Harley-Davidson (HOG) Q1 2026 earnings summary

Executive summary

• North American retail motorcycle sales rose 14% year-over-year to 23,803 units, driving global retail sales up 8% to 33,507 units, despite a challenging consumer environment.

• Global dealer inventory of new motorcycles ended Q1 2026 down 22% compared to Q1 2025, reflecting efforts to align wholesale with retail demand.

• The new strategic plan, Back to the Bricks, and the RIDE marketing platform focus on restoring volume, expanding the portfolio, and strengthening dealer relationships, with positive early reception.

• HDMC global motorcycle shipments declined 3% year-over-year; HDMC revenue fell 2% to $1.06 billion.

• $128 million in share repurchases and $22 million in dividends paid during the quarter.

Financial highlights

• Consolidated Q1 2026 revenue declined 12% year-over-year to $1.17 billion, mainly due to a 54% drop in HDFS revenue after a shift to a capital-light model.

• Q1 consolidated operating income was $23 million, down 85% from Q1 2025; net income was $25 million with a 2.1% margin.

• Q1 EPS was $0.22, compared to $1.07 in Q1 2025, a 79% decrease.

• HDMC revenue decreased 2% to $1.06 billion; gross profit margin fell to 25.3% from 29.1% year-over-year.

• LiveWire segment revenue rose 87% year-over-year to $5 million, with operating loss improving by 11%.

Outlook and guidance

• 2026 guidance reaffirmed: HDMC retail and wholesale units expected at 130,000–135,000.

• Shipments projected higher in Q2 and Q4, flat in Q3; production units to be lower than wholesale shipments for inventory management.

• Tariff costs for 2026 forecasted at $75–$90 million, down from prior guidance.

• HDMC operating income expected between a $40 million loss and a $10 million profit; HDFS operating income $45–$60 million; LiveWire operating loss $70–$80 million.

• Capital investments planned at $175–$200 million for 2026.