Snowmobilers, Rejoice: Arctic Cat is Back in Business

After considerable uncertainty about the company’s future, Arctic Cat has announced it is now back in business, and it’s once again producing machines at its Minnesota-based factories.

Arctic Cat is one of the most recognizable powersports brands out there, especially in rural Canada, where jackets emblazoned with the company’s logo rivalled NBA Starter jackets for popularity once upon a time. They’ve had a broad range of products over the years; currently, Arctic Cat sells side-by-sides, ATVs, and snowmobiles.

Like other powersports companies, Arctic Cat has struggled in the post-COVID world. In December 2024, the Minnesota-based manufacturer announced it would finish building the machines it had committed to for 2025, and then the production lines would shut down indefinitely.

That was bad news not just for Arctic Cat, but for the powersports industry in general. The announcement pulled the curtain back to show that, despite record sales during the early COVID years, some manufacturers are now in very bad shape (motorcycle manufacturer KTM went bust around the same time as Arctic Cat’s announcement, as another example). And in the powersports world, where dealership financials are often propped up by carrying multiple lines that support each other during different seasons — especially in Canada — losing a brand can be serious trouble. Canadian dealers want snowmobiles to sell in the winter and ATVs that can be sold all year round, and Arctic Cat provided both. It’s even worse when you consider the shrinking number of snowmobile manufacturers; Yamaha will end its production this year, leaving BRP, Arctic Cat, and Polaris. Losing Arctic Cat would have been a big blow to the industry.

But in April 2025, the company got a lifeline. Brad Darling, who was an executive at Arctic Cat from 2011 through 2016, headed an investment group that bought Arctic Cat from owner Textron. This means a potential Canadian connection; Darling is also president of Canada-based Argo. The ownership that took on Arctic Cat is also heavily invested in Argo, so you can logically expect collaboration between the two companies going forward.

So far, Arctic Cat’s rebooted production line has begun with a side-by-side and a youth snowmobile. Expect more machines in the coming months as the company figures out a plan forward and reorganizes the company. Most of the company’s 500 employees are reportedly back, but there will still be changes going forward. The realities of the North American economy, with tariffs to factor into every production decision, will dictate that. But whatever its future looks like, having an experienced manufacturer stay in the snowmobile business is particularly good news for Canadian powersports dealers at a time when many of them can use the boost.