Textron (Arctic Cat) files 8-K with SEC

Textron, Inc.––parent company of Arctic Cat––today filed form 8-K with the Securities and Exchange Commission (SEC). A form 8-K submission is required by publicly traded companies to announce significant or "material" events that shareholders need to know. Form 8-K is intended to disclose timely information allowing shareholders to react. 

The Textron filing reads: 

Textron Inc. is pursuing strategic alternatives for its Powersports product line within the Industrial segment’s Textron Specialized Vehicles (TSV) business. The consumer end market demand for powersports products continues to remain soft. As a result, and in conjunction with its annual operating plan process, TSV has begun to pause production of its powersports products as Textron’s management reviews strategic alternatives for the business. Upon completion of limited production runs to satisfy customer commitments, production of TSV’s powersports products will be paused indefinitely in the first half of 2025.

As a result of these developments, on December 18, 2024, Textron management approved additional actions at the Industrial segment under Textron’s 2023 restructuring plan. Total pretax special charges related to the 2023 restructuring plan are now expected to increase from the previously announced range of $165 million to $170 million to a range of $190 million to $205 million. The increased charges of $25 million to $35 million are related to contract termination costs associated with the powersports production pause. 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. We expect the plan to be substantially completed in the first half of 2025.

In addition, due to the indefinite production pause, the Company expects to incur an inventory valuation charge in the range of $30 million to $40 million to write down production-related powersports inventory to its net realizable value.

The inventory valuation charge discussed above is expected to reduce Adjusted earnings per share for 2024 by approximately $0.12 to $0.16.

This action follows information SnoWest has recieved about an alleged ongoing restructure for possible sale of the Arctic Cat brand by Textron. It is unknown which or if any companies are currently intersted in aquiring the Arctic Cat brand and its assets. 

When asked about the current status of Arctic Cat today, a spokesperson for Textron told SnoWest:

In response to the ongoing business conditions facing the powersports industry, Arctic Cat will suspend manufacturing operations indefinitely at our facilities in Thief River Falls and St. Cloud, Minnesota, after planned production in the first half of 2025 is complete.

Textron Inc. also announced that it is exploring strategic alternatives regarding the future of the powersports business. These actions are difficult but necessary as we have continued to experience softness in consumer end-market demand, resulting in a need to reduce costs.

Arctic Cat remains open for business with respect to selling current inventory and providing aftermarket support and services to our existing installed customer base. Our sales organization, customer service teams, aftermarket distribution centers, and other functions are ready to assist our dealers and loyal customers. We are committed to providing the service and support to keep our thousands of loyal customers riding and enjoying Arctic Cat vehicles.

We will resume production as planned after the new year to produce units under existing customer commitments. However, once that build is completed, we will suspend operations indefinitely, and will release our manufacturing employees at the Thief River Falls and St. Cloud facilities. Employees who work through their specific completion date will be offered severance benefits.

We will monitor industry conditions throughout this suspension, and make further announcements about our operational plans when we have more information to share.

We thank our employees, dealers, customers and supporters for their loyalty, patience and understanding as we weather the difficult conditions facing our business and our industry.