Harley-Davidson Delivers Second Quarter Financial Results and Announces HDFS Transaction with KKR and PIMCO

Rhea-AI Summary

Harley-Davidson (NYSE:HOG) reported Q2 2025 results and announced a significant transaction with KKR and PIMCO involving its Financial Services division (HDFS). The transaction values HDFS at 1.75x post-transaction book value and will unlock $1.25 billion in cash.

Q2 2025 showed challenging results with diluted EPS of $0.88, down 46% year-over-year. Revenue declined 19% to $1.307 billion, while global motorcycle shipments decreased 28%. The company plans to use transaction proceeds to reduce debt by $450 million and accelerate its share buyback program with $500 million in H2 2025, with $300 million reserved for growth opportunities.

Under the HDFS deal, KKR and PIMCO will acquire a 4.9% equity stake and purchase approximately two-thirds of HDFS future retail loan originations for five years, along with over $5 billion of existing consumer retail loans.

Positive

• HDFS transaction unlocks $1.25 billion in cash, representing 40% of current market cap
• Strategic deal values HDFS at 1.75x post-transaction book value
• $500 million acceleration of share buyback program in H2 2025
• $450 million planned debt reduction
• HDFS operating income margin remains strong at 27.1%
• LiveWire operating loss improved by 34% year-over-year

Negative

• Global motorcycle retail sales declined 15% year-over-year
• Revenue decreased 19% to $1.307 billion
• Operating income fell 53% year-over-year
• Diluted EPS dropped 46% to $0.88
• Motorcycle shipments decreased 28%
• New tariffs cost $13 million in Q2 2025
• Company withdrew full-year 2025 financial outlook due to uncertain conditions

News Market Reaction

+13.38% 1.6x vol

38 alerts

+13.38% News Effect

+17.6% Peak in 2 hr 16 min

+$408M Valuation Impact

$3.46B Market Cap

1.6x Rel. Volume

On the day this news was published, HOG gained 13.38%, reflecting a significant positive market reaction. Argus tracked a peak move of +17.6% during that session. Our momentum scanner triggered 38 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $408M to the company's valuation, bringing the market cap to $3.46B at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

MILWAUKEE, July 30, 2025 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company") (NYSE: HOG) today reported second quarter 2025 results and announced a transaction entered into by its subsidiary, Harley-Davidson Financial Services. 

"While our second quarter results continue to be impacted by a challenging commercial environment for discretionary products and an uncertain tariff situation, we are extremely pleased to announce a strategic partnership for HDFS with KKR and PIMCO that generates significant value for Harley-Davidson on all levels," said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. "Our strategic partners have valued the HDFS business at approximately 1.75x post transaction book value. We expect this will unlock $1.25 billion in cash and leaves HDFS well positioned to serve our customers and dealers. With the cash from the transaction, we plan to reduce our debt by $450 million and accelerate our $1 billion share buyback program announced last year, by the purchase of $500 million in the second half of '25. We also have the flexibility to invest up to $300 million of additional funds into future growth opportunities."

Second Quarter 2025 Highlights and Results

• Delivered diluted EPS of $0.88
• HDMC operating income margin of 5.9%
• HDMC revenue down 23% year-over-year
• Global motorcycle shipments decreased 28%, due primarily to planned dealer inventory reduction and soft demand
• Global motorcycle retail sales down 15% year-over-year
• Global dealer inventories down 28%, compared to Q2 '24, as we continued to prioritize reducing global dealer inventory
• The cost of new or increased tariffs implemented in 2025 was $13 million in Q2 '25
• HDFS operating income margin of 27.1%

HDFS Transaction Key Highlights

• Our strategic partners have valued the HDFS business at approximately 1.75x post transaction book value 
• HDFS has agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO
• HDFS will sell approximately two-thirds of HDFS future retail loan originations at a premium on an annual basis for five years
• The transaction unlocks $1.25 billion in discretionary cash, representing approximately 40% of current Harley-Davidson market capitalization
• HDFS has agreed to sell over $5 billion of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium
• HDFS expects to use a portion of the proceeds to reduce indebtedness to optimize its post transaction capital structure

Second Quarter 2025 Results

Harley-Davidson, Inc. Consolidated Financial Results 

$ in millions (except EPS)	2nd quarter
	2025	2024	Change
Revenue	$1,307	$1,619	-19 %
Operating Income	$112	$241	-53 %
Net Income Attributable to HDI	$108	$218	-51 %
Diluted EPS	$0.88	$1.63	-46 %

Consolidated revenue in the second quarter was down 19 percent versus prior year, driven largely by an HDMC revenue decrease of 23 percent. Consolidated operating income in the second quarter was down 53 percent, driven largely by a decline of 69 percent at HDMC. At the LiveWire segment, the operating loss improved by $10 million, which was 34 percent lower than the prior year's loss. Consolidated operating income margin in the second quarter of 2025 was 9 percent relative to 15 percent in the second quarter a year ago.

Harley-Davidson Motor Company (HDMC) – Results

$ in millions	2nd quarter
	2025	2024	Change
Motorcycle Shipments (thousands)	35.8	49.7	-28 %
Revenue	$1,044	$1,349	-23 %
Motorcycles	$778	$1,069	-27 %
Parts & Accessories	$187	$194	-4 %
Apparel	$55	$63	-13 %
Licensing	$6	$5	8 %
Other	$18	$17	0 %
Gross Margin	28.6 %	32.1 %	-3.5 pts.
Operating Income	$61	$198	-69 %
Operating Margin	5.9 %	14.7 %	-8.8 pts.

Second quarter global motorcycle shipments decreased 28 percent versus prior year. Revenue was down 23 percent driven primarily by the planned decrease in wholesale shipments, partially offset by favorable global pricing and favorable foreign currency. Parts & Accessories revenue was down 4 percent and Apparel revenue was down 13 percent.

Second quarter gross margin was down 3.5 points, versus prior year, due to the negative impact of lower volume on operating leverage and due to the cost of new or increased tariffs implemented this year, partially offset by favorable foreign currency, favorable pricing, and favorable mix. Second quarter operating income margin was down 8.8 points due to the factors above, while operating expense was $2 million higher than a year ago.

Harley-Davidson Retail Motorcycle Sales 

Motorcycles (thousands)	2nd quarter
	2025	2024	Change
North America	28.9	34.8	-17 %
EMEA	7.6	8.0	-5 %
Asia Pacific	5.0	6.3	-21 %
Latin America	0.7	0.8	-11 %
Worldwide Total	42.3	50.0	-15 %

Global retail motorcycle sales in the second quarter were down 15 percent versus the prior year, reflecting soft demand and unfavorable consumer confidence due to a high-interest rate environment and an uncertain economic outlook. North America retail performance was down 17 percent, reflecting lower than expected customer traffic at dealerships. EMEA retail performance was down 5 percent, with puts and takes throughout the region. APAC retail performance was down 21 percent, with significant weakness in China and Japan. Latin America experienced modest declines.

Harley-Davidson Financial Services (HDFS) – Results

$ in millions	2nd quarter
	2025	2024	Change
Revenue	$257	$264	-2 %
Operating Income	$70	$71	-2 %

HDFS' operating income decreased by less than $2 million in the second quarter or 2 percent versus prior year. This was due to lower net interest income and higher operating expenses, partially offset by a lower provision for credit losses and higher other income, as financing receivables declined modestly. Interest expense in the second quarter was largely flat. Total quarter ending financing receivables were $7.3 billion, which was down 9 percent versus prior year, due to a decrease in retail loan receivables and commercial finance receivables.

LiveWire – Results

$ in millions	2nd quarter
	2025	2024	Change
Electric Motorcycle Unit Sales	55	158	-65 %
Revenue	$6	$6	-7 %
Operating Loss	($19)	($28)	34 %

LiveWire revenue for the second quarter decreased by 7 percent versus prior year, due to lower electric motorcycle unit sales. LiveWire's operating loss of $19 million, $10 million less than a year ago, was in line with expectations.

Harley-Davidson, Inc. Other Results – YTD through end of Q2

• Generated $509 million of cash from operating activities
• Effective tax rate was 23%
• Paid cash dividends of $45 million
• Repurchased $87 million of shares (3.4 million shares) on a discretionary basis; 
  no shares purchased in Q2 2025
• Cash and cash equivalents of $1.6 billion at the end of the quarter

2025 Financial Outlook 

On May 1, 2025, due to the uncertain global tariff situation and overall macroeconomic conditions, we withdrew our full year 2025 financial outlook that had been provided on February 5, 2025. Given that the global tariff and business outlook especially for discretionary product purchases remains uncertain, we continue to withhold our full year HDMC 2025 financial outlook.

For LiveWire, we are updating our previously issued guidance related to Operating Loss to $59-$69 million and a total cash use of $50-$60 million.

Based on the HDFS transaction, we now expect HDFS operating income of $525-550 million for full year 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.

Webcast

Harley-Davidson will discuss its financial results, the HDFS transaction, and outlook on an audio webcast at 8:00 a.m. CDT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CDT.

Cautionary Note Regarding Forward-Looking Statements

The Company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "projects," "may," "will," "estimates," "targets," "intends," "forecasts," "seeks," "sees," "should," "feels," "commits," "assumes," "envisions,"  or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to: (a) execute its business plans and strategies, including without limitation the Hardwire strategic plan, each of the pillars, and the evolution of LiveWire as a standalone brand; (b) manage supply chain and logistics issues, including without limitation quality issues, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Ukraine, or natural disasters and longer shipping times and increased logistics costs; (c) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company's ability to sell products domestically and internationally, and the cost of raw materials and components, including tariffs recently imposed or that may be imposed by the U.S. on foreign goods or rebalancing or other tariffs recently imposed or that may be imposed by foreign countries on U.S. goods; (d) accurately analyze, predict and react to changing market conditions, interest rates, and geopolitical environments, and successfully adjust to shifting global consumer needs and interests; (e) accurately predict the margins of its segments in light of, among other things, tariffs, rebalancing trade measures, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company's complex global supply chain; (f) maintain and enhance the value of the Harley-Davidson brand, including detecting and mitigating or remediating the impact of activist collective actions, such as calls for boycotts and other brand-damaging behaviors that could harm the Company's brand or business; (g) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing domestic and international political environments, including as a result of the conflict in Ukraine; (h) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (i) successfully carry out its global manufacturing and assembly operations; (j) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to strengthen and grow its leadership position in Grand American Touring, large Cruiser and Trike, and grow its complementary businesses; (k) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (l) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (m) prevent, detect and remediate any issues with its motorcycles, or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (n) successfully manage and reduce costs throughout the business; (o) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods, including the Company's dealer footprint, and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (p) realize the expected business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to execute its plans to develop, produce, market and sell its electric vehicles; (ii) the demand for and consumer willingness to adopt two- and three-wheeled electric vehicles; and (iii) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in Risk Factors under Item 1.A of LiveWire Group Inc.'s most recent Annual Report on Form 10-K; (q) manage the quality and regulatory non-compliance issues relating to the brake hose assemblies provided to the Company by Proterial Cable America, Inc. in a manner that avoids future quality or non-compliance issues and additional costs or recall expenses that are material; (r) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name; (s) successfully maintain or achieve a manner in which to sell motorcycles in Europe, China, and the Company's Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (t) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (u) retain and attract talented employees and leadership and qualified and experienced independent directors for its Board of Directors, eliminate personnel duplication, inefficiencies and complexity throughout the organization, and successfully complete transitions of executives, including the Company's upcoming CEO transition; (v) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (w) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services' loan portfolio; (x) prevent a ransomware attack or cybersecurity incidents and data privacy breaches and respond to related evolving regulatory requirements; (y) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company's business; (z) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (aa) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (bb) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations, including increased environmental, safety, emissions or other regulations; (cc) manage its exposure to product liability claims in a manner that avoids or successfully mitigates the impact of substantial jury verdicts, and manage exposure in commercial or contractual disputes; (dd) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (ee) enter into and close third-party investment(s) in HDFS in a manner consistent with the Company's objectives and that does not adversely affect its business; (ff) manage risks related to outsourced functions and use of artificial intelligence; (gg) achieve anticipated results with respect to the Company's preowned motorcycle program, Harley-Davidson Certified, the Company's H-D1 Marketplace, and Apparel and Licensing; (hh) optimize capital allocation in light of the Company's capital allocation priorities; (ii) manage the Company's share repurchase strategy; and (jj) manage issues related to climate change and related regulations.

The Company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company's dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company's dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, or other factors.

HDFS' retail credit losses have normalized in recent quarters to higher levels after a period of historically low levels of credit losses. Further, the Company believes that HDFS's retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions, including the impact of inflation and HDFS's efforts to increase prudently structured loan approvals to sub-prime borrowers. In addition, HDFS's efforts to adjust underwriting criteria based on market and economic conditions and the actions that the Company has taken and could take that impact motorcycle values may impact HDFS's retail credit losses.

The Company's operations, demand for its products, and its liquidity could be adversely impacted by changes in tariffs, inflation, work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Ukraine, or other factors. Refer to Risk Factors under Item 1.A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 26, 2025 and applicable updates under Item 1.A of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 filed with the SEC on May 6, 2025 for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

### (HOG-Earnings)

 

Harley-Davidson, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
		2025		2024		2025		2024
HDMC revenue		$    1,043,649		$     1,348,906		$     2,125,155		$     2,825,012
Gross profit		298,705		433,126		613,949		894,196
Selling, administrative and engineering expense		237,389		235,221		436,362		457,845
Operating income from HDMC		61,316		197,905		177,587		436,351
LiveWire revenue		6,011		6,448		8,754		11,152
Gross profit (loss)		162		(1,784)		(1,619)		(5,725)
Selling, administrative and engineering expense		18,815		26,382		36,842		51,682
Operating loss from Livewire		(18,653)		(28,166)		(38,461)		(57,407)
HDFS revenue		257,438		263,539		502,399		512,336
HDFS expense		187,665		192,176		368,590		387,098
Operating income from HDFS		69,773		71,363		133,809		125,238
Operating income		112,436		241,102		272,935		504,182
Other income, net		14,477		15,879		30,750		36,443
Investment income		10,950		14,811		19,891		29,215
Interest expense		(7,696)		(7,680)		(15,382)		(15,359)
Income before income taxes		130,167		264,112		308,194		554,481
Income tax provision		24,422		48,706		71,652		106,842
Net income		$       105,745		$        215,406		$        236,542		$        447,639
Less: Loss attributable to noncontrolling interests		1,824		2,863		4,131		5,571
Net income attributable to Harley-Davidson, Inc.		$       107,569		$        218,269		$        240,673		$        453,210
Earnings per share:
Basic		$              0.89		$               1.64		$               1.96		$               3.36
Diluted		$              0.88		$               1.63		$               1.95		$               3.34
Weighted-average shares:
Basic		121,521		133,412		122,727		134,759
Diluted		122,203		134,108		123,457		135,513
Cash dividends per share:		$         0.1800		$           0.1725		$           0.3600		$           0.3450
LiveWire results presented in the Company's financial statements represent the LiveWire reportable segment as determined in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280 Segment Reporting which may differ from LiveWire Group, Inc. results.
Harley-Davidson, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
				(Unaudited)				(Unaudited)
				June 30,		December 31,		June 30,
				2025		2024		2024
ASSETS
Current assets:
Cash and cash equivalents				1,587,664		1,589,608		1,849,159
Accounts receivable, net				325,756		234,315		321,285
Finance receivables, net				2,127,866		2,031,496		2,472,784
Inventories, net				630,287		745,793		668,924
Restricted cash				149,782		135,661		137,486
Other current assets				327,260		259,764		188,002
				5,148,615		4,996,637		5,637,640
Finance receivables, net				5,198,356		5,256,798		5,545,780
Other long-term assets				1,703,474		1,628,144		1,576,822
				$   12,050,445		$   11,881,579		$   12,760,242
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities				$     1,040,616		$        892,678		$     1,038,234
Short-term deposits, net				243,101		173,099		206,972
Short-term debt				503,353		640,204		497,792
Current portion of long-term debt, net				1,983,828		1,851,513		2,021,344
				3,770,898		3,557,494		3,764,342
Long-term debt, net				4,367,553		4,468,665		4,949,871
Other long-term liabilities				604,061		696,920		612,713
Shareholders' equity				3,307,933		3,158,500		3,433,316
				$   12,050,445		$   11,881,579		$   12,760,242
Harley-Davidson, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
						Six months ended
						June 30,		June 30,
						2025		2024
Net cash provided by operating activities						$        509,492		$        577,642
Cash flows from investing activities:
Capital expenditures						(65,560)		(87,835)
Finance receivables, net						(24,985)		(308,988)
Other investing activities						691		(206)
Net cash used by investing activities						(89,854)		(397,029)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes						647,088		495,856
Repayments of medium-term notes						(700,000)		-
Proceeds from securitization debt						497,790		547,618
Repayments of securitization debt						(584,153)		(506,489)
Net decrease in unsecured commercial paper						(135,902)		(379,743)
Borrowings of asset-backed commercial paper						155,000		351,429
Repayments of asset-backed commercial paper						(145,379)		(125,654)
Net (decrease) increase in deposits						(13,073)		56,007
Dividends paid						(44,756)		(47,359)
Repurchase of common stock						(93,140)		(209,675)
Other financing activities						6		8
Net cash (used) provided by financing activities						(416,519)		181,998
Effect of exchange rate changes on cash, cash equivalents and restricted cash						12,375		(10,821)
Net increase in cash, cash equivalents and restricted cash						$           15,494		$        351,790
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period						$     1,740,854		$     1,648,811
Net increase in cash, cash equivalents and restricted cash						15,494		351,790
Cash, cash equivalents and restricted cash, end of period						$     1,756,348		$     2,000,601
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows:
Cash and cash equivalents						$     1,587,664		$     1,849,159
Restricted cash						149,782		137,486
Restricted cash included in Other long-term assets						18,902		13,956
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows						$     1,756,348		$     2,000,601
HDMC Revenue and Motorcycle Shipment Data
(Unaudited)
		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
		2025		2024		2025		2024
HDMC REVENUE (in thousands)
Motorcycles		$       778,051		$     1,068,693		$     1,641,929		$     2,290,233
Parts and accessories		186,874		193,865		330,307		360,058
Apparel		55,240		63,393		112,564		127,504
Licensing		5,944		5,485		9,002		14,414
Other		17,540		17,470		31,353		32,803
		$    1,043,649		$     1,348,906		$     2,125,155		$     2,825,012
HDMC U.S. MOTORCYCLE SHIPMENTS		21,736		32,334		46,601		73,911
HDMC WORLDWIDE MOTORCYCLE SHIPMENTS
Grand American Touring(a)		18,080		29,345		41,758		64,701
Cruiser		13,110		14,410		24,970		30,101
Sport and Lightweight		3,188		4,094		5,296		9,057
Adventure Touring		1,459		1,811		2,414		3,473
		35,837		49,660		74,438		107,332
(a) Includes Trike
LiveWire Motorcycle Shipments		55		158		88		275
HDMC Gross Profit
(Unaudited)
The estimated impact of significant factors affecting the comparability of gross profit from the second quarter of 2024 to the second quarter of 2025 were as follows (in millions):
		Three months ended				Six months ended
2024 gross profit		$               433				$                894
Volume		(101)				(241)
Price and sales incentives		9				32
Foreign currency exchange rates and hedging		24				24
Shipment mix		6				17
Raw material prices		4				4
Manufacturing and other costs		(76)				(116)
		(134)				(280)
2025 gross profit		$               299				$                614
HDFS Finance Receivables Allowance for Credit Losses
(Unaudited)
		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
		2025		2024		2025		2024
Balance, beginning of period		$       393,178		$        380,361		$        401,183		$        381,966
Provision for credit losses		49,738		56,030		103,072		117,040
Charge-offs, net of recoveries		(43,623)		(42,874)		(104,962)		(105,489)
Balance, end of period		$       399,293		$        393,517		$        399,293		$        393,517
Worldwide Retail Sales of Harley-Davidson Motorcycles(a)
(Unaudited)
		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
		2025		2024		2025		2024
United States		26,704		32,258		45,911		57,984
Canada		2,227		2,579		3,912		4,339
Total North America		28,931		34,837		49,823		62,323
EMEA		7,621		8,015		12,796		13,279
Asia Pacific		4,967		6,322		9,329		12,356
Latin America		735		824		1,316		1,445
Total worldwide retail sales		42,254		49,998		73,264		89,403
(a) Data source for retail sales figures shown above is new sales warranty and registration information provided by dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision.

 

 

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SOURCE Harley-Davidson, Inc.

FAQ

What is the value of Harley-Davidson's (HOG) transaction with KKR and PIMCO?

The transaction values HDFS at 1.75x post-transaction book value and will unlock $1.25 billion in cash, representing approximately 40% of Harley-Davidson's current market capitalization.

How did Harley-Davidson (HOG) perform in Q2 2025?

HOG reported revenue of $1.307 billion (down 19%), EPS of $0.88 (down 46%), and global motorcycle shipments decreased by 28% year-over-year.

How will Harley-Davidson (HOG) use the proceeds from the HDFS transaction?

HOG plans to reduce debt by $450 million, accelerate its share buyback program with $500 million in H2 2025, and reserve $300 million for future growth opportunities.

What are the key terms of HOG's deal with KKR and PIMCO?

KKR and PIMCO will acquire a 4.9% equity stake in HDFS and purchase about two-thirds of future retail loan originations for five years, plus over $5 billion of existing consumer retail loans.

What is Harley-Davidson's (HOG) outlook for 2025?

HOG has withdrawn its full-year 2025 outlook due to uncertain global tariff situation and macroeconomic conditions, but expects HDFS operating income of $525-550 million for 2025.