Download PDF

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.

Show Full description

1.b. Last Insights on PII

Polaris Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $0.41 per share exceeding the Zacks Consensus Estimate of $0.37 per share. The company's decision to divest its stake in Indian Motorcycle also fueled investor optimism. Additionally, Polaris saw increased investment from institutional investors, including Ethic Inc., which acquired a new position in the company's shares. A golden cross signal was also observed, indicating a potential technical buy signal.

1.c. Company Highlights

2. Polaris Delivers Mixed Q3 Results Amidst Tariff Headwinds

Polaris reported third-quarter sales of $1.8 billion, up 7% driven by a richer mix of Off-Road vehicles and higher shipments in Marine. Adjusted EBITDA margin was under pressure due to increased tariffs and normalized incentive compensation. Adjusted EPS came in at $0.41, beating estimates of $0.37, driven by a strong mix and operational efficiencies. The company's gross tariff impacts for the year rose by $10 million, driven by international retaliatory policies and increased commodity exposure.

Publication Date: Oct -31

📋 Highlights

Segment Performance

The Off-Road segment continued to drive growth, with sales up driven by a richer mix of vehicles. The RANGER side-by-sides continue to gain market share, with Polaris taking over 5 points of market share in the utility side-by-side segment. International sales grew 2%, led by strength in Europe, while PG&A sales were up 20%, with record performance in parts.

Cash Flow and Working Capital

Polaris generated $159 million in operating cash flow, reflecting strong earnings quality and improved working capital management. Year-to-date, the company has delivered over $560 million in operating cash flow and approximately $485 million in free cash flow. The company expects 2025 ending working capital as a percentage of sales to be in line with pre-pandemic levels.

Guidance and Outlook

Polaris reintroduced full-year guidance, expecting adjusted sales between $6.9 billion and $7.1 billion. The company anticipates gaining share in the Off-Road segment, thanks to its strong product portfolio. Adjusted gross profit margin is expected to be around 19%, with a 1-point headwind from tariffs. Analysts estimate next year's revenue growth at 0.9%.

Valuation Metrics

With a P/E Ratio of -25.31 and an EV/EBITDA of 24.14, the market appears to be pricing in significant challenges for the company. However, the Dividend Yield of 3.97% and Free Cash Flow Yield of 15.36% suggest that the stock may be attractive to income investors. As Michael Speetzen noted, "the company's momentum to finish the year strong is driven by positive outlooks on operations, dealer inventory, and innovation," which could potentially drive higher margins and stronger cash flow.

3. NewsRoom

Card image cap

Hecla Receives Permit for 2026 Polaris Exploration Program in Nevada's Historic Aurora Mining District

Dec -01

Source: businesswire.com

Card image cap

Polaris Target of Unusually High Options Trading (NYSE:PII)

Nov -29

Source: defenseworld.net

Card image cap

Rep. Lisa C. McClain Sells Polaris Inc. (NYSE:PII) Stock

Nov -27

Source: defenseworld.net

Card image cap

Artisan Value Income Fund Q3 2025 Contributors And Detractors

Nov -24

Source: seekingalpha.com

Card image cap

Applied Digital Completes Phase II Ready for Service at Polaris Forge 1, Fully Energizing First 100 MW Building

Nov -24

Source: globenewswire.com

Card image cap

GODFREY PONTOONS LAUNCHES REDESIGNED MONACO AND SANPAN FOR 2026

Nov -19

Source: prnewswire.com

Card image cap

KHB Highlights the Polaris V150 Automatic Chemiluminescence Immunoassay Analyzer at MEDICA 2025

Nov -19

Source: prnewswire.com

Card image cap

Polaris Inc. (NYSE:PII) Receives Consensus Rating of “Hold” from Analysts

Nov -19

Source: defenseworld.net

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

Stock-Card
LCI

A-Score: 5.6/10

Value: 6.9

Growth: 5.8

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Thor Industries

A-Score: 4.8/10

Value: 6.1

Growth: 4.0

Quality: 5.3

Yield: 4.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Brunswick

A-Score: 4.5/10

Value: 6.9

Growth: 4.8

Quality: 2.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Harley-Davidson

A-Score: 4.4/10

Value: 6.6

Growth: 4.0

Quality: 3.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Polaris

A-Score: 3.9/10

Value: 6.4

Growth: 2.6

Quality: 2.4

Yield: 7.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.45$

Current Price

67.45$

Potential

-0.00%

Expected Cash-Flows