Textron Halts ATV, UTV, Snowmobile Production Amid Imploding Consumer Demand

Defense contractor and industrial conglomerate Textron has halted production of its entire powersports product line within its Specialized Vehicles unit, which includes golf carts, utility vehicles, side-by-sides, ATVs, and snowmobiles. Textron cited “soft” consumer end-market powersports demand, a warning that overlaps with Polaris’ concerns about “challenging retail demand” for its ATVs, UTVs, and jet skis.

Textron’s powersports line includes ATVs, UTVs, and snowmobiles by Arctic Cat, golf carts by E-Z-GO, and utility offroad/ turf vehicles by Cushman and Jacobsen. 

“The consumer end market demand for powersports products continues to remain soft,” Textron wrote in a filing on Wednseday morning. 

Sliding consumer demand for ATVs, UTVs, and snowmobiles has forced Textron to pause powersports production “indefinitely in the first half of 2025.” 

As a result these developments, Textron noted that it expects restructuring costs between $190 million to $205 million, up from a previously announced range of $165 million to $170 million. 

“The increased charges of $25 million to $35 million are related to contract termination costs associated with the powersports production pause,” Textron said, adding, “These charges will be recorded in the fourth quarter of 2024, with additional cash outlays of $25 million to $35 million expected primarily in the first half of 2025.” 

In addition to Textron, Polaris CEO Mike Speetzen wrote in the fall that “consumer confidence and retail demand remain challenging” for its ATVs, UTVs, jet skis, and snowmobiles. 

Demand for off-road vehicles has been crushed in a high-interest-rate environment that will continue into 2025. Plus, everyone who wanted a Polaris RZR or Arctic Cat ATV bought those vehicles with cheap money during the Covid bubble. 

Not all is lost for Textron. Goldman’s Noah Poponak recently told clients that the stock is a “Buy” on strong private jet demand and overall aerospace in a “strong demand cycle.” 

As for readers who have been actively searching for deals on ATVs, UTVs, and snowmobiles but did not pull the trigger during Covid because of high prices and shortages… Well, Arctic Cat might be offering some of the best deals.