Harley-Davidson Inc. (NYSE:HOG) reported mixed first-quarter results on Tuesday, delivering stronger-than-expected revenue while missing on earnings as tariff pressures and restructuring efforts weighed on profitability.
Shares of the motorcycle maker moved 1.51% higher in pre-market trading following the release.
Adjusted earnings per share came in at $0.22, falling just short of the $0.23 consensus estimate. Revenue totaled $1.1 billion, beating expectations of $1.01 billion but declining 12% compared to the same period last year.
The drop in revenue was largely tied to a sharp 54% decline in Harley-Davidson Financial Services (HDFS), following the company’s sale of loan assets in the second half of 2025.
Within the core Harley-Davidson Motor Company business, revenue slipped 2% to $1.1 billion, while global motorcycle shipments fell 3% to 37,295 units. However, retail demand showed strength, with global motorcycle sales rising 8% to 33,507 units. North America led the gains, posting a 14% increase in retail sales.
Profitability took a hit, with operating income in the motorcycle segment plunging 84% to $19 million. Gross margin contracted by 3.9 percentage points, reflecting tariff-related costs and pricing pressures.
“We’re pleased with our first quarter results, which reflect actions we’ve taken to drive demand and improve dealer health,” said Artie Starrs, President and CEO. “We saw a 14% increase in retail performance in North America, which drove global retail sales growth of 8%.”
Looking ahead, the company reaffirmed its full-year 2026 outlook. It expects operating income for its motorcycle segment to range from a $40 million loss to a $10 million profit, with a midpoint of negative $15 million. Meanwhile, HDFS operating income is projected to fall between $45 million and $60 million.