Harley-Davidson Reports Q1 2026 Earnings: Retail Sales Up 8% Globally, but Net Income Drops 81%
Harley-Davidson's first-quarter net income fell 81% to $25 million despite an 8% rise in global retail motorcycle sales, as the company faced tariff costs and restructuring charges.
33,507 units (+8% YoY)
$25 million (-81% YoY)
$0.22 (-79% YoY)
What Happened
“We're pleased with our first quarter results, which reflect actions we've taken to drive demand and improve dealer health. We saw a 14% increase in retail performance in North America, which drove global retail sales growth of 8%, and achieved a 22% year-over-year reduction in global dealer inventories.”
Consolidated revenue was $1.17 billion, down 12% year-over-year, primarily due to a 54% decline at Harley-Davidson Financial Services (HDFS) after a loan sale. Operating income fell 85% to $23 million, with HDMC operating income down 84% and HDFS down 65%. Gross margin dropped 3.9 percentage points to 25.3%, partly due to tariff costs.
Globally, retail motorcycle sales rose 8% to 33,507 units, led by a 14% increase in North America (23,803 units). However, EMEA sales fell 3%, Asia Pacific dropped 9%, and Latin America grew 21%. Inventory levels were reduced 22% from the prior year.
$0.22
down 79% from $1.07 in Q1 2025
Why this matters
The results highlight Harley-Davidson's effort to balance demand and dealer inventory while navigating tariff impacts and a strategic shift under its new 'Back to the Bricks' growth plan.
Terms in This Story
- Diluted EPS
- Earnings per share calculated assuming all convertible securities are exercised, showing the lowest possible earnings per share.
- HDFS
- Harley-Davidson Financial Services, the company's financing arm that provides loans and insurance for dealers and customers.
- LiveWire
- Harley-Davidson's electric motorcycle brand and subsidiary focusing on electric two-wheelers.
- Restructuring charges
- Costs incurred from reorganizing a business, such as employee severance, facility closures, or contract terminations.
Summarised from the linked release; details can be imperfect — always verify against the original source.