Polaris Q2 sales rise 9%, lifts 2026 outlook

Overview

• U.S. powersports vehicle maker's Q2 sales rose 9% yr/yr to $2.02 bln

• Adjusted EPS for Q2 was $1.97, aided by $74 mln in tariff refunds

• Company raised full-year 2026 adjusted EPS guidance to $3.00-$3.10

Outlook

• Polaris raises 2026 adjusted sales guidance to $7.30 bln-$7.50 bln from $7.15 bln-$7.30 bln

• Polaris lifts 2026 adjusted EPS forecast to $3.00-$3.10 from $1.60-$1.70

• Company says about $0.96 of 2026 adjusted EPS guidance is due to tariff refunds

Result Drivers

• SHIPMENT VOLUMES AND PRICING - Co said Q2 sales growth was driven by higher shipment volumes and positive net price

• TARIFF REFUNDS - Adjusted EPS benefited from $74 mln in tariff refunds recorded in Q2

• PRODUCT MIX AND MARGIN - Gross profit margin improvement was attributed to net price, positive product mix, and tariff refunds offsetting higher tariff expense

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for Polaris Inc is $69.50, about 7% below its July 27 closing price of $74.70

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 27 - Netherlands' Philips lifts annual profit, cash flow outlook after US tariff refund

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)