Harley Q1 net income drops 81% as HDFS receivables sale, tariffs, and lower output hit margins

Filed May 6, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

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  Net income fell 81.4% to $24.8M ($0.22/share) from $133.1M ($1.07/share) in Q1 2025. HDMC operating income dropped $97.3M to $18.9M on higher costs, tariffs, and lower shipments; HDFS operating income fell $41.8M to $22.2M as 2025's receivables sale slashed interest income on a smaller portfolio.

  MD&A: Q1 2026 Results verify on EDGAR →
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  New CEO hired October 2025; company replaced Hardwire plan with Back to the Bricks strategy targeting $150M+ cost savings by 2028 and mid-single-digit retail sales CAGR over 3-5 years. Discontinued $1B buyback plan after completing $726M; future capital allocation aligns with new strategy.

  MD&A: Strategic Plan & Capital Allocation verify on EDGAR →
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  Q1 2026 tariff costs totaled ~$45M; full-year estimate narrowed to $75-90M (from $75-105M). Company received €35M (~$41M) EU tariff refund in February 2026, reducing HDMC cost of goods sold. 2026 HDMC operating income guidance: -$40M to +$10M on unfavorable manufacturing leverage and tariff headwinds.

  MD&A: Tariffs & HDMC Guidance verify on EDGAR →