Polaris raises 2026 adjusted EPS outlook to $3.50–$3.60
Polaris raised its full-year adjusted sales and EPS ranges, with tariff refunds accounting for approximately $1.09 of adjusted EPS guidance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Polaris Inc. reported third-quarter 2026 sales of $2,042.6 million, up 11% from a year earlier. Net income attributable to Polaris was $38.4 million, compared with a $15.8 million loss in Q3 2025; diluted EPS was $0.66 versus a $0.28 loss. Adjusted diluted EPS was $1.08, compared with $0.41.
North America sales rose 14% to $1,815 million, while international sales fell 11% to $228 million. Gross profit margin was 21.2%, up 52 basis points from Q3 2025. Net cash provided by operating activities for the nine months ended September 30, 2026 was $291.8 million, compared with $562.3 million in the corresponding 2025 period.
Polaris raised full-year 2026 adjusted sales guidance to $7.55 billion–$7.60 billion from $7.30 billion–$7.50 billion, and adjusted EPS guidance to $3.50–$3.60 from $3.00–$3.10. Approximately $1.09 of adjusted EPS guidance is attributed to tariff refunds recorded in the second and third quarters; third-quarter results included $10 million of tariff refunds, which benefited adjusted EPS by $0.13.
3 points · 1 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EPS guidance rose to $3.50–$3.60 from $3.00–$3.10.
- Moderate pointQ3 sales increased 11% to $2,042.6 million year over year.
- Moderate pointAdjusted diluted EPS reached $1.08, up 163% year over year.
Negative
- Moderate pointNine-month operating cash flow fell to $291.8 million from $562.3 million.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Sales: $2,042.6 million
Net income attributable to Polaris: $38.4 million
Diluted EPS attributable to Polaris: $0.66 per share
+4 more
7 metrics
Sales
$2,042.6 million
Third quarter 2026; up 11% year over year
Net income attributable to Polaris
$38.4 million
Third quarter 2026; compared with a $15.8 million loss in Q3 2025
Diluted EPS attributable to Polaris
$0.66 per share
Third quarter 2026; compared with a $0.28 loss per share in Q3 2025
Adjusted diluted EPS
$1.08 per share
Third quarter 2026; up 163% year over year
Adjusted sales guidance
$7.55 billion to $7.60 billion
Full-year 2026; prior guidance was $7.30 billion to $7.50 billion
Adjusted EPS guidance
$3.50 to $3.60 per share
Full-year 2026; prior guidance was $3.00 to $3.10 per share
Net cash provided by operating activities
$291.8 million
Nine months ended September 30, 2026; compared with $562.3 million in the corresponding 2025 period
Key Terms
Adjusted diluted EPS, Adjusted EBITDA margin, Non-GAAP financial measures, Adjusted free cash flow
4 terms
Adjusted diluted EPS financial
"adjusted diluted earnings per share was $1.08"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
Adjusted EBITDA margin financial
"Adjusted EBITDA margin* 8.8%"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
Non-GAAP financial measures financial
"contain certain non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Adjusted free cash flow financial
"Adjusted free cash flow"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Earnings Snapshot
Sales: $2,042.6 million · Guidance included
Quarter ended September 30, 2026
Sales
$2,042.6 million
+11% year over year
Net income attributable to Polaris
$38.4 million
Compared with a $15.8 million loss in Q3 2025
Adjusted diluted EPS
$1.08 per share
+163% year over year
Guidance
For full-year 2026, adjusted sales of $7.55 billion to $7.60 billion and adjusted EPS of $3.50 to $3.60; approximately $1.09 of adjusted EPS guidance is attributed to tariff refunds recorded in the second and third quarters.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Polaris (PII) sales in Q3 2026?
Polaris reported Q3 2026 sales of $2,042.6 million, up 11% from Q3 2025.
What is Polaris (PII)'s 2026 adjusted EPS guidance?
Full-year 2026 adjusted EPS guidance is $3.50 to $3.60, compared with prior guidance of $3.00 to $3.10. Approximately $1.09 of adjusted EPS guidance is attributed to tariff refunds recorded in the second and third quarters of 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
(763 ) 542-0500
Registrant's telephone number, including area code
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2026, Polaris Inc. (the “Company”) issued a press release on the Company's website announcing the third quarter 2026 financial results for the reporting period ended September 30, 2026. On October 27, 2026, the Company will host its quarterly earnings conference call, which will be accessible to the public. A replay of the conference call will be available by accessing the webcast link on the Company’s website at https://ir.polaris.com.
A copy of the Company’s press release is furnished as Exhibit 99.1 and is attached to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Exhibit | |||||||
99.1 | Press Release dated October 27, 2026 of Polaris Inc. | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: | October 27, 2026 | |||||||
| POLARIS INC. | ||||||||
| /s/ Robert P. Mack | ||||||||
| Robert P. Mack | ||||||||
| Chief Financial Officer | ||||||||
 | Third Quarter 2026 Earnings Results October 27, 2026 | ||||
FINANCIAL AND OPERATIONAL HIGHLIGHTS
•Third quarter sales were $2,043 million, up 11 percent compared to last year driven by strength across all major product lines within Polaris Powersports and Marine.
•Third quarter reported diluted earnings per share was $0.66; adjusted diluted earnings per share was $1.08.
•Third quarter market share gains in off-road vehicles (ORV), our sixth straight quarter of share gains, and Marine.
•Polaris Utility ORV retail sales for the quarter, excluding Youth, were up six percent versus last year. ORV retail sales were up two percent, excluding Youth.
•The Company's third quarter results include $10 million of tariff refunds, which benefited adjusted EPS by $0.13.
•Polaris is raising full year 2026 guidance to adjusted EPS of $3.50 to $3.60 from $3.00 to $3.10.
KEY FINANCIAL DATA
| (in millions, except per share data) | ||||||||||||||||||||||||||
| Quarter ended September 30, 2026 | Reported | YOY % Chg. | Adjusted* | YOY % Chg. | ||||||||||||||||||||||
| Sales | $ | 2,042.6 | 11% | $ | 2,041.8 | 11% | ||||||||||||||||||||
| Gross profit margin | 21.2 | % | +52 bps | 21.2 | % | +53 bps | ||||||||||||||||||||
| Total operating expenses | $ | 375.5 | (1)% | |||||||||||||||||||||||
| Net income attributable to Polaris | $ | 38.4 | NM | $ | 63.1 | 171% | ||||||||||||||||||||
Net income attributable to Polaris margin . . . . . . . . . . . . | 1.9 | % | +274 bps | |||||||||||||||||||||||
| Adjusted EBITDA margin* | 8.8 | % | +118 bps | |||||||||||||||||||||||
| Diluted EPS attributable to Polaris | $ | 0.66 | NM | $ | 1.08 | 163% | ||||||||||||||||||||
| NM = Not meaningful | ||||||||||||||||||||||||||
| *Note: the results and guidance in this release, including the highlights above, include references to non-GAAP operating measures, which are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP / non-GAAP measures can be found at the end of this release. | ||||||||||||||||||||||||||
CEO COMMENTARY
"The Polaris team delivered another strong quarter, reflecting progress we’ve made to strengthen Polaris and position the business for sustainable, profitable growth. Our disciplined approach to dealer inventory, focus on operational excellence and pace of innovation are driving continued share gains and improved financial performance, enabling us to raise our full-year guidance for the third time this year. We remain confident in our long-term strategy and are well positioned to continue building on this momentum."
-- Mike Speetzen, Chief Executive Officer of Polaris Inc.
PERFORMANCE SUMMARY (Reported)
MINNEAPOLIS (October 27, 2026) - Polaris Inc. (NYSE: PII) (the "Company") today released third quarter 2026 results. For the third quarter, the Company reported worldwide sales of $2,043 million, up 11 percent versus the third quarter of 2025. North America sales of $1,815 million represented 89 percent of total Company sales and increased 14 percent from $1,586 million in the third quarter of 2025. International sales of $228 million represented 11 percent of total Company sales and decreased 11 percent versus the third quarter of 2025. Total Company sales in the third quarter of 2026 were positively impacted by higher shipment volumes and positive net price partially offset by the divestiture of Indian Motorcycle.
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 1 | ||||
| Third Quarter 2026 Earnings Results | ||||
Gross profit margin increased 52 basis points to 21.2 percent for the third quarter, as compared to the third quarter of 2025. Adjusted gross profit margin of 21.2 percent increased 53 basis points primarily driven by positive net price and operational efficiencies somewhat offset by higher commodity costs compared to the third quarter of 2025.
Operating expenses were $376 million in the third quarter of 2026, compared to $380 million in the third quarter of 2025. Operating expenses as a percentage of sales were 18.4 percent, down 223 basis points in the third quarter of 2026 compared to the third quarter of 2025.
For the third quarter, net income attributable to Polaris was $38 million, or $0.66 per diluted share, compared to a net loss attributable to Polaris of $16 million, or $0.28 net loss per diluted share in the third quarter of 2025. Adjusted net income attributable to Polaris for the quarter was $63 million and adjusted EPS was $1.08.
SEGMENT HIGHLIGHTS (Reported)
Sales (in millions) | Gross Profit Margin | ||||||||||||||||||||||||||||||||||
| Q3 2026 | Q3 2025 | Change | Q3 2026 | Q3 2025 | Change | ||||||||||||||||||||||||||||||
| Polaris Powersports | $ | 1,822.1 | $ | 1,543.2 | 18 | % | 22.3 | % | 22.2 | % | +5 bps | ||||||||||||||||||||||||
| Marine | $ | 133.4 | $ | 103.4 | 29 | % | 11.9 | % | 11.4 | % | +43 bps | ||||||||||||||||||||||||
| Aixam & Goupil | $ | 68.0 | $ | 77.3 | (12) | % | 27.5 | % | 28.0 | % | -47 bps | ||||||||||||||||||||||||
| Corporate | $ | 19.1 | $ | 117.7 | NM | ||||||||||||||||||||||||||||||
Polaris Powersports segment results were primarily driven by these factors:
•Sales were driven by higher ORV, Commercial and snowmobile shipment volumes and positive net price.
•PG&A sales increased 19 percent compared to the third quarter of 2025.
•Gross profit margin performance was driven by higher net price and favorable operating costs and partially offset by higher commodity and logistics costs and incremental tariffs. Results include a tariff refund of approximately $6 million.
•Polaris North America ORV unit retail sales were up low-single digits year-over-year. Estimated North America industry ORV unit retail sales were flat compared to the third quarter of 2025.
Marine segment results were primarily driven by these factors:
•Sales were driven by favorable product mix and higher pontoon shipments.
•Gross profit margin performance was impacted by positive product mix.
Aixam & Goupil segment results were primarily driven by these factors:
•Sales were driven by lower Aixam shipments.
•PG&A sales increased three percent.
•Gross profit margin performance was driven by decreased leverage of fixed costs as a result of reduced shipments.
Corporate includes results related to previously divested businesses and related transition services and supply agreements.
2026 BUSINESS OUTLOOK
The Company is raising 2026 full year adjusted sales and adjusted EPS guidance. The Company now expects 2026 adjusted sales to be between $7.55 billion to $7.60 billion versus prior guidance of $7.30 billion to $7.50 billion. The Company now expects adjusted EPS of $3.50 to $3.60 versus prior guidance of $3.00 to $3.10, of which approximately $1.09 is attributed to the benefit of tariff refunds recorded in the second and third quarters of 2026.
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 2 | ||||
| Third Quarter 2026 Earnings Results | ||||
The Company has not provided reconciliations of guidance for adjusted sales or earnings per share in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include restructuring and acquisition integration costs that are difficult to predict in advance in order to include in a GAAP estimate.
NON-GAAP FINANCIAL MEASURES
This press release and our related earnings call materials contain certain non-GAAP financial measures, including “adjusted" sales, gross profit margin, income before income taxes, net income (loss) attributed to Polaris Inc., diluted EPS attributed to Polaris Inc., EPS attributed to Polaris Inc., EBITDA, EBITDA margin, and free cash flow and “operational adjusted” gross profit margin, EBITDA margin, EPS attributed to Polaris Inc. as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, and to understand the performance of its ongoing operations and how management views the business. Reconciliations of reported GAAP historic measures to adjusted non-GAAP measures are included in the financial schedules contained in this presentation. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.
EARNINGS CONFERENCE CALL AND WEBCAST
Today at 8:00 AM (CT) Polaris Inc. will host a conference call and webcast to discuss the 2026 third quarter results released this morning. The call will be hosted by Mike Speetzen, Chief Executive Officer; and Bob Mack, Chief Financial Officer. The earnings presentation and link to the webcast will be posted on the Polaris Investor Relations website at ir.polaris.com. To listen to the conference call by phone, dial 1-877-883-0383 in the U.S., or 1-412-902-6506 internationally. The Conference ID is 0439231. A replay of the webcast will be available by accessing the same link on our website at ir.polaris.com or by phone dialing 1-855-669-9658 in the U.S., or 1-412-317-0088 internationally using access code 7008833.
ABOUT POLARIS
As the global leader in powersports, Polaris Inc. (NYSE: PII) has been defining and redefining outdoor adventure since 1954. Polaris delivers industry-shaping off-road vehicles, snowmobiles, boats, military, quadricycles, and commercial transportation vehicles, along with an expansive portfolio of parts, garments, and accessories. Its lineup includes some of the most iconic brands in powersports including the RANGER, RZR, Polaris XPEDITION, Bennington pontoons, Slingshot, and more. Headquartered in Minnesota and serving customers in nearly 100 countries, Polaris continues to set the standard for performance, quality, and unmatched service. Explore more at www.polaris.com.
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the matters set forth in this press release, including, but not limited to, the “2026 Business Outlook” and statements in “CEO Commentary” above are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the Company’s ability to successfully implement its manufacturing operations strategy and supply chain initiatives, including its supply chain localization strategy; the Company’s ability to successfully source necessary parts and materials on a timely basis; the ability of the Company to manufacture and deliver products to dealers to meet demand, including as a result of supply chain disruptions, and to identify and meet optimal dealer inventory levels; the Company’s ability to accurately forecast and sustain consumer demand; the Company’s ability to mitigate increasing input costs through pricing or other measures; the Company’s ability to realize anticipated cost savings and margin improvements from lean manufacturing, operational efficiency, and portfolio optimization initiatives; product offerings, promotional activities and pricing strategies by competitors that may make our products less attractive to consumers; the Company’s ability to strategically invest in innovation and new products, including as compared to our competitors; economic conditions that impact consumer spending or consumer credit, including recessionary conditions and changes in interest rates; disruptions in manufacturing facilities; product recalls and/or warranty expenses; product rework costs; freight and tariff costs (including the timing, amount and finality of tariff relief or other opportunities to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); the Company’s ability to derive the expected benefits from the Indian Motorcycle separation, including the separation being accretive, within the expected timeline or at all; environmental and product safety regulatory activity; effects of weather on the Company’s supply chain, manufacturing operations and consumer demand; commodity costs; changes to international trade policies and agreements; uninsured product liability and class action claims (including claims seeking punitive damages) and other litigation expenses incurred due to the nature of the Company’s business; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; uncertainty in the consumer retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; relationships with dealers and suppliers; and the general global economic, social and political environment. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements except as otherwise may be required by law.
The data source for retail sales figures included in this press release is registration information provided by Polaris dealers in North America and Europe compiled by the Company or Company estimates and other industry data sources. The Company relies on information that its dealers or other third parties supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this information is subject to change. Retail sales references to total Company retail sales includes only Polaris Powersports and Marine in North America, unless otherwise noted.
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 3 | ||||
| Third Quarter 2026 Earnings Results | ||||
| CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||||||||||||
| (In Millions, Except Per Share Data), (Unaudited) | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales | $ | 2,042.6 | $ | 1,841.6 | $ | 5,724.1 | $ | 5,230.1 | |||||||||||||||
| Cost of sales | 1,610.2 | 1,461.3 | 4,478.6 | 4,245.6 | |||||||||||||||||||
| Gross profit | 432.4 | 380.3 | 1,245.5 | 984.5 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling and marketing | 124.9 | 126.7 | 350.8 | 368.9 | |||||||||||||||||||
| Research and development | 88.2 | 92.8 | 264.1 | 266.0 | |||||||||||||||||||
| General and administrative | 160.6 | 117.8 | 466.0 | 347.9 | |||||||||||||||||||
| Goodwill impairment | — | — | — | 52.6 | |||||||||||||||||||
| Loss on disposal groups | 1.8 | 42.3 | 30.9 | 42.3 | |||||||||||||||||||
| Total operating expenses | 375.5 | 379.6 | 1,111.8 | 1,077.7 | |||||||||||||||||||
| Income from financial services | 16.5 | 19.7 | 49.4 | 64.6 | |||||||||||||||||||
| Operating income (loss) | 73.4 | 20.4 | 183.1 | (28.6) | |||||||||||||||||||
| Non-operating expense: | |||||||||||||||||||||||
| Interest expense | 28.2 | 33.1 | 92.3 | 100.4 | |||||||||||||||||||
| Other (income) expense, net | (11.0) | (0.6) | (41.1) | 46.8 | |||||||||||||||||||
| Income (loss) before income taxes | 56.2 | (12.1) | 131.9 | (175.8) | |||||||||||||||||||
| Provision (benefit) for income taxes | 17.6 | 3.6 | 33.9 | (14.3) | |||||||||||||||||||
| Net income (loss) | 38.6 | (15.7) | 98.0 | (161.5) | |||||||||||||||||||
| Net income attributable to noncontrolling interest | (0.2) | (0.1) | (0.6) | (0.4) | |||||||||||||||||||
| Net income (loss) attributable to Polaris Inc. | $ | 38.4 | $ | (15.8) | $ | 97.4 | $ | (161.9) | |||||||||||||||
| Net income (loss) per share attributable to Polaris Inc. common shareholders: | |||||||||||||||||||||||
| Basic | $ | 0.67 | $ | (0.28) | $ | 1.69 | $ | (2.84) | |||||||||||||||
| Diluted | $ | 0.66 | $ | (0.28) | $ | 1.67 | $ | (2.84) | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 57.6 | 56.9 | 57.5 | 56.9 | |||||||||||||||||||
| Diluted | 58.5 | 56.9 | 58.3 | 56.9 | |||||||||||||||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 4 | ||||
| Third Quarter 2026 Earnings Results | ||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In Millions), (Unaudited) | |||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 301.7 | $ | 335.5 | |||||||
| Trade receivables, net | 276.8 | 230.3 | |||||||||
| Inventories, net | 1,544.9 | 1,697.3 | |||||||||
| Prepaid expenses and other | 272.4 | 311.1 | |||||||||
| Income taxes receivable | 21.1 | 29.0 | |||||||||
| Current assets held for sale | 22.3 | — | |||||||||
| Total current assets | 2,439.2 | 2,603.2 | |||||||||
| Property and equipment, net | 975.8 | 1,081.6 | |||||||||
| Investment in finance affiliate | 90.9 | 127.6 | |||||||||
| Deferred tax assets | 536.3 | 423.7 | |||||||||
| Goodwill and other intangible assets, net | 785.6 | 874.7 | |||||||||
| Operating lease assets | 127.6 | 118.8 | |||||||||
| Other long-term assets | 95.9 | 75.8 | |||||||||
| Total assets | $ | 5,051.3 | $ | 5,305.4 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current financing obligations | $ | 35.2 | $ | 434.8 | |||||||
| Accounts payable | 903.4 | 808.8 | |||||||||
| Accrued expenses | 1,312.3 | 1,266.0 | |||||||||
| Other current liabilities | 41.9 | 37.9 | |||||||||
| Total current liabilities | 2,292.8 | 2,547.5 | |||||||||
| Long-term financing obligations | 1,593.2 | 1,299.8 | |||||||||
| Other long-term liabilities | 313.7 | 297.7 | |||||||||
| Total liabilities | $ | 4,199.7 | $ | 4,145.0 | |||||||
| Deferred compensation | 2.7 | 6.5 | |||||||||
| Equity: | |||||||||||
| Total shareholders’ equity | 844.5 | 1,149.5 | |||||||||
| Noncontrolling interest | 4.4 | 4.4 | |||||||||
| Total equity | 848.9 | 1,153.9 | |||||||||
| Total liabilities and equity | $ | 5,051.3 | $ | 5,305.4 | |||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 5 | ||||
| Third Quarter 2026 Earnings Results | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In Millions), (Unaudited) | |||||||||||
| Nine months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities: | |||||||||||
| Net income (loss) | $ | 98.0 | $ | (161.5) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 196.1 | 218.9 | |||||||||
| Noncash compensation | 48.9 | 49.1 | |||||||||
| Noncash income from financial services | (27.2) | (32.3) | |||||||||
| Deferred income taxes | (11.3) | (37.7) | |||||||||
| Impairment charges | — | 102.0 | |||||||||
| Loss on disposal groups | 30.9 | 42.3 | |||||||||
| Other, net | 3.9 | (0.7) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Trade receivables | (47.1) | (25.6) | |||||||||
| Inventories | (153.9) | 77.1 | |||||||||
| Accounts payable | 119.5 | 236.7 | |||||||||
| Accrued expenses | (48.2) | (0.1) | |||||||||
| Income taxes payable/receivable | (12.5) | (6.6) | |||||||||
| Prepaid expenses and other, net | 94.7 | 100.7 | |||||||||
| Net cash provided by operating activities | 291.8 | 562.3 | |||||||||
| Investing Activities: | |||||||||||
| Purchase of property and equipment, net | (140.3) | (118.2) | |||||||||
| Distributions from finance affiliate, net | 67.8 | 41.4 | |||||||||
| Investments in and distributions from other affiliates, net | (19.5) | — | |||||||||
| Sale of businesses | (78.6) | — | |||||||||
| Net cash used for investing activities | (170.6) | (76.8) | |||||||||
| Financing Activities: | |||||||||||
| Borrowings (repayments) under revolving loan facility, net | 114.9 | 32.7 | |||||||||
| Repayments under financing obligations | (26.8) | (379.4) | |||||||||
| Repurchase and retirement of common shares | (9.3) | (2.4) | |||||||||
| Cash dividends to shareholders | (116.3) | (113.0) | |||||||||
| Cash dividend to noncontrolling interest | (0.7) | (0.2) | |||||||||
| Proceeds from stock issuances under employee plans | 4.5 | 3.1 | |||||||||
| Net cash used for financing activities | (33.7) | (459.2) | |||||||||
| Impact of currency exchange rates on cash balances | (5.7) | 22.2 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 81.8 | 48.5 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 236.3 | 303.0 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 318.1 | $ | 351.5 | |||||||
| The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets: | |||||||||||
| Cash and cash equivalents | $ | 301.7 | $ | 335.5 | |||||||
| Other long-term assets | 16.4 | 16.0 | |||||||||
| Total | $ | 318.1 | $ | 351.5 | |||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 6 | ||||
| Third Quarter 2026 Earnings Results | ||||
| NON-GAAP RECONCILIATION OF RESULTS | |||||||||||||||||||||||
| (In Millions, Except Per Share Data), (Unaudited) | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales | 2,042.6 | 1,841.6 | 5,724.1 | 5,230.1 | |||||||||||||||||||
Restructuring (2) | (0.8) | — | (0.8) | — | |||||||||||||||||||
Product wind downs (3) | — | (3.6) | — | (7.9) | |||||||||||||||||||
| Adjusted sales | 2,041.8 | 1,838.0 | 5,723.3 | 5,222.2 | |||||||||||||||||||
| Gross profit | 432.4 | 380.3 | 1,245.5 | 984.5 | |||||||||||||||||||
Restructuring (2) | 1.0 | — | 12.4 | 1.8 | |||||||||||||||||||
Product wind downs (3) | — | 0.1 | — | 9.3 | |||||||||||||||||||
| Adjusted gross profit | 433.4 | 380.4 | 1,257.9 | 995.6 | |||||||||||||||||||
| Gross profit margin | 21.2 | % | 20.6 | % | 21.8 | % | 18.8 | % | |||||||||||||||
| Adjusted gross profit margin | 21.2 | % | 20.7 | % | 22.0 | % | 19.1 | % | |||||||||||||||
| Income (loss) before income taxes | 56.2 | (12.1) | 131.9 | (175.8) | |||||||||||||||||||
Acquisition-related costs (1) | — | 0.1 | — | 0.1 | |||||||||||||||||||
Restructuring (2) | 1.6 | 2.7 | 18.3 | 8.2 | |||||||||||||||||||
Product wind downs (3) | — | 0.2 | — | 9.5 | |||||||||||||||||||
Intangible amortization (4) | 4.4 | 4.4 | 13.2 | 13.2 | |||||||||||||||||||
Litigation-related expenses (6) | 24.6 | 1.5 | 28.0 | 6.5 | |||||||||||||||||||
Impairment charges (7) | — | — | 2.2 | 102.0 | |||||||||||||||||||
Distressed supplier support payments (8) | — | — | 22.5 | — | |||||||||||||||||||
Loss on disposal groups (9) | 1.8 | 42.3 | 30.9 | 42.3 | |||||||||||||||||||
| Adjusted income before income taxes | 88.6 | 39.1 | 247.0 | 6.0 | |||||||||||||||||||
| Net income (loss) attributable to Polaris Inc. | 38.4 | (15.8) | 97.4 | (161.9) | |||||||||||||||||||
Acquisition-related costs (1) | — | 0.1 | — | 0.1 | |||||||||||||||||||
Restructuring (2) | 1.3 | 2.2 | 14.0 | 6.3 | |||||||||||||||||||
Product wind downs (3) | — | 0.1 | — | 7.2 | |||||||||||||||||||
Intangible amortization (4) | 3.4 | 3.4 | 10.1 | 10.1 | |||||||||||||||||||
Litigation-related expenses (6) | 18.7 | 1.1 | 21.3 | 4.9 | |||||||||||||||||||
Impairment charges (7) | — | — | 2.2 | 96.2 | |||||||||||||||||||
Distressed supplier support payments (8) | — | — | 17.1 | — | |||||||||||||||||||
Loss on disposal groups (9) | 1.3 | 32.2 | 23.5 | 32.2 | |||||||||||||||||||
Adjusted net income (loss) attributable to Polaris Inc.(10) | 63.1 | 23.3 | 185.6 | (4.9) | |||||||||||||||||||
| Diluted EPS attributable to Polaris Inc. | $ | 0.66 | $ | (0.28) | $ | 1.67 | $ | (2.84) | |||||||||||||||
Restructuring (2) | 0.02 | 0.04 | 0.24 | 0.10 | |||||||||||||||||||
Product wind downs (3) | — | — | — | 0.13 | |||||||||||||||||||
Intangible amortization (4) | 0.06 | 0.06 | 0.17 | 0.18 | |||||||||||||||||||
Litigation-related expenses (6) | 0.32 | 0.02 | 0.37 | 0.08 | |||||||||||||||||||
Impairment charges (7) | — | — | 0.04 | 1.69 | |||||||||||||||||||
Distressed supplier support payments (8) | — | — | 0.29 | — | |||||||||||||||||||
Loss on disposal groups (9) | 0.02 | 0.57 | 0.40 | 0.57 | |||||||||||||||||||
Adjusted EPS attributable to Polaris Inc. (10) | $ | 1.08 | $ | 0.41 | $ | 3.18 | $ | (0.09) | |||||||||||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 7 | ||||
| Third Quarter 2026 Earnings Results | ||||
| Adjusted sales | $ | 2,041.8 | $ | 1,838.0 | $ | 5,723.3 | $ | 5,222.2 | |||||||||||||||
| Net income (loss) | $ | 38.6 | $ | (15.7) | $ | 98.0 | $ | (161.5) | |||||||||||||||
| Provision (benefit) for income taxes | 17.6 | 3.6 | 33.9 | (14.3) | |||||||||||||||||||
| Interest expense | 28.2 | 33.1 | 92.3 | 100.4 | |||||||||||||||||||
| Depreciation | 63.0 | 66.7 | 182.3 | 201.0 | |||||||||||||||||||
Intangible amortization (5) | 4.6 | 5.9 | 13.8 | 17.9 | |||||||||||||||||||
Acquisition-related costs (1) | — | 0.1 | — | 0.1 | |||||||||||||||||||
Restructuring (2) | 1.6 | 2.7 | 18.3 | 8.2 | |||||||||||||||||||
Product wind downs (3) | — | 0.2 | — | 9.5 | |||||||||||||||||||
Litigation-related expenses (6) | 24.6 | 1.5 | 28.0 | 6.5 | |||||||||||||||||||
Impairment charges (7) | — | — | 2.2 | 102.0 | |||||||||||||||||||
Distressed supplier support payments (8) | — | — | 22.5 | — | |||||||||||||||||||
Loss on disposal groups (9) | 1.8 | 42.3 | 30.9 | 42.3 | |||||||||||||||||||
| Adjusted EBITDA | $ | 180.0 | $ | 140.4 | $ | 522.2 | $ | 312.1 | |||||||||||||||
| Adjusted EBITDA Margin | 8.8 | % | 7.6 | % | 9.1 | % | 6.0 | % | |||||||||||||||
| (1) Represents adjustments for integration and acquisition-related expenses | |||||||||||||||||||||||
| (2) Represents adjustments for corporate restructuring | |||||||||||||||||||||||
| (3) Represents adjustments related to product wind downs | |||||||||||||||||||||||
| (4) Represents amortization expense for intangible assets acquired through business combinations | |||||||||||||||||||||||
| (5) Represents amortization expense for intangible assets acquired through business combinations and asset acquisitions | |||||||||||||||||||||||
| (6) Represents adjustments for pending class action lawsuit settlements and the related litigation costs, as well as certain legal costs associated with the Company's active federal patent infringement matter | |||||||||||||||||||||||
| (7) Represents goodwill and strategic investment impairment charges | |||||||||||||||||||||||
| (8) Represents charges attributable to payments made in support of a distressed supplier | |||||||||||||||||||||||
| (9) Represents the loss associated with the separation of the Company's Indian Motorcycle business, as well as impairment and other charges related to certain other assets sold or classified as held for sale | |||||||||||||||||||||||
| (10) The Company used its estimated statutory tax rate of 23.8% for the non-GAAP adjustments in 2026 and 2025, except for non-deductible items | |||||||||||||||||||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 8 | ||||
| Third Quarter 2026 Earnings Results | ||||
| RECONCILIATION OF GAAP OPERATING CASH FLOW TO NON-GAAP FREE CASH FLOW | ||||||||||||||
| (In Millions), (Unaudited) | ||||||||||||||
| Nine months ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by operating activities | $ | 291.8 | $ | 562.3 | ||||||||||
| Purchase of property and equipment, net | (140.3) | (118.2) | ||||||||||||
| Distributions from finance affiliate, net | 67.8 | 41.4 | ||||||||||||
| Adjusted free cash flow | $ | 219.3 | $ | 485.5 | ||||||||||
| NON-GAAP RECONCILIATION OF SEGMENT RESULTS | ||||||||||||||||||||||||||
| (In Millions), (Unaudited) | ||||||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| SEGMENT GROSS PROFIT | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Polaris Powersports segment gross profit | $ | 405.8 | $ | 342.9 | $ | 1,131.6 | $ | 850.4 | ||||||||||||||||||
Restructuring (1) | 1.9 | — | 9.7 | 1.8 | ||||||||||||||||||||||
| Adjusted Polaris Powersports segment gross profit | 407.7 | 342.9 | 1,141.3 | 852.2 | ||||||||||||||||||||||
| Marine segment gross profit | 15.8 | 11.8 | 63.2 | 52.7 | ||||||||||||||||||||||
| No adjustment | — | — | — | — | ||||||||||||||||||||||
| Adjusted Marine segment gross profit | 15.8 | 11.8 | 63.2 | 52.7 | ||||||||||||||||||||||
| Aixam & Goupil segment gross profit | 18.7 | 21.6 | 62.4 | 58.7 | ||||||||||||||||||||||
| No adjustment | — | — | — | — | ||||||||||||||||||||||
| Adjusted Aixam & Goupil segment gross profit | 18.7 | 21.6 | 62.4 | 58.7 | ||||||||||||||||||||||
| Corporate gross profit | (7.9) | 4.0 | (11.7) | 22.7 | ||||||||||||||||||||||
Restructuring (1) | (0.9) | — | 2.7 | — | ||||||||||||||||||||||
Product wind downs (2) | — | 0.1 | — | 9.3 | ||||||||||||||||||||||
| Adjusted Corporate gross profit | (8.8) | 4.1 | (9.0) | 32.0 | ||||||||||||||||||||||
| Total gross profit | 432.4 | 380.3 | 1,245.5 | 984.5 | ||||||||||||||||||||||
Restructuring (1) | 1.0 | — | 12.4 | 1.8 | ||||||||||||||||||||||
Product wind downs (2) | — | 0.1 | — | 9.3 | ||||||||||||||||||||||
| Adjusted total gross profit | $ | 433.4 | $ | 380.4 | $ | 1,257.9 | $ | 995.6 | ||||||||||||||||||
(1) Represents adjustments for corporate restructuring | ||||||||||||||||||||||||||
(2) Represents adjustments related to product wind downs | ||||||||||||||||||||||||||
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 9 | ||||
| Third Quarter 2026 Earnings Results | ||||
| NON-GAAP ADJUSTMENTS | ||
| Third Quarter 2026 Results | ||
Restructuring Costs
The Company is executing certain corporate restructuring activities across the organization to increase efficiency and focus its business. For the third quarter of 2026, Polaris recorded costs totaling $1.6 million, which was included as a non-GAAP adjustment.
Intangible Amortization Related to Acquisitions
The Company uses an adjusted net income (loss) metric which excludes intangible amortization from all historical business acquisitions. The Company believes this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company completes. For the third quarter of 2026, Polaris recorded $4.4 million of intangible amortization related to acquisitions as a non-GAAP adjustment.
Loss on Disposal Groups
For the third quarter of 2026, Polaris recorded net adjustments of $1.8 million related to the separation of its Indian Motorcycle business and impairment and other charges related to certain other assets sold. These adjustments were included as non-GAAP adjustments.
Additional Adjustments
For the third quarter of 2026, the Company recorded $24.6 million of expenses related to pending class action lawsuit settlements and the related legal costs, as well as certain costs associated with the Company's active patent infringement matter. These expenses were included as a non-GAAP adjustment.
| Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 10 | ||||