Milwaukee-based Harley-Davidson on Thursday reported higher North America motorcycle sales and raised its guidance for the full year, now projecting thousands of additional sales.
The company said its second quarter North American retail motorcycle sales totaled 29,751 units, up 3% versus the prior year. It then increased its guidance for all of 2026, saying it now expects global motorcycle retail sales of 133,500 to 138,500 units for the year, up from a previously expected range of 130,000 to 135,000 units. It also increased its operating income forecast to $10 million to $50 million, up from a previous anticipated $40 million loss.
Revenue for the Harley-Davidson Motor Company (HDMC) division was up 6% in the second quarter, compared to the same period last year, reporting $1.1 billion in revenue over $1.04 billion last year. Similarly, the segment reported 18% growth in its operating income, up to $72 million from $61 million last year.
The company’s European, Asian, and Latin American sales were down 9%, flat and up 4%, respectively. Global sales increased 1% from last year, according to filings with the U.S. Securities and Exchange Commission.
Harley CEO Arthur Starrs said HDMC’s growth “reflects a business that we believe is beginning to stabilize and a team that is executing with greater focus,” during Thursday morning’s earnings call.
Starrs attributed the company’s gains in the second quarter to his “Back to the Bricks” strategy, which includes initiatives such as a return-to-office mandate for workers at Harley’s Juneau Avenue corporate headquarters, a renewed focus on dealers and their relationship with the company, a revitalized partnership with Summerfest, and the debut of two entry-level motorcycles, geared towards the younger riding community.
Over 85% of dealer inventory was model year 2026 product this quarter. According to Starrs, that is the healthiest inventory position global Harley dealers have had in years and an improvement year-over-year for the past seven quarters. The company expects dealer profitability to double in 2026.
Starrs also highlighted the launch of the new Super Glide and Deadwood models during the call Thursday.
Credit: Harley-Davidson Harley-Davidson’s 2026 Deadwood
“Sell-through on Super Glide has been strong, dealer enthusiasm has been high, and MSRP realization is among the strongest we have seen in some time,” Starrs added.
HDMC reported a loss for the quarter in its parts and accessories segment, down 5% from the same period last year.
Overall, Harley-Davidson reported a 6% decrease in revenue and a 32% decrease in operating income in the second quarter, largely due to losses and strategic changes in its financial services division. Last year the company announced the sale of a $5 billion stake in its financial services business. During the second quarter, the smaller Harley-Davidson Financial Services division had a 55% decrease in revenue, down to $117 million from $257 last year, and a 69% decline in operating income, down to $22 million from $70 million last year.
Harley’s spin off LiveWire reported a 52% increase in revenue in the second quarter, driven by higher electric motorcycle unit sales and higher StaCyc electric balance bike sales.
