025 Results Q4 PII Call-outs Q4 Retail Sales On Road Q4 Summary Good Uptake of New Bikes in Difficult Industry Q4 & FY'25 Earnings 1/27/26 8 • N.A. Indian Motorcycle retail down high-single digits • Indian Motorcycle lost share in N.A. o Aggressive competitive promotions in Q4 o Gained almost a point of share in full-year results • Strong mix benefit from Aixam and Goupil • Slingshot sales pressured due to cautious consumer • Adjusted gross profit margin driven by favorable mix, partially offset by tariffs **International retail data through November 2025 and based primarily on Europe Wholegoods 3% PG&A 6% N.A. 9% Int’l 10% Wholegoods 9% PG&A 5% N.A. 7% Int’l 6% *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, which can be found in the appendix of this presentation and on our website at www.ir.polaris.com.
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*Retail and market share based on December 2025 SSI data, subject to change Q4 & FY 2025 Results Q4 PII Call-outs Q4 Retail Sales* Marine Q4 Summary Dealer Inventory Aligned with Demand | Positive Order Flow Q4 & FY'25 Earnings 1/27/26 9 North America POLARIS INDUSTRY Pontoons LOW-DOUBLE DIGITS % LOW-TEENS % Deck Boats HIGH-THIRTIES % MID-THIRTIES % • Entry level boats still selling well given combination of standard features and price • Dealer inventory down over 12% y/y; dealer inventory now aligned with demand • Share gains in pontoon • Strong order book for boats entering 2026 • Margins negatively impacted by negative mix given success of entry level boats Q4’25 Y/Y Change FY’25 Y/Y Change Sales $138M 1% $512M 7% Gross Profit Margin 14.4% 291 bps 14.2% 260 bps Market Share (N.A.) Marine*
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2026 Capital Deployment Priorities Key Financial Metrics (Dec. 31, 2025) Financial Position Disciplined Capital Deployment and Improvement in Net Working Capital Q4 & FY'25 Earnings 1/27/26 10 Driving Working Capital Efficiencies $ in millions #1 Priority – Strategic Investments Invest in higher-margin profitable growth #2 Priority – Dividends Dividend Aristocrat – 30 consecutive years of raising dividend #3 Priority – Pay Down Debt Actions to reduce net leverage ratio, reduced debt by ~$530M in 2025 • Improved net working capital position in 2025 • Lean has allowed better alignment between demand, procurement and build processes • Supply chain localization • Optimizing payables management Cash $138 Capex (YTD) $183 Total Debt $1,540 Dividends (YTD) $150 Net Leverage Ratio 3.4x *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, which can be found in the appendix of this presentation and on our website at www.ir.polaris.com. 2% 4% 5% -2% -1% 2019 2021 2023 2025 2026 Estimated Working Capital % of Sales
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Key Metrics Full Year 2026 Guidance & Expectations Teams Focused on Delivering High Say/Do Ratio Q4 & FY'25 Earnings 1/27/26 11 Initial 2026 Outlook Assumptions • Flattish industry retail • Alignment of shipments and retail brings volume benefit • Indian Motorcycle separation expected to close by end of Q1'26 • Meaningful tariff headwind of ~$90 million; larger y/y headwind in the first half • Continue to make progress on operational efficiencies • Transition Service Agreements with Indian Motorcycle • No change in regulatory policies Key Metric Initial FY 2026 Expectations Operating Expense Down ~4% y/y Interest Expense ~$125 million Tax Rate 26% - 28% Diluted Shares ~59 million Depreciation Down ~4% y/y Financial Services Income Down ~9% y/y Other Income $30 - $35 million Capex ~$220 million Total Company Sales Adjusted EBITDA* Margin 1% to 3% $7.2B to 7.4B Relative to 2025 at $7.15B 80 to 120 bps Relative to 2025 at 5.7% Adjusted* EPS $1.50 to $1.60 Relative to 2025 at ($0.01) *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, and to the discussion regarding non-GAAP adjustments excluded from 2024 guidance, which can be found in the appendix of this presentati on. Note: Figures for all periods reflect continuing operations % of Sales $ in Millions
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Well-positioned to Gain Share and Expand Margins Through the Cycle Q4 & FY'25 Earnings 1/27/26 12 Resilient Across Cycles Innovation Leadership • Category-defining product launches • Share gains driven by new platforms and technology • Premium, passion-led brands with loyal customer base Stronger Operations • $240M+ of structural savings realized over 2 years • Manufacturing footprint supports volume recovery and margin expansion • Set up for higher incremental margins in mid-cycle recovery Best-in-Class Dealer Network • Long-tenured, highly engaged dealer relationships • Dealer inventory aligned with demand, supporting channel health • Strong partners across whole goods, PG&A, service, financing
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Q4 & FY'25 Earnings 1/27/26 13 Closing Comments Strong finish to the year with a high Say/Do ratio • Dealer inventory now healthy across ORV and Marine • Gained share in Q4 across ORV (excluding Youth), Snow and Marine o Gained share in 2025 across all segments • Improved our operations Key Focus Areas for 2026 • Managing to a flattish retail environment o Growth in Utility and continued weakness in Recreation o Snow is expected to be down modestly o Marine is expected to be flattish o Launch innovative products o Positive net price with model year pricing and lower promotions o Operations poised to meet any signs of increased demand • Completing separation of Indian Motorcycle in Q1'26 • Continue to drive lean and operational efficiencies • Executing our tariff mitigation strategy
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Q & A
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Q4 & FY'25 Earnings 1/27/26 15 Appendix • FY 2025 Financial Results • Non-GAAP Reconciliations – Total Company • Non-GAAP Reconciliations – Net (Loss) Income to Adjusted EBITDA • Non-GAAP Reconciliations – Segments • Non-GAAP Reconciliations – Free Cash Flow
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Adjusted* Sales Financial Highlights (Y/Y) Adjusted* EBITDA FY 2025 Financial Results Q4 & FY'25 Earnings 1/27/26 16 • Full Year sales of $7.1B, flat o Lower shipments offset by positive mix o Lower net price driven by higher promotional environment o International sales down 3% o PG&A sales up 10% • Adjusted* EBITDA margin down 311 bps o Tariff headwind almost completely offset by operational efficiencies $82 million in new tariffs o Normalization of incentive compensation o Lower warranty expense • Adjusted* EPS of ($0.01), down $3.26 • Other items: o Net interest expense of $131M o Effective tax rate of 12.8% o Average outstanding diluted shares ~57M *Please refer to the supporting schedules entitled "Non-GAAP Reconciliation" for reconciliations of adjusted or non-GAAP measures to the most directly comparable GAAP financial measures, which can be found in the appendix of this presentation and on our website at www.ir.pola ris.com. Margin 11.3% Margin 14.0%Margin 14.0% Margin 12.6% $7,175 ($216) $173 $11 $7,143 FY 2024 Volume Mix/ Net Price/ Cost FX FY 2025 $635 ($45) $22 ($105) ($14) $410 ($83) FY 2024 Volume Mix/ Net Price/ Ops Tariffs Operating Expenses FX FY 2025 Margin 8.9% Margin 5.7%
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Q4 & FY'25 Earnings 1/27/26 17 Non-GAAP Reconciliations – Total Company Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Millions, Except Per Share Data; Unaudited) Adjustments: (1) Represents adjustments for integration and acquisition- related expenses (2) Represents adjustments for corporate restructuring (3) Represents adjustments related to product wind downs, including the FTR product line within the Company's On Road segment and the Timbersled product line within the Company's Off Road segment (4) Represents amortization expense for intangible assets acquired through business combinations (5) Represents adjustments for certain class action litigation- related expenses (6) Represents goodwill impairment charges associated with the Company's On Road segment, impairment charges related to other intangible assets associated with the Company's Off Road segment, and impairment charges related to strategic investments held by the Company (7) Represents impairment and other charges recorded to report the held for sale Indian Motorcycle business at fair value less an amount of estimated transaction costs (8) The Company used its estimated statutory tax rate of 23.8% for the non-GAAP adjustments in 2025 and 2024, except for non-deductible items
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Q4 & FY'25 Earnings 1/27/26 18 Non-GAAP Reconciliations – Net (Loss) Income to Adjusted EBITDA Reconciliation of Net (Loss) Income to Adjusted EBITDA (In Millions, Unaudited) Adjustments: (1) Represents adjustments for integration and acquisition-related expenses (2) Represents adjustments for corporate restructuring (3) Represents adjustments related to product wind downs, including the FTR product line within the Company's On Road segment and the Timbersled product line within the Company's Off Road segment (4) Represents amortization expense for intangible assets acquired through business combinations and asset acquisitions (5) Represents adjustments for certain class action litigation-related expenses (6) Represents goodwill impairment charges associated with the Company's On Road segment, impairment charges related to other intangible assets associated with the Company's Off Road segment, and impairment charges related to strategic investments held by the Company (7) Represents impairment and other charges recorded to report the held for sale Indian Motorcycle business at fair value less an amount of estimated transaction costs
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Q4 & FY'25 Earnings 1/27/26 19 Non-GAAP Reconciliations – Segments Reconciliation of GAAP Segment Gross Profit to Non-GAAP Segment Gross Profit (In Millions, Unaudited) Adjustments: (1) Represents adjustments for corporate restructuring (2) Represents adjustments related to product wind downs, including the FTR product line within the Company's On Road segment and the Timbersled product line within the Company's Off Road segment
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Q4 & FY'25 Earnings 1/27/26 20 Non-GAAP Reconciliations – Free Cash Flow Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow (In Millions, Unaudited) Key Definitions: This presentation contains certain GAAP financial measures which have been "adjusted" for certain revenues, expenses, gains and losses as described below and include “adjusted" sales, gross profit, income before taxes, net (loss) income, EBITDA, EBITDA margin, and net (loss) income per diluted share (non-GAAP measures) as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and how management views the business. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Three months ended December 31, Twelve months ended December 31, 2025 2024 2025 2024 Net cash provided by operating activities 178.7 206.3 741.0 268.2 Purchase of property and equipment (64.7) (69.0) (182.9) (261.7) Distributions from (investment in) finance affiliate, net 5.9 15.8 47.3 58.2 Adjusted free cash flow $ 119.9 $ 153.1 $ 605.4 $ 64.7