Polaris Q1 - Increased Sales Revenue, ORV Market Share Gains, Net Losses
Summarizing the quarter (Q1, 2026 ended March 31) in which Polaris Industries finally exited its full ownership position in Indian Motorcycle , CEO Mike Speetzen is quoted as saying "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.
"These results reflect the focus and disciplined execution of the Polaris team. 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."
For the first quarter of 2026, Polaris reported worldwide sales of $1,659m, up eight% versus the first quarter of 2025. North America sales of $1,426m represented 86% of total Company sales and increased 10% from $1,290m in the first quarter of 2025.
International sales of $233m represented 14% of total Company sales and decreased 5% versus the first quarter of 2025. Total Company sales in the first quarter of 2026 were impacted by higher shipment volumes and positive net price.
Gross profit margin increased 423 basis points to 20.2% for the first quarter, as compared to the first quarter of 2025. Adjusted gross profit margin of 20.5% increased 389 basis points primarily driven by positive contributions from mix, net price and operational efficiencies offsetting higher tariff expense compared to the first quarter of 2025.
Operating expenses were $390m in the first quarter of 2026 compared to $303m in the first quarter of 2025 primarily due to timing of planned general and administrative expenses. Operating expenses as a percentage of sales were 23.5%, up 377 basis points in the first quarter of 2026 compared to the first quarter of 2025.
For the first quarter, net loss attributable to Polaris was $47m, or $0.83 net loss per diluted share, compared to net loss attributable to Polaris of $67m, or $1.17 net loss per diluted share in the first quarter of 2025. Adjusted net income attributable to Polaris for the quarter was $8m and adjusted EPS was $0.13.
Polaris Powersports segment results were primarily driven by higher shipment volumes and positive net price. PG&A sales increased 14%. Gross profit margin performance was driven by positive product mix and operational efficiencies offsetting higher tariff expense.
Polaris North America ORV unit retail sales were up 3%. Estimated North America industry ORV unit retail sales were up low-single digits percent.
Marine segment results, including gross profit margin were primarily driven by positive product mix within the pontoon business and positive net price. Aixam & Goupil segment results were driven by higher volumes and positive product mix.
Corporate sales decreased for the quarter, as a result of the Indian Motorcycle divestiture on February 2, 2026.
The Company is reaffirming 2026 full year adjusted sales and adjusted EPS guidance. The Company expects 2026 adjusted sales to be between $7.15bn to $7.30bn and adjusted EPS of $1.60 to $1.70.
