Polaris delivered third quarter results that were positively received by the market, with sales driven by higher shipments and a stronger mix of Off-Road vehicles, especially in the RANGER side-by-side lineup. Management attributed the quarter’s performance to improved plant operations, healthier dealer inventory levels, and effective execution on operational efficiencies. CEO Michael Speetzen highlighted, “Dealer inventory is now down 21% year-over-year,” and underscored that Polaris is “delivering results in the areas we can control,” which included significant dealer inventory improvements and lean manufacturing initiatives.
Is now the time to buy PII? Find out in our full research report (it’s free for active Edge members).
Polaris (PII) Q3 CY2025 Highlights:
- Revenue: $1.86 billion vs analyst estimates of $1.79 billion (6.6% year-on-year growth, 3.7% beat)
- EPS (GAAP): -$0.28 vs analyst estimates of $0.14 (significant miss)
- Adjusted EBITDA: $140.4 million vs analyst estimates of $113.4 million (7.5% margin, 23.8% beat)
- Operating Margin: 3.4%, in line with the same quarter last year
- Market Capitalization: $3.69 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Polaris’s Q3 Earnings Call
- Noah Zatzkin (KeyBanc Capital Markets) asked what drove Off-Road vehicle share gains and about opportunities looking ahead. CEO Michael Speetzen credited inventory alignment, product breadth, and improvements in quality and customer experience for the outperformance.
- Craig Kennison (Baird) inquired about the RANGER 500 customer profile and subprime credit exposure. Speetzen explained these are mostly new-to-brand buyers seeking affordable entry, while CFO Robert Mack noted credit metrics remained stable, with no material changes in subprime lending.
- Joseph Altobello (Raymond James) questioned whether the factory clearance program pulled demand forward and about tariff impacts in 2026. Speetzen indicated the program drove engagement without excessive promotions, and Mack estimated tariffs could rise over $100 million year-on-year.
- Tristan Thomas-Martin (BMO Capital Markets) asked how Polaris would protect share gains outside of product launches. Speetzen highlighted the strength of the dealer network and NorthStar program as key levers, while Mack emphasized mature dealer management and structural optimization.
- Arpine Kocharyan (UBS) requested clarity on recurring margin drivers and early reads on 2026 demand. Mack said warranty and plant efficiencies should continue benefiting margins, and Speetzen cited ongoing innovation and improved dealer inventory as positives for demand.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) execution and benefits from the Indian Motorcycle divestiture, (2) progress on supply chain localization and reduction of China-sourced components, and (3) further demonstration of operational efficiencies in plant performance and dealer inventory management. Additional attention will be given to the impact of tariffs and the cadence of new product launches across Off-Road and Marine segments.
Polaris currently trades at $65.65, down from $71.18 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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