EarningsQ2 2026 Earnings Report
MX:PII Q2 2026 EPS Results
Actual EPS$35.81
Consensus EPS$13.12
Beat/MissBeat by +$22.69
One Year Ago EPS$7.27
MX:PII Q2 2026 Revenue Results
Actual Revenue$36.77B
Expected Revenue$35.20B
Beat/MissBeat by +$1.57B
YoY Revenue Growth+9.18%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeBefore Open
Conference CallTuesday, July 28, 2026
MX:PII Upcoming Earnings
Polaris's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:PII Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call conveyed positive operational momentum: strong organic revenue growth (+17% ex-Indian Motorcycle), margin expansion on an operational basis, EPS and guidance upgrades, improving net leverage and healthier dealer metrics. These gains are reinforced by ORV market-share wins (fifth consecutive quarter), robust commercial demand (data centers/infrastructure), and tangible progress on tariff mitigation and supply-chain localization. Offsetting risks include sizable commodity cost headwinds (~$70M), ongoing tariff exposure (~$215M expected payment), reliance on a $74M one-time tariff refund booked in the quarter, and persistent softness in recreational ORV and mid-/lower-tier marine demand. Management’s decision to raise guidance while remaining cautious reflects confidence in execution but acknowledgment of macro and policy uncertainties.Company Guidance
Top-Line Growth (Reported and Organic)
Reported sales increased 9% year-over-year; excluding Indian Motorcycle (non-core divestiture), organic sales grew 17% driven by double-digit growth in Powersports and Marine.
Raised Full-Year Sales Guidance
Full-year 2026 sales guidance raised to $7.3B–$7.5B (up 2%–5% vs prior guidance of flat to +2%); adjusting for Indian Motorcycle, organic sales now expected to be ~+10%.
Strong Earnings Performance (Including and Excluding One-Time Tariff Refunds)
Reported adjusted EPS of $1.97 in Q2 (included $74M IEEPA tariff refund). Excluding that refund, operational adjusted EPS was $1.01, outperforming the prior target range of $0.70–$0.80.
Improved Margins and Operational Profitability
Operational gross profit margin expanded ~82 basis points (ex-refunds); adjusted EBITDA margin from operations improved approximately 180 basis points year-over-year (excluding tariff refunds). Company raised full-year adjusted EBITDA margin outlook to +50–75 bps and operationally +145–170 bps.
Segment Performance — Powersports, Marine, PG&A
Polaris Powersports sales +17% YoY (driven by ORV utility & commercial); Marine sales +16% YoY with richer pontoon mix; Powersports PG&A sales +21% YoY (parts and factory-installed accessories). Aixam-Goupil sales +6%.
ORV Retail Strength and Market Share Gains
ORV North American retail up 5% and Polaris gained ORV market share for the fifth consecutive quarter. Ranger retail up >10%; Ranger 500 identified as the fastest-growing off-road vehicle in the industry. For the first time >50% of ORV retail was cab units; Polaris reached highest subsector share since 2021.
Commercial & Infrastructure Demand
Commercial business (including data center and infrastructure projects) was a clear bright spot with strong revenue growth; company believes runway to expand commercial sales above industry growth rates and is investing in parts/support to maximize uptime for commercial customers.
Balance Sheet and Capital Allocation Progress
Net leverage improved to 2.6x from 3.6x sequentially, moving below 3x and inside covenant requirements. Capital priorities remain investing in higher-margin growth, returning capital via dividends, and paying down debt.
Dealer Health and Inventory Management
Dealer inventory down 8% YoY and dealer sales velocity improved 18% in H1; DSOs slightly over 100 days (below historical levels). Polaris is aligning shipments to retail and has strategically rebalanced inventory toward strong utility demand.
Tariff-Mitigation Progress
Booked $74M of IEEPA tariff refunds in Q2 (contributed ~$0.96 to adjusted EPS). Company is ahead of schedule reducing China-sourced material — targeting <5% China content in material COGS by end of 2027 (from 18% in 2024).
Operational Leverage and Incremental Margins
Q2 EBITDA incrementals (separation of Indian Motorcycle, tariffs, commodities) implied >32% in the quarter; management expects incrementals near ~40% at the high end of guidance, with plants running ~70% capacity offering room for further operating leverage.
MX:PII Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed