Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance (Form 8-K)

Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance

MILWAUKEE (October 29, 2026) - Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company") (NYSE: HOG) today reported third quarter 2026 results, announced the addition of two new members to its Board of Directors, and raised HDMC and HDFS full-year guidance for the 2nd time this year following strong execution in Q3 2026.

Third Quarter Highlights

•North American retail sales of new motorcycles were up 9 percent in Q3 2026 versus prior year, accelerating from 3 percent Year-over-Year (YoY) growth in the previous quarter. Q3 2026 marks the 4th consecutive quarter of YoY retail growth in North America, demonstrating continued progress in the Company's core market.

•Q3 2026 global retail sales of new motorcycles were up 5 percent versus prior year, with North America and Asia-Pacific driving growth. Asia-Pacific grew by 1 percent overall, while Australia and New Zealand grew by 15 percent.

•Global dealer inventory of new motorcycles ended Q3 2026 down 26 percent vs. Q3 2025, and down 6 percent vs Q2 2026. In North America, 91 percent of dealer inventory was comprised of current Model Year 2026 motorcycles at the end of Q3 2026, up from 86 percent at the end of Q3 2025.

•HDMC global motorcycle shipments of 33,616 units in the quarter were down 8 percent vs. prior year to drive long-term dealer health and in alignment with the Back to the Bricks strategy.

"We are pleased with the continued progress made toward aligning wholesale activity with retail demand, achieving a further 26 percent reduction in dealer inventory while delivering 5 percent growth in global retail sales compared with Q3 2025. North America sales were up for the 4th consecutive quarter, demonstrating an entrenched foothold in our home market," said Artie Starrs, President and CEO, Harley-Davidson. "We are encouraged by the improvement in our key growth drivers over the quarter. Models like the Super Glide® and Deadwood™ are creating deeper connection between the brand and riders, our dealer network is becoming increasingly profitable, and we are actioning our Back to the Bricks strategy - just one full quarter into execution - in partnership with our dealers."

By the Numbers

HDMC Increased Gross Margin Percentage, While Decreasing Operating Expenses

•HDMC revenue of $964 million in the quarter, was down 10 percent vs. prior year driven by lower shipment volume.

•Third quarter gross margin percentage increased by 173 bps YoY to 28.1 percent.

•Operating expenses continued to remain lower than prior year in the third quarter, coming in 1 percent lower than a year ago, at $227 million.

•HDMC operating income was $44 million in Q3 2026, down 18 percent YoY.

•HDMC operating income margin was 4.6 percent in Q3 2026 compared to 5.0 percent in the prior year.

•Adjusted EBITDA margin1 improved to 9.7 percent in Q3 2026 compared to 8.7 percent in the prior year.

1 "Adjusted EBITDA" and "Adjusted EBITDA Margin %" are non-GAAP measures. Please see below for full reconciliation to the most directly comparable GAAP financial measures.

Consolidated Earnings Driven Down YoY As A Result Of HDFS Shift To Asset Light Model

•Net income attributable to HDI of $43 million was down from $377 million in Q3 2025 primarily as a result of HDFS's sale of the majority of its securitization beneficial interests and retail finance receivables in the prior year, which drove a benefit in Q3 2025.

•HDFS operating income margin was 9.7 percent in Q3 2026 down from 168.0 percent in Q3 2025, with a Q3 2026 annualized managed retail credit loss ratio below same periods in 2024 and 2025.

Strong Balance Sheet Allowed Continued Capital Return Program

•Returned $110 million in total capital to shareholders in Q3 2026, including $91 million shares repurchased on a discretionary basis and $19 million in cash dividends.

•Cash and cash equivalents of $2.1 billion as of September 30, 2026.

2026 Financial Outlook

For the full year 2026, the Company is raising HDMC and HDFS financial guidance and now expects:

•HDMC:

◦Global Motorcycle Retail Sales of 135,500 to 139,000 units

◦Global Motorcycle Wholesale Shipments of 135,500 to 139,000 units

◦Operating income of $25 to $55 million

•HDFS:

◦Operating income of $60 to $70 million

•HDI:

◦Revised capital investment of $140 to $165 million

LiveWire has withdrawn its guidance.

Board of Directors Updates

In addition, today Harley-Davidson announced that its Board of Directors has appointed two new independent directors, Anthony D. Fassino and Bryan E. Slone. The appointments were effective October 28, 2026.

"Tony and Bryan are complementary additions to the Board and Harley-Davidson leadership," said Troy Alstead, Chairman of the Board of Harley-Davidson. "Tony's three-decade long track record of driving profitability, mitigating risk, and overseeing product development across a global manufacturing footprint provides invaluable perspective. Likewise, Bryan's experience in tax, public policy, and corporate governance, together with Board experience in the financial services and insurance industries, deepens our audit and risk knowledge across both HDMC and HDFS."

Tony Fassino recently retired from Caterpillar Inc. as the Group President of Construction Industries, where he led the company's approximately $25 billion global construction business and was responsible for strategic direction, capital investment, operational performance, and customer growth across a worldwide portfolio of products, facilities, and employees. During a 30-year career with Caterpillar, Fassino held leadership roles spanning engineering, product development, manufacturing, sales, and distribution, helping drive innovation, operational excellence, and shareholder value. He recently served as Chairman of the American Road & Transportation Builders Association, and he brings extensive experience in global operations, capital allocation, supply chain management, and industrial growth strategy.

Bryan Slone is a former Managing Partner at Deloitte's Nebraska office and the former President & CEO of the Nebraska Chamber of Commerce & Industry. He currently serves as Counsel with the law firm of Koley Jessen P.C., L.L.O. He brings more than four decades of leadership experience across tax, law, business, public policy, and corporate governance, including senior roles with Deloitte and the Internal Revenue Service. Slone currently serves on the boards of Ameritas Mutual Holding Company, Ameritas Life Insurance Corp., and First National of Nebraska, Inc., where he chairs the Audit Committee for each organization.

The appointment of Fassino and Slone by Board action brings the total number of directors on the Board to ten.

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Company Background

Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, parts & accessories, experiences, riding gear and apparel. What We Make: The World's Best Motorcycles. Period. Who We Serve: Motorcycle Riders Worldwide. Why We Do It: To Protect and Grow Motorcycle Culture. What We Stand For: Life, Liberty and the Pursuit of Happiness. Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and has a controlling interest in Harley-Davidson Financial Services and LiveWire Group, Inc. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. LiveWire is committed to developing the technology of the future and investing in the capabilities needed to lead the transformation of motorsports. Learn more at harley-davidson.com.

Webcast

Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CDT today. The webcast login and supporting slides can be accessed at  http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CDT.