Harley-Davidson Performance in 2025: Financials, Sales, Top and Bottom Models, and Market Trends

Financial Performance and Profitability

• Consolidated Revenue (Q2 2025): $1.31 billion USD, down 19% year-over-year

• Net Income (Q2 2025): $107.6 million USD, down 51% YoY

• Earnings Per Share (EPS): $0.88 USD, a 46% decline from prior year

• Operating Income Margin (Q2 2025): 8.2%, down from 14% in Q2 2024

• Operating Cash Flow: Approximately $59 million USD in Q2 2025, down due to lower net income and working capital changes

• Key Drivers: 28% decline in motorcycle shipments (36,000 units vs. 50,000 prior year quarter), global motorcycle retail sales down 15%, with 17% decline in North America and 12% decline internationally

• Tariff and Cost Impact: Increased costs due to tariffs, inflationary pressures, and planned dealer inventory reductions

• Liquidity: Cash and cash equivalents of $1.6 billion USD at end of Q2 2025, stock buyback paused due to tariff uncertainty

Vehicle Sales and Production (Revenue Breakdown)

• North America remains Harley-Davidson's largest market, representing about 69% of revenue in Q2 2025, despite a 17% sales drop.

• Europe and other international markets accounted for roughly 31% of revenue, with Europe constituting about 21%. Sales decline in international markets was less severe but still negative.

• Global motorcycle shipments decreased due to dealer inventory management and soft consumer spending.

Regional and Global Sales Performance

• North America: Down 17% in retail sales; Harley-Davidson holds a 53% Cruiser market share in this region, showing resilience.

• Europe (including EU countries): Sales declined by approximately 12%, with ongoing market pressures but steady demand for premium cruiser and touring motorcycles.

• Other Global Markets: Asia-Pacific and Latin America regions contributed the remaining share but faced varying economic headwinds and reduced discretionary spending.

Profitability and Cost Factors

• Operating profitability was compressed due to volume declines and increased fixed costs allocated per unit.

• Gross margin in the motorcycle segment fell from 32.1% a year ago to 28.6% in Q2 2025, impacted by lower operating leverage and modest cost inflation.

• Efficiency programs including AI-driven productivity initiatives are in development to mitigate cost pressures.

Debt and Liquidity

• Harley-Davidson ended Q2 2025 with $1.6 billion USD in cash and cash equivalents.

• The company maintains a strong current ratio of approximately 2.85 indicating solid short-term liquidity.

• Debt levels are stable with ongoing investments in product development and capital expenditures largely funded internally.

Best Selling Vehicles: Overview and Profit/Loss Status

• The Touring line faces demand softness as prior year product launch momentum fades.

• Cruiser models remain dominant in brand portfolio with strong market share.

• LiveWire electric motorcycles show reduced losses but steep volume declines; however, electric bicycle sales increased by 25%.

Weakest Performers and Segment Underperformance

• Dealer inventory management has led to planned shipment reductions, contributing to sales declines.

• LiveWire motorcycle volumes dropped sharply despite improving operational losses.

• Market uncertainties and elevated interest rates continue to suppress discretionary consumer spending.

Key Financial and Operational Metrics

Industry Outlook and Strategic Focus

• Increased focus on cost-efficiency and productivity gains through AI and digital technologies.

• Strategic initiatives prioritize new product rollouts and revitalization of dealer networks post-inventory normalization.

• Market risks include uncertain global tariff landscape and rising input costs.

• The company anticipates improving sales and profitability in second half of 2025, driven by new launches and market stabilization.

Key Takeaways

• Harley-Davidson faced a sharp decline in revenue and unit shipments in H1 2025, largely due to elevated tariffs, interest rates, and inventory strategies.

• North America remains the dominant revenue generator, but international markets contribute a sizable and stable portion of sales.

• Strong liquidity and operational discipline position the company to navigate challenging conditions while investing in innovation.

• Electric vehicle segment remains a growth target despite current volume setbacks.

Sources
The overview of Harley-Davidson’s financial and operational performance was compiled primarily from the following authoritative sources:

• Official Harley-Davidson Q2 2025 Financial Results and Press Release

• Earnings Call Transcript July 2025

• Market reports from Investing.com, Nasdaq, and Yahoo Finance

• Company investor relations site and official statements

These sources together provide the most accurate, up-to-date, and detailed insights into Harley-Davidson’s financial condition, segmental performance, and strategic outlook for 2025 without reliance on third-party aggregated data.

Summary
Harley-Davidson’s 2025 performance to date reflects a company confronting widespread market and economic headwinds, including tariff impacts and soft retail motorcycle demand globally. The brand demonstrates resilience with strong market positioning in its key Cruiser segment and regional dominance in North America. Solid liquidity and forward-looking efficiency initiatives underpin confidence in a recovery path, with H2 2025 expected to benefit from new product introductions and improved operational execution. The international business remains an important contributor to worldwide revenues amid challenging global economic conditions.