Harley-Davidson Reports Mixed Q2 2025 Results Amid Economic Challenges and Shrinking Revenues

**Harley-Davidson, Inc. (NYSE: HOG)** released its quarterly financial report for Q2 2025, indicating mixed financial results marked by significant challenges.

Key Financial Highlights:

• Revenue: Total revenue decreased from $1.62 billion in Q2 2024 to $1.31 billion in Q2 2025, a decline of 19.0%.
• Net Income: Net income dropped sharply from $215.4 million to $105.7 million, a decrease of 50.9% year-over-year.
• Earnings Per Share (EPS): Diluted EPS decreased from $1.63 to $0.88, down 46.0%.
• Operating Income: Recorded at $112.4 million, down 53.4% from $241.1 million in the previous year.
• Motorcycle Sales: Retail sales of new motorcycles fell 15.5% year-over-year, impacted by high interest rates and economic uncertainty.

Positive Aspects:

• Cost of goods sold also saw a significant reduction from $924.0 million to $750.8 million, showing better cost management against declining sales.
• Favorable foreign currency impacts contributed positively, partially offsetting declines in operating income.
• The LiveWire segment, while still in the negative, reported a reduced operating loss of $18.7 million, a significant improvement from $28.2 million the previous year.

Negative Aspects:

• Softer retail demand pair with a planned decrease in motorcycle shipments affected the HDMC segment's operating income considerably.
• Financial services revenue slightly dipped to $257.4 million, exacerbated by lower interest income.
• The asset-backed commercial paper and securitization debt remain a concern as recent rounds of financing showed a decrease in accessibility, leading to increased costs of funds.
• Challenges in the electric motorcycle segment were apparent as LiveWire reported a revenue decline and significant drop in unit shipments, from 275 to 88 motorcycles.

Looking Forward:

• Management plans to reduce motorcycle inventory levels by approximately 10% by year-end 2025, aiming to stabilize supply and demand conditions.
• A major transaction concerning Harley-Davidson Financial Services (HDFS) is expected to positively impact operating income significantly in the latter half of 2025.
• With new product launches anticipated, including smaller displacement motorcycles, the company is focused on adapting to changing market preferences.
• While cash dividends remained stable at $0.180, share repurchases are anticipated to reach approximately $1 billion by the end of 2026, emphasizing a strong commitment to returning value to shareholders.

Harley-Davidson's current strategy centers on navigating economic uncertainty, while also pursuing productivity savings and maintaining operational efficiency amid changing market conditions.