Harley-Davidson (HOG) investor relations material

Executive summary

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

• Dealer inventory reductions and improved management contributed to higher dealer profitability and sell-through rates, with over 85% of inventory as model year 2026.

• Net income attributable to shareholders was $79.8 million ($0.75 per diluted share) for Q2 2026, down 25.8% year-over-year, mainly due to a shift in the financial services business model.

• The "Back to the Bricks" strategic plan was launched, targeting $225 million in annual cost and profitability improvements by 2027.

• Full-year guidance was raised for retail sales, wholesale shipments, and operating income for both the motorcycle and financial services segments.

Financial highlights

• Q2 2026 consolidated revenue was $1.23 billion, down 6% year-over-year, with HDMC revenue up 6% to $1.1 billion and HDFS revenue down 55% to $117 million.

• Q2 net income was $79.8 million, down 25.8% year-over-year; diluted EPS was $0.75, down from $0.88.

• HDMC operating income rose 18% to $72.3 million; HDFS operating income fell 69% to $21.6 million.

• LiveWire segment revenue increased 52% year-over-year to $9.1 million, with operating loss improving by 4%.

• Dealer inventory of new motorcycles ended Q2 down 17% year-over-year.

Outlook and guidance

• Full-year 2026 retail and wholesale unit guidance raised to 133,500–138,500 units.

• HDMC operating income guidance increased to $10–$50 million; HDFS to $55–$70 million.

• LiveWire operating loss expected at $70–$80 million; capital investments projected at $175–$200 million.

• No change to 2027 targets; $150 million in fixed cost savings and $350+ million HDMC EBITDA target remain on track.