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Jun 30, 2025
Harley-Davidson Q2 2025 Earnings Report
Harley-Davidson reported a significant decline in revenue and net income for Q2 2025, primarily due to decreased motorcycle shipments and retail sales, but announced a strategic partnership for HDFS.
Key Takeaways
Harley-Davidson experienced a challenging second quarter in 2025 with consolidated revenue down 19% and net income attributable to HDI down 51% year-over-year. This was largely driven by a 23% decrease in HDMC revenue and a 28% drop in global motorcycle shipments. Despite the downturn in core motorcycle business, the company announced a strategic partnership for Harley-Davidson Financial Services (HDFS) with KKR and PIMCO, valued at approximately 1.75x post-transaction book value, expected to unlock $1.25 billion in cash.
Consolidated revenue decreased by 19% to $1,307 million in Q2 2025 compared to $1,619 million in Q2 2024.
Net income attributable to HDI fell by 51% to $108 million, and diluted EPS decreased by 46% to $0.88.
Global motorcycle shipments were down 28% and worldwide retail motorcycle sales declined by 15% year-over-year.
A strategic partnership for HDFS was announced, expected to generate $1.25 billion in cash, with plans to reduce debt by $450 million and accelerate a $1 billion share buyback program by $500 million.
Revenue by Segment
Forward Guidance
Harley-Davidson has withdrawn its full-year 2025 financial outlook for HDMC due to uncertain global tariff situations and macroeconomic conditions. However, it has updated guidance for LiveWire and HDFS.
Positive Outlook
- LiveWire's operating loss guidance updated to $59-$69 million, indicating a potential improvement from previous expectations.
- HDFS operating income is now expected to be $525-$550 million for full year 2025, reflecting confidence in the financial services segment.
- The HDFS transaction is expected to unlock $1.25 billion in cash, providing significant liquidity.
- Plans to reduce debt by $450 million will strengthen the company's balance sheet.
- Acceleration of the $1 billion share buyback program by purchasing $500 million in the second half of 2025 demonstrates commitment to shareholder returns.
Challenges Ahead
- Full-year 2025 financial outlook for HDMC remains withdrawn due to uncertain global tariff situations.
- Overall macroeconomic conditions continue to impact discretionary product purchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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