Polaris (PII) Q2 FY2024 earnings: revenue $2.0 billion, down 11.5% on the year

Polaris Inc. (PII) reported revenue of $2.0 billion for Q2 FY2024, the quarter ended 30 June 2024, down 11.5% on the same quarter a year earlier. Net income was $69 million, down 48.8% on the year, and diluted earnings per share $1.21. The figures are the company's own, from the 10-Q it filed with the SEC on 23 July 2024.

Revenue$2.0 billiondown 11.5%

Net income$69 milliondown 48.8%

Diluted EPS$1.21

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	1,961	1,736	n/a	n/a
Cost of revenue	1,537	1,406	n/a	n/a
Gross profit	424	330	n/a	n/a
Gross margin	21.6%	19.0%	n/a
Research and development	86.8	87.8	n/a	n/a
Operating income	120	39.0	n/a	n/a
Operating margin	6.1%	2.2%	n/a
Interest expense	34.6	31.9	n/a	n/a
Pre-tax income	85.9	7.7	n/a	n/a
Income tax	17.0	3.8	n/a	n/a
Effective tax rate	19.8%	49.4%	n/a
Net income	68.7	3.8	n/a	n/a
Net margin	3.5%	0.2%	n/a
Diluted EPS	$1.21	$0.07	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	146	-105	n/a	n/a
Capital expenditure	67.2	72.1	n/a	n/a
Free cash flow	79.1	-178	n/a	n/a
Free cash flow margin	4.0%	-10.2%	n/a
Cash from investing	-109	-56.7	n/a	n/a
Cash from financing	-28.3	116	n/a	n/a
Depreciation and amortisation	69.5	62.9	n/a	n/a
Share-based compensation	10.2	12.5	n/a	n/a
Buybacks	66.3	16.0	n/a	n/a
Dividends paid	36.8	37.3	n/a	n/a
Dividend per share	$0.66	$0.66	n/a	n/a
Diluted shares, weighted	57m	57m	n/a	n/a
Shares outstanding at period end	56m	56m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	1,338	1,378	n/a	n/a
Non-controlling interest	4.7	2.5	n/a	n/a
Redeemable equity	9.1	11.2	n/a	n/a
Debt	2,089	2,014	n/a	n/a
Operating lease liabilities	109	115	n/a	n/a
Other liabilities	2,159	2,047	n/a	n/a
Total liabilities and equity	5,709	5,567	n/a	n/a
Fixed assets	1,212	1,215	n/a	n/a
Goodwill	396	392	n/a	n/a
Intangible assets	564	507	n/a	n/a
Cash and equivalents	323	319	n/a	n/a
Receivables	255	254	n/a	n/a
Inventory	2,000	1,953	n/a	n/a
Other assets	958	927	n/a	n/a
Total assets	5,709	5,567	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	2,249	2,289	1,736	1,961	1,722	1,755	1,536	1,853	1,842	1,922	1,659	2,023
Cost of revenue	1,740	1,812	1,406	1,537	1,368	1,398	1,291	1,494	1,461	1,538	1,324	1,544
Gross profit	509	477	330	424	355	358	245	359	380	384	335	478
Gross margin	23%	21%	19%	22%	21%	20%	16%	19%	21%	20%	20%	24%
R&D	91.8	92.8	87.8	86.8	84.1	78.2	82.9	90.3	92.8	106	82.3	93.6
Operating income	201	143	39.0	120	66.1	65.8	-36.1	-12.9	20.4	-320	-39.1	149
Operating margin	9%	6%	2%	6%	4%	4%	-2%	-1%	1%	-17%	-2%	7%
Interest expense	32.5	32.8	31.9	34.6	36.2	34.3	34.1	33.2	33.1	31.0	30.4	33.7
Pre-tax income	182	121	7.7	85.9	35.0	12.2	-71.1	-92.6	-12.1	-357	-57.7	133
Tax rate	17%	14%	49%	20%	21%	11%	n/a	n/a	n/a	n/a	n/a	20%
Net income	152	103	3.8	68.7	27.7	10.6	-66.8	-79.3	-15.8	-304	-47.4	106
Net margin	7%	5%	0%	4%	2%	1%	-4%	-4%	-1%	-16%	-3%	5%
Diluted EPS	$2.62	$1.81	$0.07	$1.21	$0.49	$0.19	-$1.17	-$1.39	-$0.28	-$5.34	-$0.83	$1.82
Operating cash flow	28.1	550	-105	146	21.0	206	83.2	320	159	179	-320	230
Capital expenditure	106	101	72.1	67.2	53.4	69.0	35.6	40.5	42.1	64.7	29.7	44.1
Free cash flow	-77.4	449	-178	79.1	-32.4	137	47.6	280	117	114	-350	186
Buybacks	58.3	19.2	16.0	66.3	0.0	0.4	2.4	0.0	0.0	0.0	9.2	0.1
Dividends paid	36.7	36.7	37.3	36.8	36.6	37.0	37.5	37.6	37.9	37.3	38.7	38.9
Shares outstanding	56m	56m	56m	56m	56m	56m	56m	56m	56m	56m	57m	57m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 23 July 2024, accession 0001628280-24-032580: the filing on EDGAR. All of Polaris Inc.'s filings: EDGAR company page.

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