Polaris Stock Jumps After-Hours On Deal To Sell Its Indian Bikes Brand, Expects Annualized Profit Growth

ndian Motorcycle, which Polaris acquired in 2011, contributed 7% to the company's total revenue last year; it sells heavy-duty motorcycles that compete with those from Harley-Davidson.

Shares of Polaris Inc. rose 11.2% in extended trading on Monday, after the specialty vehicle manufacturer announced a deal to sell its Indian bike operations to a private equity firm.

Polaris is selling Indian Motorcycle to Carolwood LP, a Los Angeles-based PE firm. It did not disclose the size of the deal but said the divestiture would boost Polaris's annualized adjusted EBITDA by about $50 million and annualized adjusted earnings by $1 a share.

CEO Mike Speetzen said the sale would enable Polaris to focus on the parts of its business that have the most potential for growth. Its main product line is four-wheeled off-road vehicles used for work and recreation.

The move comes as the company grapples with weak demand for its vehicles and headwinds from tariffs. Revenue declined 20% last year, and the company has withdrawn its outlook for 2025.

Indian, which Polaris acquired in 2011, contributed 7% to the company's total revenue last year; it sells heavy-duty motorcycles that compete with those from fellow U.S.-based manufacturer Harley-Davidson.

On Stocktwits, the retail sentiment for PII climbed multiple notches higher in the 'bullish' zone over the previous day. As of the last close, the stock is up 6.5% year-to-date.

Medina, Minnesota-based Polaris will retain a small equity stake in Indian following the deal's closure, anticipated in the first quarter of 2026. The company will report third-quarter results on Oct. 28.

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