Overview

• US motorcycle maker's Q2 revenue fell 6% yr/yr but beat analyst expectations

• Q2 net income and EPS declined from prior year, driven by lower financial services results

• Company raised full-year guidance for retail sales, shipments, and operating income

Outlook

• Harley-Davidson raises 2026 retail sales outlook to 133,500-138,500 units from 130,000-135,000 units

• Company lifts 2026 wholesale shipments forecast to 133,500-138,500 units from 130,000-135,000 units

• Harley-Davidson now sees 2026 HDMC operating income of $10 mln-$50 mln, up from a loss of $40 mln to $10 mln profit

Result Drivers

• MOTORCYCLE SHIPMENTS - Higher global motorcycle shipments and increased North American retail sales drove HDMC revenue growth

• HDFS REVENUE DROP - HDFS revenue and operating income fell sharply due to lower retail finance receivables after loan asset sales in 2025

• GROSS MARGIN PRESSURE - Gross margin declined due to unfavorable product mix, net pricing, raw materials, and foreign exchange, partly offset by cost improvements and tariff recovery

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$1.23 bln	$1.16 bln (10 Analysts)
Q2 EPS		$0.75
Q2 Net Income		$80 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for Harley-Davidson Inc is $29.00, about 5% above its July 22 closing price of $27.62

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• July 21 - GM beats Q2 revenue, adjusted EPS expectations, raises 2026 outlook

• July 21 - India's Bajaj Auto deepens EV push with motorcycle plans, Chetak expansion

• July 21 - India's TVS Motor quarterly profit jumps 51.4% on strong demand for premium brands

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