Polaris (PII)
NYSE:PII
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Polaris
(NYSE:PII)
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Rating:61Neutral
Price Target:
$70.00
▲(20.88% Upside)
Action:ReiteratedDate:05/02/26
The score is held back primarily by weak financial performance (losses and elevated leverage) despite positive but volatile cash generation. Offsetting this are improving operational trends and reaffirmed guidance from the earnings call, plus constructive technical momentum; valuation is mixed with a strong yield but a loss-driven negative P/E.
Positive Factors
Diversified product portfolio and dealer-driven aftermarket
Polaris's core business combines vehicle sales across multiple durable segments (ORVs, snowmobiles, motorcycles) with aftermarket parts, garments and accessories sold through an extensive dealer network. That installed-base-driven aftermarket revenue provides recurring, higher-margin follow-on sales and supports long-term revenue resilience.
Negative Factors
Negative profitability and margin deterioration
Polaris has swung from prior profitability to negative operating and net income, with a TTM net margin around -6.5%. Sustained losses undermine internal capital generation, depress returns on equity, and constrain reinvestment unless revenue growth or margin structure meaningfully improves over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product portfolio and dealer-driven aftermarket
Polaris's core business combines vehicle sales across multiple durable segments (ORVs, snowmobiles, motorcycles) with aftermarket parts, garments and accessories sold through an extensive dealer network. That installed-base-driven aftermarket revenue provides recurring, higher-margin follow-on sales and supports long-term revenue resilience.
Read all positive factors
Polaris (PII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.88B
Dividend Yield3.99%
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth4.30%
EPS Growth-1186.05%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)-7.84
Shares Outstanding56,886,166
10 Day Avg. Volume2,225,317
30 Day Avg. Volume1,465,321
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)4.34
Price to Sales (P/S)0.50
P/FCF Ratio6.45
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit4.06
Enterprise Value/Ebitda-28.17
Forecast
1Y Price Target
$68.80Price Target Upside18.81% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.81
Revenue Forecast (FY)$7.28B
Polaris Business Overview & Revenue Model
Company Description
Polaris Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. It operates through three segments: Off-Road, On-Road and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-s...
How the Company Makes Money
Polaris primarily makes money by selling powersports vehicles to a dealer network, which then sells to end customers. Vehicle sales are the core revenue driver and span major product categories including off-road vehicles, snowmobiles, and on-road...
Polaris Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational quarter with notable wins: double-digit organic sales growth excluding Indian, meaningful margin expansion, EPS upside, robust product momentum, lean-driven savings and improved dealer inventory and cash generation. However, material and lingering external risks remain — primarily tariff-related costs (~$215M expected), recent Section 232 changes that offset IEEPA benefits, rising commodity costs, and consumer/geopolitical uncertainty — prompting management to maintain a conservative outlook. On balance, internal execution and financial performance significantly outweighed the external headwinds during the quarter, but the company remains cautious due to policy and macro uncertainty.Positive Updates
Strong Top-Line Growth
Reported sales up 8% year-over-year and approximately 14% organic growth excluding Indian Motorcycle, driven by strong Powersports performance (ORV, commercial and seasonal).
Negative Updates
Tariff-Related Headwinds and Policy Uncertainty
Expecting roughly $215 million of total tariff costs this year (management estimate); recent Section 232 changes effectively offset the IEEPA/122 benefit (~$40 million offset), creating near-term uncertainty and a material headwind to margins and cost of goods.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported sales up 8% year-over-year and approximately 14% organic growth excluding Indian Motorcycle, driven by strong Powersports performance (ORV, commercial and seasonal).
Read all positive updates
Company Guidance
Polaris reaffirmed the outlook it raised on March 3 and expects 2026 to return to normal seasonality (Q2 and Q3 as the biggest revenue and EPS quarters); specifically Q2 sales are forecast to grow 5–7% year‑over‑year with adjusted EPS of $0.70–$0.80 and a Q2 tariff drag of $30–$35 million. For the full year the company expects total tariff costs of roughly $215 million (excluding potential refunds), noted it paid about $125 million in IEEPA tariffs and will seek refunds, and said the earlier IEEPA/Section 122/232 moves largely netted out (~$40 million benefit offset by ~$40 million 232 impact). Management reiterated the Indian separation will be accretive by about $50 million to adjusted EBITDA (back‑half weighted into Jan 2027), reaffirmed its tariff‑mitigation plan to cut China‑sourced material COGS from ~14% last year to below 5% by end‑2027, and emphasized a prudent stance given consumer and geopolitical uncertainty despite strong Q1 results (Q1 sales +8% reported / +14% organic ex‑Indian; Q1 adjusted EPS $0.13, $0.26 ex‑Indian).Polaris Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
41
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.27B | 7.15B | 7.18B | 8.93B | 8.59B | 7.44B |
| Gross Profit | 1.43B | 1.32B | 1.40B | 1.91B | 1.91B | 1.70B |
| EBITDA | -206.10M | -114.00M | 569.40M | 1.01B | 1.07B | 881.20M |
| Net Income | -446.10M | -465.50M | 110.80M | 502.80M | 589.70M | 493.90M |
Balance Sheet | ||||||
| Total Assets | 5.24B | 4.89B | 5.53B | 5.52B | 5.22B | 5.05B |
| Cash, Cash Equivalents and Short-Term Investments | 282.00M | 138.00M | 287.80M | 367.80M | 324.50M | 502.30M |
| Total Debt | 2.21B | 1.54B | 2.20B | 2.05B | 2.17B | 1.89B |
| Total Liabilities | 4.49B | 4.05B | 4.23B | 4.10B | 4.12B | 3.82B |
| Stockholders Equity | 750.40M | 828.40M | 1.29B | 1.42B | 1.10B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 160.60M | 558.10M | 6.50M | 513.20M | 202.00M | -4.60M |
| Operating Cash Flow | 337.60M | 741.00M | 268.20M | 925.80M | 508.60M | 293.70M |
| Investing Cash Flow | -232.60M | -139.50M | -270.90M | -462.00M | -324.60M | -303.90M |
| Financing Cash Flow | -129.70M | -693.00M | -59.20M | -431.30M | -363.20M | -107.60M |
Polaris Technical Analysis
Positive
57.91
Price Trends
57.69
Positive
62.29
Negative
59.47
Negative
Market Momentum
-0.62
Negative
54.69
Neutral
51.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PII, the sentiment is Positive. The current price of 57.91 is above the 20-day moving average (MA) of 54.78, above the 50-day MA of 57.69, and below the 200-day MA of 59.47, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 51.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PII.
Polaris Risk Analysis
Polaris disclosed 27 risk factors in its most recent earnings report. Polaris reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Polaris Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.89B | 14.80 | 14.69% | 3.72% | 9.12% | 34.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $3.88B | -16.50 | -45.60% | 3.99% | 4.30% | -1186.05% | |
61 Neutral | $5.31B | 57.24 | -8.07% | 2.27% | 8.35% | -271.39% | |
60 Neutral | $2.68B | 22.45 | 7.04% | 3.47% | -9.82% | -33.48% | |
55 Neutral | $897.44M | 58.59 | 3.39% | 3.42% | 5.81% | ― | |
51 Neutral | $4.06B | 82.80 | 7.01% | 1.94% | 4.59% | 49.09% |
* Consumer Cyclical Sector Average
PII
Polaris
66.28
29.31
79.27%
BC
Brunswick
79.53
28.45
55.68%
LCII
LCI Industries
113.14
27.24
31.71%
HOG
Harley-Davidson
25.53
1.46
6.06%
THO
Thor Industries
74.66
-4.32
-5.47%
WGO
Winnebago Industries
30.49
-4.84
-13.69%
Polaris Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Polaris Shareholders Approve Expanded Equity Incentive Plan
Positive
May 1, 2026
At its April 30, 2026 annual meeting of stockholders, Polaris Inc. secured approval to amend and restate its 2024 Omnibus Incentive Plan, nearly doubling the share pool available for equity awards to 8,905,000 shares, which enhances its capacity t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.