Harley-Davidson Raises Full-Year Outlook as Shipments Recover
The motorcycle maker increased its 2026 operating income guidance for its HDMC segment to a range of $10 million to $50 million.
Harley-Davidson (HOG) raised its full-year 2026 financial and volume targets after global motorcycle shipments returned to growth in the second quarter. The company increased its guidance for HDMC operating income to a range of $10 million to $50 million, up from a previous expectation of a $40 million loss to a $10 million profit.
Global motorcycle shipments for the HDMC segment rose 9% year-over-year to 39,209 units in the second quarter. This result reversed a 3% year-over-year decline reported in the first quarter. North American retail motorcycle sales grew 3% year-over-year to 29,751 units, though this represented a deceleration from the 14% growth seen in the prior quarter.
Profitability metrics showed mixed trajectories. The HDMC Adjusted EBITDA margin expanded to 10.4% in the second quarter, compared with 9.3% in the second quarter of 2025. HDMC gross margin reached 27.5%, a decline of 108 basis points year-over-year, but an improvement over the 25.3% margin reported in the first quarter.
Consolidated operating income margin for the second quarter was 6.2%. While this was down from 8.6% in the second quarter of 2025, it marked an increase from the 2% margin recorded in the first quarter.
Revenue in the HDFS segment fell 55% year-over-year to $117 million. The decline was due to the sale of loan assets in the second half of 2025 as the company transitioned to a capital-light model. HDFS operating income margin compressed to 18.5% in the second quarter, down from 27.1% in the second quarter of 2025 and 19.9% in the first quarter of 2026.
LiveWire revenue increased 52% year-over-year to $9 million, driven by higher sales of electric motorcycles and STACYC electric balance bikes.
Harley-Davidson raised its full-year 2026 guidance for HDFS operating income to a range of $55 million to $65 million, up from $45 million to $60 million. The company also increased its global motorcycle retail sales and wholesale shipments guidance to a range of 133,500 to 138,500 units, up from 130,000 to 135,000 units.
Global dealer inventory of new motorcycles ended the second quarter down 17% compared with the second quarter of 2025. This followed a 22% reduction reported at the end of the first quarter.