Harley-Davidson, Inc. HOG reported second-quarter 2026 earnings of 75 cents per share, beating the Zacks Consensus Estimate of 62 cents by 21%. Earnings declined 15% from 88 cents a year ago. Harley-Davidson Motor Company revenues increased 6% year over year to $1.10 billion but missed the Zacks Consensus Estimate of $1.12 billion. Consolidated revenues fell 6% year over year to $1.23 billion as a sharp decline at Harley-Davidson Financial Services offset growth at the motorcycle business.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Harley-Davidson, Inc. price-consensus-eps-surprise-chart | Harley-Davidson, Inc. Quote
HOG Benefits From Stronger Motorcycle Demand
Motorcycle revenues advanced 9% to $848 million, supported by higher shipments. Apparel and licensing revenues rose 2% to $62 million, while parts and accessories revenues declined 5% to $177 million.
Worldwide motorcycle shipments increased 9% to 39,209 units. Touring shipments rose 9%, cruiser shipments increased 3% and Sport and Lightweight shipments surged 45%. Adventure Touring shipments declined 4% from the prior-year quarter.
Harley-Davidson Retail Sales Rise in North America
Worldwide retail motorcycle sales increased 1% to 42,467 units. North American retail sales rose 3% to 29,751 units, marking the third consecutive quarter of year-over-year growth in the company’s core market. Strength in Touring and Sport models and favorable reception for the redesigned 2026 Trike lineup supported demand.
International performance remained mixed. EMEA retail sales fell 9%, reflecting weakness in the German region. Asia-Pacific sales were roughly flat, with growth in Australia and New Zealand offsetting a decline in Japan. Latin American retail sales increased 4%, aided by gains in Mexico.
HOG Posts Improved HDMC Operating Profit
HDMC gross profit increased 2% to $304 million, but gross margin contracted 108 basis points to 27.5%. Favorable manufacturing and other costs, including a tariff recovery, were offset by unfavorable product mix, net pricing, raw-material costs and foreign-currency effects.
Operating expenses declined 2% to $232 million despite $3 million of restructuring costs. HDMC operating income rose 18% to $72 million, while operating margin expanded 68 basis points to 6.6%. Adjusted EBITDA increased 18% to $115 million, producing a margin of 10.4% compared with 9.3% a year earlier.
Harley-Davidson Financial Services Results Fall
HDFS revenues declined 55% year over year to $117 million, primarily because of lower retail finance receivable balances following loan-asset sales completed in the second half of 2025. Interest income fell 72%, while other income increased 33% on favorable servicing fees.
Operating income decreased 69% to $22 million, and operating margin contracted to 18.5% from 27.1%. Lower interest expense and credit-loss provisions partly offset the reduced revenue base. Total retail loan originations increased 10%, while the managed retail credit-loss ratio improved to 3% from 3.3%.
HOG’s LiveWire Loss Narrows on Higher Sales
LiveWire revenues rose 52% to $9.1 million, driven by increased electric motorcycle volumes and higher STACYC electric balance bike sales. Consolidated unit sales advanced 10% to 5,269 units during the quarter.
The segment’s operating loss narrowed to $17.9 million from $18.7 million. Higher revenues and lower selling, administrative and engineering expenses supported the improvement, partly offset by increased cost of goods sold. LiveWire also commenced production of the S4 Honcho and completed its acquisition of Dust Motorcycles in May.
Harley-Davidson’s Financial Position & Capital Returns
As of June 30, 2026, Harley-Davidson had cash and equivalents of $1.90 billion compared with $3.1 billion as of Dec. 31, 2025. It returned $50 million to shareholders during the quarter through $30 million of discretionary share repurchases and $20 million of dividends. For the first six months of 2026, operating cash outflow totaled $59 million and free cash outflow was $104 million.
HOG Raises Its 2026 Outlook
Harley-Davidson raised its full-year projection for global motorcycle retail sales and wholesale shipments to 133,500-138,500 units from the previous estimate of 130,000-135,000 units. HDMC operating income is now expected between $10 million and $50 million compared with the earlier expected range of a $40 million loss to a $10 million profit.
HDFS operating income is projected at $55-$70 million, up from the prior forecast of $45-$60 million. The company maintained its expectation for a LiveWire operating loss of $70-$80 million and capital investments of $175-$200 million.
HOG currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
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Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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