Polaris (PII) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales rose 9% year-over-year to $2.02B, driven by strong Utility and ORV demand, higher shipments, and positive pricing, partially offset by the Indian Motorcycle divestiture.

• Adjusted diluted EPS was $1.97, including $0.96 from $74M in tariff refunds, which significantly boosted results.

• Market share gains in ORV continued for the fifth consecutive quarter, with total retail sales up 4% (excluding Youth).

• Strategic actions and operational improvements led to margin expansion and a more focused, profitable business.

• Net income attributable to shareholders was $106.4M, or $1.82 per diluted share, reversing a prior year net loss.

Financial highlights

• Quarterly sales reached $2,022.8M, up 9% year-over-year; adjusted gross profit margin was 23.9%, up 446 bps, mainly due to tariff refunds and favorable price/mix.

• Adjusted EBITDA margin rose to 11.8% (up 540 bps); operational adjusted EBITDA margin was 8.2%.

• Operating expenses decreased 12% year-over-year, mainly due to the absence of prior year impairment charges.

• Dealer inventory down 8% year-over-year; sales velocity up 18% in H1.

• Cash and cash equivalents at quarter-end were $302M; net cash used for operating activities in H1 was $(90.0)M.

Outlook and guidance

• Full-year 2026 adjusted sales guidance raised to $7.3B–$7.5B (up 2%–5%); adjusted EPS guidance increased to $3.00–$3.10, with $0.96 attributed to tariff refunds.

• Operational adjusted EPS expected at $2.05–$2.15; operational adjusted EBITDA margin up 145–170 bps.

• Guidance excludes any additional tariff refunds; retail environment expected to remain flat in H2, with potential for low single-digit growth if demand holds.

• Commodity cost headwind now expected at $70M for 2026.

• Liquidity, cash flows, and borrowing capacity expected to be sufficient for at least the next 12 months.