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Sep 30, 2025
Harley-Davidson Q3 2025 Earnings Report
Harley-Davidson reported strong third quarter 2025 results, significantly boosted by the HDFS transaction, despite continued challenges in retail sales.
Key Takeaways
Harley-Davidson's third quarter 2025 results showed a substantial increase in revenue and net income, primarily driven by the transformative HDFS transaction. While global retail motorcycle sales experienced a decline, the company's financial services segment saw a significant boost in operating income due to the strategic partnership with KKR and PIMCO.
Consolidated revenue increased by 17% to $1.341 billion, largely due to a 23% revenue increase at HDMC.
Net income attributable to HDI surged by 217% to $377 million, and diluted EPS rose by 241% to $3.10, primarily due to the HDFS transaction.
The HDFS transaction with KKR and PIMCO unlocked over $1.2 billion in discretionary cash and significantly improved HDFS operating income by 472% to $439 million.
Global retail motorcycle sales were down 6% year-over-year, reflecting soft demand due to unfavorable consumer confidence, high interest rates, and inflation concerns.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Harley-Davidson continues to withhold its full-year HDMC 2025 financial outlook due to uncertain global tariff situations and macroeconomic conditions. However, LiveWire's operating loss guidance has been updated.
Positive Outlook
- LiveWire's operating loss is expected to improve, with updated guidance of $72-$77 million.
- The company plans to enter into a $200 million Accelerated Share Repurchase (ASR) agreement, part of a larger $1 billion repurchase plan by the end of 2026.
- The HDFS transaction is expected to set the foundation for higher returns and sustained growth.
- Harley-Davidson retains full control and majority ownership of HDFS, ensuring continuity for dealers and customers.
- The company is intensifying its focus on key drivers of sustainable growth: strong and profitable dealerships, growing brand connection, locally relevant marketing, and capital-efficient growth.
Challenges Ahead
- The full-year HDMC 2025 financial outlook remains withheld due to uncertain global tariff situations.
- Overall macroeconomic conditions continue to be a concern, especially for 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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