HARLEY-DAVIDSON, INC.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
HOG$32.66+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000793952-26-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0000793952-26-000070
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 196 previous paragraphs and 203 current paragraphs.
107 unchanged; 79 reworded; 13 added; 8 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
The Company shipped 33,616 motorcycles worldwide during the third quarter of 2026, which was 8.0% lower than the third quarter of 2025. The decrease was primarily driven by motorcycle shipments in the U.S. As dealers continued to adjust retail inventory levels, motorcycle retail sales outpaced motorcycle unit shipments resulting in lower retail inventory levels.
Current report
Factors affecting the comparability of net revenue, cost of goods sold and gross profit from the third quarter of 2025 to the third quarter of 2026 were as follows:
Current report
•Manufacturing and other costs were positively impacted by supplier and tariff recoveries as well as improved manufacturing efficiency, partially offset by higher supply-chain costs.
Current report
Other income decreased $18.8 million primarily due to a gain on the sale of securitization beneficial interests in the third quarter of 2025 that did not recur. This unfavorable change was partially offset by servicing fees earned on finance receivables sold to the two counterparties and higher net premiums earned by Eaglemark Insurance Company Ltd. (EICL), the Company's insurance captive.
Current report
The provision for credit losses increased $321.8 million compared to the third quarter of 2025, primarily because the prior-year quarter included a release of the allowance for credit losses related to retail finance receivables reclassified as held for sale in advance of their sale in the fourth quarter of 2025. The increase also reflected higher reserves driven primarily by growth in the retail finance portfolio since the initial sale of retail finance receivables to the two counterparties in the second half of 2025.
Current report
Results of Operations for the Nine Months Ended September 30, 2026
Current report
Compared to the Nine Months Ended September 30, 2025
Current report
The Company shipped 110,120 motorcycles worldwide during the first nine months of 2026, which was 0.8% lower than the same period in 2025. The decrease was primarily driven by international motorcycle shipments, particularly EMEA reflecting a subdued economic environment in Europe. Motorcycle shipments in the U.S. during the first nine months of 2026 were relatively flat when compared with the first nine months of 2025. As dealers continued to adjust retail inventory levels, motorcycle retail sales outpaced motorcycle unit shipments resulting in lower retail inventory levels.
Current report
Factors affecting the comparability of net revenue, cost of goods sold and gross profit from the first nine months of 2025 to the first nine months of 2026 were as follows:
Current report
Other income increased $21.7 million primarily due to servicing fees on finance receivables sold to the two counterparties and higher net premiums earned by EICL. These favorable impacts were partially offset by an unfavorable impact resulting from the gain on the sale of securitization beneficial interests in the third quarter of 2025 that did not recur in 2026.
Current report
The provision for credit losses was $249.5 million higher in the first nine months of 2026 as compared to the prior year primarily because the prior year period included a release of the allowance for credit losses on retail finance receivables reclassified as held for sale in advance of their sale in the fourth quarter of 2025. The increase also reflected higher reserves driven primarily by growth in the retail finance portfolio since the initial sale of retail finance receivables to the two counterparties in the second half of 2025.
Current report
(b)Subsequent to September 30, 2026, the Company renewed and amended the facility prior to its expiration. Refer to Note 18 of the Notes to Consolidated financial statements for further information about the renewal.
Current report
On July 1, 2025, the Company entered into a term loan facility that permitted the Company to draw up to $450.0 million on or prior to July 31, 2025. On July 24, 2025, the Company drew $450.0 million under the facility which carried an interest rate of term Secured Overnight Financing Rate (SOFR) plus a margin based on the Company's credit rating. The Company used the proceeds to pay down the principal and interest of the $450.0 million 3.50% senior notes that matured in July 2025. In November 2025, the Company used proceeds from the sale of a significant portion of its retail finance receivables in the second half of 2025 to pay down the principal and interest of the term loan facility in full.
Removed paragraphs (8)
Previous report
As a result of recent court actions, U.S. Customs and Border Protection launched a process for refunding tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Company submitted IEEPA refund claims during the second quarter of 2026 and recognized a $19.8 million tariff recovery benefit in Motorcycle and related products cost of goods sold related to previously paid tariffs.
Previous report
The Company reaffirmed its expectation of a LiveWire operating loss of $70 million to $80 million in 2026.
Previous report
The Company shipped 39,209 motorcycles worldwide during the second quarter of 2026, which was 9.4% higher than the second quarter of 2025. The increase is primarily driven by motorcycle shipments in the U.S. as motorcycle retail sales in the U.S. continued to demonstrate year-over-year growth. The difference in the growth in U.S. motorcycle retail sales compared to the growth in U.S. motorcycle shipments was primarily due to the timing of shipments relative to the riding season and related demand from dealers based on retail inventory of new motorcycles.
Previous report
Factors affecting the comparability of net revenue, cost of goods sold and gross profit from the second quarter of 2025 to the second quarter of 2026 were as follows:
Previous report
Results of Operations for the Six Months Ended June 30, 2026
Previous report
Compared to the Six Months Ended June 30, 2025
Previous report
The Company shipped 76,504 motorcycles worldwide during the first six months of 2026, which was 2.8% higher than the same period in 2025. The increase was primarily driven by motorcycle shipments in the U.S. as motorcycle retail sales in the U.S. continued to demonstrate year-over-year growth, resulting in an 8.5% increase in U.S. motorcycle retail sales in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The difference in the growth in U.S. motorcycle retail sales and U.S. motorcycle shipments was primarily due to the timing of shipments relative to the riding season and related demand from dealers based on retail inventory of new motorcycles.
Previous report
•Manufacturing and other costs were positively impacted by improved leverage, lower logistics costs and lower tariff costs driven by tariff recoveries as discussed in Key Factors.
Reworded paragraphs (79)
Previous wording
Net income attributable to Harley-Davidson, Inc. was $79.8 million, or $0.75 per diluted share, in the second quarter of 2026 compared to $107.6 million, or $0.88 per diluted share, in the second quarter of 2025.
Current wording
Net income attributable to Harley-Davidson, Inc. was $42.8 million, or $0.40 per diluted share, in the third quarter of 2026 compared to $377.4 million, or $3.10 per diluted share, in the third quarter of 2025.
Previous wording
In the second quarter of 2026, HDMC segment operating income was $72.3 million, an increase of $11.0 million from the second quarter of 2025. The increase in operating income from the HDMC segment for the second quarter of 2026 was driven primarily by higher motorcycle shipments, lower manufacturing and tariff costs, and lower operating expenses partially offset by less beneficial product mix and pricing, higher raw material pricing and unfavorable currency impacts. Operating loss from the LiveWire segment in the second quarter of 2026 was $17.9 million compared to an operating loss of $18.7 million in the prior year quarter due primarily to lower operating expenses. Operating income from the HDFS segment in the second quarter of 2026 was $21.6 million, down $48.2 million compared to the prior year quarter due primarily to lower interest income on lower retail finance receivables, partially offset by lower interest expense, a lower provision for credit losses, and favorable other income from servicing fees. The HDFS impacts are primarily related to the sale of the majority of HDFS's retail finance receivables in the second half of 2025, which reduced interest income and the provision for credit losses in 2026, as well as the related settlement of debt used to fund those retail finance receivables, which reduced interest expense in 2026. As a result of the sale of HDFS's retail finance receivables in 2025 and ongoing sales of HDFS's retail finance receivables, HDFS earned fees for servicing the retail finance receivables it sold to two counterparties, which resulted in favorable other income in 2026.
Current wording
In the third quarter of 2026, HDMC segment operating income was $44.3 million, a decrease of $9.8 million from the third quarter of 2025. The decrease in operating income from the HDMC segment for the third quarter of 2026 was driven primarily by lower motorcycle shipments, less beneficial product mix and pricing, and restructuring charges, partially offset by lower manufacturing costs, lower operating expenses and favorable currency impacts. Operating loss from the LiveWire segment in the third quarter of 2026 was $17.8 million compared to an operating loss of $18.2 million in the prior year quarter due primarily to higher electric motorcycle and balance bike shipments, partially offset by higher operating expenses. Operating income from the HDFS segment in the third quarter of 2026 was $10.8 million, down $428.1 million compared to the prior year quarter. The decline was primarily due to the impacts of the sale of the majority of HDFS's retail finance receivables in the prior year quarter to two counterparties, which resulted in a benefit realized in the provision for credit losses and a gain on the sale of securitization beneficial interests. The benefit realized in the provision for credit losses was driven by the release of the allowance for credit losses for retail finance receivables that were previously being held for investment and were reclassified as held for sale in advance of their sale in the fourth quarter of 2025. The decrease was also driven by lower interest income resulting from a smaller finance receivables portfolio, partially offset by lower interest expense and increased income from servicing fees. The settlement of debt previously used to fund the retail finance receivables that HDFS sold using proceeds from the sales of the debt reduced interest expense in 2026. Additionally, as a result of the sale of HDFS's retail finance receivables in the prior year quarter and ongoing sales of HDFS' retail finance receivables to the same two counterparties, HDFS earned fees for servicing the retail finance receivables it sold providing a benefit to other income in 2026.
Previous wording
Worldwide retail sales of new Harley-Davidson motorcycles in the second quarter of 2026 increased 0.5% compared to the second quarter of 2025. Retail sales were up 2.8% in North America and 0.5% in Asia Pacific, partially offset by an 8.7% decline in Europe. Refer to the Harley-Davidson Motorcycles Retail Sales and Registration Data section for further discussion of retail sales results.
Current wording
Worldwide retail sales of new Harley-Davidson motorcycles in the third quarter of 2026 increased 5.4% compared to the third quarter of 2025. Retail sales were up 9.1% in North America and 0.7% in Asia Pacific, partially offset by a 5.3% decline in Europe. Refer to the Harley-Davidson Motorcycles Retail Sales and Registration Data section for further discussion of retail sales results.
Previous wording
U.S. and Foreign Tariffs – During 2025 and continuing into 2026, the U.S. implemented new or increased tariffs on goods from various foreign countries, either generally or with respect to certain products or markets. In certain circumstances, the U.S. and certain foreign countries continued to discuss trade policy which could impact the ongoing cost of tariffs for the Company. During the three and six months ended June 30, 2026, the total cost of new or increased tariffs implemented in 2025 and 2026 that the Company incurred was approximately $22 million and $67 million, respectively. The total cost of new or increased tariffs includes import and export tariffs implemented in 2025 and 2026 paid directly by the Company and indirect costs paid to suppliers for tariff-related price increases and excludes tariff recoveries, the benefit of any mitigation actions, changes in demand and operational costs primarily to accelerate shipments ahead of actual or expected new or increased tariffs.
Current wording
U.S. and Foreign Tariffs – During 2025 and continuing into 2026, the U.S. implemented new or increased tariffs on goods from various foreign countries, either generally or with respect to certain products or markets. In certain circumstances, the U.S. and certain foreign countries continued to discuss trade policy which could impact the ongoing cost of tariffs for the Company. During the nine months ended September 30, 2026, the total gross cost of new or increased tariffs implemented in 2025 and 2026 that the Company incurred was approximately $94 million, an increase from $45 million in the nine months ended September 30, 2025. The total gross cost of new or increased tariffs includes import and export tariffs implemented in 2025 and 2026 paid directly by the Company and indirect costs paid to suppliers for tariff-related price increases and excludes tariff recoveries, the benefit of any mitigation actions, changes in demand and operational costs primarily to accelerate shipments ahead of actual or expected new or increased tariffs. Excluding the impact of the €35 million refund discussed below which related to tariffs incurred prior to 2022, the Company recognized $34 million of tariff recoveries during the nine months ended September 30, 2026, resulting in a total net cost of new or increased tariffs implemented in 2025 and 2026 of $60 million. There were no tariff recoveries during the nine months ended September 30, 2025.
Previous wording
Certain tariffs have been challenged in U.S. courts, which could impact the continued application of the new or increased tariffs. Depending on the outcome of court challenges and any related actions by the administration or Congress, trade negotiations and other factors, the U.S. and foreign countries may sustain, amend, suspend or withdraw existing tariffs or implement new tariffs. If existing tariffs are sustained or new tariffs are implemented, it will likely increase the Company’s cost of raw materials, components, finished motorcycles, parts and accessories and apparel and affect its ability to sell products domestically and internationally at or near current prices. The Company's U.S.-centric manufacturing footprint and sourcing limit its exposure to tariffs; however, based on the portions of the Company's business that are exposed directly or indirectly to tariffs and the magnitude of potential incremental tariffs, the impact to the Company could be material. The Company estimated the cost of new or increased import and export tariffs implemented in 2025 and 2026 paid directly by the Company and indirect costs paid to suppliers for tariff-related price increases, which excludes tariff recoveries, the benefit of any mitigation actions, changes in demand and operational costs primarily to accelerate shipments ahead of actual or expected new or increased tariffs. The Company's estimate of the cost of these tariffs for the full year 2026(1) as of July 17, 2026 ranges from $75 million to $90 million, which is consistent with the Company's previous estimated range.
Current wording
Certain tariffs have been challenged in U.S. courts, which could impact the continued application of the new or increased tariffs. Depending on the outcome of court challenges and any related actions by the administration or Congress, trade negotiations and other factors, the U.S. and foreign countries may sustain, amend, suspend or withdraw existing tariffs or implement new tariffs. If existing tariffs are sustained or new tariffs are implemented, it will likely increase the Company’s cost of raw materials, components, finished motorcycles, parts and accessories and apparel and affect its ability to sell products domestically and internationally at or near current prices. The Company's U.S.-centric manufacturing footprint and sourcing limit its exposure to tariffs; however, based on the portions of the Company's business that are exposed directly or indirectly to tariffs and the magnitude of potential incremental tariffs, the impact to the Company could be material. The Company estimated the gross cost of new or increased import and export tariffs implemented in 2025 and 2026 paid directly by the Company and indirect costs paid to suppliers for tariff-related price increases, which excludes tariff recoveries, the benefit of any mitigation actions, changes in demand and operational costs primarily to accelerate shipments ahead of actual or expected new or increased tariffs. The Company's estimate of the gross cost of these tariffs for the full year 2026(1) as of October 23, 2026 ranged from $105 million to $120 million, which increased from the Company's previously estimated range of $75 million to $90 million. The Company's estimate of the total net cost of these tariffs, after reducing for tariff recoveries, for the full year 2026(1) as of October 23, 2026 ranged from $65 million to $80 million. Based on the existing tariff environment, the Company does not expect gross tariff costs to increase in 2027 from 2026 nor does the Company expect any tariff recoveries in 2027(1).
Previous wording
Thailand manufacturing facility at tariff rates of 6%. As a result of the revocation, all non-electric motorcycles that Harley-Davidson imported into the EU, regardless of origin, were subject to a total tariff rate of 31% from April 19, 2021 through the end of 2021. On October 30, 2021, the U.S. and EU announced an agreement related to the Section 232 tariffs on steel and aluminum that were implemented in 2018 by the U.S. and the subsequent rebalancing tariff measures taken by the EU. This agreement suspended the additional tariffs initially imposed by the EU on the Company's motorcycles, reducing the total EU tariff rate on the Company’s motorcycles from 31% to 6%, effective January 1, 2022. The lower 6% tariff rate applied to all motorcycles imported by the Company into the EU, regardless of origin.
Current wording
The Company has been successful in its appeal of certain tariffs. In April 2021, the Company received notification from the Economic Ministry of Belgium that, following a request from the EU, the Company would be subject to revocation of the Binding Origin Information (BOI) decisions that allowed it to supply its EU markets with certain motorcycles produced at its Thailand manufacturing facility at tariff rates of 6%. As a result of the revocation, all non-electric motorcycles that Harley-Davidson imported into the EU, regardless of origin, were subject to a total tariff rate of 31% from April 19, 2021 through the end of 2021. On October 30, 2021, the U.S. and EU announced an agreement related to the Section 232 tariffs on steel and aluminum that were implemented in 2018 by the U.S. and the subsequent rebalancing tariff measures taken by the EU. This agreement suspended the additional tariffs initially imposed by the EU on the Company's motorcycles, reducing the total EU tariff rate on the Company’s motorcycles from 31% to 6%, effective January 1, 2022. The lower 6% tariff rate applied to all motorcycles imported by the Company into the EU, regardless of origin.
Previous wording
On July 23, 2026, the Company revised its 2026 expectations for HDMC and HDFS and reaffirmed its guidance for LiveWire, its tariff expectations (described above) and the Company's planned capital investments. The Back to the Bricks strategic plan, which included financial targets for 2027 through 2029, is described above.
Current wording
On October 29, 2026, the Company revised its 2026 expectations for HDMC and HDFS, its tariff expectations (described above), and the Company's planned capital investments. As LiveWire Group Inc. withdrew its guidance for 2026, the Company in turn withdrew the guidance it had provided regarding LiveWire. The Back to the Bricks strategic plan, which included financial targets for 2027 through 2029, is described above.
Previous wording
Based on the results of the first half of 2026, the Company now expects both 2026 wholesale shipments and worldwide dealer retail sales of Harley-Davidson motorcycles of 133,500 to 138,500, which is an increase from the Company's previous expectation of 130,000 to 135,000 units. The Company continues to believe global dealer retail inventory levels support the alignment of expected wholesale shipments with expected worldwide dealer retail sales of Harley-Davidson motorcycles. The Company expects shipments to be flat in the third quarter of 2026 as compared to the same quarter in 2025 and shipments to be higher in the fourth quarter of 2026 as compared to the same quarter in 2025.
Current wording
Based on the results of the first nine months of 2026, the Company now expects both 2026 wholesale shipments and worldwide dealer retail sales of Harley-Davidson motorcycles of 135,500 to 139,000, which is an increase from the Company's most recent expectation of 133,500 to 138,500 units. The Company continues to believe global dealer retail inventory levels support the alignment of expected wholesale shipments with expected worldwide dealer retail sales of Harley-Davidson motorcycles. The Company expects shipments to be higher in the fourth quarter of 2026 as compared to the same quarter in 2025. The Company expects wholesale shipments in the fourth quarter will slightly exceed fourth quarter retail sales of Harley-Davidson motorcycles, resulting in worldwide retail inventory of new motorcycles at December 31, 2026 to be largely flat to slightly up compared to December 31, 2025.
Previous wording
The Company now expects 2026 HDMC operating income to be $10 million to $50 million on higher wholesale shipments. The Company previously expected HDMC results of $40 million operating loss to $10 million operating income. The Company continues to expect a reduced level of production in 2026 to negatively impact HDMC's full year operating margins due to unfavorable manufacturing leverage as fixed costs are allocated over fewer units produced resulting in a higher unit cost.
Current wording
The Company now expects 2026 HDMC operating income to be $25 million to $55 million on higher wholesale shipments. The Company most recently expected HDMC operating income to be $10 million to $50 million.
Previous wording
The Company's updated expectation for HDFS 2026 operating income is $55 million to $70 million, an increase from the Company's previous expectation of $45 million to $60 million. HDFS's 2026 operating income expectation of $55 million to $70 million compares to $490.4 million and $248.4 million in 2025 and 2024, respectively. The expected reduction in 2026 is related to HDFS's sale of the majority of its existing retail finance receivables in 2025, which benefited 2025 HDFS operating income and reduced HDFS's retail finance receivables balance and, as a result, is expected to reduce interest income on a lower retail finance receivables balance. The Company expects HDFS to continue to increase its retail finance receivable base over the coming years as it continues to originate retail finance receivables that it plans to hold for investment. The Company expects the anticipated increase in the retail finance receivable base will contribute to higher levels of HDFS operating income. As a result, the Company is targeting HDFS operating income of $125 million to $150 million in 2029.
Current wording
The Company's updated expectation for HDFS 2026 operating income is $60 million to $70 million, an increase from the Company's previous expectation of $55 million to $70 million. HDFS's 2026 operating income expectation of $60 million to $70 million compares to $490.4 million and $248.4 million in 2025 and 2024, respectively. The expected reduction in 2026 is related to HDFS's sale of the majority of its existing retail finance receivables to the two counterparties in 2025, which benefited 2025 HDFS operating income and reduced HDFS's retail finance receivables balance and, as a result, is expected to reduce interest income on a lower retail finance receivables balance. The Company expects HDFS to continue to increase its retail finance receivable base over the coming years as it continues to originate retail finance receivables that it plans to hold for investment. The Company expects the anticipated increase in the retail finance receivable base will contribute to higher levels of HDFS operating income. As a result, the Company is targeting HDFS operating income of $125 million to $150 million in 2029.
Previous wording
The Company reaffirmed its expectation for capital investments in 2026 of between $175 and $200 million.
Current wording
The Company updated its expectation for capital investments in 2026 to be between $140 and $165 million. The Company previously expected capital investments in 2026 of between $175 and $200 million.
Previous wording
The Company reported operating income of $76.0 million in the second quarter of 2026 compared to $112.4 million in the same period last year. The HDMC segment reported operating income of $72.3 million in the second quarter of 2026, an increase of $11.0 million compared to the second quarter of 2025. Operating loss from the LiveWire segment decreased $0.7 million compared to the second quarter of 2025. Operating income from the HDFS segment decreased $48.2 million compared to the second quarter of 2025. Refer to the HDMC Segment, LiveWire Segment and HDFS Segment sections for a more detailed discussion of the factors affecting operating results.
Current wording
The Company reported operating income of $37.3 million in the third quarter of 2026 compared to $474.8 million in the same period last year. The HDMC segment reported operating income of $44.3 million in the third quarter of 2026, a decrease of $9.8 million compared to the third quarter of 2025. Operating loss from the LiveWire segment decreased $0.4 million compared to the third quarter of 2025. Operating income from the HDFS segment decreased $428.1 million compared to the third quarter of 2025. Refer to the HDMC Segment, LiveWire Segment and HDFS Segment sections for a more detailed discussion of the factors affecting operating results.
Previous wording
Other income, net in the second quarter of 2026 was lower than in the second quarter of 2025 due to lower non-operating income related to the Company's defined benefit plans.
Current wording
Other income, net in the third quarter of 2026 was lower than in the third quarter of 2025 due to lower non-operating income related to the Company's defined benefit plans.
Previous wording
Interest expense in the second quarter of 2026 was lower than in the second quarter of 2025 as the Company paid the outstanding principal and interest related to its $450.0 million 3.50% senior notes in July 2025.
Current wording
Interest expense in the third quarter of 2026 was lower than in the third quarter of 2025 as the Company paid the outstanding principal and interest related to its $450.0 million of debt in the second half of 2025.
Previous wording
The Company's effective income tax rate for the second quarter of 2026 was 17.1% compared to 18.8% for the second quarter of 2025. The decrease in the effective income tax rate was attributable to a similar magnitude of tax credits on lower income before income taxes as well as changes in the mix of earnings between the domestic and foreign jurisdictions that are taxed at rates that differ from the U.S. statutory rate.
Current wording
The Company's effective income tax rate for the third quarter of 2026 was 29.3% compared to 23.7% for the third quarter of 2025. The increase in the effective income tax rate was attributable to discrete items recorded in the third quarter of 2026 as well as changes in the mix of earnings between the domestic and foreign jurisdictions that are taxed at rates that differ from the U.S. statutory rate.
Previous wording
Diluted earnings per share was $0.75 in the second quarter of 2026, down 14.8% from the same period last year. Diluted weighted average shares outstanding decreased from 122.2 million in the second quarter of 2025 to 108.6 million in the second quarter of 2026, driven by the Company's discretionary repurchases of common stock. Refer to Liquidity and Capital Resources for additional information concerning the Company's share repurchase activity.
Current wording
Diluted earnings per share was $0.40 in the third quarter of 2026, down 87.1% from the same period last year. Diluted weighted average shares outstanding decreased from 121.7 million in the third quarter of 2025 to 106.6 million in the third quarter of 2026, driven by the Company's discretionary repurchases of common stock. Refer to Liquidity and Capital Resources for additional information concerning the Company's share repurchase activity.
Previous wording
During the second quarter of 2026, retail sales in North America were up 2.8% driven by a 3.3% increase in the United States, partially offset by a 2.2% decrease in Canada. Outside of North America, retail sales were down during the second quarter of 2026, driven by an 8.7% decrease in Europe, partially offset by 0.5% and 4.4% increases in Asia Pacific and Latin America, respectively.
Current wording
During the third quarter of 2026, retail sales in North America were up 9.1% driven by a 9.3% increase in the United States and a 6.4% increase in Canada. Outside of North America, retail sales were down during the third quarter of 2026, driven by a 5.3% decrease in Europe and a 7.1% decrease in Latin America, partially offset by a 0.7% increase in Asia Pacific.
Previous wording
U.S. retail sales growth was primarily driven by higher retail sales of the Company's Grand American Touring motorcycles, primarily driven by the Company's refreshed Trike motorcycles, as well as the Company's Sport motorcycles. The decline in international markets was primarily driven by lower retail sales in EMEA reflecting a subdued economic environment in Europe.
Current wording
U.S. retail sales growth was primarily driven by higher retail sales of the Company's Cruiser models as the Company recently introduced its new Super Glide® and Deadwood™ motorcycles. U.S retail sales growth also continued to benefit from the Company's Sport motorcycles and the Company's refreshed Trike motorcycle, partially offset by lower retail sales of the Company's other Grand American Touring motorcycles. The decline in international markets was primarily driven by lower retail sales in EMEA primarily driven by lower retail sales of the Company's Cruiser models, which were refreshed in 2025, as well as a subdued economic environment in Europe, particularly in Germany and France.
Previous wording
Worldwide retail inventory of new motorcycles was approximately 41,000 units at the end of the second quarter of 2026, which was down approximately 17% from the end of the second quarter of 2025 as increased retail sales contributed to reduced dealer inventory levels.
Current wording
Worldwide retail inventory of new motorcycles was approximately 38,000 units at the end of the third quarter of 2026, which was down approximately 26% from the end of the third quarter of 2025 as increased retail sales contributed to reduced dealer inventory levels.
Previous wording
In the second quarter of 2026, the Company shipped a greater proportion of Sport and Lightweight motorcycles and a lower proportion of Grand American Touring, Cruiser, and Adventure Touring motorcycles as compared to the second quarter of 2025 based on dealer demand and motorcycle availability.
Current wording
In the third quarter of 2026, the Company shipped a greater proportion of Cruiser and Sport and Lightweight motorcycles and a lower proportion of Grand American Touring and Adventure Touring motorcycles as compared to the third quarter of 2025 based on dealer demand and motorcycle availability.
Previous wording
The estimated impacts of significant factors affecting the comparability of net revenue, cost of goods sold and gross profit from the second quarter of 2025 to the second quarter of 2026 were as follows (in millions):
Current wording
The estimated impacts of significant factors affecting the comparability of net revenue, cost of goods sold and gross profit from the third quarter of 2025 to the third quarter of 2026 were as follows (in millions):
Previous wording
•The increase in volume was primarily due to higher motorcycle shipments.
Current wording
•The decrease in volume was primarily due to lower motorcycle shipments.
Previous wording
•Revenue was negatively impacted by increased motorcycle incentives that were selectively introduced in the second quarter of 2026 for the Company's Grand American Touring and Sport and Lightweight motorcycle models.
Current wording
•Revenue was negatively impacted by increased motorcycle incentives and parts and accessories incentives that were selectively introduced in the third quarter of 2026.
Previous wording
•Changes in the shipment mix had an unfavorable impact on revenue and gross profit. The unfavorable impact on revenue and gross profit was primarily driven by higher shipments of Sport and Lightweight models, which are lower priced and lower margin motorcycle models.
Current wording
•Changes in the shipment mix had an unfavorable impact on revenue and gross profit, primarily driven by higher shipments of Cruiser and Sport and Lightweight models, which are priced lower than Grand American Touring motorcycles, as well as a less beneficial mix within model families to lower margin motorcycle models.
Previous wording
•Revenue was favorably impacted by stronger average foreign currency exchange rates relative to the U.S. dollar compared to the same quarter last year. Cost of sales was unfavorably impacted by foreign currency hedging activities and balance sheet remeasurements.
Current wording
•Gross profit was favorably impacted by foreign currency hedging activities and balance sheet remeasurements.
Previous wording
Operating expenses were lower in the second quarter of 2026 compared to the same period last year primarily related to costs incurred in the prior year related to the Company's proxy contest that did not recur.
Current wording
Operating expenses were lower in the third quarter of 2026 compared to the same period last year primarily related to costs incurred in the prior year related to marketing efforts that did not recur and lower recall and warranty expense, partially offset by restructuring charges.
Previous wording
During the second quarter of 2026, revenue increased by $3.1 million, or 51.6%, compared to the second quarter of 2025. The increase was primarily due to higher electric motorcycle and electric balance bike unit volumes sold during the quarter as compared to the same period last year. Cost of sales increased by $3.3 million, or 56.6%, during the second quarter of 2026 compared to the second quarter of 2025 due to higher electric motorcycle and electric balance bike unit volumes.
Current wording
During the third quarter of 2026, revenue increased by $2.3 million, or 41.4%, compared to the third quarter of 2025. The increase was primarily due to higher electric motorcycle and electric balance bike unit volumes sold during the quarter as compared to the same period last year. Cost of sales increased by $0.4 million, or 5.2%, during the third quarter of 2026 compared to the third quarter of 2025 due to higher electric motorcycle and electric balance bike unit volumes, partially offset by product mix.
Previous wording
During the second quarter of 2026, selling, administrative and engineering expense decreased $0.9 million, or 5.0%, compared to the second quarter of 2025 as the Company continued to focus on cost containment.
Current wording
During the third quarter of 2026, selling, administrative and engineering expense increased $1.5 million, or 9.2%, compared to the third quarter of 2025 primarily due to increased product development spend partially offset by cost containment initiatives.
Previous wording
Interest income was lower for the second quarter of 2026 compared to the same period last year, primarily due to lower average retail finance receivables at a higher average yield. The decrease in average retail receivables was due to the sale of a significant portion of the retail finance receivables in the second half of 2025. Other income increased $14.1 million primarily due to favorable servicing fees and higher net premiums earned by Eaglemark Insurance Company Ltd. (EICL), the Company's insurance captive, partially offset by lower investment income. Interest expense decreased $63.0 million due to lower average borrowings at a lower average interest rate. Average borrowings decreased due to the paydown of debt in the second half of 2025 and first quarter of 2026, primarily using proceeds from the sale of retail finance receivables in the second half of 2025.
Current wording
Interest income was lower for the third quarter of 2026 compared to the same period last year, primarily due to lower average retail finance receivables at a lower average yield. The decrease in average retail receivables was due to the sale of a significant portion of the retail finance receivables in the second half of 2025.
Previous wording
Interest income was lower for the first six months of 2026, primarily due to lower average outstanding retail finance receivables at a lower average yield. The decrease in average retail receivables was due to the sale of a significant portion of the retail finance receivables in 2025. Other income increased $40.5 million primarily due to favorable servicing fees and higher net premiums earned by EICL. Interest expense decreased due to lower average borrowings at a lower average interest rate. Average borrowings decreased due to the paydown of debt in the second half of 2025 and first quarter of 2026, primarily using proceeds from the sale of retail finance receivables in the second half of 2025.
Current wording
Interest expense decreased $43.6 million due to lower average borrowings at a lower average interest rate. Average borrowings decreased due to the paydown of debt previously used to fund the retail finance receivables that HDFS sold in the second half of 2025 and first quarter of 2026, primarily using proceeds from the sale of retail finance receivables in the second half of 2025.
Previous wording
The provision for credit losses decreased $32.1 million compared to the second quarter of 2025, primarily driven by favorable actual credit losses due to the smaller retail finance receivable portfolio, partially offset by an unfavorable increase in the allowance for credit losses. The unfavorable increase in the allowance for credit losses was driven by higher growth in the retail finance receivable portfolio compared to the second quarter of 2025 as HDFS rebuilds its retail finance receivable portfolio. The allowance for credit losses considers current economic conditions and the Company's outlook on future conditions. At the end of the second quarter of 2026, the Company's outlook on economic conditions and its probability weighting of its economic forecast scenarios was weighted toward more pessimistic scenarios given continued challenging macro-economic conditions, including a persistently high interest rate environment, ongoing elevated inflation levels, and muted consumer confidence. The Company's expectations surrounding its economic forecasts may change in future periods as additional information becomes available. Refer to the Results of Operations for the Six Months Ended June 30, 2026 Compared to the Six Months ended June 30, 2025 for a discussion of 2026 annualized credit losses.
Current wording
The allowance for credit losses considers current economic conditions and the Company's outlook on future conditions. At the end of the third quarter of 2026, the Company's outlook on economic conditions and its probability weighting of its economic forecast scenarios was weighted toward more pessimistic scenarios given continued challenging macro-economic conditions, including a persistently high interest rate environment, ongoing elevated inflation levels, and muted consumer confidence. The Company's expectations surrounding its economic forecasts may change in future periods as additional information becomes available. Refer to the Results of Operations for the Nine Months Ended September 30, 2026 Compared to the Nine Months ended September 30, 2025 for a discussion of 2026 annualized credit losses.
Previous wording
Operating expenses increased $2.9 million compared to the second quarter of 2025 due in part to higher insurance claim costs incurred by EICL and higher employee costs, partially offset by lower depreciation and amortization expenses.
Current wording
Operating expenses decreased $0.6 million compared to the third quarter of 2025 due in part to lower depreciation and amortization expenses, dealer incentives, and repossession costs, partially offset by higher insurance claim costs incurred by EICL and higher donation expense.
Previous wording
The Company reported operating income of $99.5 million in the first six months of 2026 compared to $272.9 million in the same period last year. HDMC segment operating income was $91.3 million in the first six months of 2026, down $86.3 million compared to the same period last year. Operating loss from the LiveWire segment decreased $2.9 million compared to the first six months of 2025. Operating income from the HDFS segment decreased $90.0 million compared to the first six months of 2025. Refer to the HDMC Segment, LiveWire Segment and HDFS Segment discussions for a more detailed analysis of the factors affecting operating income.
Current wording
The Company reported operating income of $136.8 million in the first nine months of 2026 compared to $747.7 million in the same period last year. HDMC segment operating income was $135.6 million in the first nine months of 2026, down $96.1 million compared to the same period last year. Operating loss from the LiveWire segment decreased $3.3 million compared to the first nine months of 2025. Operating income from the HDFS segment decreased $518.0 million compared to the first nine months of 2025. Refer to the HDMC Segment, LiveWire Segment and HDFS Segment discussions for a more detailed analysis of the factors affecting operating income.
Previous wording
Other income, net in the first six months of 2026 was lower than the same period last year due to lower non-operating income related to the Company's defined benefit plans.
Current wording
Other income, net in the first nine months of 2026 was lower than the same period last year due to lower non-operating income related to the Company's defined benefit plans.
Previous wording
The Company's effective income tax rate for the first six months of 2026 was 24.9% compared to 23.2% for the same period in 2025. The increase in the effective income tax rate was attributable to changes in the mix of earnings between the domestic and foreign jurisdictions that are taxed at rates that differ from the U.S. statutory rate.
Current wording
The Company's effective income tax rate for the first nine months of 2026 was 26.2% compared to 23.5% for the same period in 2025. The increase in the effective income tax rate was attributable to discrete items recorded in the first nine months of 2026 and changes in the mix of earnings between the domestic and foreign jurisdictions that are taxed at rates that differ from the U.S. statutory rate.
Previous wording
Diluted earnings per share was $0.97 in the first six months of 2026, down from diluted earnings per share of $1.95 for the same period last year. Diluted weighted average shares outstanding decreased from 123.5 million in the first six months of 2025 to 108.3 million in the first six months of 2026, driven by the Company's discretionary repurchases of common stock. Please refer to Liquidity and Capital Resources for additional information concerning the Company's share repurchase activity.
Current wording
Diluted earnings per share was $1.38 in the first nine months of 2026, down from diluted earnings per share of $5.03 for the same period last year. Diluted weighted average shares outstanding decreased from 122.9 million in the first nine months of 2025 to 107.1 million in the first nine months of 2026, driven by the Company's discretionary repurchases of common stock. Please refer to Liquidity and Capital Resources for additional information concerning the Company's share repurchase activity.
Previous wording
Worldwide retail sales of new Harley-Davidson motorcycles were up 3.7% during the first six months of 2026 compared to the same period last year driven primarily by an increase in North America, driven by the U.S., partially offset by decreases in Europe and Asia Pacific. Retail sales in the U.S. were primarily driven by the Company's Grand American Touring motorcycles, including the Company's refreshed Trike motorcycles, and other Grand American Touring models which had motorcycle incentives that were selectively introduced in 2025 and the first six months of 2026. The decline in international markets was primarily driven by lower retail sales of the Company's Cruiser models, which were refreshed in 2025, as well as a subdued economic environment in Europe.
Current wording
Worldwide retail sales of new Harley-Davidson motorcycles were up 4.3% during the first nine months of 2026 compared to the same period last year primarily due to an increase in North America, driven by the U.S., partially offset by decreases in Europe and Asia Pacific. Retail sales in the U.S. increased across all four of the Company's motorcycle families: the Company's Grand American Touring motorcycles, including the Company's refreshed Trike motorcycles, Cruiser motorcycles, Sport and Lightweight motorcycles and Adventure Touring motorcycles. The decline in international markets was primarily driven by lower retail sales of the Company's Cruiser models, which were refreshed in 2025, as well as a subdued economic environment in Europe.
Previous wording
The Company's U.S. market share of new 601+cc motorcycles increased during the first six months of 2026 compared to the first six months of 2025. The Company's European market share of new 601+cc motorcycles for first six months of 2026 was up compared to the first six months of 2025. Industry retail registration data for new motorcycles and the Company's market share were as follows:
Current wording
The Company's U.S. market share of new 601+cc motorcycles increased during the first nine months of 2026 compared to the first nine months of 2025. The Company's European market share of new 601+cc motorcycles for first nine months of 2026 was up compared to the first nine months of 2025. Industry retail registration data for new motorcycles and the Company's market share were as follows:
Previous wording
(c)Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Switzerland, and the United Kingdom. Industry data is derived from information provided by Management Services Helwig Schmitt GmbH. This third-party data is subject to revision and update.
Current wording
(c)Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom. Industry data is derived from information provided by Management Services Helwig Schmitt GmbH. This third-party data is subject to revision and update.
Previous wording
(d)New motorcycle registrations for the industry and Harley-Davidson are provided by or derived from third-party sources. New motorcycle registrations include consumer registrations (retail registrations) and to a lesser extent manufacturer, distributor and dealer registrations (non-retail registrations), for example, to register demonstration fleets. In the later part of 2024, manufacturers (including the Company), distributors and dealers registered some motorcycles through non-retail registrations to qualify the motorcycles under the new Euro 5+ emissions standard to allow for subsequent retail sale after December 31, 2024. This included approximately 3,700 non-retail registrations of new Harley-Davidson motorcycles in 2024, which in turn adversely impacted the number of new Harley-Davidson motorcycle registrations during the first six months of 2025. While the Company believes industry registrations for Europe were impacted in a similar manner, it does not have access to information necessary to confirm this.
Current wording
(d)New motorcycle registrations for the industry and Harley-Davidson are provided by or derived from third-party sources. New motorcycle registrations include consumer registrations (retail registrations) and to a lesser extent manufacturer, distributor and dealer registrations (non-retail registrations), for example, to register demonstration fleets. In the later part of 2024, manufacturers (including the Company), distributors and dealers registered some motorcycles through non-retail registrations to qualify the motorcycles under the new Euro 5+ emissions standard to allow for subsequent retail sale after December 31, 2024. This included approximately 3,700 non-retail registrations of new Harley-Davidson motorcycles in 2024, which in turn adversely impacted the number of new Harley-Davidson motorcycle registrations during the first nine months of 2025. While the Company believes industry registrations for Europe were impacted in a similar manner, it does not have access to information necessary to confirm this.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Interest income was lower for the first nine months of 2026, primarily due to lower average outstanding retail finance receivables at a lower average yield. The decrease in average retail receivables was due to the sale of a significant portion of the retail finance receivables in 2025.
Current report — wording carried from elsewhere
Interest expense decreased $156.3 milliondue to lower average borrowings at a lower average interest rate. Average borrowings decreased due to the paydown of debt in the second half of 2025 and first quarter of 2026, primarily using proceeds from the sale of retail finance receivables in the second half of 2025.
Current report — wording carried from elsewhere
Deposits – HDFS offers brokered certificates of deposit to customers indirectly through contractual arrangements with third-party banks and/or securities brokerage firms through its bank subsidiary. The Company had $537.4 million and $554.5 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of September 30, 2026 and
Current report — wording carried from elsewhere
C$115.0 million decrease in the total commitment. The amendment reflects lower forecasted funding requirements and the Company's liquidity position. The transferred assets are restricted as collateral for the payment of the associated debt.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The Company has been successful in its appeal of certain tariffs. In April 2021, the Company received notification from the Economic Ministry of Belgium that, following a request from the EU, the Company would be subject to revocation of the Binding Origin Information (BOI) decisions that allowed it to supply its EU markets with certain motorcycles produced at its
Previous report — wording carried elsewhere
Factors affecting the comparability of net revenue, cost of goods sold and gross profit from the first six months of 2025 to the first six months of 2026 were as follows: