Seaport Research Trims Polaris (PII) Target After Strong Q4 but Softer Guidance

Polaris Inc. (NYSE:PII) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts.

On January 28, Seaport Research trimmed its price recommendation on Polaris Inc. (NYSE:PII) to $80 from $83. The firm maintained a Buy rating. The change followed solid Q4 results, even as the company issued guidance that came in below expectations.

During the earnings call, CEO Michael Speetzen said the results reflected the resilience of Polaris’ team after a challenging year dominated by tariff pressures. He described tariffs as the toughest test the company has faced since the pandemic. Despite that backdrop, Polaris met nearly all of its commitments and exceeded them in certain areas.

The company also gained market share across its major categories, including off-road vehicles, snowmobiles, pontoons, and motorcycles. New product launches helped drive that momentum, with models like the RZR XP S and the more affordable RANGER 500 resonating with customers.

Speetzen pointed to continued progress in reducing the company’s exposure to China. By the end of 2025, China represented about 14% of the material cost of goods sold, down from 18% in 2024. He reiterated the goal of cutting that figure to below 5% by 2027.

On the operational side, Polaris delivered more than $60 million in cost savings and reduced warranty expenses by $25 million as product quality improved. Speetzen also confirmed that the planned separation of Indian Motorcycle remains on track to close by the end of the quarter. The move is expected to provide an immediate boost to EBITDA margins and adjusted EPS.

Polaris Inc. (NYSE:PII) is a leading US manufacturer of powersports vehicles, with products spanning off-road vehicles, snowmobiles, motorcycles through Indian Motorcycle, and boats.

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Disclosure: None.