Transcript: Harley-Davidson Q2 2026 Earnings Conference Call

Harley-Davidson (NYSE: HOG ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary Harley-Davidson reported a 3% increase in North American retail sales for Q2 2026, marking the third consecutive quarter of year-over-year growth in the region. The company is executing its strategic plan 'Back to the Bricks,' focusing on dealer inventory health, product launches, and improving dealer profitability, with domestic dealer profitability expected to double in 2026. Harley-Davidson raised its full-year guidance for both HDMC operating income and HDFS operating income due to strong retail performance and effective inventory management.

Notable product launches include the Superglide and Deadwood models, which have been well-received, contributing to strong MSRP realization and dealer enthusiasm. Challenges remain in the European market with a 9% decline in retail sales, and ongoing tariff uncertainties, though the company has managed some tariff recoveries. Harley-Davidson Financial Services (HDFS) revenue decreased by 55% due to a new capital-light model, though loan originations increased by 10%. The company is confident in achieving $150 million in fixed cost savings and a $350 million HDMC EBITDA target by 2027, despite domestic supplier challenges impacting margins.

Full Transcript OPERATOR (Moderator) Thank you for standing by and welcome to the Harley-Davidson 2026 second quarter investor and analyst conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Sean Collins. Thank you.

Please go ahead. Sean Collins, Director of Investor Relations Thank you. Good morning. This is Sean Collins, the Director of Investor Relations at Harley-Davidson.

You can access the slides supporting today's call on the internet at the Harley-Davidson investor relations website. As you might expect, our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in today's earnings release and in our latest filings with the SEC. Joining me for this morning's call are Harley-Davidson Chief Executive Officer Arthur Starrs and Chief Financial and Commercial Officer Jonathan Root.

With that, let me turn it over to Harley-Davidson CEO Arthur Starrs. Arthur Starrs, President and CEO at Harley-Davidson Thank you, Sean. Good morning, everyone, and thank you for joining us today for our second quarter 2026 results. Before I get into the quarter, I want to start by thanking our Harley-Davidson employees and our dealers around the world.

The progress we are beginning to see is the direct result of your focus, your urgency, and your commitment to this brand. I also want to thank our riders and the broader motorcycle community for continuing to support Harley-Davidson and for holding us to the high standard this company has earned over more than 120 years. Last quarter we introduced our new strategic plan Back to the Bricks. We said that 2026 would be a transition year as we reset the business, rebuild dealer confidence, improve execution, and position Harley-Davidson for stronger, more durable performance over time.

We also said that the work would not happen overnight, but that we would move with urgency and discipline. In the second quarter, we are pleased with the early progress we made against that plan at the motor company. Our results reflect a business that we believe is beginning to stabilize and a team that is executing with greater focus. Domestic retail remains strong, with North America retail up 3%, the third consecutive year-over-year quarter of retail growth in North America.

That continued strength is important. It shows that when we have the right motorcycles, the right dealer engagement, and the right marketing support in the market, riders respond. We are pleased with the overall domestic market share year to date and continued strength in touring in Q2. We also made continued progress on one of the most important priorities when I joined the company: dealer inventory health.

At the end of the quarter, dealer inventory position was meaningfully improved, and over 85% of dealer inventory was model year 2026 product. That is the healthiest inventory position global dealers have had in years—an improvement year over year for the past seven quarters. This matters because a healthier dealer network is foundational to Harley-Davidson's long-term earnings power. When dealers have the right inventory at the right time, with the right margin profile, they can focus on what they do best: serving riders, building community, and growing the brand in their markets.

Dealer health was a central theme in our Q4 and Q1 discussions, and I want to be very clear that it remains non-negotiable. Based on current trends, we expect domestic dealer profitability to double in 2026. We are continuing our focus on aligning wholesale activity with retail demand, improving the quality of inventory in the channel, and continuing to take actions that strengthen dealer economics. Those actions can create short-term pressure in certain areas, but they are the right actions for the long-term health of the business.

We are also experiencing encouraging signs from our product and brand work. In the past few months we released two new motorcycles that reflect the direction of Back to the Bricks: blank-canvas motorcycles that are true to Harley-Davidson and bike customization and give riders a stronger emotional connection to the brand. While we are highlighting the launch of the new Superglide in our Q2 materials, both the new Superglide and Deadwood models have generated meaningful enthus