Polaris Inc achieved total sales growth of 8% in Q1, rising to 14% on an organic basis after excluding Indian Motorcycle. The company delivered adjusted EPS of $0.13, or $0.26 when stripping out Indian Motorcycle results, both figures surpassing internal targets.

Gross margins widened by 389 basis points despite a 240 bp tariff headwind in the quarter, while adjusted EBITDA margin increased by 277 basis points. Polaris expects full-year tariff costs around $215 million and aims to cut China-sourced content below 5% by end-2027 to mitigate future duties.

The Power Sports segment achieved double-digit growth driven by strong demand for RANGER utility vehicles and snowmobiles, with snowmobile retail up 25% for the ’25-’26 season. North American ORV retail rose 3%, though marine retail declined low double digits amid inventory mix shifts toward premium pontoons.

First quarter free cash flow outflow was smaller than planned despite a net outflow, supported by healthy dealer inventory levels and a 50% year-over-year reduction in snowmobile stock. Polaris completed its 31st consecutive year of dividend growth and cut over $530 million of debt in 2025.