Net income fell 26% to $80 million in the second quarter, but the company lifted its full-year retail sales and wholesale shipment forecasts
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Harley-Davidson reported second-quarter net income of $80 million, or 75 cents per diluted share, on Thursday, down 26% from $108 million, or 88 cents per share, in the same period last year. Second-quarter revenue came in at $1.23 billion, a 6% decline from the year-ago period.
The company raised its full-year guidance for global motorcycle retail sales to a range of 133,500 to 138,500 units, up from a prior forecast of 130,000 to 135,000 units. It also lifted its full-year outlook for wholesale shipments to the same range, and raised its motorcycle division operating income forecast to between $10 million and $50 million, from a prior range of a $40 million loss to a $10 million profit.
The quarter's earnings decline was driven largely by a 69% drop in operating income at Harley-Davidson Financial Services, which the company attributed to its shift to a capital-light model following the sale of retail loan assets in the second half of 2025. That sale caused HDFS revenue to fall 55% year over year to $117 million.
The motorcycle division posted stronger results. Revenue at Harley-Davidson Motor Company rose 6% to $1.1 billion, and operating income climbed 18% to $72 million. Global motorcycle shipments increased 9% to 39,209 units. North American retail motorcycle sales rose 3% to 29,751 units, while worldwide retail sales were up 1% to 42,467 units. Sales in Europe, the Middle East, and Africa fell 9%.
The motorcycle division's gross margin slipped to 27.5% in the second quarter from 28.6% twelve months prior, pressured by a combination of raw material cost increases, a less favorable product mix, and currency headwinds, according to Reuters. Manufacturing cost improvements, including a tariff recovery, partially offset those pressures, the company 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," president and CEO Artie Starrs said in a statement.
The results build on a difficult first quarter, when Harley-Davidson reported an 81% plunge in net income alongside the launch of its "Back to the Bricks" turnaround plan. That plan centers on more affordable motorcycles, a healthier dealer network, and a goal of more than $350 million in core motorcycle profit by 2027. The company introduced an entry-level model priced around $10,000 and plans to launch a smaller motorcycle priced at roughly $6,000 later this year.
Global dealer inventory of new motorcycles ended the second quarter down 17% from a year earlier, which the company said reflected its priority of keeping dealer stock in line with actual retail demand.
Harley-Davidson shares were down roughly 1% before Thursday's opening bell.
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