Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company’s reportable segments are based on the Company’s method of internal reporting and are comprised of various product offerings that serve multiple end markets. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is based, in part, on the reporting and review process used by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer. The Company primarily uses gross profit, a measure that is determined in accordance with U.S. GAAP, to evaluate segment profitability and make decisions about resource allocation. The Company’s CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided. The Company has three operating segments: 1) Off Road, 2) On Road, and 3) Marine, which are all reportable segments. The Company’s consolidated sales are derived entirely from the operations of its three reportable segments. The Corporate amounts include costs that are not allocated to segments, including certain

unallocated manufacturing costs, the impacts of certain foreign currency transactions, and certain unallocated incentive compensation costs and related adjustments.

The Company has determined its significant segment expense categories based on amounts regularly provided to the Company’s CODM to evaluate segment profitability and drive strategic decision making. Reportable segment sales and significant reportable segment expense categories and amounts included in the Company’s measure of segment profit or loss, gross profit, were as follows (in millions):

	For the Three Months Ended March 31, 2025
	Off Road		On Road		Marine		Total
Sales	$	1,198.6	$	221.8	$	115.4	$	1,535.8
Purchased materials, logistics and labor	940.8		172.7		96.6		1,210.1
Depreciation and amortization	44.2		8.4		2.2		54.8
Warranty	22.2		5.0		2.3		29.5
Reportable segment gross profit	$	191.4	$	35.7	$	14.3	$	241.4
Corporate costs and other							3.6
Total gross profit							$	245.0

	For the Three Months Ended March 31, 2024
	Off Road		On Road		Marine		Total
Sales	$	1,335.7	$	277.2	$	123.5	$	1,736.4
Purchased materials, logistics and labor	1,034.0		203.7		100.3		1,338.0
Depreciation and amortization	36.6		6.5		1.9		45.0
Warranty	32.1		6.6		2.1		40.8
Reportable segment gross profit	$	233.0	$	60.4	$	19.2	$	312.6
Corporate costs and other							17.7
Total gross profit							$	330.3