Polaris announced plans to separate its Indian Motorcycle division into a standalone company, selling a majority stake to private equity firm Carolwood LP. The move, which sent Polaris shares up 11% after hours, is part of the company’s effort to streamline operations amid softening consumer demand and tariff pressures.
The deal is expected to boost Polaris’ annual adjusted EBITDA by about $50 million and earnings by roughly $1 per share. It is anticipated to close in the first quarter of 2026. Carolwood has appointed industry veteran Mike Kennedy—formerly of Harley-Davidson, RumbleOn, and Vance & Hines—as CEO of the new independent Indian Motorcycle company.
Polaris acquired Indian Motorcycle in 2011. The brand, known for iconic models like the Scout and Chief, generated around $478 million in revenue over the past year, accounting for 7% of Polaris’ total sales. The company also reaffirmed expectations for third-quarter sales near the top of its $1.6–$1.8 billion forecast and projected adjusted EPS between $0.31 and $0.41.
Source: Reuters
