Harley-Davidson Reports Significant Decline in Q1 2026 Financial Performance

Harley-Davidson, Inc. reported a significant decline in financial performance for the first quarter of 2026, with net income attributable to the company falling to $24.8 million, or $0.22 per diluted share, compared to $133.1 million, or $1.07 per diluted share, in the same period last year. The company's total revenue decreased to $1.17 billion from $1.33 billion, driven by a decline in both motorcycle and financial services revenue. Motorcycle sales generated $1.06 billion, down from $1.08 billion, while financial services revenue plummeted to $111.9 million from $245 million, reflecting lower interest income and a reduced retail finance receivables portfolio.

The company's operating income also saw a sharp decline, dropping to $23.5 million from $160.5 million year-over-year. The Harley-Davidson Motor Company (HDMC) segment reported an operating income of $18.9 million, down $97.3 million, primarily due to increased operating expenses, a less favorable product mix, and higher manufacturing costs. The LiveWire segment, focused on electric motorcycles, reported an operating loss of $17.7 million, although this was an improvement from the previous year's loss of $19.8 million. The Harley-Davidson Financial Services (HDFS) segment's operating income decreased by $41.8 million to $22.2 million, attributed to lower interest income and a decrease in retail finance receivables.

In terms of operational metrics, worldwide retail sales of new Harley-Davidson motorcycles increased by 8.1% compared to the previous year, with a notable 13.9% rise in North America. However, sales in Europe and Asia-Pacific declined by 2.7% and 9.1%, respectively. The company shipped 37,295 motorcycles globally, a decrease of 3.4% from the prior year, as dealers adjusted inventory levels. The U.S. market share for new motorcycles over 601cc increased to 37.8%, up from 36.2% in the previous year, while European market share rose to 3.5% from 2.5%.

Strategically, Harley-Davidson has initiated a new plan called "Back to the Bricks," aimed at restoring performance and positioning the company for profitable growth. This plan includes a focus on enhancing the dealer network, improving product offerings, and achieving cost reductions of at least $150 million. The company has also set a target for mid-single-digit compound annual growth in worldwide dealer retail sales over the next three to five years. Despite the challenges, Harley-Davidson remains committed to its long-term goals, including a focus on electric vehicles through its LiveWire brand, while navigating the impacts of tariffs and changing market conditions. The company expects to achieve a range of 130,000 to 135,000 motorcycle shipments in 2026, with a cautious outlook on production levels due to the current retail environment.