> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Polaris CEO Says Wall Street's 2027 Estimates Are 'High' As Tariffs Shave Nearly Two Margin Points - URL: https://www.bullished.co/polaris-ceo-says-wall-streets-2027-estimates-are-high-as-tariffs-shave-nearly-two-margin-d671e6ff/ - Published: 2026-10-27T14:22:07.000Z - Updated: 2026-10-27T14:22:07.000Z - Description: Management points to commodity costs, a possible new tariff action and unadjusted refunds, and promises a February investor day. - Author: Matteo Parrino - Tags: Earnings, PII, Industry: Not classified Polaris CEO Mike Speetzen told analysts on the company's third-quarter earnings call Tuesday that next year's Wall Street estimates look too rich, even as the company [raised its 2026 outlook](https://seekingalpha.com/news/4657880-polaris-tops-q3-expectations-and-raises-fy26-outlook?ref=bullished.co) for the third time this year. [Polaris](https://www.bullished.co/tag/pii/), which makes off-road vehicles, snowmobiles, boats and the Slingshot roadster, expects to pay $215 million in tariffs this year. ## Why the 2027 numbers look high Asked by an analyst from Citi whether the Street's 2027 numbers were too aggressive, Speetzen said: "I do think the estimates are high next year." He added that "a number of analysts have not backed the IEPA refunds out," tariff refunds that helped this year's earnings per share. Those refunds are the reason for the gap between reported and operational results. Polaris booked $10 million of refunds and interest in the third quarter, producing adjusted [EPS of $1.08](https://www.marketwatch.com/story/polaris-swings-to-3q-profit-boosts-2026-adj-eps-sales-growth-view-f34ee2b4?ref=bullished.co), or $0.95 without them. Full-year adjusted EPS guidance rose to $3.50 to $3.60, including $1.09 from refunds recorded in the second and third quarters; excluding them, operational EPS is now expected at $2.40 to $2.50, up from $2.05 to $2.15. Management said guidance includes no further refunds, because a formal process for the next phase has not been established, and some amounts would have to be recovered from suppliers. About 30 cents of EPS also moved into the third quarter from the fourth, mostly from earlier Ranger output at a new Huntsville line and early snowmobile shipments. ## Tariffs and commodities Speetzen called the tariff burden "a bit frustrating" and said that without the $215 million, "our margins would almost be two points higher." CFO Bob Mack said tariffs should be roughly flat next year unless a new Section 301 action lands, referring to an open investigation into excess manufacturing. Commodity and logistics costs are the bigger worry: Mack put the first-half 2027 headwind at about $70 million, similar to the roughly $70 million expected this year. The company aims to have 9% of materials cost of goods sold originate in China by year-end, down from about 14% at the start of 2026, and under 5% by the end of 2027\. Polaris shares were up about 6.5% to $58.73 in Tuesday trading; no source ties the move to these remarks. ## Utility demand carries the quarter Third-quarter sales rose 11%, or 17% excluding the sold Indian Motorcycle business. Adjusted EBITDA margin improved 118 basis points to 8.8%, or about 85 basis points excluding refunds. Speetzen said utility vehicles are over 60% of Polaris Powersports sales, with commercial demand tied to data-center construction. Polaris expects 2026 sales of [$7.55 billion](https://www.marketwatch.com/story/polaris-swings-to-3q-profit-boosts-2026-adj-eps-sales-growth-view-f34ee2b4?ref=bullished.co) to $7.60 billion. It cut net leverage to two times from 3.4 times at the start of the year. Polaris will give formal 2027 guidance in January and hold an investor day in early February, where management said it will map the path to mid-teens EBITDA margins. ### Sources - [Polaris tops Q3 expectations and raises FY26 outlook (PII:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657880-polaris-tops-q3-expectations-and-raises-fy26-outlook?ref=bullished.co) — seekingalpha.com - [Polaris Swings to 3Q Profit, Boosts 2026 Adj EPS, Sales Growth View](https://www.marketwatch.com/story/polaris-swings-to-3q-profit-boosts-2026-adj-eps-sales-growth-view-f34ee2b4?ref=bullished.co) — MarketWatch - [Polaris Non-GAAP EPS of $1.08 beats by $0.49, revenue of $2.04B beats by $140M (PII:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657715-polaris-non-gaap-eps-of-108-beats-by-049-revenue-of-204b-beats-by-140m?ref=bullished.co) — seekingalpha.com - [Polaris Inc. Third Quarter 2026 Financial Results Available on Company's Website – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610270600PR%5FNEWS%5FUSPRX%5F%5F%5F%5FCG78020-1&ref=bullished.co) — Financial Times - [MISC signs 10-year LNG ship lease agreements with ExxonMobil unit](https://theedgemalaysia.com/article/misc-signs-10year-lng-ship-lease-agreements-exxonmobil-unit?ref=bullished.co) — The Edge Malaysia ### More on Polaris - [Polaris Raises 2026 Profit Outlook To $3.50-$3.60 A Share, Its Third Increase This Year](https://www.bullished.co/polaris-raises-2026-profit-outlook-to-3-50-3-60-a-share-its-third-increase-this-year-5a16400a/) [All Polaris (PII) coverage →](https://www.bullished.co/tag/pii/)