Harley-Davidson (HOG) Stock Declines Following Disappointing Q2 Motorcycle Deliveries

Key Highlights

Table of Contents

Second quarter net profit decreased to $80M ($0.75 per share) compared to $108M ($0.88 per share) in the prior year period
Quarterly revenue declined 6% to $1.23B; gross profit margin contracted from 28.6% to 27.5%
The company delivered 39,200 motorcycles, reflecting 9.4% YoY growth but missing analyst projections of 40,810 units
Annual retail sales guidance increased to 133,500–138,500 units from the previous 130,000–135,000 range
HDMC operating profit outlook upgraded to $10M–$50M from the earlier -$40M to $10M projection

Shares of Harley-Davidson (HOG) declined approximately 1% during premarket hours Thursday following the release of softer second-quarter financial results, despite topping certain Wall Street forecasts.

Harley-Davidson, Inc., HOG

The iconic motorcycle manufacturer reported second quarter net profit of $80 million, translating to $0.75 per diluted share, marking a decline from $108 million, or $0.88 per share, recorded during the comparable quarter last year. Total revenue dropped 6% on a year-over-year basis to $1.23 billion.

The per-share earnings figure exceeded analyst consensus by $0.11, providing some relief amid the broader downturn in profitability.

$HOG Q2 2026 earnings: Core Business Ignites, Sparking Guidance Raise

Harley-Davidson delivered a solid Q2 defined by a 6% revenue growth in its core HDMC segment, snapping a streak of top-line declines. The 6% drop in consolidated revenue is a red herring—driven entirely by the… pic.twitter.com/3hY38V5yDy

— Finsee (@Finsee_main) July 23, 2026

Gross profit margin compressed to 27.5% from 28.6% in the year-ago period, impacted by elevated raw material expenses, less favorable product mix dynamics, and adverse currency fluctuations.

Motorcycle shipments totaled 39,200 units for the quarter — representing a 9.4% increase year-over-year, though falling short of the Street’s 40,810-unit forecast.

Global retail sales registered a modest 1% uptick. North American markets posted 3% growth while Latin America contributed 4% gains, offset by a 9% decline in the EMEA region and flat performance across Asia Pacific.

Operating profit tumbled 32%, predominantly attributed to softness at HDFS, the company’s financial services arm, which continues transitioning toward a more capital-efficient operating structure.

Strategic Shift Under “Back to the Bricks”

Under the leadership of CEO Artie Starrs, the motorcycle manufacturer has been repositioning away from premium touring motorcycles toward lighter-weight, more accessible models. Entry-level pricing now begins near the $10,000 threshold.

The “Back to the Bricks” strategic initiative focuses on reviving classic Harley motorcycle designs while appealing to younger demographics through smaller-displacement engine offerings — representing a significant departure from the brand’s historically core customer segment.

Electric Unit LiveWire Shows Modest Progress

LiveWire, the company’s electric motorcycle division, reduced its operating loss to $18 million from $19 million in the corresponding quarter of the previous year — demonstrating incremental progress.

For the full year, LiveWire expectations include an operating loss between $70M–$80M, accompanied by capital expenditures of $175M–$200M.

Notwithstanding the quarterly shortfall, Harley-Davidson elevated its full-year retail sales projection to a range of 133,500–138,500 units, revised upward from the previous 130,000–135,000 unit forecast.

The HDMC segment’s operating income guidance was substantially improved to $10M–$50M, representing a significant upgrade from the earlier outlook of -$40M to $10M.

Additionally, HDFS operating income expectations were increased to $55M–$65M compared with the prior $45M–$60M range.

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