Harley-Davidson, Inc. Q1 FY2026 earnings call

• Retail sales: North America up 14% vs prior year, global up 8%. Reduced global inventory 22% year-over-year. Reopened Juneau Avenue headquarters. Positive reception to new marketing platform RIDE. • HDMC: North American retail sales up 14%, EMEA down 3%, Asia Pacific down 9%, Latin America up 21%. Dealer inventory improved. • HDFS: Revenue down 54% but operating income $22M. • LiveWire: Revenue up 87%, focus on S4 honcho launch, network expansion, cost savings, etc. • Strategy: Back to the Bricks plan to reignite brand enthusiasm, focus on leveraging competitive advantages, win-win with dealers, recapture share, refocus brand around community, restore portfolio to be more rider-centric, strengthen dealer profitability, bring back Sportster in 2027, introduce Sprint in back half of 2026, rebuild parts and accessories leadership, refine promotions, launch Ride marketing platform.

Consolidated revenue in Q1 2026 was down 12%, driven primarily by HDFS revenue down 54% due to the new capital light model. HDMC retail sales: North America new motorcycle retail sales up 14% (U.S. up 16%, Canada down 8%), global retail sales up 8%. HDMC revenue in Q1 was $1.1 billion, down 2%, with motorcycles at $836M, DNA plus apparel at $200M, licensing and other at $20M. HDMC gross profit 25.3% vs 29.1% prior year. HDFS Q1 revenue $112M, down 54%, operating income $22M. LiveWire Q1 revenue up 87%, operating loss $18M.

• Reaffirms 2026 guidance: HDMC retail and wholesale units 130,000 - 135,000. Expect shipments higher in Q2, flat in Q3, up in Q4. HDMC operating income positive $10M to loss $40M. HDFS operating income $45M - $60M. LiveWire operating loss $70M - $80M. • Tariffs: 2026 tariff cost range $75M - $90M, expected to decrease consecutively. • Medium term: Expect mid-single digit retail unit growth, mid-single digit growth in P&A and A&L, gross margins approaching 30%, operating expenses as % of sales <20%, 10-12% EBITDA margin. • HDFS: Target $125 - $150M operating income by 2029.

• Consumer discretionary landscape uneven. • Pricing concerns due to inflation, interest rates, geopolitical uncertainty. • Tariff regulatory environment evolution with potential impacts. • Global geopolitical uncertainty affecting business. • Impact of HDFS transaction and changes in business model. • Performance of LiveWire segment

Q: What is the medium term?

A: Three to five years.

Q: On tariffs, how is it expected?

A: 2026 tariff midpoint $83M, first quarter had $45M, balance of year $38M, expected to decrease consecutively.

Q: How much retail growth from Sportster and Sprint?

A: Significant portion of growth expected from them, also from blank canvas motorcycles and distributed accessible portfolio.

Q: On HDFS receivables and revenue breakdown?

A: HDFS sold back book, continues to service loans, fee income from servicing, card products, etc.

Q: On dealer profitability and rebate program?

A: Modest headwind from rebate program change, predictability for dealers is key.

Q: On LiveWire and demand influence?

A: LiveWire team focused, Harley-Davidson focused on back-to-the-bricks plan, LiveWire team working on dealer relationship approach.

Q: On dealer network size?

A: Committed to healthy network, not precious about size but about dealers enthusiastic about brand and serving riders well.

Q: On cost reduction and gross margin trends?

A: Teams identified cost reduction areas, pricing and mix relatively stable in remainder of year