Harley-Davidson reported higher third-quarter motorcycle retail sales in North America and raised parts of its full-year 2026 outlook, citing early progress under its “Back to the Bricks” strategy focused on dealer profitability, inventory discipline, product launches and closer engagement with riders.
Chief Executive Officer Artie Starrs said North American retail sales rose more than 9% during the quarter, while the company continued to reduce dealer inventories. He said the company’s domestic retail performance showed that riders responded to “the right motorcycles, dealer engagement, and marketing support.”
“Dealer health is non-negotiable and foundational to Harley-Davidson’s long-term earnings power,” Starrs said. The company said dealer inventory was down nearly 26% from a year earlier, marking its seventh consecutive quarter of year-over-year inventory declines. More than 88% of global dealer inventory consisted of 2026 model-year products at quarter-end.
Retail Growth Led by North America
Chief Financial and Commercial Officer Jonathan Root said North American new-motorcycle retail sales increased 9% year over year to more than 25,000 units in the third quarter, accelerating from 3% growth in the previous quarter. Global retail sales rose 5% to approximately 35,800 motorcycles.
North America and Asia-Pacific posted retail gains, while Europe, the Middle East and Africa, along with Latin America, reported declines. Retail sales outside North America fell 3% year over year to just over 10,000 units.
- North American dealer inventory declined 26% year over year.
- Harley-Davidson held 37% of the U.S. market for motorcycles with engines of 601cc and above, up 3 percentage points from the prior year.
- EMEA retail sales declined 5%, although the company said the result improved from the second quarter.
- Asia-Pacific retail sales rose 1%, led by 15% growth in Australia and New Zealand.
- Latin American retail sales declined 7%.
Root said retail momentum in North America was driven by the Trike and Softail categories. Starrs also cited the second-quarter Super Glide launch and the third-quarter Deadwood launch as contributors to stronger sell-through, MSRP realization and market-share gains, particularly in U.S. Softail motorcycles.
During the question-and-answer session, Starrs said the new models helped fill price-point gaps in Harley-Davidson’s portfolio. He described the products as motorcycles designed for customization and said the company’s marketing around custom bike builders and shop owners had generated strong feedback.
Revenue Declines as Wholesale Remains Disciplined
Harley-Davidson Motor Company, or HDMC, shipped 33,600 motorcycles in the third quarter, down 8% from 36,500 a year earlier. Root said wholesale shipments remained below retail growth as the company sought to improve dealer profitability and maintain tighter inventory control.
HDMC revenue declined 10% to $964 million. Motorcycle revenue totaled $734 million, parts and accessories revenue was $153 million, apparel and licensing revenue was $60 million, and other revenue was $18 million.
HDMC gross margin increased to 28.1% from 26.4% a year earlier. The company said manufacturing costs, tariff and supplier recoveries, and foreign-exchange effects benefited gross profit, partly offset by product mix, net pricing and raw-material costs.
HDMC operating income was $44 million, compared with $54 million in the prior-year quarter. The latest result included $14 million in restructuring expense. Excluding restructuring expense, HDMC operating income would have been $58 million and operating margin would have been 6.0%, Root said.
Adjusted EBITDA at HDMC was unchanged at $94 million, while adjusted EBITDA margin increased to 9.7% from 8.7% a year earlier.
Tariff Costs Rise, but Net Operating-Income Effect Unchanged
Harley-Davidson said it incurred approximately $94 million of gross tariff-related costs year to date, compared with $45 million in the same period last year. The company now expects full-year gross tariff costs of approximately $105 million to $120 million, up from its prior estimate of $75 million to $90 million.
Root said higher costs were primarily due to supplier reciprocal charges. However, recoveries increased by a similar amount, resulting in “virtually no change” to the expected 2026 operating-income impact from tariffs.
The company said it does not expect 2027 gross tariff costs to exceed 2026 levels if the current tariff structure remains in place, though it noted that the policy environment remains uncertain.
Guidance Raised as New Models Approach
For full-year 2026, Harley-Davidson raised its expected global motorcycle retail sales and wholesale shipments ranges to 135,500 to 139,000 units, from prior guidance of 133,500 to 138,500 units.
The company also increased its HDMC operating-income outlook to $25 million to $55 million, from $10 million to $50 million. The revised range includes $31 million of year-to-date restructuring costs. HDFS operating income is now expected to be $60 million to $70 million, compared with prior guidance of $55 million to $70 million.
Capital-investment guidance was lowered to $140 million to $165 million from $175 million to $200 million.
Starrs said Harley-Davidson remained on track to deliver $150 million in fixed-cost savings and remained committed to its target of $350 million in HDMC EBITDA in 2027. He said the company planned to launch the Harley-Davidson Sprint internationally beginning late in the fourth quarter, with broader availability in the first half of 2027. The Sportster launch is planned for the first half of 2027.
Starrs said the smaller-displacement Sprint and Sportster motorcycles are expected to appeal to both newer and experienced riders. He noted that Harley-Davidson trains approximately 50,000 riders annually through its Riding Academy programs, but only about 8% to 10% of those students purchase a new Harley-Davidson motorcycle.
HDFS, Capital Returns and LiveWire
Harley-Davidson Financial Services reported third-quarter revenue of $111 million, down 58% year over year, reflecting lower interest income after the sale of loan assets under its capital-light model. HDFS operating income was $11 million, compared with a prior-year period that benefited from a $301 million release of allowance for credit losses related to receivables classified as held for sale.
HDFS retail loan originations increased 4% to $786 million, while its annualized retail credit-loss ratio on managed loans improved to 3.0% from 3.2% a year earlier.
Consolidated Harley-Davidson revenue declined 19%, primarily because of the lower HDFS revenue. Consolidated operating income was $37 million, compared with $475 million a year earlier, and earnings per share were $0.40, versus $3.10 in the prior-year quarter.
The company generated $276 million of operating cash flow in the quarter and repurchased 3.4 million shares for approximately $91 million. It ended the quarter with $2.1 billion in cash and equivalents.
Starrs also addressed LiveWire, which announced that conditions and events raised substantial doubt about its ability to continue as a going concern and withdrew its guidance. He said Harley-Davidson does not intend to fund LiveWire’s operating losses going forward.
About LiveWire Ergogenics (OTCMKTS:LVVV)
LiveWire Ergogenics, Inc is a California-focused cannabis company involved in the development and operation of cannabis cultivation and related real estate assets. Its activities have centered on creating compliant cultivation facilities and supporting infrastructure for licensed cannabis production.
The company has highlighted Estrella River Farms, a cannabis cultivation property in Paso Robles, California, as a key part of its business. LiveWire Ergogenics has also pursued opportunities involving cannabis cultivation, processing, branding, and related services, although the scope of its operations and product offerings may change as its business develops and regulatory conditions evolve.
LiveWire Ergogenics serves the California cannabis market and has historically positioned itself as a vertically oriented participant in the industry, combining real estate development with cultivation and cannabis-related operating activities.
