Harley-Davidson (HOG) investor relations material

Executive summary

• Achieved third consecutive quarter of North American retail sales growth, driven by strong Touring segment performance and successful new product launches like Super Glide and Deadwood.

• Dealer inventory health improved, with over 85% of inventory as model year 2026, supporting profitability and sell-through rates.

• Raised full-year guidance for retail sales and operating income after robust first-half execution.

• Dealer inventory reductions and improved engagement contributed to higher dealer profitability.

• Net income attributable to shareholders declined 26% year-over-year, mainly due to a shift in the financial services business model, partially offset by improved motorcycle segment performance.

Financial highlights

• Q2 consolidated revenue was $1.23 billion, down 6% year-over-year, mainly due to a 55% drop in HDFS/financial services revenue post-transaction.

• HDMC revenue up 6% to $1.1 billion; motorcycle revenue $848 million, P&A $177 million, Apparel & Licensing $62 million.

• Q2 consolidated operating income $76 million (down 32% YoY); EPS $0.75 (down 15% YoY).

• HDMC gross profit margin at 27.5% (down 108 bps YoY); adjusted EBITDA margin improved to 10.4%.

• HDFS Q2 revenue $117 million (down 55% YoY); operating income $22 million, margin 18.5%.

Outlook and guidance

• FY2026 retail and wholesale unit guidance raised to 133,500–138,500 units.

• HDMC operating income guidance increased to $10–$50 million (from -$40 million to $10 million prior).

• HDFS operating income guidance raised to $55–$70 million.

• LiveWire continues to forecast an operating loss of $70–$80 million for 2026.

• Capital investment guidance maintained at $175–$200 million.