Polaris Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 2 raised, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose nine percent: Sales were $2,022.8 million, against $1,852.7 million in the second quarter of 2025. Management cited continued strength in Utility as a driver. Source
• Reported profit turned positive: Reported net income attributable to Polaris was $106.4 million, or $1.82 diluted EPS, against a loss of $1.39 per share a year earlier. Source
• Powersports sales rose 17 percent: Polaris Powersports sales were $1,715.2 million, against $1,460.2 million. Segment results cite higher shipment volumes and positive net price. Source
• Share gains in off-road vehicles: The company reported market share gains in off-road vehicles for the quarter, with retail growth rates for Polaris and the industry also reported. Source
• Operating expenses fell on impairment: Operating expenses were $346.3 million, against $394.9 million, and 17.1 percent of sales. The prior-year quarter included a $52.6 million goodwill impairment. Source
• Adjusted margin rose on refunds and price: Adjusted gross profit margin was 23.9 percent, up 446 basis points from 19.5 percent. Management named tariff refunds, net price and mix as drivers. Source
• Operating cash used in six months: Operating cash flow was negative $90.0 million for the six months, against $403.5 million provided a year earlier. Changes in inventories and accrued expenses were outflows. Source

“Our strong second quarter results reflect the disciplined execution of our strategy and the hard work of the Polaris team.”

Mike Speetzen, Chief Executive Officer of Polaris Inc.

Guidance

What changed from last quarter

• Guidance raised: Adjusted sales guidance for 2026 was raised to $7.30 billion to $7.50 billion from $7.15 billion to $7.30 billion. Source
• Guidance raised: Adjusted EPS guidance for 2026 was raised to $3.00 to $3.10 from $1.60 to $1.70; the first-quarter release had reaffirmed guidance. Source
• New: Second-quarter results include tariff refunds, which the company said benefited adjusted EPS by $0.96. Source

Second-quarter results and drivers

• Sales rose nine percent: Sales were $2,022.8 million, against $1,852.7 million in the second quarter of 2025. Management cited continued strength in Utility as a driver. Source
• Reported profit turned positive: Reported net income attributable to Polaris was $106.4 million, or $1.82 diluted EPS, against a loss of $1.39 per share a year earlier. Source
• Adjusted EPS reached $1.97: Adjusted net income attributable to Polaris was $115.0 million, against $22.9 million a year earlier. Adjusted EPS was $0.40 in the prior-year quarter. Source
• Adjusted EBITDA margin reached 11.8%: Adjusted EBITDA was $239.4 million, against $119.0 million a year earlier. The margin was 11.8 percent, against 6.4 percent. Source
• Six-month sales reached $3.68 billion: Sales for the six months ended June 30, 2026 were $3,681.5 million, against $3,388.5 million for the same period of 2025. Source

Segment and regional sales

• Powersports sales rose 17 percent: Polaris Powersports sales were $1,715.2 million, against $1,460.2 million. Segment results cite higher shipment volumes and positive net price. Source
• Marine sales rose on pontoons: Marine sales were $179.5 million, against $155.3 million, up 16 percent. Management cited higher pontoon shipments and positive product mix. Source
• Aixam and Goupil sales rose six percent: Aixam and Goupil sales were $85.8 million, against $81.2 million. Management cited higher Goupil shipments as the driver. Source
• North America was 87 percent of sales: North America sales rose 11 percent to $1,755 million. International sales were $268 million, or 13 percent of total, and down almost one percent. Source

“The underlying strength of our business is evident in our continued share gains, healthy dealer network and the growing benefits from the actions we've taken to optimize our portfolio and operations.”

Mike Speetzen, Chief Executive Officer of Polaris Inc.

Retail demand and product lines

• Share gains in off-road vehicles: The company reported market share gains in off-road vehicles for the quarter, with retail growth rates for Polaris and the industry also reported. Source
• Shipments aligned with retail: Management said sales reflected shipments aligning to retail, along with positive price and lower promotions. Source
• PG&A sales rose 21 percent: Polaris Powersports parts, garments and accessories sales rose 21 percent. Aixam and Goupil PG&A sales rose two percent. Source
• Polaris ORV retail against industry: Polaris North America ORV unit retail sales rose mid-single digits. The estimated industry figure for North America ORV unit retail rose low-single digits. Source

Costs, margins and pricing

• Operating expenses fell on impairment: Operating expenses were $346.3 million, against $394.9 million, and 17.1 percent of sales. The prior-year quarter included a $52.6 million goodwill impairment. Source
• Reported gross margin up 426 basis points: Reported gross profit was $478.3 million, a margin of 23.6 percent, against 19.4 percent a year earlier. Source
• Adjusted margin rose on refunds and price: Adjusted gross profit margin was 23.9 percent, up 446 basis points from 19.5 percent. Management named tariff refunds, net price and mix as drivers. Source
• Marine margin edged up: Marine gross profit margin was 17.3 percent, against 17.1 percent, up 21 basis points. Management cited positive product mix. Source
• Aixam margin rose on warranty: Aixam and Goupil gross profit margin was 28.7 percent, up 242 basis points, on lower warranty expense and fixed-cost leverage from higher volumes. Source

“Given our first-half performance and with the momentum we're building, we're raising our full-year guidance and remain confident in our ability to deliver long-term profitable growth and shareholder value.”

Mike Speetzen, Chief Executive Officer of Polaris Inc.

Cash flow and shareholder returns

• Operating cash used in six months: Operating cash flow was negative $90.0 million for the six months, against $403.5 million provided a year earlier. Changes in inventories and accrued expenses were outflows. Source
• Adjusted free cash flow negative: Adjusted free cash flow was negative $143.7 million for the six months, against $343.8 million a year earlier. Purchases of property and equipment were $73.8 million. Source
• Revolver borrowing and shareholder payments: Net borrowing under the revolving loan facility was $424.9 million for the six months. Cash dividends to shareholders were $77.6 million and share repurchases were $9.3 million. Source
• Long-term financing obligations rose: Long-term financing obligations were $1,916.5 million at June 30, 2026, against $1,392.3 million a year earlier. Cash and cash equivalents were $302.1 million. Source

Portfolio, restructuring and separation

• Indian Motorcycle separation accounting: A $2.5 million gain was recorded in the quarter and a $29.1 million loss for the six months on disposal groups. Current assets held for sale were $25.0 million. Source
• Indian Motorcycle divestiture date: The first-quarter release tied lower corporate sales to the Indian Motorcycle divestiture, which it dated to February 2, 2026.
• Restructuring costs of $7.5 million: Restructuring costs of $7.5 million were recorded in the quarter and excluded from adjusted results. Six-month restructuring adjustments totaled $16.7 million. Source
• Investing outflow for six months: Net cash used for investing activities was $153.0 million for the six months. The lines included $79.3 million for sale of business and $20.0 million for investments in other affiliates. Source
• Corporate sales declined to $42.3 million: Corporate sales were $42.3 million, against $156.0 million a year earlier. The segment holds results of previously divested businesses and related agreements. Source

Figures management reported

Risks management discussed

• Operational: Charges tied to payments supporting a distressed supplier were $22.5 million in the first half, recorded in the first quarter, with none in the second quarter. Source
• External: Management cited higher tariff expense as a cost in Powersports gross margin, offset there by higher net price and positive product mix. Source
• Regulatory: Class action litigation-related expenses were $2.0 million in the quarter and were excluded from adjusted results. Source

Earlier plans management reported on

• Not stated: The first-quarter release reaffirmed the guidance given on March 3, 2026. The second-quarter release raised it.
• Ahead: The first-quarter release said earnings were ahead of expectations.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

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.