Ricardo Torres
Harley-Davidson dealerships are on a good path as the company is expecting profits to "double" for the network.
Harley CEO Artie Starrs often calls the Milwaukee-based motorcycle maker's dealership network the best in the industry and is focused on the health of those dealerships.
"Based on current trends, we expect domestic dealer profitability to double in 2026," Starrs said on an earnings call with analysts and investors on July 23.
Harley-Davidson reported a second quarter profit of $80 million, down roughly 26% from the same time last year.
The company also reported motorcycle shipments of 39,200 for the quarter which is a 9% increase from 2025.
Dealer health is a major component to the company's plans to return to growth.
Inventory levels have been a balancing act the company has had to monitor since Starrs took over as top executive in the fall of 2026.
"Nearly every dealer was telling me and us, that they had too much inventory," Starrs said of his conversations at the time he joined Harley-Davidson. "Today, the vast majority believe it's either just right or they're asking for more bikes."
Starrs said the company can improve inventory even more by finding the right balance of makes and models to suit the dealerships.
Harley-Davidson raised its financial guidance and now expects to ship between 133,500 and 138,500 units compared to a range that was 3,500 cyclers lower.
The company also adjusted its outlook on its operating income. It now expects to have a operating income of between $10 million to $50 million in 2026. Harley-Davidson previously expected the operating income to range between a $40 million loss to a $10 million profit.
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