Harley-Davidson Says Turnaround Is Gaining Momentum, Lifts Outlook

Harley-Davidson Inc. (NYSE: HOG ) reported second-quarter results on Thursday that topped Wall Street earnings expectations but missed on revenue, while raising its full-year outlook for global motorcycle retail sales and wholesale shipments.

Second-Quarter Earnings Beat Expectations The Milwaukee-based motorcycle maker reported diluted earnings of 75 cents per share, beating the analyst consensus estimate of 64 cents, according to Pro.

Revenue from Harley-Davidson Motor Co. (HDMC), its motorcycle business, rose to $1.104 billion from $1.044 billion a year earlier but missed the Street estimate of $1.164 billion.

Artie Starrs, president and CEO, said second-quarter performance reflected strength in the company’s domestic retail business, a continued focus on healthy dealer inventory levels and progress under its “Back to the Bricks” strategy.

Motorcycle Sales And Operating Performance HDMC global motorcycle shipments increased 9% year over year to 39,209 units, while worldwide retail motorcycle sales edged up 1% to 42,467 units.

North American retail motorcycle sales rose 3% to 29,751 units, driven by strength in the Touring and Sport categories and demand for the 2026 model lineup.

Motorcycle revenue increased 9% to $848 million.

Parts and accessories revenue declined 5% to $177 million, while apparel and licensing revenue rose 2% to $62 million.

Gross margin slipped to 27.5% from 28.6% a year earlier as unfavorable product mix, pricing, raw material costs and foreign exchange offset manufacturing efficiencies and tariff recovery benefits.

Despite lower margins, HDMC operating income climbed 18% to $72 million, and operating margin improved to 6.6% from 5.9%.

Adjusted EBITDA increased 18% to $115 million, with the adjusted EBITDA margin expanding to 10.4% from 9.3%.

Operating expenses fell to $232 million from $237 million, including $3 million in restructuring costs.

Harley-Davidson Financial Services Performance At Harley-Davidson Financial Services, revenue fell 55% to $117 million and operating income dropped 69% to $22 million as the company continued transitioning to its capital-light financing model following the sale of loan assets in the second half of 2025.

Operating margin declined to 18.5% from 27.1% a year earlier.

Consolidated Revenue And Profit Decline On a consolidated basis, Harley-Davidson reported revenue of $1.23 billion, down 6% year over year, while net income attributable to the company declined 26% to $80 million.

Diluted earnings per share fell 15% from a year earlier to 75 cents.

Cash and cash equivalents as of June 30 increased to $1.895 billion from $1.587 billion a year earlier.

Harley-Davidson Raises 2026 Sales And Profit Outlook Harley-Davidson raised its fiscal 2026 outlook for HDMC global motorcycle retail sales to 133,500 to 138,500 units from its previous forecast of 130,000 to 135,000 units.

The company also lifted its wholesale shipment guidance to the same range from 130,000 to 135,000 units previously.

The company now expects HDMC operating income of $10 million to $50 million, compared with its previous guidance ranging from a $40 million loss to a $10 million profit.

Harley-Davidson also increased its HDFS operating income outlook to $55 million to $65 million from $45 million to $60 million previously.

It reaffirmed expectations for a LiveWire operating loss of $70 million to $80 million and capital investments of $175 million to $200 million.

HOG Price Action: Harley-Davidson shares were down 1.34% at $27.25 during premarket trading on Thursday, according to Pro data.

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