Polaris Inc.
PII Consumer Cyclical Recreational Vehicles
Polaris Inc.’s revenue for fiscal 2025 (year ended December 2025) was $7.2 billion, roughly unchanged from fiscal 2024. In the quarter to June 2026, revenue grew 9.18%, EPS grew 233.1%, free cash flow fell 33.5% and total debt rose 37.6%, each against the same quarter a year earlier. Dividend growth for twenty-five consecutive years.
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Polaris Inc. (PII) Altman Z-score
Polaris Inc.'s Altman Z-score for fiscal 2025 is 1.61, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.61 | (0.43) |
| FY2024 | 2.05 | (1.01) |
| FY2023 | 3.06 | (0.08) |
| FY2022 | 3.14 | 0.02 |
| FY2021 | 3.12 | 0.23 |
| FY2020 | 2.89 | (0.25) |
| FY2019 | 3.14 | 0.27 |
| FY2018 | 2.87 | (1.60) |
| FY2017 | 4.47 | 0.99 |
| FY2016 | 3.48 | (2.34) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.01) | — | −0.01 | |
| Retained earnings / total assets | (0.10) | — | −0.13 | |
| EBIT / total assets | (0.07) | — | −0.24 | |
| Market value of equity / total liabilities | 0.89 | — | 0.53 | |
| Sales / total assets | 1.46 | — | 1.46 | |
| Altman Z-score | Distress zone | 1.61 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.63 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LCII LCI Industries compare | 3.5× |
| THO Thor Industries, Inc. compare | 3.5× |
| MCFT MASTERCRAFT BOAT HOLDINGS, INC. compare | 3.4× |
| WGO Winnebago Industries, Inc. compare | 3.4× |
| PATK Patrick Industries, Inc. compare | 3.3× |
| BC Brunswick Corporation compare | 2.8× |
| DOO BRP Inc. compare | 2.5× |
| HOG Harley-Davidson, Inc. compare | 2.1× |
| PII Polaris Inc. | 1.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets