Harley-Davidson Delivers First Quarter Financial Results

PR Newswire

MILWAUKEE, May 1, 2025

MILWAUKEE, May 1, 2025 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company") $(HOG)$ today reported first quarter 2025 results.

"Our first quarter results were ahead of our expectations in many areas, while retail sales in the U.S. came in softer than anticipated. We remain focused on navigating the challenging economic and tariff environment, through diligent execution of our cost productivity measures, supply chain mitigation, tight operating expense control and reducing dealer inventory. In addition, we remain committed to driving retail sales through increased marketing initiatives as we enter the riding season," said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson.

First Quarter 2025 Highlights and Results

   -- Delivered diluted EPS of $1.07 
 
   -- HDMC operating income margin of 10.8 percent 
 
   -- HDFS operating income margin of 26.1 percent 
 
   -- Global motorcycle retail sales down 21 percent year-over-year, driven by 
      a volatile macroeconomic environment and overall consumer uncertainty 
 
   -- HDMC revenue down 27 percent year-over-year, primarily due to a planned 
      decrease in motorcycle shipments 
 
   -- Repurchased $87 million of shares (3.4 million shares) on a discretionary 
      basis 

First Quarter 2025 Results

Harley-Davidson, Inc. Consolidated Financial Results

 
                                      1st quarter 
-------------------------------  ---------------------- 
 
     $ in millions (except EPS)   2025    2024   Change 
-------------------------------  ------  ------  ------ 
Revenue                          $1,329  $1,730   -23 % 
-------------------------------  ------  ------  ------ 
Operating Income                   $160    $263   -39 % 
-------------------------------  ------  ------  ------ 
Net Income Attributable to HDI     $133    $235   -43 % 
-------------------------------  ------  ------  ------ 
Diluted EPS                       $1.07   $1.72   -38 % 
-------------------------------  ------  ------  ------ 
 

Consolidated revenue in the first quarter was down 23 percent, driven largely by an HDMC revenue decrease of 27 percent.

Consolidated operating income in the first quarter was down 39 percent, driven by a decline of 51 percent at HDMC, partially offset by an increase of 19 percent at HDFS. At the LiveWire segment, the operating loss improved by $9 million or 32 percent lower than the prior year's loss. Consolidated operating income margin in the first quarter was 12 percent relative to 15 percent in the first quarter a year ago.

Harley-Davidson Motor Company (HDMC) -- Results

 
                                          1st quarter 
---------------------------------  ------------------------- 
 
                    $ in millions   2025    2024    Change 
---------------------------------  ------  ------  --------- 
Motorcycle Shipments (thousands)     38.6    57.7      -33 % 
---------------------------------  ------  ------  --------- 
Revenue                            $1,082  $1,476      -27 % 
---------------------------------  ------  ------  --------- 
  Motorcycles                        $864  $1,222      -29 % 
---------------------------------  ------  ------  --------- 
  Parts & Accessories                $143    $166      -14 % 
---------------------------------  ------  ------  --------- 
  Apparel                             $57     $64      -11 % 
---------------------------------  ------  ------  --------- 
  Licensing                            $3      $9      -66 % 
---------------------------------  ------  ------  --------- 
  Other                               $14     $15      -10 % 
---------------------------------  ------  ------  --------- 
Gross Margin                       29.1 %  31.2 %  -2.1 pts. 
---------------------------------  ------  ------  --------- 
Operating Income                     $116    $238      -51 % 
---------------------------------  ------  ------  --------- 
Operating Margin                   10.8 %  16.2 %  -5.4 pts. 
---------------------------------  ------  ------  --------- 
 

First quarter global motorcycle shipments decreased 33 percent, which was mostly expected but also reflects the softer than expected demand environment. Revenue was down 27 percent driven primarily by the planned decrease in wholesale shipments and unfavorable foreign currency, partially offset by favorable mix and favorable global pricing and net incentives. Parts & Accessories revenue was down 14 percent and Apparel revenue was down 11 percent, due to lower customer traffic at dealer stores.

First quarter gross margin was down 2.1 points due to the negative impact of lower volume on operating leverage, partially offset by favorable pricing. First quarter operating income margin was down 5.4 points due to the factors above, while operating expense was $24 million lower than a year ago.

Harley-Davidson Retail Motorcycle Sales

 
                               1st quarter 
--------------------------  ------------------ 
 
   Motorcycles (thousands)  2025  2024  Change 
--------------------------  ----  ----  ------ 
North America               20.9  27.5   -24 % 
--------------------------  ----  ----  ------ 
EMEA                         5.2   5.3    -2 % 
--------------------------  ----  ----  ------ 
Asia Pacific                 4.4   6.0   -28 % 
--------------------------  ----  ----  ------ 
Latin America                0.6   0.6    -6 % 
--------------------------  ----  ----  ------ 
Worldwide Total             31.0  39.4   -21 % 
--------------------------  ----  ----  ------ 
 

Global retail motorcycle sales in the first quarter were down 21 percent versus the prior year, reflecting weak demand due to a high interest rate environment and an uncertain economic outlook, which has led to unfavorable consumer confidence. North America retail performance was down 24 percent, while EMEA retail performance was down 2 percent.

APAC retail performance was down 28 percent, with significant weakness in China and Japan. Latin America experienced modest declines in both Mexico and Brazil.

Harley-Davidson Financial Services (HDFS) -- Results

 
                      1st quarter 
-----------------  ------------------ 
 
    $ in millions  2025  2024  Change 
-----------------  ----  ----  ------ 
Revenue            $245  $249    -2 % 
-----------------  ----  ----  ------ 
Operating Income    $64   $54    19 % 
-----------------  ----  ----  ------ 
 

HDFS' operating income increased by $10 million in the first quarter or 19 percent. This was due to a lower provision for credit losses and lower operating expenses relative to a year ago, as financing receivables declined modestly. Interest expense in the first quarter was largely flat relative to a year ago. Total quarter ending financing receivables were $7.4 billion, which was down 6 percent versus prior year, due to a decrease in retail loan receivables and commercial finance receivables.

LiveWire -- Results

 
                                     1st quarter 
-------------------------------  -------------------- 
 
                  $ in millions  2025   2024   Change 
-------------------------------  -----  -----  ------ 
Electric Motorcycle Unit Sales      33    117   -72 % 
-------------------------------  -----  -----  ------ 
Revenue                             $3     $5   -42 % 
-------------------------------  -----  -----  ------ 
Operating Loss                   ($20)  ($29)    32 % 
-------------------------------  -----  -----  ------ 
 

LiveWire revenue for the first quarter decreased by 42 percent. The revenue decline was due to lower electric motorcycle unit sales and lower STACYC electric bike sales. LiveWire's operating loss of $20 million in the first quarter includes a $7.3 million reduction in selling, administrative and engineering expense from cost reduction activities taken in 2024.

Harley-Davidson, Inc. Other Results -- First Quarter 2025

   -- Generated $142 million of cash from operating activities 
 
   -- Effective tax rate was 27 percent 
 
   -- Paid cash dividends of $23 million 
 
   -- Repurchased $87 million of shares (3.4 million shares) on a discretionary 
      basis 
 
   -- Cash and cash equivalents of $1.9 billion at the end of the quarter 

2025 Financial Outlook

Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook from February 5, 2025.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. Harley-Davidson also has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States. LiveWire is the future in the making for the pursuit of urban adventure and beyond. Drawing on its DNA as an agile disruptor from the lineage of Harley-Davidson and capitalizing on a decade of learnings in the EV sector, LiveWire's ambition is to be the most desirable electric motorcycle brand in the world. Learn more at harley-davidson.com and livewire.com.

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