American Motorcycle Dealer 317 December 2026 AMD 317 December 2026 | Page 8

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significant value while transforming Harley-Davidson Financial Services into a capitallight, de-risked business. " This transaction releases over $ 1.2bn in discretionary cash and sets the foundation for higher returns and sustained growth. Importantly, Harley- Davidson retains full control and majority ownership of HDFS- ensuring no change for our dealers or customers, which we believe continues to drive long-term value creation." ' Highlights ' of the third quarter 2025 results include: Global motorcycle retail sales down 6 % versus the prior year HDMC revenue up 23 % versus prior year Global motorcycle shipments increased 33 % versus prior year HDMC operating income margin of 5.0 % Global dealer inventories down 13 %, compared to the end of Q3 2024, " as we continued to prioritize reducing global dealer inventory " New or increased 2025 implemented tariff costs of $ 27m in Q3 2025( Harley says that it is now buying 75 % of its domestic use components in the USA) Delivery of diluted EPS of $ 3.10 HDFS operating income of $ 439m(" reflecting impact of HDFS transaction through end of Q3 ") By way of an update on the HDFS Transaction, the company says that the Strategic Partnership with KKR and PIMCO " unlocks significant discretionary cash " and that the transaction includes three key elements: 1) Back Book Sale: Sale of approximately $ 6bn of existing HDFS loan receivables 2) Forward Flow Agreement: Sale of future HDFS loan originations 3) Sale of Equity Interests: Sale of a 9.8 % common equity interest in HDFS to KKR and PIMCO The deal is expected to unlock approximately $ 1.2- $ 1.25bn in discretionary cash no later than the end of the first quarter of 2026 " as HDFS completes its debt reduction activities." The deal was announced in July with headline ambition being to " transform HDFS into a capital-light, de-risked business model with HDFS expecting to continue to originate and service both new and existing retail loans." In August, the sale of residual interests in securitized finance receivables of approximately $ 1.9bn( along with related debt of $ 1.7bn) was completed and October saw completed agreements for the Back Book Sale, Forward Flow Agreement,

Harley released a first tranche of MY2026 details in early November, with additional 2026 models, including the limited-production Custom Vehicle Operation( CVO) collection, slated to be revealed as a Second Chapter on January 14, 2026. Meanwhile Chapter One highlights include these three Solo Seat Trim Package models with cast aluminum wheels and seen here in Dark Billiard Gray paint. The Solo Trim Package is available for the Heritage Classic( United States MRSP $ 19,999), Street Bob($ 14,999), and the Street Glide($ 24,999).

Harley-Davidson, Inc. Consolidated Financial Results

Harley-Davidson Motor Company( HDMC)

Harley-Davidson Retail Motorcycle Sales

and Sale of Equity Interests. The real news from the Q3 results came from the Investor and Analyst webcast Q & A though, with Artie Starrs outlining his priorities and plans. There will be more on that in the Comment ' Op-ed ' in the December edition of AMD, but it is noteworthy that he is reinforcing the well-received ' good-start ' he made before, after and at the October Dealer Forum in Milwaukee in October by talking to, and, importantly, listening to as many different dealer perspectives and opinions as possible and placing their needs and interests up front and center where future strategy is concerned. In terms of Q3 results detail, Global retail motorcycle sales were down 6 % versus the prior year third quarter, " reflecting continued soft demand amid unfavorable consumer confidence, high relative interest rates, and inflation concerns." North America retail performance was down 5 %. International retail performance was down 9 %, with EMEA weaker than the APAC region, and Latin America experiencing modest growth. Consolidated revenue in the third quarter was up 17 % versus prior year, driven primarily by a revenue increase of 23 % at HDMC. Consolidated operating income in the third quarter was up at $ 475m versus $ 106m in the prior year period, primarily driven by the HDFS transaction. At HDMC, operating income was down 2 %. LiveWire segment operating loss improved by $ 8m, which was 30 % lower than the prior year ' s loss. Q3 HDMC Motorcycles revenue was up 34 %, driven by global motorcycle shipments increasing 33 % versus prior year. Parts & Accessories revenue was down 4 % and Apparel revenue was up 1 %. Third quarter HDMC gross margin was down 3.7 points versus prior year, due to unfavorable operating leverage, the cost of new or increased tariffs implemented this year, and unfavorable foreign currency impacts. These factors were partially offset by the favorable impact of net pricing and

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8 AMERICAN MOTORCYCLE DEALER- DECEMBER 2025 www. AMDmag. com