What Polaris, Inc. told the SEC could break it.

Polaris purchases certain systems, components, raw materials and parts that are ultimately derived from a single source or single geography, putting them at increased risk of supply disruption. If a disruption occurs (from trade restrictions, labor disruptions, catastrophic weather or other factors), the company may not be able to develop alternate sourcing quickly or at all, which could negatively impact production of its off-road, on-road and marine vehicles.

“In some instances, we purchase systems, components, raw materials and parts that are ultimately derived from a single source or geography and may be at an increased risk for supply disruptions. If necessary, we may not be able to develop alternate sourcing quickly or at all.”

Polaris procures components from countries subject to U.S. tariffs for use in its United States and Mexico manufacturing facilities, and a portion of its annual sales come from Mexico-made products — making it directly exposed to escalating trade policy. The impact is realized, not hypothetical: 2025 cost of sales rose primarily on higher materials costs driven by incremental tariff charges, and gross margin fell as a result. The company expects further supply-chain challenges and commodity-cost volatility from tariffs, and notes the rapidly-evolving environment and pending Supreme Court litigation over certain tariffs' validity.

“We currently procure components from countries subject to such tariffs, which are utilized in our facilities in the United States and Mexico. A portion of our annual sales originate from products manufactured in our facilities in Mexico, and we sell our products globally. As a result of the current tariffs, we anticipate increased supply chain challenges, commodity cost volatility, economic uncertainty, and economic pressures on customers and consumers as a result of the challenges of high inflation combined with the effects of increased tariffs.”