S&P Global Cuts Harley-Davidson to Junk, Projects 5–6% 2026 Margin
SPGI•S&P Global downgraded Harley-Davidson to junk status, forecasting a 5–6% operating margin for the motorcycle maker in 2026. The agency cited weaker sales growth, higher debt levels and margin pressure as drivers of the rating cut.
1. Downgrade Details
S&P Global has lowered Harley-Davidson’s credit rating from investment-grade to junk status, reflecting a reassessment of the company’s risk profile. The decision follows sustained weakness in motorcycle shipments and elevated leverage levels that have strained financial flexibility.
2. Margin Outlook
The ratings firm projects Harley-Davidson will achieve operating margins of 5%–6% by 2026, down from prior benchmarks. This outlook factors in persistent cost pressures, intensifying competition and modest volume growth in key markets.
