STOCKS | Polaris CFO Plans to Resume Stock Buybacks in 2027 After Two Years of Difficulty

Polaris CFO Bob Mack said the company plans to resume stock buybacks in 2027, prioritizing the use of repurchases to offset share dilution. According to Sina Finance, the Minnesota-based off-road vehicle and boat maker suspended buybacks in 2024 as post-pandemic retail sales fell and it worked to reduce dealer inventories. Polaris (PII) had used buybacks to offset dilution from employee stock-based compensation and reduce its shares outstanding. The company reported third-quarter net income of $38.4 million, compared with a net loss of $15.8 million a year earlier. Revenue rose 11% to more than $2 billion. Tariffs and inflation, including higher freight, fuel, aluminum and steel costs, remain significant headwinds. Polaris expects tariff expenses to reach $215 million this year, while commodity and logistics costs are expected to be $70 million higher than in 2025. Polaris has generated cash through internal cost reductions and received about $80 million in tariff refunds to repay debt. As of September 30, its net leverage ratio—net debt divided by earnings before interest, taxes, depreciation and amortization—had fallen to 2 times from 3.4 times at the start of the year. Strategic business investments and dividends are also priorities. Mack said the company’s ability to fund buybacks next year depends on the success of several new product launches and further improvements in operating efficiency. The possibility of continued commodity inflation also adds uncertainty to next year’s plans. He said buybacks remain a goal and described them as his ideal outcome. The company has not yet prepared its 2027 budget or cash flow forecast.