H-D Q2 North American retail motorcycle sales +3% (29,751 units), inventory ended Q2 -17%
In reporting its second quarter 2026 results and raised full-year guidance, Harley-Davidson President and CEO Artie Starrs is quoted as stating that "our second-quarter performance reflects strength in our domestic retail business, continued focus on healthy dealer inventory levels and the exceptional commitment of our dealer network.
"We also made meaningful progress against our 'Back to the Bricks' strategic initiatives, strengthening execution across the business and driving improved profitability.
"Given this progress, our first-half results, and our market share gains, we are raising our full-year guidance and remain confident in our ability to create long-term value for shareholders."
In product terms June saw the introduction of the 2026 Super Glide with the new 'Deadwood' model announced after the quarter end and before the Sturgis Rally, in July 2026.
For the second quarter of 2026, North American retail motorcycle sales were 29,751 units, up 3% over the prior year, with global dealer inventory of new motorcycles ending Q2 by -17% compared to end Q2 '2025.
Q2 HDMC global motorcycle shipments of 39,209 were up by 9% over prior year, while wholesale unit shipments were lower than retail unit sales. This was "aligned with Company plans as dealer inventory management remains a top priority."
Global retail motorcycle sales in the second quarter were up 1% versus prior year, reflecting North American growth and soft international results.
The 3% increase in North American retail unit performance was said to have been driven by continued strength in the Touring and Sport categories and a positive response to the new '26 motorcycle line-up.
EMEA retail performance was down by -9% and Harley characterizes this by positive results in the Touring and Sport categories, while the German region (Germany, Austria, Switzerland/GAS) experienced a decline.
APAC retail performance (Asia/Pacific) was slightly positive in the quarter, where Australia and New Zealand led the region from a growth standpoint. Latin America retail was characterized by strong gains in Mexico and a modest decline in Brazil.
Revenue was up 6% driven by increased shipments and favorable foreign exchange effects, partially offset by net pricing. Parts & Accessories revenue was down -5% with Apparel & Licensing revenue was up 2%.
Net Income attributable to HDI of $80m, down by -26% from the prior year "primarily due to the HDFS transition to its 'capital light' model; this was partially offset by the HDMC improvement in revenue of $1.1bn, up 6% vs. prior year.
The HDMC Adjusted EBITDA margin of 10.4% was up from 9.3% in Q2 2025, with the HDFS operating income margin of 18.5% down from 27.1% in Q2 2025.
The company says it delivered diluted Earnings Per Share (EPS) of $0.75, down 15% vs. prior year and that the Q2 performance enabled raising the company's FY 2026 guidance for retail sales and wholesale shipments as well as HDMC & HDFS operating income.
Second quarter gross margin came in at 27.5%, which was down 108 basis points versus prior year. Gross profit was impacted favorably by manufacturing and other costs, including a tariff recovery that benefited gross profit.
The favorability was offset by unfavorable product mix, net pricing, raw materials, and foreign exchange effects. Operating expenses came in $6m lower than a year ago, at $232m, including a restructuring expense of $3m.
In the second quarter, HDFS revenue was down -55% from prior year, driven by lower retail finance receivables. The decline in retail receivables was due to the sale of loan assets that took place in the second half of 2025. Other income within HDFS revenue was favorable year-over-year due to new servicing fees.
HDFS operating income came in at $22m in the second quarter, a decrease of $48m or 69% from the prior year period. On the expense side, both interest expense and the provision for credit loss expense were significantly lower, which was due to the decreased size of the retail loan portfolio and related debt on a year-over-year basis.
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The Limited Edition 250th anniversary Super Glade special.
HDFS operating expenses increased by $3m versus prior year. Total quarter-end net finance receivables, including both retail and wholesale loans, were $2.6bn, a 64% decline compared to the prior year primarily due to the sale of loan assets that took place in the second half of 2025.
LiveWire – revenue for the second quarter increased by 52%. The revenue increase was due to higher electric motorcycle unit sales and higher STACYC electric balance bike sales. LiveWire's operating loss of $18m in the second quarter compared to a loss of $19m in the prior year period. LiveWire operating loss of $70 to $80m. Harley-Davidson, Inc. capital investments of $175m to $200m.
For the first half of 2026 net cash use of $60m from operating activities with an effective tax rate of 25%. The company paid cash dividends of $41m and repurchased $158m of shares (7.9 million shares) on a discretionary basis. Cash and cash equivalents were $1.9bn as of June 30.
For the full year 2026, the Company is revising its financial guidance and now expects HDMC global motorcycle retail sales of 133,500 to 138,500 units from a previously expected range of 130,000 to 135,000 units and HDMC global motorcycle wholesale shipments of 133,500 to 138,500 units from a previously expected range of 130,000 to 135,000 units
HDMC operating income is now forecast to be in the range of $10m to $50m, increased from a previously expected range of a $40m loss to a $10m profit. HDFS operating income is now forecast to be in the range $55m to $70m from a previously expected range of $45m to $60m.
