Harley-Davidson, Inc.

Thank you for standing by and welcome to the Harley-Davidson 2026 Second Quarter Investor and Analyst Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Shawn Collins. Thank you. Please go ahead.

Thank you. Good morning. This is Shawn Collins, the Director of Investor Relations at Harley-Davidson. You can access the slides supporting today's call on the internet at the Harley-Davidson Investor Relations website. As you might expect, our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in today's earnings release and in our latest filings with the SEC. Joining me for this morning's call are Harley-Davidson Chief Executive Officer Artie Starrs and Chief Financial and Commercial Officer, Jonathan Root. With that, let me turn it over to Harley-Davidson CEO, Artie Starrs.

Thank you, Shawn. Good morning, everyone, and thank you for joining us today for our second quarter 2026 results. Before I get into the quarter, I want to start by thanking our Harley-Davidson employees and our dealers around the world. The progress we are beginning to see is the direct result of your focus, your urgency, and your commitment to this brand. I also want to thank our riders and the broader motorcycle community for continuing to support Harley-Davidson and for holding us to the high standard this company has earned over more than 120 years. Last quarter, we introduced our new strategic plan back to the bricks. We said that 2026 would be a transition year as we reset the business. rebuild dealer confidence, improve execution, and position Harley-Davidson for stronger, more durable performance over time. We also said that the work would not happen overnight, but that we would move with urgency and discipline. In the second quarter, we are pleased with the early progress we made against that plan. At the motor company, our results reflect a business that we believe is beginning to stabilize and a team that is executing with greater focus Domestic retail remains strong, with North America retail up 3%, the third consecutive year-over-year quarter of retail growth in North America. That continued strength is important. It shows that when we have the right motorcycles, the right dealer engagement, and the right marketing support in the market, riders respond. We are pleased with the overall domestic market share year-to-date and continued strength in touring and Q2. We also made continued progress on one of the most important priorities when I joined the company, dealer inventory health. At the end of the quarter, dealer inventory position was meaningfully improved, and over 85% of dealer inventory was model year 2026 product. That is the healthiest inventory position global dealers have had in years, an improvement year over year for the past seven quarters. This matters because a healthier dealer network is foundational to Harley-Davidson's long-term earnings power. When dealers have the right inventory at the right time with the right margin profile, they can focus on what they do best, serving riders, building community, and growing the brand in their markets. Dealer health was a central theme in our Q4 and Q1 discussions, and I want to be very clear that it remains non-negotiable. Based on current trends, we expect domestic dealer profitability to double in 2026. We are continuing our focus on aligning wholesale activity with retail demand, improving the quality of inventory in the channel, and continuing to take actions that strengthen dealer economics. Those actions can create short-term pressure in certain areas, but they are the right actions for the long-term health of the business. We are also experiencing encouraging signs from our product and brand work In the past few months, we released two new motorcycles that reflect the direction of Back to the Bricks, blank canvas motorcycles that are true to Harley-Davidson and bike customization and give riders a stronger emotional connection to the brand. While we are highlighting the launch of the new Superglide in our Q2 materials, both the new Superglide and Deadwood models have generated meaningful enthusiasm across the community. These are motorcycles with real Harley-Davidson character. They are designed so riders can make them their own, and that is exactly where this brand has always been strongest. The early reaction from riders and dealers reinforces our confidence in the product direction. Sell-through on Superglide has been strong, dealer enthusiasm has been high, and MSRP realization is among the strongest we have seen in some time. That is an important signal. It tells us the market is responding to motorcycles that are authentic, desirable, and supported by a clear go-to-market approach. Deadwood motorcycles are hitting dealerships in the U.S. as we speak. The reactions from motorcycle media and riders on social have been overwhelmingly positive and enthusiastic, with many referencing iconic Harley-Davidson personality, the opportunity to customize, and the compelling price point for a large displacement softtail. Our marketing is also beginning to work harder for the business. We've been more focused, more local, and more connected to the rider community. I specifically want to call out the grassroots partnerships with custom bike builders and bike shop owners around the Superglide and Deadwood launches. These partnerships are important because they put the brand back into the hands of the people who live motorcycle culture every day. That is where Harley-Davidson belongs. If you haven't seen the advertising for these two launches, I'd encourage you to do so. Our team has done a fantastic job maintaining the joy and swagger of our ride marketing platform while celebrating riding and the riding community. As we begin our strategic journey, we're also encouraged by the internal progress toward restoring our parts and accessories business. We've appointed a GM of the business, have identified the key accessory categories we will be focused on in the near term, and are actively preparing for model year 2027 parts and accessories launch alongside our motorcycle launch. The team is demonstrating early green shoots as P&A is tracking ahead of our beginning of year plans. This is a critical part of the back to the brick strategy and our riders and dealers are excited to see us refocusing on customization. Customization is not an add-on to the Harley-Davidson experience. It is core to the Harley-Davidson experience. It drives rider connection, it creates important opportunities for our dealers, and it supports a stronger and more diversified revenue model for the motor company. At HDFS, the business continued to advance ahead of our plans, including progress on forward flow activity. HDFS remains a strategic asset for Harley-Davidson and a critical enabler for our dealers and customers. The changes we have made to the business are designed to create a more capital-efficient model while preserving the important role HDFS plays in supporting retail sales, dealer financing, and the rider experience. Taken together, the progress in retail, dealer inventory, product launches, P&A, apparel and licensing, and HDFS give us confidence to increase our guidance for the year across retail, HDMC, operating income, and HDFS Operating Income. Jonathan will provide more detail on the financial results and updated outlook, but from my perspective, the headline is simple. We are still early in the work, but the business is moving in the right direction. That said, we also have areas where we need to improve and areas where the operating environment remains uncertain. First, Europe remains a challenging market. We are not satisfied with our performance there. We are making portfolio adjustments that we expect will significantly help over time, and we are applying the same discipline in Europe that we are applying across the broader business. Better alignment between product, price, customer demand, dealer economics, and local market needs. One prime example of that is the return of the Sportster 883 in 2027, which our European dealers are particularly excited about. We are working through a couple of domestic supplier challenges. Our team has done an excellent job managing through these issues, but they have had an impact on margins in 2026. We are focused on improving reliability, reducing friction in the supply chain, and ensuring that our manufacturing and product teams have the support they need to deliver with consistency and quality. Third, tariff uncertainty remains an ongoing factor. We remain committed to further strengthening our U.S. manufacturing, and our employees and dealers are particularly excited about our recent announcement to move RevMax production for North American motorcycles back to the United States. The tariff environment continues to evolve, and we will continue to be transparent with our investors on the impact of tariffs on our financial results. The most critical actions as we confront these challenges remain in driving a more balanced portfolio of motorcycles in service of our riders' needs alongside effective inventory management that promotes dealer profitability improvements. I am very pleased with our initial results in getting back to the bricks. Now I will turn it over to Jonathan to go through the specifics, which include taking our full year guidance up for fiscal year 2026 in a number of areas.