Livewire Group Stock Earnings Reports

Key points for investors: Harley-Davidson reported Q1 2026 results with mixed financials but operational progress. Global retail motorcycle sales rose 8% year-over-year (North America +14%, U.S. +16%), while wholesale shipments were down 3% YoY; dealer inventory was reduced ~22% YoY and is more current (about two-thirds 2026 model year in North America). Consolidated revenue declined 12% (largely due to HDFS moving to a capital-light model), consolidated operating income fell to $23M (EPS $0.22 vs $1.07 prior year). HDMC operating income was $19M (vs $116M YoY) with gross margin compression driven by tariffs (~$45M cost in Q1) and other mix/pricing and one-time items; full-year incremental tariff cost is now guided to $75–$90M for 2026. HDFS revenue fell 54% (new forward-flow sale structure) but operating income remains positive and credit metrics improved; LiveWire revenue grew 87% with an operating loss in line with expectations. Cash and liquidity remain solid ($1.8B cash); the company completed significant share repurchases in 2025/early-2026 and will refresh capital allocation under the new strategy. Management introduced a new strategic plan, “Back to the Bricks,” focused on restoring brand relevance and profitable growth by: (1) rebalancing the portfolio to be more rider-centric and accessible (notably reintroducing the Sportster in 2027 and launching Sprint in H2 2026), (2) restoring parts & accessories (P&A) and apparel as growth and dealer-profit drivers (targeting 20–30% P&A growth over time), (3) aligning dealer economics with an enterprise life-cycle profitability model, (4) disciplined promotions and marketing under the new RIDE platform, and (5) cost reduction actions targeting at least $150M of annual run-rate savings by 2027. Financial targets: management expects HDMC retail and wholesale units of 130k–135k for 2026 (unchanged), projects a path to $350M+ EBITDA in 2027 driven by cost savings, better alignment of wholesale/retail, Sportster/Sprint, and P&A expansion, and longer-term targets of mid-single-digit retail unit growth and 10–12% EBITDA margin over the medium term. HDFS is positioned as a capital-light, fee-heavy business with a target of $125–150M operating income by 2029. Risks and considerations: tariff policy remains a near-term headwind with some uncertainty around timing/amounts of recoveries; 2026 results reflect reduced HDFS interest income due to the loan sale; HDMC margins will face deleverage in 2026 as production is kept below shipments to manage inventories. Execution risk centers on restoring demand, delivering the Sportster/Sprint profitably, growing P&A attach rates, and converting dealer enthusiasm into sustainable volume and margin improvements.