Harley-Davidson Delivers Q2 2026 Financial Results, Raises Full-Year Guidance
Milwaukee, July 23, 2026 – Harley-Davidson, Inc. (NYSE: HOG) has announced its financial results for the second quarter of 2026, reporting mixed performance across segments but enough strength to prompt a raised full-year outlook. Below is a detailed breakdown of the results and forward-looking statements, with focus on key developments for shareholders and investors.
Key Highlights of Q2 2026
- North American retail motorcycle sales reached 29,751 units, up 3% from Q2 2025, reflecting strong demand and healthy dealer inventory levels.
- Global dealer inventory of new motorcycles ended Q2 2026 down 17% compared to Q2 2025, indicating efficient inventory management and potential for further retail sales support.
- Introduction of the Super Glide® in June, supporting brand innovation and product pipeline.
- Global motorcycle shipments by HDMC (Harley-Davidson Motor Company) totaled 39,209 units, up 9% year-over-year.
- Net income attributable to HDI was \$80 million, a decrease of 26% from the prior year, primarily due to Harley-Davidson Financial Services (HDFS) shifting to a capital-light model, partially offset by improvement in HDMC.
- HDMC revenue rose to \$1.1 billion, up 6% from the previous year.
- HDMC Adjusted EBITDA margin improved to 10.4%, from 9.3% in Q2 2025, demonstrating improved core profitability.
- Delivered diluted EPS of \$0.75, down 15% year-over-year.
- LiveWire segment showed improved operating loss by \$1 million (now \$18M loss), with revenue up 52% due to higher electric motorcycle and STACYC balance bike sales.
Detailed Financial Results
Consolidated Results
- Total revenue for Q2 was \$1.23 billion, down 6% from Q2 2025, largely due to a 55% decline in HDFS revenue following the sale of loan assets in the second half of 2025.
- Operating income fell by 32% to \$76 million, driven by a 69% decline at HDFS, partially offset by an 18% increase at HDMC.
- Net income attributable to HDI was \$80 million, down from \$108 million in Q2 2025.
- Diluted EPS was \$0.75, compared to \$0.88 in the previous year.
HDMC Segment Performance
- Motorcycle shipments grew 9% to 39,200 units in the quarter.
- Revenue from motorcycles increased 9% to \$848 million, while parts & accessories fell 5% and apparel & licensing rose 2%.
- Gross margin came in at 27.5%, down 1.1 percentage points year-over-year, impacted by unfavorable product mix and net pricing, offset by favorable manufacturing costs and a tariff recovery.
- Operating income jumped 18% to \$72 million, with an operating margin of 6.6% (up from 5.9%).
- Adjusted EBITDA rose 18% to \$115 million, and the Adjusted EBITDA margin improved to 10.4%.
Retail Sales Breakdown
- North America: 29,800 units sold (+3%).
- EMEA: 7,000 units (-9%), with declines in Germany, Austria, and Switzerland offsetting growth in Touring and Sport categories elsewhere.
- Asia Pacific: 5,000 units (flat), led by Australia & New Zealand.
- Latin America: 800 units (+4%), with strong growth in Mexico and a modest decline in Brazil.
- Worldwide: Retail sales up 1%, totaling 42,500 units.
HDFS Segment Performance
- Revenue dropped 55% to \$117 million, primarily due to a smaller retail finance portfolio after asset sales in late 2025.
- Operating income fell 69% to \$22 million, but interest expense and credit loss provisions were also lower due to the smaller loan book.
- Total net finance receivables at quarter-end were \$2.6 billion, down 64% year-over-year.
LiveWire Segment
- Revenue soared 52% to \$9 million, driven by increased electric motorcycle and STACYC bike sales.
- Operating loss improved to \$18 million (from \$19 million).
Other Key Financials
- Net cash used from operating activities was \$60 million for the first half of 2026.
- Effective tax rate was 25%.
- Dividends paid in the first half were \$41 million.
- Share repurchases totaled \$158 million (7.9 million shares) in the first half.
- Cash and cash equivalents stood at \$1.9 billion as of June 30, 2026.
Updated 2026 Financial Guidance (Price Sensitive)
- HDMC global motorcycle retail sales expected in the range of 133,500 to 138,500 units (raised from 130,000–135,000).
- HDMC wholesale shipments guided to 133,500–138,500 units (up from 130,000–135,000).
- HDMC operating income forecasted between \$10 million and \$50 million, a sharp improvement from previous guidance of a \$40 million loss to a \$10 million profit.
- HDFS operating income expected at \$55–\$65 million (up from \$45–\$60 million prior guidance).
- LiveWire operating loss remains forecast at \$70–\$80 million.
- Harley-Davidson capital investments expected at \$175–\$200 million.
These upward revisions, especially in unit sales and operating income guidance, are significant and could impact share valuation positively.
Strategic & Operational Updates
- The company made “meaningful progress” on its Back to the Bricks strategic initiatives, strengthening execution and driving improved profitability.
- Dealer inventory management remains a top priority to align shipments with retail demand and avoid excess supply.
- Harley-Davidson continues to invest in electric motorcycles (LiveWire) and in product innovation, as seen with the Super Glide® launch.
- Focus remains on growing parts & accessories, motor clothes, and apparel businesses to diversify revenue streams.
- The company is actively managing challenges related to tariffs, supply chain volatility, and international market access (especially in Germany, EMEA, and ASEAN regions).
Risks & Forward-Looking Statements
- Potential risks include supply chain disruptions, raw material cost inflation, tariff changes, geopolitical tensions (especially the conflict in Iran), and evolving consumer preferences.
- The company’s ability to execute its strategic initiatives, including the Back to the Bricks plan, is critical to future performance.
- HDFS faces risks around credit quality, loan portfolio size, and actions impacting motorcycle values.
- Ongoing risks from regulatory and compliance issues, particularly around international manufacturing and trade agreements.
- LiveWire’s ability to scale as a standalone public company, including access to funding and market adoption of electric motorcycles, remains a pivotal factor for future growth.
Shareholder Actions & Capital Allocation
- Continued share buybacks and dividends demonstrate confidence in long-term cash flow and shareholder value creation.
- Management is focused on optimizing capital allocation, balancing investment in growth initiatives with returns to shareholders.
Conclusion & Investor Takeaways
Harley-Davidson’s Q2 2026 results show resilience in its core North American business, disciplined inventory management, and improving profitability at HDMC. Despite short-term pressures from the capital-light transition at HDFS and challenges in some international markets, the company’s raised full-year guidance and improvements in operational execution are positive signals for investors. The new guidance, if achieved, marks a significant turnaround in operating income expectations and unit sales, both of which are likely to be viewed favorably by the market.
Investors should monitor ongoing risks related to supply chain, tariffs, credit quality, and the pace of electric motorcycle adoption. The company’s proactive approach to inventory, capital allocation, and strategic initiatives positions it to navigate a complex environment.
Disclaimer: This article contains forward-looking statements and should not be construed as investment advice. Actual results may differ materially due to various risks and uncertainties as outlined in Harley-Davidson’s filings and investor communications. Investors should conduct their own due diligence before making any investment decisions.
