Megan Claff's questions to Polaris Inc (PII) leadership • Q4 2024
Question
Megan Claff of Morgan Stanley requested a breakdown of the approximately $3 EPS headwind for 2025, asking which components were transitory, and inquired about the company's strategic response to a potential large tariff on imports from Mexico and China.
Answer
CFO Bob Mack detailed the EPS headwinds, noting the largest factors are the reset of profit-sharing compensation and negative mix, followed by lower volume and a ~$0.20 impact from lower financial services income. CEO Mike Speetzen addressed the tariff question by stating that such a broad tariff would have major economic implications and that Polaris would leverage its diversified manufacturing footprint to adapt over time if necessary.