Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance

Retail growth and lower dealer inventory accompanied weaker wholesale revenue and earnings, while LiveWire withdrew its outlook.

Rhea-AI Summary

Harley-Davidson (HOG) raised its full-year motorcycle and financial-services guidance while reporting lower third-quarter earnings despite growth in retail motorcycle sales. Net income attributable to Harley-Davidson fell to $42.762 million from $377.366 million; diluted earnings per share declined to $0.40 from $3.10. The prior-year quarter benefited from financial-services asset sales.

Global retail sales rose 5% year over year, while shipments fell 8% to 33,616 motorcycles and dealer inventory declined 26%. Motorcycle-business revenue fell 10% to $964 million, but gross margin rose 173 basis points to 28.1%. For 2026, Harley-Davidson now expects motorcycle-business operating income of $25–$55 million and financial-services operating income of $60–$70 million. Expected global retail sales and wholesale shipments are each 135,500–139,000 units. LiveWire withdrew its guidance. Quarterly shareholder returns totaled $110 million.

19 points · 2 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.HDMC operating-income guidance raised to $25–$55 million for full-year 2026.
• Major point. Forward-looking: it has not happened yet and may not happen.HDFS operating-income guidance raised to $60–$70 million for full-year 2026.
• Moderate pointGlobal retail motorcycle sales increased 5% year over year in Q3 2026.
• Moderate pointNorth American retail sales rose 9% in Q3, following 3% year-over-year growth in the previous quarter.
• Moderate pointGlobal dealer inventory fell 26% year over year and 6% sequentially at Q3-end.
• Moderate pointHDMC gross margin rose 173 basis points, or 1.73 percentage points, to 28.1% year over year.
• Moderate pointHDMC adjusted EBITDA margin, a non-GAAP profitability measure, improved to 9.7% from 8.7% year over year.
• Moderate pointDiscretionary share repurchases returned $91 million to shareholders in Q3 2026. 3% of market cap
• Moderate pointLong-term debt, net, declined to $1,325.275 million from $1,649.612 million at December 31, 2025.

10 minor points

• Minor pointAsia-Pacific retail sales rose 1%; Australia and New Zealand grew 15% in Q3 2026.
• Minor pointCurrent-model-year motorcycles represented 91% of North American dealer inventory, versus 86% at Q3-end 2025.
• Minor pointHDMC quarterly operating expenses fell 1% year over year to $227 million.
• Minor pointQ3 HDFS annualized managed retail credit loss ratio was below comparable 2024 and 2025 periods.
• Minor pointQuarterly cash dividends per share increased to $0.1875 from $0.18 a year earlier.
• Minor pointLiveWire quarterly revenue increased to $7.864 million from $5.563 million year over year.
• Minor pointLiveWire quarterly operating loss narrowed to $17.752 million from $18.181 million year over year.
• Minor pointLiveWire motorcycle shipments increased to 241 from 184 in Q3 2025.
• Minor pointHDMC manufacturing and other costs contributed an estimated $44 million favorable quarterly gross-profit comparison.
• Minor pointForeign exchange and hedging contributed an estimated $9 million favorable quarterly HDMC gross-profit comparison.

Negative

• Moderate pointQuarterly attributable net income fell to $42.762 million from $377.366 million, reflecting prior-year financial-services asset-sale benefits.
• Moderate pointHDMC quarterly revenue declined 10% year over year to $964 million on lower shipment volume.
• Moderate pointGlobal motorcycle shipments fell 8% year over year to 33,616 in Q3 2026.
• Moderate pointHDMC quarterly operating income declined 18% year over year to $44 million.
• Moderate pointHDFS quarterly operating income declined to $10.758 million from $438.820 million year over year.
• Moderate pointNine-month operating cash flow declined to $275.934 million from $416.903 million year over year.
• Moderate pointCash and cash equivalents fell to $2,076.378 million from $3,091.744 million at December 31, 2025.

10 minor points

• Minor pointQuarterly diluted earnings per share fell to $0.40 from $3.10 year over year.
• Minor pointHDMC quarterly operating margin declined to 4.6% from 5.0% year over year.
• Minor pointHDFS quarterly revenue declined to $110.758 million from $261.188 million year over year.
• Minor pointHDFS quarterly operating margin fell to 9.7% from 168.0% year over year.
• Minor pointLiveWire withdrew its guidance.
• Minor pointNine-month attributable net income fell to $147.339 million from $618.041 million year over year.
• Minor pointNine-month diluted earnings per share declined to $1.38 from $5.03 year over year.
• Minor pointQuarterly shipment mix had an estimated $22 million adverse impact on HDMC's year-over-year gross-profit comparison.
• Minor pointQuarterly price and sales incentives had an estimated $12 million adverse impact on HDMC's gross-profit comparison.
• Minor pointQuarterly raw-material prices had an estimated $7 million adverse impact on HDMC's year-over-year gross-profit comparison.

News Explained

The balance sheet places Q3 liquidity in context: cash and cash equivalents were $2,076,378 thousand at September 30, 2026, versus $3,091,744 thousand at December 31, 2025.

Key Figures

Global motorcycle retail sales guidance: 135,500–139,000 units Global motorcycle wholesale shipments guidance: 135,500–139,000 units Operating income guidance: $25–$55 million +5 more

Global motorcycle retail sales guidance

135,500–139,000 units

Full-year 2026 HDMC guidance

Global motorcycle wholesale shipments guidance

135,500–139,000 units

Full-year 2026 HDMC guidance

Operating income guidance

$25–$55 million

Full-year 2026 HDMC guidance

Operating income guidance

$60–$70 million

Full-year 2026 HDFS guidance

Capital investment

$140–$165 million

Revised full-year 2026 HDI outlook

Global motorcycle retail sales

Up 5%

Q3 2026 versus prior year

HDMC global motorcycle shipments

33,616 units, down 8%

Q3 2026 versus prior year

Net income attributable to HDI

$43 million, down from $377 million

Q3 2026 versus Q3 2025

Previous Earnings Reports

1 past event · Latest: Jul 23

Same Type 1 event

1. Jul 23

   Earnings results

   24h Move

   -4.0%

   Raised 2026 HDMC and HDFS operating-income guidance, setting prior ranges for this further guidance increase.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap, securitization beneficial interests, annualized managed retail credit loss ratio

4 terms

adjusted ebitda financial

"Adjusted EBITDA margin improved to 9.7 percent in Q3 2026"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

""Adjusted EBITDA" and "Adjusted EBITDA Margin %" are non-GAAP measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

securitization beneficial interests financial

"sale of the majority of its securitization beneficial interests"

An investor's claim on the cash flows and other economic rights generated by a pool of assets that have been transferred into a securitization trust or special-purpose vehicle. The trustee or SPV holds legal title to the underlying loans, receivables, or other assets, while holders of securitization beneficial interests (often issued as certificates or notes) are entitled to payments, losses, and other rights according to the trust or offering documents and the securitization’s payment waterfall. These interests represent economic ownership rather than direct legal ownership of the underlying assets and are governed by the trust agreement, which sets priority among tranches, allocation of principal and interest, and conditions for distributions and losses.

annualized managed retail credit loss ratio financial

"a Q3 2026 annualized managed retail credit loss ratio below same periods"

The annualized managed retail credit loss ratio is the yearlyized percentage that measures credit losses from a lender’s retail loan portfolio on a 'managed' basis. It is calculated by taking the retail credit losses recognized over a reporting period (for example charge‑offs or net write‑offs, or sometimes provision expense related to charge-offs), dividing by the average balance of the lender’s managed retail lending exposures for that period, and then scaling the result to an annual rate. 'Managed' indicates the denominator and sometimes the numerator include lending exposure the firm controls or services but may not hold on its own balance sheet (for example sold loans retained under servicing or certain securitized pools), so this ratio can differ from a GAAP or regulatory loss rate that uses only on‑balance‑sheet loans.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MILWAUKEE, Oct. 29, 2026 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company") (NYSE: HOG) today reported third quarter 2026 results, announced the addition of two new members to its Board of Directors, and raised HDMC and HDFS full-year guidance for the 2^nd time this year following strong execution in Q3 2026.

Third Quarter Highlights

• North American retail sales of new motorcycles were up 9 percent in Q3 2026 versus prior year, accelerating from 3 percent Year-over-Year (YoY) growth in the previous quarter. Q3 2026 marks the 4^th consecutive quarter of YoY retail growth in North America, demonstrating continued progress in the Company's core market.
• Q3 2026 global retail sales of new motorcycles were up 5 percent versus prior year, with North America and Asia-Pacific driving growth. Asia-Pacific grew by 1 percent overall, while Australia and New Zealand grew by 15 percent.
• Global dealer inventory of new motorcycles ended Q3 2026 down 26 percent vs. Q3 2025, and down 6 percent vs Q2 2026. In North America, 91 percent of dealer inventory was comprised of current Model Year 2026 motorcycles at the end of Q3 2026, up from 86 percent at the end of Q3 2025.
• HDMC global motorcycle shipments of 33,616 units in the quarter were down 8 percent vs. prior year to drive long-term dealer health and in alignment with the Back to the Bricks strategy.

"We are pleased with the continued progress made toward aligning wholesale activity with retail demand, achieving a further 26 percent reduction in dealer inventory while delivering 5 percent growth in global retail sales compared with Q3 2025. North America sales were up for the 4^th consecutive quarter, demonstrating an entrenched foothold in our home market," said Artie Starrs, President and CEO, Harley-Davidson. "We are encouraged by the improvement in our key growth drivers over the quarter. Models like the Super Glide^® and Deadwood™ are creating deeper connection between the brand and riders, our dealer network is becoming increasingly profitable, and we are actioning our Back to the Bricks strategy – just one full quarter into execution – in partnership with our dealers."

By the Numbers

HDMC Increased Gross Margin Percentage, While Decreasing Operating Expenses

• HDMC revenue of $964 million in the quarter, was down 10 percent vs. prior year driven by lower shipment volume.
• Third quarter gross margin percentage increased by 173 bps YoY to 28.1 percent.
• Operating expenses continued to remain lower than prior year in the third quarter, coming in 1 percent lower than a year ago, at $227 million.
• HDMC operating income was $44 million in Q3 2026, down 18 percent YoY.
• HDMC operating income margin was 4.6 percent in Q3 2026 compared to 5.0 percent in the prior year.
• Adjusted EBITDA margin¹ improved to 9.7 percent in Q3 2026 compared to 8.7 percent in the prior year.

1 "Adjusted EBITDA" and "Adjusted EBITDA Margin %" are non-GAAP measures. Please see below for full reconciliation to the most directly comparable GAAP financial measures.

Consolidated Earnings Driven Down YoY As A Result Of HDFS Shift To Asset Light Model

• Net income attributable to HDI of $43 million was down from $377 million in Q3 2025 primarily as a result of HDFS's sale of the majority of its securitization beneficial interests and retail finance receivables in the prior year, which drove a benefit in Q3 2025.
• HDFS operating income margin was 9.7 percent in Q3 2026 down from 168.0 percent in Q3 2025, with a Q3 2026 annualized managed retail credit loss ratio below same periods in 2024 and 2025.

Strong Balance Sheet Allowed Continued Capital Return Program

• Returned $110 million in total capital to shareholders in Q3 2026, including $91 million shares repurchased on a discretionary basis and $19 million in cash dividends.
• Cash and cash equivalents of $2.1 billion as of September 30, 2026.

2026 Financial Outlook

For the full year 2026, the Company is raising HDMC and HDFS financial guidance and now expects:

• HDMC:
  • Global Motorcycle Retail Sales of 135,500 to 139,000 units
  • Global Motorcycle Wholesale Shipments of 135,500 to 139,000 units
  • Operating income of $25 to $55 million
• HDFS:
  • Operating income of $60 to $70 million
• HDI:
  • Revised capital investment of $140 to $165 million

LiveWire has withdrawn its guidance.

Board of Directors Updates

In addition, today Harley-Davidson announced that its Board of Directors has appointed two new independent directors, Anthony D. Fassino and Bryan E. Slone. The appointments were effective October 28, 2026.

"Tony and Bryan are complementary additions to the Board and Harley-Davidson leadership," said Troy Alstead, Chairman of the Board of Harley-Davidson. "Tony's three-decade long track record of driving profitability, mitigating risk, and overseeing product development across a global manufacturing footprint provides invaluable perspective. Likewise, Bryan's experience in tax, public policy, and corporate governance, together with Board experience in the financial services and insurance industries, deepens our audit and risk knowledge across both HDMC and HDFS."

Tony Fassino recently retired from Caterpillar Inc. as the Group President of Construction Industries, where he led the company's approximately $25 billion global construction business and was responsible for strategic direction, capital investment, operational performance, and customer growth across a worldwide portfolio of products, facilities, and employees. During a 30-year career with Caterpillar, Fassino held leadership roles spanning engineering, product development, manufacturing, sales, and distribution, helping drive innovation, operational excellence, and shareholder value. He recently served as Chairman of the American Road & Transportation Builders Association, and he brings extensive experience in global operations, capital allocation, supply chain management, and industrial growth strategy.

Bryan Slone is a former Managing Partner at Deloitte's Nebraska office and the former President & CEO of the Nebraska Chamber of Commerce & Industry. He currently serves as Counsel with the law firm of Koley Jessen P.C., L.L.O. He brings more than four decades of leadership experience across tax, law, business, public policy, and corporate governance, including senior roles with Deloitte and the Internal Revenue Service. Slone currently serves on the boards of Ameritas Mutual Holding Company, Ameritas Life Insurance Corp., and First National of Nebraska, Inc., where he chairs the Audit Committee for each organization.

The appointment of Fassino and Slone by Board action brings the total number of directors on the Board to ten.

Company Background
Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, parts & accessories, experiences, riding gear and apparel. What We Make: The World's Best Motorcycles. Period. Who We Serve: Motorcycle Riders Worldwide. Why We Do It: To Protect and Grow Motorcycle Culture. What We Stand For: Life, Liberty and the Pursuit of Happiness. Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and has a controlling interest in Harley-Davidson Financial Services and LiveWire Group, Inc. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. LiveWire is committed to developing the technology of the future and investing in the capabilities needed to lead the transformation of motorsports. Learn more at harley-davidson.com. 

Webcast
Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CDT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CDT.

Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "projects," "may," "will," "estimates," "targets," "intends," "forecasts," "is on track," "remains confident," "seeks," "sees," "should," "feels," "commits," "assumes," "envisions," or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to: (a) execute its business plans and strategies, including without limitation the Back to the Bricks strategic plan, successfully execute its approach to a full enterprise economic model, and strengthen its existing businesses while allowing for growth; (b) manage supply chain and logistics issues, including without limitation quality issues, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Iran, or natural disasters and longer shipping times and increased logistics costs; (c) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company's ability to sell products domestically and internationally, and the cost of raw materials and components, including tariffs recently imposed or that may be imposed by the U.S. on foreign goods or rebalancing or other tariffs recently imposed or that may be imposed by foreign countries on U.S. goods; (d) accurately analyze, predict and react to changing market conditions, interest rates, and geopolitical environments, and successfully adjust to shifting global consumer needs and interests, including successfully realigning its product portfolio, which encompasses re-introducing the Sportster^® motorcycle; (e) accurately predict the margins of its segments in light of, among other things, tariffs, rebalancing trade measures, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company's complex global supply chain; (f) maintain and enhance the value of the Harley-Davidson brand, including detecting and mitigating or remediating the impact of activist collective actions, such as calls for boycotts and other brand-damaging behaviors that could harm the Company's brand or business; (g) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing domestic and international political environments, including as a result of the conflict in Iran; (h) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (i) successfully carry out its global manufacturing and assembly operations; (j) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to shift to a rider-centric portfolio that includes a focus on accessibility and customization and growing its Parts & Accessories and Motor Clothes and apparel businesses; (k) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (l) successfully manage and reduce costs throughout the business; (m) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (n) prevent, detect and remediate any issues with its motorcycles or any issues associated with the design, manufacturing, or assembly processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (o) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its full enterprise economic model, and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (p) realize the desired business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to obtain sufficient funding from sources other than the Company to sustain its operations, particularly in light of LiveWire's recent disclosure that it determined that conditions and events raise substantial doubt about LiveWire's ability to continue as a going concern; (ii) the ability of LiveWire to execute its plans to develop, produce, market and sell its electric vehicles; (iii) the demand for and consumer willingness to adopt two- and three-wheeled electric vehicles; and (iv) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in Risk Factors under Item 1.A of LiveWire Group Inc.'s most recent Annual Report on Form 10-K; (q) manage the quality and regulatory non-compliance issues relating to the brake hose assemblies provided to the Company by Proterial Cable America, Inc. in a manner that avoids future quality or non-compliance issues and additional costs or recall expenses that are material; (r) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name; (s) successfully maintain or achieve a manner in which to sell motorcycles in Europe, China, and the Company's Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (t) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (u) retain and attract talented employees and leadership and qualified and experienced independent directors for its Board of Directors, eliminate personnel duplication, inefficiencies and complexity throughout the organization, and successfully complete transitions of executives, and effectively manage the return to on-site work of Milwaukee-based corporate employees at specified Company facilities; (v) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (w) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services' loan portfolio; (x) prevent a ransomware attack or cybersecurity incidents and data privacy breaches and respond to related evolving regulatory requirements; (y) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company's business; (z) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (aa) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (bb) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations, including increased environmental, safety, emissions or other regulations; (cc) manage its exposure to product liability claims in a manner that avoids or successfully mitigates the impact of substantial jury verdicts and manage exposure in commercial or contractual disputes; (dd) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (ee) realize the desired business benefits from KKR's and PIMCO's investments in Harley-Davidson Financial Services, Inc.; (ff) manage risks related to functions the Company outsources and the use of artificial intelligence by the Company and its vendors and suppliers; (gg) optimize capital allocation in light of the Company's capital allocation priorities; (hh) manage the Company's share repurchase strategy; (ii) manage issues related to climate change and related regulations; and (jj) realize the expected effects of the anticipated increase in Harley-Davidson Financial Services, Inc.'s retail finance receivable based on Harley-Davidson Financial Services, Inc.'s operating income.

The Company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company's dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company's dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, or other factors.

Harley-Davidson Financial Services, Inc.'s retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions including the impact of inflation and Harley-Davidson Financial Services, Inc.'s efforts to increase prudently structured loan approvals to sub-prime borrowers. In addition, Harley-Davidson Financial Services, Inc.'s efforts to adjust underwriting criteria based on market and economic conditions, and actions that the Company has taken and could take that impact motorcycle values, may impact Harley-Davidson Financial Services, Inc.'s retail credit losses.

The Company's operations, demand for its products, and its liquidity could be adversely impacted by changes in tariffs, inflation, work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Iran, or other factors. Refer to "Risk Factors" under Item 1.A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

Non-GAAP Financial Measures

This earnings release includes financial information that is not presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP", "GAAP"), including Adjusted EBITDA for HDMC and LiveWire and Adjusted EBITDA Margin % for HDMC. These non-GAAP financial measures, which may be different from similarly-titled measures disclosed by other companies, are presented to enhance investors' overall understanding of the Company's financial performance.

Adjusted EBITDA for HDMC and Adjusted EBITDA for LiveWire are defined as Harley-Davidson, Inc. consolidated net income, excluding, on a consolidated basis, interest expense, income tax provision, investment income, and other income, net. Depreciation and amortization for HDMC and LiveWire, respectively, are excluded from Adjusted EBITDA for HDMC and LiveWire, respectively. In addition, certain other items impacting consolidated net income are excluded from HDMC Adjusted EBITDA and/or LiveWire Adjusted EBITDA. For example, the Company may exclude from HDMC or LiveWire Adjusted EBITDA the impacts of certain events, gains, losses or other costs and charges, such as corporate restructuring activities, reorganizations or one-time employee termination benefits, that affect the period-to-period comparability of HDMC's and LiveWire's operating performance. Adjusted EBITDA Margin % is used by HDMC and is defined as HDMC Adjusted EBITDA divided by HDMC revenue.

The Company believes that Adjusted EBITDA and Adjusted EBITDA Margin % for HDMC and Adjusted EBITDA for LiveWire more clearly identify the core trends in the respective ongoing business operations that could otherwise be masked by the effects of the items that the Company excludes from Adjusted EBITDA and Adjusted EBITDA Margin % for HDMC and Adjusted EBITDA for LiveWire. These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons, and benchmark performance with other comparable companies and between periods without regard to items the Company does not consider a component of core operating performance.

Adjusted EBITDA and Adjusted EBITDA Margin % have limitations and should not be considered in isolation from, as a substitute for, or more meaningful than, consolidated net income as determined in accordance with U.S. GAAP. Certain items excluded from HDMC and LiveWire Adjusted EBITDA are significant components in understanding and assessing a company's financial performance. The presentation of Adjusted EBITDA and Adjusted EBITDA Margin % should not be construed as implying that the Company's results will be unaffected by unusual or non-recurring items.

This earnings release includes a reconciliation of Harley-Davidson Inc. consolidated net income to HDMC Adjusted EBITDA and LiveWire Adjusted EBITDA.

### (HOG-Earnings)

 

Harley-Davidson, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
HDMC revenue	$       964,017		$    1,073,959		$    3,123,767		$    3,199,113
Gross profit	270,802		283,110		841,915		897,059
Selling, administrative and engineering expense	226,504		228,991		706,354		665,352
Operating income from HDMC	44,298		54,119		135,561		231,707
LiveWire revenue	7,864		5,563		22,094		14,318
Gross loss	(374)		(2,271)		(957)		(3,889)
Selling, administrative and engineering expense	17,378		15,910		52,393		52,752
Operating loss from LiveWire	(17,752)		(18,181)		(53,350)		(56,641)
HDFS revenue	110,758		261,188		339,745		763,587
HDFS expense	100,000		(177,632)		285,150		190,958
Operating income from HDFS	10,758		438,820		54,595		572,629
Operating income	37,304		474,758		136,806		747,695
Other income, net	12,598		14,706		37,124		45,456
Investment income	11,647		12,267		32,182		32,158
Interest expense	(3,629)		(10,182)		(10,820)		(25,564)
Income before income taxes	57,920		491,549		195,292		799,745
Income tax provision	16,977		116,384		51,245		188,036
Net income	$         40,943		$       375,165		$       144,047		$       611,709
Less: Loss attributable to noncontrolling interests	1,819		2,201		3,292		6,332
Net income attributable to Harley-Davidson, Inc.	$         42,762		$       377,366		$       147,339		$       618,041
Earnings per share:
Basic	$             0.41		$             3.13		$             1.39		$             5.07
Diluted	$             0.40		$             3.10		$             1.38		$             5.03
Weighted-average shares:
Basic	103,360		120,614		106,134		122,015
Diluted	106,588		121,676		107,051		122,855
Cash dividends per share:	$         0.1875		$             0.18		$         0.5625		$             0.54

LiveWire results presented in the Company's financial statements represent the LiveWire reportable segment as determined in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280 Segment Reporting which may differ from LiveWire Group, Inc. results.

 

Harley-Davidson, Inc. Condensed Consolidated Balance Sheets (In thousands)
	(Unaudited)				(Unaudited)
	September 30, 2026		December 31, 2025		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$  2,076,378		$  3,091,744		$  1,775,038
Accounts receivable, net	276,390		225,760		305,010
Finance receivables held for sale, net	417,696		264,238		4,080,885
Finance receivables held for investment, net	1,057,228		981,926		1,221,348
Inventories, net	458,745		730,898		512,186
Restricted cash	14,610		—		51,530
Other current assets	232,202		292,383		297,444
	4,533,249		5,586,949		8,243,441
Finance receivables held for investment, net	1,142,858		719,060		662,201
Other long-term assets	1,620,801		1,738,806		1,660,742
	$  7,296,908		$  8,044,815		$ 10,566,384
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$  1,031,470		$  1,061,194		$     971,411
Short-term deposits, net	255,439		280,095		292,667
Short-term debt	470,420		497,776		684,741
Current portion of long-term debt, net	543,740		819,629		1,329,244
	2,301,069		2,658,694		3,278,063
Long-term debt, net	1,325,275		1,649,612		3,147,836
Other long-term liabilities	621,802		579,659		579,106
Shareholders' equity	3,048,762		3,156,850		3,561,379
	$  7,296,908		$  8,044,815		$ 10,566,384

 

Harley-Davidson, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Nine months ended
	September 30, 2026		September 30, 2025
Net cash provided by operating activities	$     275,934		$     416,903
Cash flows from investing activities:
Capital expenditures	(64,422)		(102,090)
Finance receivables held for investment, net	(436,663)		172,037
Proceeds from sale of securitization beneficial interests, net	—		125,369
Collection from retained securitization beneficial interests	32,115		9,353
Proceeds from derivative instruments	51,574		—
Other investing activities	(52)		808
Net cash (used) provided by investing activities	(417,448)		205,477
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—		647,088
Repayments of medium-term notes	(810,950)		(700,000)
Proceeds from term loan	—		448,013
Repayment of senior unsecured notes	—		(450,000)
Proceeds from securitization debt	—		497,790
Repayments of securitization debt	—		(718,034)
Net (decrease) increase in unsecured commercial paper	(26,744)		44,938
Borrowings of asset-backed commercial paper	260,250		155,000
Repayments of asset-backed commercial paper	(17,675)		(217,554)
Net increase in deposits	196		3,312
Dividends paid	(60,382)		(66,288)
Repurchase of common stock	(191,169)		(193,209)
Other financing activities	96		1,269
Net cash used by financing activities	(846,378)		(547,675)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(10,489)		11,009
Net (decrease) increase in cash, cash equivalents and restricted cash	$   (998,381)		$       85,714
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$  3,091,744		$  1,740,854
Net (decrease) increase in cash, cash equivalents and restricted cash	(998,381)		85,714
Cash, cash equivalents and restricted cash, end of period	$  2,093,363		$  1,826,568
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows:
Cash and cash equivalents	$  2,076,378		$  1,775,038
Restricted cash	14,610		51,530
Restricted cash included in Other long-term assets	2,375		—
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows	$  2,093,363		$  1,826,568

 

HDMC Revenue and Motorcycle Shipment Data (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
HDMC REVENUE (in thousands)
Motorcycles	$     733,571		$     821,864		$  2,417,921		$  2,463,793
Parts and accessories	152,941		167,252		472,134		497,558
Apparel	55,201		56,052		168,582		168,614
Licensing	4,605		5,547		16,950		14,549
Other	17,699		23,244		48,180		54,599
	$     964,017		$  1,073,959		$  3,123,767		$  3,199,113
HDMC U.S. MOTORCYCLE SHIPMENTS	23,013		25,662		72,219		72,263
HDMC WORLDWIDE MOTORCYCLE SHIPMENTS
Grand American Touring(a)	17,970		22,035		59,131		63,793
Cruiser	11,382		10,551		35,591		35,521
Sport and Lightweight	3,219		2,628		11,567		7,924
Adventure Touring	1,045		1,310		3,831		3,724
	33,616		36,524		110,120		110,962
(a)‌     Includes Trike
‌          LiveWire Motorcycle Shipments	241		184		599		272

 

HDMC Gross Profit (Unaudited)
The estimated impact of significant factors affecting the comparability of gross profit from the third quarter of 2025 to the third quarter of 2026 were as follows (in millions):
	Three months ended		Nine months ended
2025 gross profit	$                       283		$                       897
Volume	(24)		(17)
Price and sales incentives	(12)		(44)
Foreign currency exchange rates and hedging	9		21
Shipment mix	(22)		(69)
Raw material prices	(7)		(9)
Manufacturing and other costs	44		63
	(12)		(55)
2026 gross profit	$                       271		$                       842

 

HDFS Finance Receivables Allowance for Credit Losses (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Balance, beginning of period	$       38,160		$     399,293		$         2,235		$     401,183
Provision for credit losses	20,324		(301,499)		51,120		(198,427)
Charge-offs, net of recoveries	(4,596)		(35,148)		533		(140,110)
Sale of residual interest in securitizations	—		(75,547)		—		(75,547)
Balances, end of period	$       53,888		$      (12,901)		$       53,888		$      (12,901)
Worldwide Retail Sales of Harley-Davidson Motorcycles(a) (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
United States	23,812		21,779		73,631		67,690
Canada	1,791		1,683		5,526		5,595
Total North America	25,603		23,462		79,157		73,285
EMEA	4,764		5,033		16,757		17,829
Asia Pacific	4,702		4,667		13,659		13,996
Latin America	764		822		2,234		2,138
Total worldwide retail sales	35,833		33,984		111,807		107,248

(a)	Data source for retail sales figures shown above is new sales warranty and registration information provided by dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision.

 

Harley-Davidson, Inc. Reconciliation from Harley-Davidson, Inc. Net Income to HDMC Adjusted EBITDA (In thousands) (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Net Income	$    40,943		$  375,165		$  144,047		$  611,709
Interest expense	3,629		10,182		10,820		25,564
Provision for income taxes	16,977		116,384		51,245		188,036
Investment income(a)	(11,647)		(12,267)		(32,182)		(32,158)
Other income, net(b)	(12,598)		(14,706)		(37,124)		(45,456)
Operating income	37,304		474,758		136,806		747,695
Less:
LiveWire operating loss	$  (17,752)		$  (18,181)		$  (53,350)		$  (56,641)
HDFS operating income	10,758		438,820		54,595		572,629
HDMC operating income	44,298		54,119		135,561		231,707
HDMC depreciation and amortization	35,702		39,472		116,353		111,151
Adjustments(c)	13,869		—		31,072		—
HDMC Adjusted EBITDA	$    93,869		$    93,591		$  282,986		$  342,858
HDMC Adjusted EBITDA Margin %	9.7 %		8.7 %		9.1 %		10.7 %
Harley-Davidson, Inc. Reconciliation from Harley-Davidson, Inc. Net Income to LiveWire Adjusted EBITDA (In thousands) (Unaudited)
	Three months ended				Nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Net Income	$       40,943		$     375,165		$     144,047		$     611,709
Interest expense	3,629		10,182		10,820		25,564
Provision for income taxes	16,977		116,384		51,245		188,036
Investment income(a)	(11,647)		(12,267)		(32,182)		(32,158)
Other income, net(b)	(12,598)		(14,706)		(37,124)		(45,456)
Operating income	37,304		474,758		136,806		747,695
Less:
HDMC operating income	$       44,298		$       54,119		$     135,561		$     231,707
HDFS operating income	10,758		438,820		54,595		572,629
LiveWire operating loss	(17,752)		(18,181)		(53,350)		(56,641)
LiveWire depreciation and amortization	2,458		2,354		7,118		8,027
Adjustments(d)	325		—		1,056		—
LiveWire Adjusted EBITDA	$      (14,969)		$      (15,827)		$      (45,176)		$      (48,614)

(a)	Represents non-operating investment income, primarily due to income from short-term investments.
(b)	Represents non-operating other income, primarily related to the Company's defined benefit plans.
(c)	Represents adjustments related to corporate restructuring, primarily due to one-time employee termination benefits and impairment of long-lived assets.
(d)	Represents adjustments related to transaction costs for the acquisition of Dust Motorcycles, Inc. and expenses associated with the LiveWire At-The-Market Program.

 

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SOURCE Harley-Davidson, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Harley-Davidson's updated 2026 guidance?

Harley-Davidson expects $25–$55 million in motorcycle-business operating income and $60–$70 million in financial-services operating income for 2026. Global motorcycle retail sales and wholesale shipments are each expected to total 135,500–139,000 units. Revised capital investment is $140–$165 million. LiveWire withdrew its guidance.

Why did Harley-Davidson's third-quarter 2026 earnings decline?

Harley-Davidson attributes the decline primarily to a prior-year benefit from HDFS's sale of most of its securitization beneficial interests and retail finance receivables. Attributable net income fell to $42.762 million from $377.366 million, while diluted earnings per share fell to $0.40 from $3.10.

Who joined Harley-Davidson's board in October 2026?

Anthony D. Fassino and Bryan E. Slone joined Harley-Davidson's board as independent directors, effective October 28, 2026. Their appointments brought the board to ten directors. Fassino previously led Caterpillar's Construction Industries business; Slone previously served as managing partner of Deloitte's Nebraska office.