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 is driven by several positive factors. The company's Q3 earnings beat expectations, with quarterly earnings of $0.41 per share, surpassing the Zacks Consensus Estimate of $0.37 per share. Additionally, Polaris is rebounding from cyclical headwinds, showing strong revenue growth and market share gains in core segments. The company is streamlining operations, selling a majority stake in Indian Motorcycle to focus on higher-margin businesses. Furthermore, dealer inventory is down 21% YoY, with aged inventory reduced over 60%. Nomura Holdings Inc. and Allworth Financial LP have recently acquired stakes in the company.

1.c. Company Highlights

2. Polaris Posts Strong Q4 Results Amidst Challenging Year

Polaris reported a 9% increase in adjusted sales for Q4, driven by higher shipments and a stronger mix toward Ranger North Star side by sides. Net pricing was a modest headwind due to elevated promotions. The company's earnings per share (EPS) came in at $0.08, beating estimates of $0.06. Gross profit margin declined due to mix, partially offset by positive net pricing. For the full year 2025, Polaris achieved share gains in all segments and made significant progress in reducing exposure to China.

Publication Date: Feb -08

📋 Highlights
  • North American sales growth: reached 9% in Q4 2025, with retail excluding youth up 9%.
  • Manufacturing cost savings: totaled $60 million through labor efficiency and inventory reduction in 2025.
  • China exposure reduction: aims to cut material cost of goods sold from 18% in 2024 to below 5% by 2027.
  • 2026 guidance: projects EBITDA margin expansion of 80–120 bps and adjusted EPS of $1.50–$1.60.
  • Structural cost removal: of $240 million in plants generated a $30 million absorption benefit in 2025.

Operational Highlights

Operationally, Polaris delivered over $60 million in savings through manufacturing transformation, resulting in improved clean build, labor efficiency, and reduced inventory. Quality has also meaningfully improved, with a reduction of $25 million in warranty expense last year. The company launched new products, such as the RZR XPS and the all-new value tier Ranger 500, which contributed to its share gains.

Guidance and Outlook

For 2026, Polaris expects total company sales to grow 1% to 3%, incorporating a more challenging year-over-year comparison to Indian Motorcycle sales. The company expects a net pricing benefit to offset negative mix, and adjusted EBITDA margin to expand 80 to 120 basis points year over year. Adjusted EPS is expected to be $1.5 to $1.6 for 2026, with a modest benefit from FX and interest expense. Analysts estimate next year's revenue growth at 4.7%.

Valuation and Financial Health

With a P/E Ratio of -8.47 and an EV/EBITDA of -46.5, the market is pricing in significant challenges for Polaris. However, the company's efforts to reduce exposure to China and improve operational efficiency are expected to drive long-term growth. The dividend yield of 3.87% and free cash flow yield of 14.31% suggest that the stock may be attractive to income investors. The company's goal of reducing financial leverage and getting back to its normal covenants in the 3.5% range is also a positive sign.

Segment Performance

The utility segment is expected to remain strong, particularly due to incentives for small businesses, construction, farmers, and ranchers from the latest tax bill. The recreation segment, on the other hand, is expected to be challenged. Polaris is not assuming a significant uptick in sales from higher tax returns, but has programs in place to respond to potential volume increases.

3. NewsRoom

Card image cap

Polaris Renewable Energy Announces Q4 and Annual 2025 Results

Feb -19

Source: accessnewswire.com

Card image cap

Apache Polaris Graduates to Top-Level Apache Project

Feb -19

Source: globenewswire.com

Card image cap

Polaris Unveils 2027 Snowmobile Lineup Built for Confidence, Capability, and Rider-First Performance

Feb -18

Source: prnewswire.com

Card image cap

Insider Selling: Polaris (NYSE:PII) CEO Sells $2,344,797.38 in Stock

Feb -15

Source: defenseworld.net

Card image cap

Eubel Brady & Suttman Asset Management Inc. Has $26.88 Million Position in Polaris Inc. $PII

Feb -12

Source: defenseworld.net

Card image cap

POLARIS EXPANDS INDUSTRY'S LARGEST CABBED LINEUP WITH NEW RANGER MODELS FOR ALL‑SEASON COMFORT

Feb -05

Source: prnewswire.com

Card image cap

POLARIS' RZR FACTORY RACING DRIVER BROCK HEGER DOMINATES AT KING OF THE HAMMERS® DESERT CHALLENGE FOR THIRD STRAIGHT YEAR, SECURING UTV OVERALL WIN

Feb -03

Source: prnewswire.com

Card image cap

Polaris Q4: Strong Results And Raised Dividend, Shares Attractive

Feb -03

Source: seekingalpha.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

Stock-Card
LCI

A-Score: 5.9/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 8.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Thor Industries

A-Score: 5.0/10

Value: 6.6

Growth: 4.0

Quality: 5.5

Yield: 4.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Harley-Davidson

A-Score: 4.8/10

Value: 8.1

Growth: 4.0

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Polaris

A-Score: 4.5/10

Value: 6.5

Growth: 2.6

Quality: 2.6

Yield: 7.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Brunswick

A-Score: 4.2/10

Value: 5.8

Growth: 4.8

Quality: 1.9

Yield: 4.0

Momentum: 3.5

Volatility: 5.3

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

66.33$

Current Price

66.33$

Potential

-0.00%

Expected Cash-Flows