Harley-Davidson (NYSE:HOG) Announces Quarterly Earnings Results

Key Points

• Harley-Davidson missed quarterly earnings expectations: EPS was $0.40 versus the $0.47 consensus, while revenue of $1.08 billion slightly exceeded estimates but fell 19.3% year over year.
• North American demand improved: Retail sales rose 9% and dealer inventory declined 26%, prompting the company to raise its 2026 unit and operating-income guidance.
• Risks remain significant: Europe weakened, tariffs and supplier issues pressured profitability, and LiveWire withdrew its outlook while warning of substantial doubt about its ability to continue as a going concern.

Harley-Davidson (NYSE:HOG - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.07), FiscalAI reports. Harley-Davidson had a return on equity of 6.28% and a net margin of 4.78%. The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the previous year, the company posted $3.10 EPS. The company's revenue was down 19.3% compared to the same quarter last year.

Here are the key takeaways from Harley-Davidson's conference call:

• North American retail sales rose 9% in Q3, lifting global retail sales 5% and Harley-Davidson’s U.S. 601+ cc market share to 37%. Strong sell-through of the Super Glide and Deadwood models was cited as a key driver.
• Dealer inventory declined 26% year over year, with 88% of global inventory and 91% of North American inventory consisting of current-model-year motorcycles. Management said North American dealer profitability is tracking ahead of its goal to double in 2026.
• Harley-Davidson raised its full-year 2026 guidance for HDMC retail and wholesale units to 135,500–139,000 and increased HDMC operating-income guidance to $25 million–$55 million. Capital-expenditure guidance was reduced to $140 million–$165 million, while the company repurchased $91 million of shares in the quarter.
• HDMC’s adjusted EBITDA margin improved to 9.7% from 8.7%, but operating income declined to $44 million from $54 million because of restructuring costs, product mix, pricing, and raw-material pressures. Gross tariff costs are now expected at $105 million–$120 million for 2026, although recoveries are expected to offset the operating-income impact.
• Europe remained weak, with Q3 retail sales down 5%, while supplier challenges and tariff uncertainty continue to pressure operations. LiveWire withdrew its guidance and disclosed substantial doubt about its ability to continue as a going concern; Harley-Davidson reiterated that it does not intend to fund LiveWire’s operating losses.

Harley-Davidson Trading Up 1.5%

HOG traded up $0.44 during trading on Thursday, hitting $29.96. The company's stock had a trading volume of 2,109,069 shares, compared to its average volume of 2,839,817. Harley-Davidson has a twelve month low of $17.09 and a twelve month high of $31.12. The stock has a market cap of $3.12 billion, a PE ratio of 18.34, a PEG ratio of 9.52 and a beta of 1.30. The firm's 50 day moving average price is $27.08 and its 200-day moving average price is $23.87. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.90 and a quick ratio of 1.70.

Harley-Davidson Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th were paid a dividend of $0.1875 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.75 annualized dividend and a dividend yield of 2.5%. Harley-Davidson's dividend payout ratio is presently 46.01%.

Insiders Place Their Bets

In other news, CEO Artie Starrs purchased 10,000 shares of the company's stock in a transaction on Monday, August 10th. The stock was bought at an average cost of $25.89 per share, for a total transaction of $258,900.00. Following the completion of the purchase, the chief executive officer directly owned 25,000 shares of the company's stock, valued at $647,250. The trade was a 66.67% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Daniel J. Nova acquired 40,000 shares of the business's stock in a transaction dated Friday, July 31st. The stock was purchased at an average price of $24.57 per share, for a total transaction of $982,800.00. Following the completion of the acquisition, the director owned 47,605 shares in the company, valued at approximately $1,169,654.85. This trade represents a 525.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 57,500 shares of company stock valued at $1,439,550 and sold 4,667 shares valued at $119,423. Insiders own 0.97% of the company's stock.

Analyst Ratings Changes

Several brokerages recently commented on HOG. DA Davidson raised their price objective on shares of Harley-Davidson from $30.00 to $33.00 and gave the company a "buy" rating in a research note on Monday, August 17th. Griffin Securities set a $33.00 target price on shares of Harley-Davidson in a research report on Monday, August 17th. Wall Street Zen raised shares of Harley-Davidson from a "sell" rating to a "hold" rating in a report on Saturday, October 10th. UBS Group lifted their price target on shares of Harley-Davidson from $26.00 to $28.00 and gave the company a "neutral" rating in a research report on Wednesday, September 2nd. Finally, Robert W. Baird boosted their price target on Harley-Davidson from $28.00 to $30.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Harley-Davidson presently has an average rating of "Hold" and an average target price of $28.40.

Trending Headlines about Harley-Davidson

Here are the key news stories impacting Harley-Davidson this week:

• Positive Sentiment: Harley-Davidson raised its 2026 outlook for both Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS) for the second time this year. Full-year motorcycle retail sales and wholesale shipments are now projected at 135,500 to 139,000 units. Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance
• Positive Sentiment: Demand trends improved: global retail sales of new motorcycles rose 5% year over year, while North American retail sales jumped 9%, accelerating from 3% growth in the prior quarter. Dealer inventory also ended the quarter 26% below year-ago levels, suggesting healthier channel conditions. Harley-Davidson Reports Third Quarter Financial Results And Raises HDMC and HDFS Guidance
• Positive Sentiment: HDMC’s gross margin expanded 173 basis points to 28.1%, and the company returned $110 million to shareholders through share repurchases and dividends.
• Neutral Sentiment: Harley-Davidson appointed two new independent directors, a move that could support governance and strategic oversight but offers limited immediate financial impact. Harley-Davidson Announces Board Appointments
• Negative Sentiment: Third-quarter adjusted earnings were $0.40 per diluted share, below consensus estimates of roughly $0.44-$0.47 and sharply lower than $3.10 a year earlier. Revenue also declined year over year, with HDMC revenue reported at $964 million versus a $1.07 billion FactSet estimate. Harley-Davidson Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Net income attributable to Harley-Davidson plunged to $43 million from $377 million, while HDFS operating income fell to $11 million from $439 million. The comparison was pressured by a prior-year gain and changes to dealer inventory strategy, keeping profitability concerns in focus.

About Harley-Davidson

Harley-Davidson, Inc is a Milwaukee-based company that designs, manufactures and sells heavyweight motorcycles. Its product portfolio includes touring, cruiser, standard and adventure-touring motorcycles sold under the Harley-Davidson brand, as well as electric motorcycles offered through its LiveWire business.

The company also provides motorcycle parts, accessories, apparel and related merchandise. Through Harley-Davidson Financial Services, it offers financing and insurance products to motorcycle dealers and retail customers in supported markets.

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