05:37 AM EDT, 10/14/2025 (MT Newswires) -- (Updates with the latest stock price movement in the headline and the first paragraph.)

Polaris (PII) shares were up 11% in recent premarket activity Tuesday after the company said it will separate its Indian Motorcycle business into an independent firm.

The company said late Monday it will sell a majority stake in Indian Motorcycle to private-equity firm Carolwood. The transaction is expected to be accretive to Polaris' annualized adjusted earnings before interest, taxes, depreciation, and amortization and adjusted earnings per share by around $50 million and $1, respectively, according to a statement.

Under the agreement, around 900 employees will transition to the new Indian Motorcycle company. Carolwood selected Mike Kennedy to serve as chief executive of the new standalone company.

Polaris said it expects fiscal Q3 adjusted EPS of $0.31 to $0.41 and sales to be at the high end of its prior guidance range of $1.60 billion to $1.80 billion. Analysts polled by FactSet expect non-GAAP EPS of $0.01 on sales of $1.73 billion.

The company is scheduled to report Q3 results Oct. 28.