The motorcycle maker raised guidance after Q2 net income fell 26% to $80 million on lower financial services revenue.
Harley-Davidson posted a 26% decline in second-quarter net income to $80 million, or 75 cents per share, as revenue slipped 6% to $1.23 billion. The drop was driven by a 69% plunge in operating income at Harley-Davidson Financial Services following a shift to a capital-light model after asset sales in late 2025.
The motorcycle division outperformed, with revenue rising 6% to $1.1 billion and operating income up 18% to $72 million. Global shipments increased 9% to 39,209 units, while North American retail sales climbed 3%. The company raised its full-year retail sales guidance to 133,500-138,500 units and lifted its motorcycle division operating income forecast to $10 million-$50 million.
Gross margin in the motorcycle division narrowed to 27.5% from the prior year, while HDFS revenue fell 55% to $117 million due to the asset sale.