Harley-Davidson reported a second quarter profit of $80 million, down 26% from the second quarter of 2025.
The Milwaukee-based motorcycle company released its quarterly earnings results and raised its full-year guidance on July 23. CEO Artie Starrs said 2026 represents a transition year for the business, which seeks to reset the brand with its new "Back to the Bricks" strategy.
North American motorcycle sales rose 3% to 29,751 units, the third consecutive year-over-year quarter of growth. Global sales increased just 1%, while worldwide shipments jumped 9% to 39,209 units.
Harley-Davidson revised its 2026 motorcycle sales expectations upward, from 130,000 to 135,000 global units to 133,500 to 138,500 units.
LiveWire, the company's electric motorcycle division, reported a quarterly operating loss of $18 million. That's a decrease from $19 million in the second quarter of 2025. Harley-Davidson projects an operating loss of $70 million to $80 million for LiveWire in 2026.
"Our results reflect a business that's beginning to stabilize, and a team that is executing with greater focus," Starrs said during a July 23 earnings call.
"We're still early in the work, but the business is moving in the right direction."
Harley-Davidson incurred $22 million in tariff-related expenses in the second quarter, but it was largely offset by a $20 million tariff recovery. The company expects tariff policy to remain a point of uncertainty, with an impact of around $75 million to $90 million for 2026.
Introduced in the first quarter of 2026, "Back to the Bricks" aims to reset the Harley-Davidson brand following a rocky start to the year . The company reported a 2025 profit of $339 million, down 26% from the previous year.
Under the new plan, Harley-Davidson is focused on boosting the North American market and improving dealership profitability by trimming inventory.
"In the fourth quarter, the vast majority of dealers' primary concern was too much inventory," Starrs said, adding that the company is in a more appropriate place with the recent launch of Super Glide and Deadwood motorcycles.
Starrs says domestic dealership profitability is expected to double in 2026. He hopes it will double again by 2029.
"We are continuing our focus on aligning wholesale activity with retail demand, improving the quality of inventory in the channel, and continuing to take actions that strengthen dealer economics," Starrs said.
"These actions can create short-term pressure in certain areas, but they are the long-term health of the business."
Francesca Pica can be reached at fpica@usatodayco.com.
This article originally appeared on Milwaukee Journal Sentinel: Harley Davidson profit dips as sales climb in US
