Harley-Davidson (HOG) Q3 2026 earnings summary

Executive summary

• Global motorcycle retail sales rose 5.4% to 35,833 units; North American retail grew 9.1%, while dealer inventory fell ~26% YoY.

• Back to the Bricks progress supported higher FY2026 HDMC retail, shipment and operating-income guidance, plus higher HDFS operating-income guidance.

• Consolidated operating income fell to $37.3M from $474.8M, largely reflecting weaker HDMC results and the prior-year HDFS receivables-sale benefit.

Financial highlights

• Q3 revenue was $1.083B versus $1.341B; operating income was $37.3M versus $474.8M. Net income attributable to shareholders was $42.8M versus $377.4M; diluted EPS was $0.40 versus $3.10.

• HDMC revenue declined 10.2% to $964.0M; operating income fell 18.1% to $44.3M, while gross margin rose 173 bps to 28.1%.

• HDMC adjusted EBITDA was $93.9M versus $93.6M; adjusted EBITDA margin improved to 9.7% from 8.7%, despite $14M of restructuring costs.

• Q3 operating cash flow was $275.9M versus $417M in the prior-year period; free cash flow was $212M versus $315M.

Outlook and guidance

• FY2026 HDMC global retail sales and wholesale shipments guidance increased to 135,500–139,000 units each; operating-income guidance rose to $25M–$55M.

• FY2026 HDFS operating-income guidance increased to $60M–$70M; capital-investment guidance decreased to $140M–$165M.

• LiveWire withdrew FY2026 guidance.

• FY2026 gross tariff costs are estimated at $105M–$120M, versus the prior $75M–$90M estimate; expected recoveries leave little change to FY2026 operating-income impact.

• Back to the Bricks targets at least $150M in cost savings versus the 2025 cost base and at least $75M in HDMC profitability benefit, fully realized by end-2027.