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Polaris Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 28 April 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Key takeaways

  • Sales rose eight percent on shipments and price: Sales were $1,658.7 million, up eight percent from $1,535.8 million. The company attributed the growth to higher shipments, positive price and lower promotions. Source
  • Adjusted EPS of $0.13 against prior loss: Adjusted net income attributable to Polaris was $7.5 million, or $0.13 adjusted EPS, against an adjusted loss of $0.90 a year earlier. Source
  • Gross margin up 423 basis points: Gross profit margin was 20.2 percent, up 423 basis points. Adjusted gross profit margin was 20.5 percent, up 389 basis points. Source
  • Operating expenses rose on G&A timing: Operating expenses were $390 million, against $303 million a year earlier, or 23.5 percent of sales. General and administrative expense was $162.5 million, against $102.7 million. Source
  • Operating cash outflow drove negative free cash flow: Operating activities used $320.2 million, against $83.2 million provided a year earlier. Adjusted free cash flow was negative $342.5 million, compared with $54.9 million. Source
  • Revolver borrowings of $558.6 million: Net borrowings under the revolving loan facility were $558.6 million, against net repayments of $11.4 million a year earlier. Cash and cash equivalents were $282.0 million at quarter end. Source
  • Adjusted EPS range now $1.60 to $1.70: Full-year 2026 adjusted EPS is $1.60 to $1.70, compared with $1.50 to $1.60 in the January release. The release says the guidance was reaffirmed. Source

“We delivered a strong start to 2026, driven by 8% sales growth, earnings ahead of expectations, continued share gains in ORV and Snow, and meaningful margin expansion despite a dynamic macro environment.”

Mike Speetzen, Chief Executive Officer of Polaris Inc.

Guidance

AreaPeriodFigureAgainst last quarter
Adjusted diluted EPS Sourcefull year 2026$1.60 to $1.70Raised from $1.50 to $1.60
Adjusted sales Sourcefull year 2026$7.15 billion to $7.30 billion
Costs excluded from 2026 adjusted guidancefull year 2026approximately $32 million restructuring, network realignment and acquisition/integration costs; approximately $33 million class action litigation-related expenses
Intangible amortization excluded from 2026 adjusted guidancefull year 2026approximately $18 million

What changed from last quarter

  • Guidance raised: Adjusted EPS range moved from $1.50 to $1.60 in the January release to $1.60 to $1.70 in this release. Source
  • Ended: The Indian Motorcycle divestiture took effect February 2, 2026. Corporate segment sales fell as a result. Source
  • New: Segments are now reported as Polaris Powersports, Marine, Aixam & Goupil and Corporate. The January release reported Off Road, On Road and Marine. Source

Results and growth drivers

  • Sales rose eight percent on shipments and price: Sales were $1,658.7 million, up eight percent from $1,535.8 million. The company attributed the growth to higher shipments, positive price and lower promotions. Source
  • Reported net loss of $0.83 per share: Net loss attributable to Polaris was $47.4 million, or $0.83 per diluted share, compared with $66.8 million, or $1.17 per share, a year earlier. Source
  • Adjusted EPS of $0.13 against prior loss: Adjusted net income attributable to Polaris was $7.5 million, or $0.13 adjusted EPS, against an adjusted loss of $0.90 a year earlier. Source
  • Adjusted EBITDA margin rose to 6.2 percent: Adjusted EBITDA was $102.8 million, a 6.2 percent margin, compared with $52.7 million and a 3.4 percent margin in the first quarter of 2025. Source

Segments and regions

  • Polaris Powersports sales up 14 percent: Polaris Powersports sales were $1,419.2 million, up 14 percent from $1,239.7 million. Segment gross profit margin was 20.9 percent, up 422 basis points. Source
  • Marine sales up nine percent on mix: Marine sales were $125.3 million, up nine percent from $115.4 million. Segment gross profit margin was 13.0 percent, up 64 basis points. Source
  • Aixam & Goupil sales up nine percent: Aixam & Goupil sales were $66.7 million, up nine percent from $61.1 million. Segment gross profit margin was 28.6 percent, up 294 basis points. Source
  • Corporate sales fell after divestiture: Corporate sales were $47.5 million, against $119.6 million a year earlier, after the Indian Motorcycle divestiture. Source
  • North America up, international down: North America sales were $1,426 million, 86 percent of the total and up 10 percent. International sales were $233 million, 14 percent of the total, down five percent. Source

“With a clear strategy, an industry‑leading portfolio of innovative products, and a continued emphasis on operational efficiency, we believe Polaris is well positioned to serve our dealers and customers while driving profitable growth and long‑term shareholder value.”

Mike Speetzen, Chief Executive Officer of Polaris Inc.

Products and customers

  • Share gains in ORV and snowmobiles: Polaris reported market share gains in off-road vehicles and snowmobiles in the quarter. Source
  • Polaris Powersports PG&A up 14 percent: Parts, garments and accessories sales in Polaris Powersports rose 14 percent in the quarter. Source
  • Aixam & Goupil PG&A up 18 percent: Parts, garments and accessories sales at Aixam & Goupil rose 18 percent in the quarter. Source

Costs, margins and pricing

  • Gross margin up 423 basis points: Gross profit margin was 20.2 percent, up 423 basis points. Adjusted gross profit margin was 20.5 percent, up 389 basis points. Source
  • Operating expenses rose on G&A timing: Operating expenses were $390 million, against $303 million a year earlier, or 23.5 percent of sales. General and administrative expense was $162.5 million, against $102.7 million. Source
  • Indian Motorcycle charges excluded from adjusted: Charges of $13.4 million tied to the Indian Motorcycle separation and $18.2 million of impairment and other charges on other held-for-sale assets were excluded from adjusted results. Source
  • Strategic investment impairment of $2.2 million: A $2.2 million non-cash impairment on a strategic investment held by the company was excluded from adjusted results. Source

Cash, debt and shareholder returns

  • Operating cash outflow drove negative free cash flow: Operating activities used $320.2 million, against $83.2 million provided a year earlier. Adjusted free cash flow was negative $342.5 million, compared with $54.9 million. Source
  • Revolver borrowings of $558.6 million: Net borrowings under the revolving loan facility were $558.6 million, against net repayments of $11.4 million a year earlier. Cash and cash equivalents were $282.0 million at quarter end. Source
  • Investing outflow of $121.6 million: Investing activities used $121.6 million, including $79.3 million on a line labeled sale of business and $20.0 million in investments in other affiliates. Source
  • Dividends and buybacks in the quarter: Cash dividends to shareholders were $38.7 million and share repurchases were $9.2 million, against $37.5 million and $2.4 million a year earlier. Source
  • Shareholders' equity down to $750.4 million: Total shareholders' equity was $750.4 million, down from $1,226.4 million a year earlier. Total liabilities were $4,480.6 million. Source

Guidance, restructuring and reporting

  • Adjusted EPS range now $1.60 to $1.70: Full-year 2026 adjusted EPS is $1.60 to $1.70, compared with $1.50 to $1.60 in the January release. The release says the guidance was reaffirmed. Source
  • No GAAP reconciliation for EPS guidance: The company gave no GAAP reconciliation for adjusted EPS guidance, citing the unreasonable efforts exception for costs that are hard to predict. Source
  • Restructuring costs of $9.2 million: Corporate restructuring costs of $9.2 million were recorded in the quarter and included as a non-GAAP adjustment. Source

Figures management reported

FigureReported
Polaris North America ORV unit retail sales growth Sourceup 3%
Estimated North America industry ORV unit retail sales growth Sourceup low-single digits
Total Polaris retail sales excluding Youth growth Sourceup 1%

Risks management discussed

  • External: Tariff expense rose compared with the first quarter of 2025. The company cited mix, net price and efficiencies as offsets. Source
  • Operational: The company made payments of $22.5 million in support of a distressed supplier and excluded them from adjusted results. The release does not name the supplier. Source

Earlier plans management reported on

  • Not stated: Management reaffirmed the full-year 2026 guidance it gave on March 3, 2026. Source
  • Not stated: Management said it is executing corporate restructuring across the organization to increase efficiency and focus the business. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.