Highlights

  • Third quarter sales were $2,043 million, up 11% from last year, with adjusted diluted earnings per share of $1.08.
  • Full year 2026 adjusted EPS guidance was raised to $3.50 to $3.60 from $3.00 to $3.10.
  • Off-road vehicle market share rose for a sixth straight quarter, and Marine segment sales were $133.4 million, up 29%.
  • Reported diluted EPS was $0.66, against a loss of $0.28 per share a year earlier, including $10 million of tariff refunds.

Polaris Inc. (NYSE: PII) shares were trading at USD 61.22 on October 27, 2026, up 11.00%, with a relative volume at time of 5.88. The powersports and marine vehicle maker recorded tariff refunds in the second and third quarters, reported third quarter 2026 results on October 27, and raised its full year adjusted sales and adjusted EPS guidance.

Polaris is incorporated in Delaware and lists its principal executive offices in Medina, Minnesota. It has operated since 1954 and sells off-road vehicles, snowmobiles, boats, military and commercial vehicles, quadricycles, and parts, garments and accessories. Brands include RANGER, RZR, Polaris XPEDITION, Bennington pontoons and Slingshot. The company reports three operating segments, Polaris Powersports, Marine, and Aixam & Goupil, plus a Corporate line covering previously divested businesses, and it serves customers in nearly 100 countries.

Third Quarter Results

Worldwide sales were $2,043 million, up 11% from the third quarter of 2025. North America sales of $1,815 million were 89% of the total and increased 14%, while International sales of $228 million decreased 11%. The company said higher shipment volumes and positive net price were partly offset by the divestiture of Indian Motorcycle.

Gross profit margin was 21.2%, up 52 basis points. Net income attributable to Polaris was $38 million, or $0.66 per diluted share, against a net loss of $16 million, or $0.28 per share, in the third quarter of 2025. Adjusted net income, a non-GAAP measure, was $63 million, and adjusted diluted EPS, also non-GAAP, was $1.08. Adjusted EBITDA margin, a non-GAAP measure, was 8.8%, up 118 basis points.

The results include $10 million of tariff refunds, which Polaris said benefited adjusted EPS by $0.13. Management said excluding those refunds, operational adjusted EPS was $0.95, and that higher commodity costs partly offset margin gains. It also said part of the quarter's results reflected earlier timing of snowmobile and utility vehicle shipments.

Segments and Retail

Polaris Powersports sales were $1,822.1 million, up 18%, with a gross profit margin of 22.3%. Marine sales were $133.4 million, up 29%, with a gross profit margin of 11.9%. Aixam & Goupil sales were $68.0 million, down 12%, which the company linked to lower Aixam shipments.

Polaris reported its sixth straight quarter of off-road vehicle market share gains. North America ORV retail sales were up two percent excluding Youth, and Utility ORV retail sales excluding Youth were up six percent. Management said total company retail was flat for the quarter and that October retail is tracking in line with its expectations. Three vehicles are scheduled to ship to dealers in the fourth quarter: the second-generation Polaris XPEDITION, the RZR Pro R Boost, and the Sportsman 500.

Cash Flow and Balance Sheet

For the nine months ended September 30, 2026, net cash provided by operating activities was $291.8 million, compared with $562.3 million a year earlier. Adjusted free cash flow, a non-GAAP measure, was $219.3 million, compared with $485.5 million. Cash and cash equivalents were $301.7 million at September 30, against $335.5 million a year earlier. Inventories were $1,544.9 million, against $1,697.3 million, and current financing obligations were $35.2 million, against $434.8 million. Cash dividends paid to shareholders over the nine months were $116.3 million.

2026 Outlook

Polaris now expects 2026 adjusted sales of $7.55 billion to $7.60 billion, compared with prior guidance of $7.30 billion to $7.50 billion. It expects adjusted EPS of $3.50 to $3.60, compared with $3.00 to $3.10 previously, of which approximately $1.09 is attributed to tariff refunds recorded in the second and third quarters. Excluding the refunds, management expects operational EPS of $2.40 to $2.50, up from $2.05 to $2.15. This is the third guidance increase of the year. For 2027, management said it is not providing formal guidance and expects to keep its approach to dealer inventory, with production and shipments aligned with retail demand.