PII – Market expectations are for Uniform ROA to decline, but management is confident about their tariff mitigation, operating cash flow, and positioning

• Polaris, Inc. (PII:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 14.5x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their ability to mitigate the impact of tariffs, operating cash flow, and positioning in the ATV market
• Specifically, management is confident they have reduced the impact from tariffs by moving production out of China, and they are confident they are maintaining their position in the ATV market. Furthermore, they are confident their operating cash flow has improved 23% year-over-year