Polaris Just Sold Its Indian Motorcycle Business— A $478 Million Shift In Strategy!

Polaris Inc. has announced the sale of its iconic Indian Motorcycle business to private-equity firm Carolwood LP, a move expected to reshape the powersports manufacturer’s strategic focus. The divestiture, expected to close in Q1 2026, will result in a $1.00 uplift to Polaris’s annualized adjusted earnings per share (EPS), according to company statements. Indian contributed roughly $478 million, or 7% of revenues over the trailing 12 months ending June 30, 2025. While Polaris will retain a small equity stake and Indian will remain operationally independent with its manufacturing facilities and workforce intact, the move signals a notable retreat from the onroad motorcycle segment, where Indian has long struggled to achieve true competitive parity with market leader Harley-Davidson. The decision aligns with Polaris’s intent to focus on its dominant and higher-margin off-road vehicle (ORV) portfolio. As the company deals with macroeconomic headwinds, declining EPS, and elevated leverage (expected to peak above 4.0x in 2025), this transaction reflects a shift toward core market optimization, cash conservation, and return on invested capital (ROIC) enhancement.