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Harley-Davidson (HOG)
NYSE:HOG
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Harley-Davidson (HOG) AI Stock Analysis

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HOG

Harley-Davidson

(NYSE:HOG)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
$26.00
▲(4.88% Upside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by deteriorating profitability trends and notably weak recent cash flow/FCF. Offsetting factors include meaningful balance-sheet deleveraging, a reasonable valuation with a moderate dividend, and a more constructive near-term outlook after raised 2026 guidance—though tariffs, margins, and regional headwinds keep risk elevated.
Positive Factors
Balance-sheet deleveraging
Material debt reduction and a much lower debt-to-equity ratio materially improve solvency and financial flexibility. Lower leverage reduces interest burden and refinancing risk, enabling the firm to fund strategic investments, support operations through cyclical swings, and continue shareholder returns despite weaker cash flow.
Negative Factors
Weak operating cash flow and negative free cash flow
Near-zero operating cash flow and materially negative free cash flow signal degraded cash conversion versus prior years. Persistent cash weakness constrains capital allocation, reduces ability to self-fund capex or dividends, and increases the risk the firm must lean on cash reserves or external financing during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet deleveraging
Material debt reduction and a much lower debt-to-equity ratio materially improve solvency and financial flexibility. Lower leverage reduces interest burden and refinancing risk, enabling the firm to fund strategic investments, support operations through cyclical swings, and continue shareholder returns despite weaker cash flow.
Read all positive factors

Harley-Davidson (HOG) vs. SPDR S&P 500 ETF (SPY)

Harley-Davidson Business Overview & Revenue Model

Company Description
Harley-Davidson, Inc., publicly traded under the symbol HOG, is fundamentally a manufacturer and seller of motorcycles. The company's operations are divided into two primary divisions: Motorcycle Products and Related Offerings, and Financial Servi...
How the Company Makes Money
Harley-Davidson primarily makes money through (1) selling motorcycles and (2) earning revenue from its broader brand ecosystem, including parts, accessories, and apparel, and (3) generating income from financing activities. Motorcycles (product s...

Harley-Davidson Earnings Call Summary

Earnings Call Date:Jul 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: HDMC showed clear operational improvement (NA retail growth, healthier dealer inventory, successful new product launches, revenue growth at the Motor Company and raised guidance), while structural and transitional items weighed on consolidated results (large HDFS revenue decline from the capital-light transition, lower consolidated operating income and EPS, tariff exposure, supplier challenges and European weakness). Management raised guidance and reiterated multi-year targets and cost-savings plans, indicating confidence in the recovery path, but near-term cash flow, tariff risk and regional headwinds remain material.
Positive Updates
North America Retail Growth
North American retail new motorcycle sales were up 3% year-over-year in Q2 with ~30,000 motorcycles sold; Harley-Davidson reached 32% share of the U.S. 601+cc market.
Negative Updates
Consolidated Revenue and Earnings Pressure
Consolidated revenue was down 6% in Q2 driven primarily by HDFS moving to a capital-light model. Consolidated operating income fell to $76M from $112M year-over-year and EPS declined to $0.75 from $0.88.
Read all updates
Q2-2026 Updates
Negative
North America Retail Growth
North American retail new motorcycle sales were up 3% year-over-year in Q2 with ~30,000 motorcycles sold; Harley-Davidson reached 32% share of the U.S. 601+cc market.
Read all positive updates
Company Guidance
The company raised its 2026 outlook, guiding HDMC retail and wholesale units to 133,500–138,500 (up from 130,000–135,000), with retail and wholesale expected to be largely one-to-one for the year; HDMC operating income is now forecast at $10 million–$50 million (up from a prior range that included a loss), HDFS operating income at $55 million–$70 million (up from $45M–$60M), and LiveWire still expected to lose $70M–$80M. Management reiterated a $75M–$90M tariff cost expectation for the year (incurring $22M in Q2 before recoveries) and noted approximately $20M of tariff/IEEPA recoveries included in results; they also expect domestic dealer profitability to double in 2026. Q2 datapoints supporting the guide included global Q2 retail of ~42,500 (North America ~30,000, up 3%; non‑NA ~13,000, down 5%), Q2 wholesale shipments of 39,200 (up 9% YoY), HDMC Q2 revenue $1.1B (motorcycle $848M, P&A $177M), HDMC gross margin 27.5% (down 108 bps), HDMC adj. EBITDA $115M (10.4% margin), HDFS Q2 revenue $117M and operating income $22M (18.5% margin), HDFS retail originations $940M (up 10%), total finance receivables $2.7B, dealer inventory down 17% YoY (NA down 15%, non‑NA down 24%) with 85% of dealer inventory as 2026 model year (vs <75% a year ago), finished goods at lowest Q2 level since 2021, $1.9B cash on the balance sheet, and 1.3M shares repurchased ($30M) in Q2 (7.9M shares / $158M YTD).

Harley-Davidson Financial Statement Overview

Summary
Overall fundamentals are mixed. Income statement trends have weakened (TTM revenue down 4.72% with sharp margin compression and lower net margin), and cash generation is a major concern (TTM operating cash flow ~flat/negative and free cash flow negative). Offsetting this, the balance sheet has improved meaningfully with substantial deleveraging and better debt-to-equity, which reduces solvency risk.
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
30
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.11B4.47B5.19B5.84B5.76B5.34B
Gross Profit982.56M1.35B1.81B2.18B2.13B1.90B
EBITDA350.03M664.55M708.56M1.06B1.11B1.02B
Net Income201.82M338.74M455.36M706.59M741.41M650.02M
Balance Sheet
Total Assets5.94B8.04B11.88B12.14B11.49B11.05B
Cash, Cash Equivalents and Short-Term Investments1.90B3.09B1.59B1.53B1.43B1.87B
Total Debt2.24B3.05B7.03B7.20B6.96B6.94B
Total Liabilities2.83B4.89B8.72B8.89B8.59B8.50B
Stockholders Equity3.12B3.14B3.17B3.25B2.90B2.55B
Cash Flow
Free Cash Flow-133.07M415.24M867.27M547.48M396.79M855.52M
Operating Cash Flow-255.00K568.92M1.06B754.89M548.46M975.70M
Investing Cash Flow3.60B3.78B-383.33M-512.30M-773.01M-459.45M
Financing Cash Flow-3.45B-3.01B-572.32M-174.65M-201.97M-1.88B

Harley-Davidson Risk Analysis

Harley-Davidson disclosed 2 risk factors in its most recent earnings report. Harley-Davidson reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Harley-Davidson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$2.49B12.4514.69%4.45%9.12%34.38%
62
Neutral
$855.98M22.263.13%3.41%3.44%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$5.13B-60.77-5.32%2.18%10.46%-305.37%
60
Neutral
$3.82B-14.61-29.22%3.70%8.43%-143.55%
56
Neutral
$2.58B14.786.26%2.88%-5.25%-14.29%
54
Neutral
$3.90B15.056.06%2.71%2.40%18.91%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOG
Harley-Davidson
26.51
3.03
12.92%
BC
Brunswick
83.27
25.34
43.75%
LCII
LCI Industries
107.05
14.83
16.08%
PII
Polaris
73.76
23.07
45.51%
THO
Thor Industries
77.51
-14.44
-15.70%
WGO
Winnebago Industries
31.88
2.97
10.28%

Harley-Davidson Corporate Events

Executive/Board Changes
Harley-Davidson Announces New Chief Legal Officer Appointment
Neutral
Jun 26, 2026
Harley-Davidson announced a leadership transition in its legal and corporate affairs function, stating that effective June 29, 2026, Paul Krause will step down as Chief Legal, Compliance and Corporate Affairs Officer and Corporate Secretary. Kraus...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Harley-Davidson shareholders approve stock plan and board
Positive
May 28, 2026
At its May 21, 2026 annual meeting of shareholders, Harley-Davidson investors approved an amendment to the company&#8217;s 2020 Incentive Stock Plan, increasing the number of authorized shares available for equity-based compensation. Shareholders ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2026