This article first appeared on GuruFocus .
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North American Retail Sales:Up 3% year-over-year, with approximately 30,000 motorcycles sold.
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Global Retail Sales:Up 1% year-over-year, totaling approximately 42,500 motorcycles.
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HDMC Revenue:Increased by 6% to $1.1 billion.
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Motorcycle Revenue:$848 million.
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P&A Revenue:$177 million, down from $187 million in the prior year.
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Apparel and Licensing Revenue:$62 million, up from $61 million in the prior year.
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HDMC Gross Profit Margin:27.5%, down from 28.6% in the prior year.
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HDMC Operating Income:$72 million, with an operating income margin of 6.6%.
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Adjusted EBITDA:$115 million, with an adjusted EBITDA margin of 10.4%.
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HDFS Revenue:$117 million, a decrease of 55% year-over-year.
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HDFS Operating Income:$22 million, with an operating income margin of 18.5%.
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LiveWire Revenue:Increased 52% year-over-year.
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Net Cash Used in Operating Activities:$59 million, compared to $509 million in the prior year.
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Share Buybacks:1.3 million shares repurchased worth $30 million in Q2.
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Cash and Equivalents:$1.9 billion at the end of Q2.
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Consolidated Operating Income:$76 million, compared to $112 million in Q2 of 2025.
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Earnings Per Share (EPS):$0.75, compared to $0.88 in Q2 of 2025.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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LiveWire Group Inc ( NYSE:LVWR ) reported a 52% increase in consolidated revenue over the prior year, driven by increased unit sales of electric motorcycles and STACYC brand electric balance bikes.
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The company successfully began production of the S4 Honcho, with the first units expected to arrive at authorized retail locations later this summer.
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LiveWire completed the acquisition of Dust Motorcycles, which is expected to accelerate expansion into the growing off-road category and strengthen long-term product strategy.
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The company achieved an 18% improvement in net cash used by operating activities through June 30, 2026, compared to the prior year.
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LiveWire Group Inc ( NYSE:LVWR ) is on track to meet its strategic goals, including the launch of new models and cost-saving initiatives, which are expected to enhance future performance.
Negative Points
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LiveWire Group Inc ( NYSE:LVWR ) continues to operate at a loss, with an expected operating loss in the range of $70 million to $80 million for the year.
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The company faces challenges in the European market, with a decline in retail sales and market share, indicating a need for strategic adjustments.
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Tariff uncertainties remain a concern, impacting financial results and creating an unpredictable operating environment.
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Domestic supplier challenges have affected margins in 2026, highlighting supply chain reliability issues.
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Despite revenue growth, LiveWire Group Inc ( NYSE:LVWR ) is still working towards achieving a more balanced portfolio and effective inventory management to improve dealer profitability.
Q & A Highlights
Q: Does guidance for HDMC include the $20 million IEPA refund? Also, can you confirm the launch timeline for the Sportster and Sprint models in 2027? A: The guidance does include the $20 million IEPA refund. As for the Sportster and Sprint, we expect to ship Sprint by the end of this year and Sportster in 2027. While we haven't set specific volume expectations, we are targeting mid-single-digit retail growth, with potential upside based on dealer and rider enthusiasm.
Q: Can you elaborate on inventory levels and any strategies to improve response time and forecasting with dealers? A: We've successfully restored a more appropriate supply-demand framework, and current inventory levels are aligned with retail demand. We are actively working with our Dealer Advisory Council to improve mix and ensure the right bikes are in the right places. We don't foresee significant increases in dealer inventory in the coming quarters.
Q: Are there any changes in the tariff guidance, and how do you view the impact of tariffs on your financials? A: The tariff guidance remains unchanged from the previous quarter, with expected costs between $75 million to $90 million. We have included $20 million in tariff recoveries in our updated guidance, but we do not anticipate further recoveries for the rest of the year.
Q: How do you view the retail environment in North America, and what are the drivers of growth? A: The retail environment is strong, with Q2 sales up 3% and Q1 up double digits. Growth is driven by portfolio adjustments, including the successful launches of Super Glide and Deadwood models, which are accessible and iconic Harley-Davidson motorcycles. The Nightster model also continues to perform well.
Q: Can you provide more details on the $150 million cost savings target for 2027 under the Back to Bricks strategy? A: We are on track or slightly ahead of our cost savings target. Initiatives include headcount reductions, focusing on key strategic areas, and improving cost of goods. Our leadership team is dedicated to achieving these savings, and we'll provide more details as we approach 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
