A maker of heavyweight motorcycles, founded in 1903 in Milwaukee, Wisconsin, and named for its four founders: William Harley and Arthur, Walter, and William Davidson. Beyond gas-powered touring and cruiser bikes, it sells parts and apparel, an all-electric motorcycle line called LiveWire, and rider financing and insurance through Harley-Davidson Financial Services. Its iconic black-and-orange "bar and shield" logo traces back to 1908, though nobody knows for sure who actually designed it.
HDMC operating income rose 18% on higher shipments and cost recoveries, while HDFS income fell 69% after its 2025 loan portfolio sale.
The motorcycle business returned to profit growth, but the financial services arm shrank as expected. fell 5.9% to $1,230.4 million and contracted 8.3 points to 34.2%, as a mix shift toward lower-margin models and higher offset a 9.4% increase in motorcycle shipments and $30.9 million in favorable manufacturing costs. The company raised its full-year motorcycle profit outlook and launched a new strategic plan targeting $150 million in cost cuts by 2027.
Key takeaways
HDMC rose 18% to $72.3 million, driven by a 9.4% increase in wholesale motorcycle shipments and $30.9 million in favorable manufacturing and other costs, including $19.8 million in .
HDMC contracted to 34.2% from 42.6% a year ago, pressured by a shift toward lower-margin Sport and Lightweight models and higher .
HDFS fell 69% to $21.6 million as interest income dropped 71.8% following the 2025 sale of the majority of its retail finance .
Section summaries
Management's Discussion and Analysis
HDMC operating income rose 18% on higher shipments and lower costs, while HDFS income fell 69% after its 2025 retail loan sale.
⌄
Consolidated fell 32.4% to $76.0M, as a $48.2M drop in HDFS operating income outweighed an $11.0M increase at HDMC.
Consolidated fell 32.4% to $76.0 million, as the $48.2 million decline in HDFS operating income outweighed the $11.0 million increase at HDMC.
The company raised its full-year 2026 HDMC to a range of $10 million to $50 million and now expects of 133,500 to 138,500 units.
The new 'Back to the Bricks' strategic plan targets at least $150 million in cost reductions by 2027 and a mid-single-digit in worldwide retail sales over the medium term.
What changed
The Q1 2026 North American retail sales rebound of 13.9% was flagged as a key watch item; the filing does not provide a Q2 2026 retail sales figure, so the trend remains unconfirmed.
The new CEO's strategic plan, expected in Q2 2026, was announced as 'Back to the Bricks' with specific cost-reduction and retail-sales-growth targets.
The EU's 25% rebalancing tariff suspension, which expired in February 2026, was not resolved; the filing notes $19.8 million in during the quarter, suggesting some duties were refunded or avoided.
HDMC improved to 6.2% from 2.0% in Q1 2026, moving closer to the raised full-year range after Q1 delivered only $18.9 million in .
What to watch
Q3 2026 worldwide retail sales to confirm whether the Q1 North American rebound extended through the riding season and whether the shift toward lower-margin models continues.
Progress on the 'Back to the Bricks' $150 million cost-reduction target and any restructuring charges or manufacturing footprint changes announced.
HDMC trajectory against the 34.2% Q2 level, particularly whether repeat and whether moderate.
HDFS run rate now that the portfolio sale's full effect is visible, and whether the stabilizes near the $21.6 million quarterly level.
HDMC grew 5.8% on a 9.4% increase in motorcycle shipments, but was pressured by a mix shift toward lower-margin Sport and Lightweight models and higher sales incentives.
HDMC cost of goods sold benefited from $30.9M in favorable manufacturing and other costs, including lower logistics expenses and tariff recoveries of $19.8M.
HDFS interest income fell 71.8% due to a significantly smaller retail finance receivable portfolio following the 2025 sale of the majority of those .
The company raised its full-year 2026 HDMC to $10M-$50M and now expects wholesale shipments of 133,500-138,500 units.
The new 'Back to the Bricks' strategic plan targets at least $150M in cost reductions by 2027 and a mid-single-digit in worldwide retail sales over the medium term.
The information required under this Item 1 of Part II is contained in Item 1 of Part I of this Quarterly Report on Form 10-Q in Note 14 of the Notes to Consolidated financial statements, and such information is incorporated herein by reference in this Item 1 of Part II.
⌄
The information required under this Item 1 of Part II is contained in Item 1 of Part I of this Quarterly Report on Form 10-Q in Note 14 of the Notes to Consolidated financial statements, and such information is incorporated herein by reference in this Item 1 of Part II.
Harley-Davidson flags execution risk around its new CEO and 'Back to the Bricks' strategic plan amid tariff and competitive pressures.
⌄
The company updated its risk factors to highlight uncertainty in executing the newly announced 'Back to the Bricks' strategic plan under a recently appointed CEO.
Success hinges on timely, market-accepted product launches across motorcycles, parts, accessories, and apparel that meet sales and financial return targets.
Execution risk extends to global manufacturing, dealer network changes, and the ability to predict and react to shifting market conditions.
Geopolitical conflicts and tensions are explicitly cited as a source of tariff and trade restriction impacts that could harm operations and product demand.