Harley-Davidson (NYSE:HOG) saw its shares sink sharply on Tuesday after issuing downbeat guidance for 2026, overshadowing fourth-quarter results that came in ahead of expectations. The company is attempting to steady operations as retail demand softens and market conditions remain tough.
The storied motorcycle brand’s stock dropped 8.14% in pre-market trading following the announcement.
For the fourth quarter, the Milwaukee-based group reported a loss of -$2.44 per share, narrower than analysts’ forecasts for a -$1.06 loss. Revenue totaled $496 million, beating the consensus estimate of $486.61 million. Even so, sales were down 28% from a year earlier, and global retail motorcycle volumes slipped 1% year on year to 25,287 units.
Looking at the full year, Harley-Davidson posted diluted earnings per share of $2.78 for 2025, down from $3.44 in 2024. Global retail motorcycle sales fell 12% to 132,535 units, with North America volumes declining 13%.
Investor sentiment was hit hardest by the company’s outlook for 2026. Harley-Davidson expects operating income at its motorcycle segment (HDMC) to range from a loss of $40 million to a profit of $10 million, signaling ongoing pressure as the company works to better match wholesale shipments with retail demand.
“As we close out a challenging year for the Company, we are taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand,” said Artie Starrs, President and CEO of Harley-Davidson. “While near-term results reflect these actions, the progress we are seeing reinforces our confidence in the reset underway.”
One positive note came from Harley-Davidson Financial Services (HDFS), which paid a $1 billion dividend to the parent company in the fourth quarter following a strategic partnership with KKR and PIMCO. The move helped reposition HDFS as what the company described as a “capital-light, de-risked business.”
In total, Harley-Davidson returned $434 million to shareholders in 2025, comprising $347 million in share buybacks and $86 million in dividends.