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SEC filingHarley-Davidson reported Q1 2026 results with diluted EPS of $0.22 and consolidated revenue of $1.17 billion, reflecting an 81% drop in net income attributable to HDI, while reaffirming full-year guidance.
Harley-Davidson's first quarter 2026 results reflected a significant divergence between retail performance and profitability. Global retail motorcycle sales increased 8% to 33,507 units, led by a 14% improvement in North America, which CEO Artie Starrs attributed to the new RIDE marketing platform and the '26 motorcycle line-up. However, consolidated revenue fell 12% to $1.17 billion, primarily due to a 54% decline in HDFS revenue resulting from the sale of loan assets in the second half of 2025. Consequently, consolidated operating income dropped 85% to $23 million, with the operating margin compressing to 2% from 12.1% in the prior year.
The HDMC segment experienced an 84% decline in operating income to $19 million. Management cited the cost of new or increased tariffs and unfavorable product mix as primary drivers, despite a favorable EU tariff refund. Wholesale shipments declined 3% to 37,295 units, aligning with the company's strategy to reduce dealer inventory, which fell 22% year-over-year. The HDFS segment saw operating income decrease 65% to $22 million, reflecting a smaller loan portfolio following the asset sale transaction, though this was partially offset by lower interest and credit loss expenses. LiveWire losses narrowed slightly to $18 million.
The company incurred $15 million in restructuring charges during the quarter and repurchased 6.6 million shares for $128 million. Management reaffirmed its full-year 2026 guidance, projecting HDMC wholesale shipments of 130,000 to 135,000 units and HDMC operating income ranging from a $40 million loss to a $10 million profit.