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1. Company Snapshot

1.a. 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-side vehicles; snowmobiles and snow bikes conversion kit systems; motorcycles; and low emission, light duty hauling, passenger, and industrial vehicles.It also provides quadricycles and moto-roadsters; ORV accessories comprising winches, bumper, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, electric starters, reverse kits, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories.In addition, the company offers gear and apparel, such as helmets, jackets, gloves, pants, hats, goggles, boots, bibs, and leathers; and pontoon and deck boats.


The company provides its products through dealers and distributors, and online; and aftermarket parts, garments, and accessories through 101 brick-and-mortar retail centers, call centers, and e-commerce sites.The company was formerly known as Polaris Industries Inc.Polaris Inc.


was founded in 1954 and is headquartered in Medina, Minnesota.

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1.b. Last Insights on PII

Breaking News: Polaris Inc reported Q1 earnings on April 28 2026, with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of a loss of $0.43 per share. This compares to a loss of $0.9 per share a year ago. The company's revenue and EPS gave a sense of how its business performed in the quarter ended March 2026. Some key metrics compare favorably with Wall Street estimates and the year-ago numbers. Analysts recommend a hold, according to recent research reports from several firms.

1.c. Company Highlights

2. Polaris Powers Up: Q1 2026 Surprises with Strong Margins

Polaris delivered a robust start to 2026, posting sales that rose 8% year‑over‑year or 14% organically—excluding Indian Motorcycle—and an adjusted EPS of $0.13, surpassing consensus. Gross margins climbed 389 basis points, and adjusted EBITDA margins improved by 277 basis points, underscoring the company’s efficient execution and pricing power.

Publication Date: Apr -29

📋 Highlights
  • Strong Organic Sales Growth:: Reported sales increased 8% (14% organically excluding Indian Motorcycle), driven by double-digit growth in Power Sports segments like utility RANGER, commercial, and Snowmobiles. Adjusted EPS of $0.13 exceeded expectations.
  • Margin Expansion:: Gross margins improved 389 bps and adjusted EBITDA margins gained 277 bps, attributed to favorable product mix and operational efficiencies.
  • Tariff-Driven Headwinds:: Tariffs caused a 240 bps headwind in Q1, with $30–35M expected in Q2 and $215M total annual impact. Mitigation efforts aim to reduce China-sourced material costs to below 5% by 2027.
  • Free Cash Flow Momentum:: Generated $600M+ free cash flow in 2025, with continued focus on cash generation and operational discipline to support long-term returns.
  • Strategic Focus on Dealer Health and Innovation:: Prioritizing utility growth, lean manufacturing (70% factory utilization), and premium product expansion to strengthen market leadership in Power Sports.

Revenue Growth and Organic Expansion

The company reported a double‑digit uptick in its Power Sports segment, driven by the Ranger utility line, commercial business, and snowmobiles. Sales growth was further bolstered by a favorable net price mix and reduced promotional activity, as highlighted by CEO Mike Speetzen (Speetzen).

Margin Expansion

Polaris’s gross margin gain of 389 basis points and EBITDA margin lift of 277 basis points stem from lean manufacturing, higher‑priced product mix, and improved plant utilization, now hovering around 70%. The company’s focus on operational discipline continues to translate into superior cost performance.

Tariff Impact and Mitigation

Tariffs added a 240‑basis‑point headwind in Q1, yet the firm’s mitigation strategy keeps the net impact neutral. Polaris plans to reduce China‑source material costs from 14% to below 5% of COGS by the end of 2027, targeting a total tariff expense of roughly $215 million this year.

Cash Flow and Working Capital

Free cash flow surpassed $600 million last year, and the company remains committed to enhancing working‑capital efficiency. With healthy dealer inventory levels and robust supply‑chain alignment, Polaris is positioned to sustain strong cash generation into the second half of the year.

Forward Guidance and Market Outlook

Management projects Q2 sales growth of 5%–7% and adjusted EPS between $0.70 and $0.80, assuming tariff policy remains unchanged. The firm maintains a conservative outlook amid consumer and tariff uncertainty, yet it signals upside potential if stability returns and tariffs stay flat.

Valuation Snapshot

Polaris trades at a P/E of –8.56 and a P/B of 5.09, reflecting the market’s view of its high growth prospects and solid balance sheet. With a P/S of 0.52, the stock appears attractively priced relative to its revenue generation, offering upside as margins and cash flow continue to improve.

3. NewsRoom

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Canagold: New Polaris Gold-Antimony Project Recognized as a Priority Project by British Columbia

May -01

Source: newsfilecorp.com

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Polaris Inc. (PII) Q1 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About Polaris Inc (PII) Q1 Earnings

Apr -28

Source: zacks.com

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Polaris Inc (PII) Q1 Earnings and Revenues Beat Estimates

Apr -28

Source: zacks.com

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Polaris Inc. First Quarter 2026 Financial Results Available on Company's Website

Apr -27

Source: prnewswire.com

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Polaris Announces Spring 2026 TRAILS GRANTS as Program Marks 20 Years

Apr -23

Source: prnewswire.com

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Polaris: A Mistake Long Past Due Correcting (Downgrade)

Apr -22

Source: seekingalpha.com

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Polaris Inc (PII) Stock Up 4.8% and Still Undervalued -- GF Score: 73/100

Apr -20

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.14%)

6. Segments

Off Road

Expected Growth: 1.2%

Polaris' Off-Road segment growth is driven by increasing demand for recreational vehicles, particularly in North America, and the company's strategic investments in product innovation, such as the introduction of new ATV and side-by-side models, as well as expansion into adjacent markets like electric vehicles and accessories.

On Road

Expected Growth: 0.8%

Polaris Inc.'s On Road segment growth is driven by increasing demand for recreational vehicles, particularly in the ATV and motorcycle markets. The company's focus on innovation, quality, and customer experience has led to market share gains. Additionally, strategic partnerships and expansion into new markets have contributed to the 0.8 growth rate.

Marine

Expected Growth: 1.1%

Polaris Inc.'s Marine segment growth of 1.1% is driven by increasing demand for recreational boats, driven by rising disposable income and consumer confidence. Additionally, the company's focus on innovation, such as its pontoon and outboard engine offerings, has helped to expand its market share and attract new customers.

7. Detailed Products

Off-Road Vehicles

Polaris offers a range of off-road vehicles, including ATVs, side-by-sides, and motorcycles, designed for recreational and utility use.

Snowmobiles

Polaris designs and manufactures snowmobiles for recreational and utility use, offering a range of models for different terrains and riding styles.

Slingshot

The Slingshot is a three-wheeled roadster designed for on-road driving, offering a unique driving experience and sleek design.

GEM Electric Vehicles

Polaris offers a range of electric vehicles, including cars, trucks, and vans, designed for low-speed transportation and utility use.

Aixam Mega

Aixam Mega is a line of quadricycles and microcars designed for urban transportation and last-mile delivery.

Boats

Polaris offers a range of boats, including pontoon boats, fishing boats, and runabouts, designed for recreational use.

Marine Accessories

Polaris offers a range of marine accessories, including engines, propellers, and boat lifts, designed to enhance the boating experience.

8. Polaris Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Polaris Inc. faces moderate threat from substitutes, as customers have limited alternatives for its off-road vehicles and snowmobiles.

Bargaining Power Of Customers

Polaris Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Polaris Inc. relies on a few key suppliers for components, giving them some bargaining power, but the company's large scale of operations helps mitigate this risk.

Threat Of New Entrants

The off-road vehicle and snowmobile markets have high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Polaris Inc.

Intensity Of Rivalry

The off-road vehicle and snowmobile markets are highly competitive, with established players like Polaris Inc., Arctic Cat, and Honda, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.63%
Debt Cost 8.04%
Equity Weight 42.37%
Equity Cost 11.96%
WACC 9.70%
Leverage 136.02%

11. Quality Control: Polaris Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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LCI

A-Score: 5.9/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 8.0

Momentum: 4.5

Volatility: 6.0

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Yield: 4.0

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A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

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Growth: 4.0

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

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Polaris

A-Score: 4.5/10

Value: 6.5

Growth: 2.6

Quality: 2.6

Yield: 7.0

Momentum: 5.0

Volatility: 3.7

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A-Score: 4.2/10

Value: 5.8

Growth: 4.8

Quality: 1.9

Yield: 4.0

Momentum: 3.5

Volatility: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.42$

Current Price

66.42$

Potential

-0.00%

Expected Cash-Flows