Harley-Davidson Third-Quarter Profit Falls to $43 Million

The Tip Desk · October 31, 2026 · 4 min read

Third-quarter 2026 HDMC revenue fell 10% to $964 million, North American retail sales rose 9%, and the company revised its full-year HDMC and HDFS operating-income ranges.

Harley-Davidson, Inc. (HOG) reported third-quarter 2026 HDMC revenue of $964 million, down 10% year over year, and net income attributable to HDI of $43 million, down from $377 million a year earlier. The company said North American retail sales of new motorcycles rose 9% in the third quarter of 2026, accelerating from 3% year-over-year growth in the second quarter and marking a fourth consecutive quarter of year-over-year retail growth in the region.

The motorcycle maker revised full-year 2026 guidance for Harley-Davidson Motor Company and Harley-Davidson Financial Services. It now expects HDMC global motorcycle retail sales and wholesale shipments of 135,500 to 139,000 units and HDMC operating income of $25 million to $55 million. HDFS operating income is now guided at $60 million to $70 million. HDI revised capital investment is $140 million to $165 million. LiveWire withdrew its guidance.

Global retail sales of new motorcycles were up 5% versus the year-ago quarter, with North America and Asia-Pacific driving the increase. Asia-Pacific grew 1% overall; Australia and New Zealand grew 15%. Worldwide retail sales totaled 35,833 units, compared with 33,984 a year earlier. United States retail sales were 23,812 units versus 21,779.

Wholesale moved the other way. HDMC global motorcycle shipments were 33,616 units, down 8% versus the prior year, after 39,209 units in the second quarter that were up 9% year over year. The company said the lower shipment pace was intended to drive long-term dealer health and was in alignment with the Back to the Bricks strategy. Global dealer inventory of new motorcycles ended the quarter down 26% versus the year-ago period and down 6% versus the end of the second quarter. In North America, 91% of dealer inventory was current Model Year 2026 motorcycles, up from 86% at the end of the year-ago quarter.

HDMC revenue was $964 million, down 10% versus the year-ago quarter on lower shipment volume, after $1.1 billion in the second quarter that was up 6% year over year. Motorcycle revenue was $733.6 million versus $821.9 million a year earlier. Parts and accessories were $152.9 million. Apparel was $55.2 million. Licensing was $4.6 million. Other revenue was $17.7 million.

Gross margin percentage increased 173 basis points year over year to 28.1%, reversing a 108-basis-point year-over-year decline to 27.5% in the second quarter. Operating expenses were $227 million, 1% lower than a year ago. HDMC operating income was $44 million, down 18% year over year, after $72 million in the second quarter that was up 18% year over year. Operating income margin was 4.6% versus 5.0% a year earlier. Adjusted EBITDA margin improved to 9.7% from 8.7% a year earlier.

Net income attributable to HDI was $43 million, down from $377 million in the year-ago quarter, 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 then. Diluted earnings were $0.40 a share versus $3.10 a year earlier. HDFS operating income margin was 9.7%, down from 168.0% a year earlier. HDFS revenue was $110.8 million versus $261.2 million. The company said the third-quarter annualized managed retail credit loss ratio was below same periods in 2024 and 2025.

LiveWire revenue was $7.9 million versus $5.6 million a year earlier. LiveWire’s operating loss was $17.8 million versus $18.2 million.

The company returned $110 million in total capital to shareholders in the quarter, including $91 million of discretionary share repurchases and $19 million in cash dividends. Cash and cash equivalents were $2.1 billion as of September 30, 2026.

President and CEO Artie Starrs said the company was pleased with continued progress toward aligning wholesale activity with retail demand, achieving a further 26% reduction in dealer inventory while delivering 5% growth in global retail sales. He said North America sales were up for the fourth consecutive quarter and that the company was encouraged by improvement in key growth drivers, including models like the Super Glide and Deadwood, a more profitable dealer network, and Back to the Bricks execution one full quarter into the plan.

The board appointed Anthony D. Fassino and Bryan E. Slone as independent directors, effective October 28, 2026, bringing the total number of directors to ten.