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Harley-Davidson Is Under Tariff Pressure—How Big Is the Margin Risk Heading Into 2026?

Harley-Davidson’s Q4 and full year 2025 results reflect a mix of strategic interventions and persistent challenges. The company experienced a 28% decline in consolidated revenue for the fourth quarter, with Harley-Davidson Motor Company (HDMC) revenue decreasing by 10% and Harley-Davidson Financial Services (HDFS) revenue plunging by 59%. The decrease at HDMC is attributed primarily to reduced wholesale volumes and increased costs associated with tariffs and promotional spending. Meanwhile, the HDFS revenue decline relates to strategic restructurings, including a significant divestiture of existing loan receivables. CEO Artie Starrs, in his first full quarter, has emphasized a multi-pronged approach to stabilize and eventually grow the business. The company is focused on three immediate priorities: improving dealer profitability, reigniting brand momentum, and reducing operational costs. Actions include dealer network enhancements, inventory management revisions, and reevaluation of e-commerce strategies to reduce confusion and improve dealership traffic.