8 • February 2026 • Powersports Business
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Polaris reports share gains, rightsizes dealer inventory as tariffs weigh on 2025 results
Polaris closed a challenging 2025 with flat full- year sales, fourth- quarter retail gains and improved dealer inventory health, positioning the company for modest growth in 2026 despite continued tariff pressure and a cautious consumer environment.
The company reported full- year 2025 sales of $ 7.15 billion, essentially flat year over year. Fourth- quarter sales increased 9 % to $ 1.92 billion, driven by higher shipments and a favorable mix, particularly in off- road vehicles. Adjusted earnings for the quarter came in at $ 0.08 per share, slightly ahead of internal expectations.
CEO Mike Speetzen said Polaris delivered on its commitments despite significant external headwinds.
“ While tariffs represented the most significant challenge we’ ve seen since the pandemic, we delivered nearly everything we said we would do and then some,” Speetzen said during the company’ s Jan. 27 earnings call.“ We navigated difficult headwinds in 2025 while still delivering share gains, innovation, quality and operational improvements that position us for long- term success.”
RETAIL MOMENTUM, INVENTORY ALIGNMENT
North American retail sales rose 9 % in the fourth quarter, excluding youth products, a metric Polaris emphasized as a clearer indicator of business health and profitability. The company gained market share across all major segments for the full year and reported share gains in off-road vehicles, snow and marine during the fourth quarter.
Dealer inventory ended the year at just under 100 days on hand across the network, the lowest level outside of the pandemic era, according to Polaris.
“ Dealer inventory is right- sized, and the mix is in great shape,” Speetzen says.“ We believe Polaris has the healthiest mix of current versus non- current inventory of any OEM.”
Polaris continues to let retail demand drive production and shipment schedules, a shift the company said benefits both dealers and the balance sheet.
“ This is exactly where we want to be,” Speetzen adds.“ We will adjust build and ship schedules in response to market conditions to help ensure dealers have what they need to be successful.”
DEALER FINANCIAL SNAPSHOT
SEGMENT PERFORMANCE ORV sales rose 11 % in the fourth quarter, supported by strong utility demand and a 22 % increase in parts, garments and accessories. Polaris said utility models led the category, with the Ranger 500 becoming the highest- retailing midsize side- by- side in the industry during the quarter.
“ Our data shows the Ranger 500 wasn’ t just the top seller— it wasn’ t even close,” Speetzen shares.
On the premium side, the Ranger XP 1000 NorthStar posted its highest retail month ever in December, aided by agricultural and ranch- focused promotional programs.
On- road sales rose 4 % in the quarter, though Indian Motorcycle retail declined year over year as the brand lapped the 2024 launch of the Scout platform. Polaris expects its planned separation of Indian Motorcycle to close by the end of the first quarter of 2026.
Marine sales increased 1 %, with Polaris reporting stronger dealer order books for
NORTHWEST
-4 % Parts Department 8.7 % Service Department 3.4 % Major Units 3.1 % Overall
WEST
0.8 % Parts Department 0.8 % Service Department 7.6 % Major Units 5.9 % Overall
UNITED STATES
8.6 % Parts Department 7.9 % Service Department 10.4 % Major Units 10 % Overall
MIDWEST 23.4 % Parts Department 10.6 % Service Department 17 % Major Units 16.8 % Overall
SOUTH
6.5 % Parts Department 10 % Service Department 9.7 % Major Units 9.5 % Overall
NORTHEAST 14 % Parts Department 8.5 % Service Department 9.1 % Major Units 9.5 % Overall
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DECEMBER 2025 VS. DECEMBER 2024
In December, dealers nationwide averaged a 10 % increase in combined sales compared to the same month last year, according to composite data from more than 1,800 U. S. dealers that use Lightspeed DMS. For major unit sales, the Midwest had an increase of 17 %, followed by the South and Northeast, both increasing by 9.7 % and 9.1 %, respectively. The West region experienced a 7.6 % jump, while unit sales in the Northwest grew 3.4 %. In services, the Midwest, 10.6 %, and the South, 10 %, had double-digit
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increases, and both the Northwest, 8.7 %, and the Northeast, 8.5, had respectable gains. The West region increased by just. 8 %. Parts sales grew 23.4 % in the Midwest, with the Northeast gaining 14 %. The South increased its parts sales by 6.5 %, and the West had moderate gains of. 8 %. The Northwest saw the only drop, decreasing 4 %. For combined revenue, every region was in the black. The Midwest jumped the most, increasing total sales by 16.8 %, followed by the South and the Northeast, both increasing by 9.5 %. The West region increased by 5.9 %, followed by the Northwest, gaining 3.1 %. |
PARTS SALES Parts revenue was up at 1,120 dealerships and down at 734.
SERVICE SALES Service revenue was up at 1,069 dealerships and down at 753.
MAJOR UNIT SALES Major unit revenue was up at 1,020 dealerships and down at 650.
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FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data, contact: lightspeeddms. com
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