As the drum beat of various layoff announcements and manufacturing halts pours out of the brand’s current parent company, Textron, many snowmobilers and even some media outlets are publicly proclaiming the end of Arctic Cat. The proud brand, they say, is done. Goodbye ZR lineage, Panther memories and thrilling Thundercat acceleration pulls: It’s over.
Or is it?
Call us overly optimistic if you wish, but we tend to believe the opposite.
There are plenty of positive signs out there that the Arctic Cat brand of snowmobiles DOES indeed have a future.
The brand is currently hosting snowmobile demo rides across the country. It is adding top-level dealers. It even showed up last week at a snowmobile industry photo shoot with a model year 2026 snowmobile and it renewed its membership in the industry association, we were told from very well-placed sources. None of that would be expected from a brand that is taking its last breath.
Plus, the rumors of multiple potential buyers taking a deep look at the brand’s books and assets are based in fact. However, the next owner may not be one of the companies at the top of those popular rumor mills. Something is happening, but big financial decisions involving huge corporations take time. And when they involve publicly traded corporations, they also demand a high level of secrecy and discretion.
But after speaking to multiple officials this week from Arctic Cat, its dealer base, its competitors and other knowledgeable industry insiders, we’re more convinced than ever that Arctic Cat snowmobiles will in fact be built in the future. Possibly even for model year 2026. But no more machines will be manufactured with Textron as the owner.
Some Arctic Cat Background
Let’s back up before we go forward.
Yes, Arctic Cat is in a jam, but it’s not the first time. And we’re not just talking about the brand’s disappearance and re-emergence in the 1980s.
In fact, Arctic Cat was in a huge financial quagmire in 2017 when Textron bought the company for $247 million, plus assumption of a pile of debt. At the time, we know that Cat owed seemingly everybody money — suppliers, vendors, etc. And, in the words of a Cat executive at the time, “We were honestly wondering how we were going to make the next payroll.”
So, as popular as it is to say that “Textron is the worst thing that ever happened to Arctic Cat,” the truth is that Arctic Cat would have never made it this far without Textron. It saved the brand from collapse back then.
That said, has Textron invested in Arctic Cat the way it could have or should have in the last eight years in terms of everything from product development to marketing to keeping the factories up-to-date? No. And were some strange decisions made along the way — particularly with the off-road division? Absolutely yes. But don’t lose sight of that previous paragraph: If Textron (or somebody else) didn’t step up in 2017, Cat would long be in the rear-view mirror.
Current Arctic Cat Situation
But now, Textron has decided it wants out of the challenging powersports industry. That’s the common English translation from its announcement last fall of “pursuing strategic alternatives.” And, until that deal is closed, Textron has to do what it has to do.
One thing it is not going to do is pay a bunch of manufacturing and assembly workers to sit around and do nothing.
So, now that it is coming to the end of its contracted, planned and announced run of Tracker ATV/UTVs and Ski-Doo MXZ 120/200 youth snowmobiles, the next step is to let go of the production workers. The company previously told us that this painful move was coming.
As a part of that, big corporations have to file paperwork in accordance with the federal Worker Adjustment & Retraining Notification (WARN) Act, giving a 60-day notice of termination. That’s the “news” that dropped February 27, but that paperwork was predictable. It is truly the next step to the December announcement where they told us they were going to wrap up some contracted work and then indefinitely halt production.
Still, it had to be jarring for all of those roughly 385 workers to get the proverbial letter in the mail. Through all of this, it’s important to remember that there are real people behind each bolt, nut and screw on an Arctic Cat snowmobile, UTV and side-by-side. And many of those workers have been with the brand for decades (and often through generations) at the Thief River Falls, Minnesota, factory (with others in St. Cloud, Minnesota).
A Cat insider told us today that the mood around the factory is not-unexpectedly a little glum these days. Yet many truly believe in the brand’s future. And that future will likely become clearer before that previously mentioned 60-days-to-termination period comes to a close. The next owner will need a workforce, and the review by a potential new owner is allegedly deep in the process.
When we asked for an on-the-record statement about the company’s plans for 2026 snowmobiles, company spokesman Brandon Haddock gave us this answer today: “Due to residual inventory levels, Arctic Cat will continue to sell model-year 2025 snowmobiles throughout the year, and will not begin taking orders for model-year 2026 vehicles until existing dealer inventories have reached an acceptable level.”
But off-the-record, other sources confirmed that a handful of pre-production 2026 Arctic Cat snowmobiles have been built. That includes one spotted at a photo shoot last week. And an admittedly small team remains at the factory, working on future product plans.
As stated, those plans do not include Textron as the owner. Who is that next owner? Only time will tell. But we’re convinced that the time is coming between now and the end of May, if not sooner.
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Can people put investments into Arctic Cat
I don’t know if this is true, but remember being told that Arctic Cat spent several million dollars on a building in downtown Minneapolis for their engineering and other staff. It was a total boondoggle. If this is true, no wonder they couldn’t make payroll when management is doing stupid stuff like this. Thank you. I enjoy your magazine.
All Arctic Cat needs to do is cater to the everyday working person and bring back the little 2 stroke 340s and 440s, keep them under $6000 and everyone would buy these for their kids , also a lot of adults too. Thats all we had in the 70s and look how many of those machines are still out there!❄️☃️
They already have a single cylinder 400. And those don’t sell well and there’s hardly any profit in them. They make a 200 that’s under 6k. And the same people that keep bringing up 6k sleds like you still wouldn’t buy one.
Cool story bro. Now the mainstream sled media is feeding into the BS rumors that Cat has a future.
Sorry, Cat is finished, bankrupt, for sale and outta business. They aren’t coming back, there are no ‘26 sleds, stick a fork in them, they are done.
Thanks for your article on Arctic Cat. Very informative. We sure need Cat back again.
Thanks for all you do.
Arctic Cat is not allowed to sell their snowmobiles in Canada right now after losing a lawsuit that affects nearly all sleds back to 2008. It was a loss of 2.x million that they just don’t have to spare right now. Their only option was to declare bankruptcy and sell. According to the lawsuit they have been copying Skidoo chassis for a long time now.
NOTE: That lawsuit was settled on October 30, 2020 and Arctic Cats are readily available in Canada.
So they took care of that situation
They are available yes, but the settlement requires CAT to pay SkiDoo for every sled they sell in Canada for copyright infringement. This impacts profits and thus their bottom line.
That lawsuit was settled. That is why Cat is building 120 and 200 for Shidoo.
I was working there at that time. Textron basically cleaned the swamp Asa far as management goes
I feel That Arctic Cat should live on its a American icon company trillions handed out to other country’s how about Cat,if this was a Canadian builder the government would fall all over itself to prop up a hometown Industry you know who that is lol what next Polaris then no American motorsports companies then what Chinese sleds
Poorly managed companies that don’t manufacture product that people want shouldn’t be bailed out by the government. Why should taxpayers foot the bill for dumb business decisions? If you feel so strongly that Textron needs financial assistance, go buy a ‘25 Cat. They’ve got plenty of unsold sleds sitting around that people don’t want.
Build in CANADA
The 20256and 2025 Ski Doo youth sleds 120 and 200 on the Ski-Doo website are exactly the same so Ski-Doo had AC make their 2026 models just recently as they knew AC was going out of business if not sold.
Maybe the John Deere or Harley Davidson rumours will come true. That would be good both iconic brands with snowmobile history and publicly traded companies.
No surprise 2026 models prototypes are out as they must have been made in 2024 or 2025 due to lead time required.
If Trumps tariffs go through March 4 for 25% on Canadian goods imported to US and 25% March 12 for all steel and aluminum imported in US and April 2 for 10% Chinese tariffs and retaliatory tariffs, to all countries, very highly unlikely anyone will buy AC because those tariffs also have a dealer and manufacturer markup as well of at least 15-40% so total tariff will be 40-60% increase in price to all US consumers, no effect in Canada prices to Canadians.
Make cat great again
The best winters will come back, people (including myself) LOVE Arctic Cat and this brand should never be let go. Their off road ATV’s and SIDE BY SIDES are the absolute best, look awesome , run awesome and are built what I would call American tough! Their snowmobiles are second to NONE, look the coolest, run the best, are dependable and as long as people take care of them they take care of you!! Every machine ever built has a few issues now and again, Arctic Cat has always had the best. This brand and the awesome products they produce needs to stay with us! A little better marketing would go a long way!! Really hope someone with a lot of money and who cares about the brand and the quality of the machines buys Arctic Cat and brings it the top once and for all! Have to keep it going!!
I bought a 2025 catalyst 600 154, great sled. I’m older and didn’t need the horse power of an 858, no chute climbing for me, more of a backwoods powder guy. With that being said, I ride with a dedicated Cat guy who wants to buy the 858 but wants to see where Cat is headed before he does. Hopefully we see or hear something soon, especially for my son-in-law and other dedicated Cat riders.
I bought a 858 137 w/ATAC this year and love it. Should Cat get bought and come back and UPDATE their rear skid and will retro into a ’25, I’m on it. We all know they have to update it. Tell your bud to buy a 858 regardless of Cat’s status. IF Cat never comes back, then I’ll have a piece of history and the funeral director will have to figure out how to bury me w/ it. Been on Cat’s since 1977.
Artic Cat has always had the best snowmobile on the market there engines are second to none they drive better there clutching has always been great, ride is superb. I think if other people w/ the brand x machines could drive an Artic Cat there sales would go through the roof. I know Polaris and Ski Doo are both having a lot of financial problems Polaris lost more money than Textron paid for Artic Cat just last year in sales Ski Doo has hauled sales on water craft vehicles. It’s not a good time to get out of the snowmobile business now let the others go down first. I just went out to the Black Hills and road I would say the majority of the sleds were Artic Cat’s, don’t stop making them you have created the best snowmobile being the Catalyst it compares to be far more advanced than the brand X snowmobiles. Thanks for letting me vent.
Cat must going iv had more then I can count and will buy more in the future my family bleeds green and will be ready for the new owner
TTT tax went in place say bye bye to Arctic Cat sorry to say.
Trump”s Tarriff Tax is harming the US auto makers. He is taxing American vehicles like Ford, GMC, Chevy, Ram but no tax on Japan vehicles or European vehicles so Mercedes, BMW, Audi, Ferrari for all his billionaire and 1%er backers and Toyotas and Hondas for MAGA backers all at expense of US auto makers.
Tariffs are the worst idea ever for any industry and country and consumers. Totally non competitive free market what capitalism is all about.
I’ve owned cats all my life. I wouldn’t want to have to switch brands. That to me would be a trader. Green has and always will run through my veins.
Texteon owned polaris and sold it they dont deserve artic cat someone needs to buy them ,, thier a great product i own 3 sleds and a old scorpion side wander thays is a eltirge just paint scorpion ,, go artic cat !!
Been riding cats since 73,will never buy anything but green.My friends feel same way. And stop getting political people,has nothing to do with Prez Trump.
That “Purple Passion” is still out there isn’t it, and that is cool. I think Cat has customers as loyal as anyone does and probably more so.
As much as I want to see them survive, I see a sale only happening if someone wants their facility’s and to be in the parts business to support product out in the field. The parts business would not be what it could have been with Cat not really selling very many snowmobiles now for many years. I can see parts sales going to Yamaha dealers who have sold Cat built sleds now for a decade or more. A strong asset going to a new buyer is a strong workforce at Cat but I have been hearing for several years many or maybe all engineers are gone. Sounded like some of them went to Argo. Digi Key up there has absorbed some of those people.
A real issue for Cat’s survival is why the hell would anyone want to get in the snowmobile business right now, and then be starting from behind also. You wonder if Doo and Polaris are asking why we are in the snowmobile business the way the last couple of years have gone snow wise.
It would be kind of sad if the last sled down that historic assembly line is a Ski-doo.
If I understand correctly KTM has Negotiated through Bankruptcy Protection to have 70% of a $2.8 Billion Debt forgiven. That has got to be a huge gift or advantage ect.