Harley-Davidson Inc

Sonic Automotive reported record second-quarter total revenues of $3.9 billion, an 8% increase year over year, and an all-time quarterly record gross profit of $616.2 million, up 2%. GAAP earnings per diluted share were $1.79, while adjusted EPS came in at $1.82. The company raised its full-year new vehicle gross profit per unit guidance to a range of $2,850 to $3,000, up from the prior $2,700 to $3,000, citing better-than-expected first-half performance. EchoPark segment revenue grew 15% to $582.9 million, with retail used unit volume surging 17% to 19,600 units, significantly outpacing the broader industry. Powersports segment revenue jumped 53% to a second-quarter record $73.5 million, and adjusted EBITDA in that segment rose 145% to $4.9 million, reflecting the integration of recently acquired Harley-Davidson dealerships. The Board approved a quarterly cash dividend of $0.41 per share, payable on October 15, 2026, to shareholders of record as of September 15, 2026.

Harley-Davidson may be modestly undervalued following its second quarter 2026 earnings and an active share repurchase program. The stock trades at $25.49 against a widely followed fair value estimate of $26.91, suggesting about 5.3% upside. A new partnership in Harley-Davidson Financial Services unlocks $1.25 billion in cash, reduces leverage, and frees up $300 million for growth investments, which can support earnings per share and future revenue. However, a discounted cash flow model from Simply Wall St estimates fair value at just $6.57, highlighting a wide gap in expectations. The company also faces risks from weak global motorcycle demand and slower electric motorcycle adoption.

Harley-Davidson reported second-quarter 2026 earnings of 75 cents per share, beating the Zacks Consensus Estimate of 62 cents by 21 percent. Earnings declined 15 percent from 88 cents a year ago. Harley-Davidson Motor Company revenues increased 6 percent year over year to 1.10 billion dollars but missed the Zacks Consensus Estimate of 1.12 billion dollars. Consolidated revenues fell 6 percent year over year to 1.23 billion dollars as a sharp decline at Harley-Davidson Financial Services offset growth at the motorcycle business. The company raised its full-year projection for global motorcycle retail sales and wholesale shipments to a range of 133,500 to 138,500 units from the previous estimate of 130,000 to 135,000 units, and now expects HDMC operating income between 10 million and 50 million dollars compared with the earlier expected range of a 40 million dollar loss to a 10 million dollar profit.

Harley-Davidson raised its full-year 2026 guidance following second quarter results that showed North American retail motorcycle sales up 3 percent to 29,751 units. Global dealer inventory of new motorcycles ended the quarter down 17 percent from a year earlier, while HDMC global motorcycle shipments rose 9 percent to 39,209 units. Net income attributable to HDI fell 26 percent to $80 million, primarily due to the HDFS shift to a capital-light model, partially offset by HDMC improvement. HDMC revenue increased 6 percent to $1.1 billion, and its adjusted EBITDA margin improved to 10.4 percent from 9.3 percent a year ago. The company now expects full-year HDMC global retail sales and wholesale shipments of 133,500 to 138,500 units, up from a prior range of 130,000 to 135,000, and HDMC operating income of $10 million to $50 million, compared with a previous range of a $40 million loss to a $10 million profit.