Polaris’ second quarter results were met with a strong positive response from the market, driven by management’s ability to offset industry headwinds and outperform Wall Street’s expectations on revenue and adjusted profit. Despite a year-on-year sales decline, CEO Michael Speetzen credited strong free cash flow, market share gains across all product lines, and improved operational efficiency for the stronger-than-anticipated outcome. Management also highlighted the impact of aggressive promotions and ongoing pressures from tariffs, but noted that lean manufacturing and lower warranty costs helped mitigate margin pressures.

Is now the time to buy PII? Find out in our full research report (it’s free).

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 Q2 Earnings Call

• Craig Kennison (Baird) asked about Polaris’ preparations for potential changes in USMCA trade agreements and supply chain optimization. CEO Michael Speetzen emphasized agility in relocating sourcing and manufacturing and highlighted a strong U.S. and Mexico footprint.
• Noah Zatzkin (KeyBanc Capital Markets) inquired about the ongoing annualized tariff impact and mitigation efforts. CFO Robert Mack clarified the expected run rate and ongoing strategies to further reduce exposure through supplier negotiations and sourcing changes.
• Sean Wagner (Citigroup) questioned the drivers behind the year-over-year decline in EPS despite flat retail, focusing on mix, promotions, and incentive compensation. Mack detailed mix headwinds from channel fills, higher promotions, and increased incentive compensation this year.
• Tristan Thomas-Martin (BMO Capital Markets) probed the margin profile of the new RANGER 500 versus premium products. Speetzen explained that while margins are below premium models, the RANGER 500 offers respectable profitability and is primarily a customer acquisition tool.
• Scott Stember (ROTH) asked whether negative Q3 EPS guidance is due to tariffs or other factors. Mack confirmed tariffs are a primary driver, with reduced dealer shipments and increased incentive compensation also contributing.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be monitoring (1) the effectiveness of Polaris’ tariff mitigation strategies and progress in supply chain restructuring, (2) early sales traction and dealer feedback on the new RANGER 500 launch, and (3) the pace of margin recovery as promotional activity normalizes and operational improvements take hold. Changes in macroeconomic conditions and potential trade policy shifts will also be key factors shaping the company’s trajectory.

Polaris currently trades at $55.29, up from $49.44 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

Our Favorite Stocks Right Now

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.