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# Polaris Credits Data Center Builds For Work-Vehicle Surge, Raises Outlook As Rec Buyers Hold Off
- URL: https://www.bullished.co/polaris-credits-data-center-builds-for-work-vehicle-surge-raises-outlook-as-rec-buyers-46776967/
- Published: 2026-10-27T14:22:15.000Z
- Updated: 2026-10-27T14:22:15.000Z
- Description: CEO Mike Speetzen says contractors and defense buyers are driving growth while cost-weary recreational customers delay new payments.
- Author: Matteo Parrino
- Tags: Earnings, PII, Industry: Not classified

[Polaris](https://www.bullished.co/tag/pii/), the powersports maker behind Ranger side-by-sides and Slingshot roadsters, is leaning on data center construction to sell work vehicles, CEO Mike Speetzen told analysts on the company's third-quarter earnings call Tuesday. Recreational buyers, he said, are still avoiding new monthly payments.

## Contractors put on the miles

Speetzen said sales of commercial, government and defense vehicles grew at a high double-digit rate in the quarter. Given the level of infrastructure investment, he said, "this business has a long runway for growth."

Answering a Baird analyst, he described a very different use case from consumer riding. Contractors put "an awful lot of miles" on the vehicles, and more hours because machines are left running, so parts such as alternator belts need replacing more often.

These vehicles tend to stay in the market two to three years, he said, and most are not redeployed. Polaris does not yet have much data on some of the new uses, he added.

## Rec customers wait it out

Recreational buyers are "waiting for the right moment to buy," Speetzen said, because "things are just expensive" and a new higher payment is not something they are leaning into. Ridership is still up in the low to mid single digits for vehicles Polaris can track. He said he is "not expecting" help from the macro backdrop anytime soon.

Utility is the business's anchor. Speetzen put utility vehicles at over 60% of Polaris Powersports sales; CFO Bob Mack gave approximately 60%. Speetzen said utility strength, not recreation, drove the guidance raise.

## Guidance up for a third time

Polaris now expects operational adjusted earnings of $2.40 to $2.50 a share for 2026, excluding tariff refunds, up from $2.05 to $2.15\. Third-quarter sales rose 11%, or 17% excluding Indian Motorcycle, which the company sold. Operational adjusted EPS was $0.95, against $0.41 a year earlier.

Mack said full-year sales should reach [$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. Net leverage fell to two times from 3.4 times at the start of the year.

Speetzen said Polaris factories run at roughly 70% of capacity, which should give a meaningful incremental margin opportunity as volumes recover. Three new vehicles ship to dealers this quarter: the Razor Pro-R Boost, the Expedition with pneumatics and the Sportsman 500\. He said the Pro-R Boost and new Expedition can help lift recreational sales.

Polaris plans an investor day in early February, and Speetzen said formal 2027 guidance comes in January.

### 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 CEO Says Wall Street's 2027 Estimates Are 'High' As Tariffs Shave Nearly Two Margin Points](https://www.bullished.co/polaris-ceo-says-wall-streets-2027-estimates-are-high-as-tariffs-shave-nearly-two-margin-d671e6ff/)
- [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/)