Harley-Davidson (NYSE:HOG) reported stronger-than-expected second-quarter results on Thursday, although the motorcycle maker’s shares edged lower in premarket trading as investors assessed the company’s latest outlook and broader market conditions.
The company topped Wall Street’s earnings and revenue forecasts while increasing its full-year guidance across several key financial and operating measures.
Earnings and revenue exceed forecasts
Harley-Davidson posted adjusted earnings of $0.75 per share for the second quarter, beating analysts’ consensus estimate of $0.64.
Revenue came in at $1.23 billion, ahead of market expectations of $1.17 billion. Total revenue declined 6% from a year earlier, largely reflecting a 55% drop in Harley-Davidson Financial Services (HDFS) revenue following loan asset sales completed in late 2025.
Despite the earnings beat, the company’s shares slipped about 1% in premarket trading.
Company upgrades full-year guidance
Harley-Davidson increased its forecast for global motorcycle retail sales and wholesale shipments to between 133,500 and 138,500 units for 2026, compared with its previous outlook of 130,000 to 135,000 units.
The company also significantly improved its operating income guidance for Harley-Davidson Motor Company (HDMC), which now ranges from $10 million to $50 million, compared with its previous forecast of a loss of $40 million to a profit of $10 million.
In addition, Harley-Davidson raised its outlook for HDFS operating income to between $55 million and $65 million, up from the prior range of $45 million to $60 million.
President and Chief Executive Officer Artie Starrs said, “Our second-quarter performance reflects strength in our domestic retail business, continued focus on healthy dealer inventory levels and the exceptional commitment of our dealer network.”
Motorcycle business shows improving momentum
Revenue at Harley-Davidson Motor Company increased 6% to $1.1 billion, supported by a 9% increase in motorcycle shipments to 39,209 units.
Retail demand also strengthened during the quarter, with North American motorcycle sales rising 3% year over year to 29,751 units, while global retail sales increased 1%.
Adjusted EBITDA margin improved to 10.4%, compared with 9.3% in the same period last year, reflecting improved profitability across the core motorcycle business.
Dealer inventories continue to decline
Harley-Davidson continued to reduce inventory levels across its dealer network during the quarter.
Global inventories of new motorcycles ended the period 17% lower than a year earlier, supporting the company’s strategy of maintaining disciplined supply and improving pricing conditions.
Management said the combination of stronger retail demand, healthier dealer inventories and higher shipment volumes supported the decision to raise guidance for the remainder of the year.