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

Leadership and Strategic Positioning

• Maintains leadership in powersports, off-road, and marine segments, holding #1 market share in off-road vehicles and pontoons, and #2 in snowmobiles globally.

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

• Restructured into Polaris Powersports, Marine, and Aixam & Goupil segments, following the divestiture of Indian Motorcycle, to streamline operations and improve channel alignment.

• Streamlined sales channels and internal operations to reduce complexity and enhance dealer experience.

• Focused on customer-centric organization and seamless dealer interactions.

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.

• Revenue is growing 8% year-over-year when adjusting for Indian Motorcycle, despite a flat retail environment.

• Dealer inventory is at its lowest level in years, under 100 days of supply, supporting healthy dealer inventory and more offensive growth strategies.

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

Operational Improvements and Risk Management

• Achieved significant progress in plant execution and operational efficiency, no longer facing prior production challenges.

• Maintains focus on innovation, quality, and working capital, with over $20 million saved in warranty costs and record-high Net Promoter Scores.

• Dealer health prioritized through inventory management and improved delivery profiles, resulting in higher dealer satisfaction.

• Emphasizes operational efficiencies, lean manufacturing, and readiness to meet increased demand.

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