Jul. 30 at 1:57 AM
S&P Global Ratings upgraded its outlook on Polaris to Positive from Negative while affirming its BBB- issuer credit rating, citing expectations for stronger revenue, EBITDA, and cash flow through 2027. The agency believes the powersports manufacturer will benefit from better alignment between shipments and retail sales, stable industrial and commercial demand, and ongoing cost-control initiatives.
S&P expects Polaris to reduce leverage to around 2x and improve its EBITDA margin to roughly 10% by the end of 2027. The agency also upgraded its liquidity assessment to Strong from Adequate, reflecting greater financial flexibility and expected improvement in cash generation.
North American powersports retail sales rose 5% year-over-year in Q2 2026, driven by strong industrial demand and increased commercial sales tied to data-center construction projects. While recreational demand remains weak due to high interest rates and delayed replacement cycles.
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