Polaris Inc (NYSE:PII) shares are trading higher in Monday’s after-hours session after the company announced plans to divest its stake in Indian Motorcycle.
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What To Know: Polaris entered into a definitive agreement to sell a majority stake in Indian Motorcycle to independent private equity firm Carolwood LP.
The transaction, which is expected to close in the first quarter of 2026, will allow Polaris to focus on the most attractive areas of its business for profitable growth.
The separation of Indian Motorcycle from the company’s portfolio and into a standalone business is expected to be accretive to Polaris’ annualized adjusted EBITDA by approximately $50 million and to adjusted earnings by approximately $1 per share.
“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths,” said Mike Speetzen, CEO of Polaris.
Polaris will maintain a small equity position in the Indian Motorcycle business after the transaction closes. Mike Kennedy will serve as CEO of the new independent organization. Additional terms of the deal were not disclosed.
Polaris also scheduled its third-quarter financial results for Oct. 28. The company said on Monday that it expects third-quarter sales to be at the high end of its previously issued guidance range of $1.6 billion to $1.8 billion. Third-quarter adjusted earnings are expected to be in the range of 31 cents to 41 cents per share, “meaningfully higher” than prior expectations.
PII Price Action: Polaris shares were up 12.45% in after-hours, trading at $69 at the time of publication on Monday, according to Benzinga Pro.
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