Key Financial Results for 2025:
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Revenue: Consolidated revenue fell significantly—down about 23% in Q1 2025 versus Q1 2024, from $1.73 billion to $1.33 billion. The second quarter also reflected a comparable double-digit decrease.
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Net Income: Q1 net income dropped 43% year-over-year to $133 million. Diluted EPS in Q1 was $1.07, a decline from $1.73 the prior year. Operating income for Q1 was $160 million, down 39%.
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Profit Margin: Q1 profit margin fell from 14% to 10% (year-over-year). Operating income margin in the motorcycle segment dropped from 16.2% to 10.8%.
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Motorcycle Shipments: Shipments decreased 33% in Q1, falling from 57,700 to 38,600 units.
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Global Retail Sales: Retail motorcycle sales were down 21% in Q1 (with U.S. sales down 24% and Asia-Pacific down 28%). Parts & Accessories revenue dropped 14%, and apparel dropped 11% in Q1.
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Second Quarter: While revenue reportedly slightly exceeded expectations, overall the financial trend for the first half of the year remained negative, as margins, shipments, and net income were still well below 2024 levels.
Outlook and Guidance:
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For the full year 2025, Harley-Davidson expects its motorcycle business revenue to be flat or down up to 5%; operating income margin is projected between 7.0% and 8.0%.
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The financial services segment (HDFS) is forecasting operating income of $525–$550 million for the year, bolstered by a major transaction in which investment firms KKR and PIMCO acquired a minority equity interest and over $5 billion of loan assets, providing Harley-Davidson with $1.25 billion in discretionary cash.
Strategic & Operational Developments:
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Harley-Davidson’s financial services business completed a major sale of both equity and receivables to outside partners to generate liquidity and manage risk.
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Dealer inventories have been reduced by 28% (Q2 year-over-year) to contain oversupply in a low-demand environment.
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Harley-Davidson is facing increasing costs caused by global tariffs, with $13 million in additional tariff expenses in Q2 alone.
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The company declined to provide a full-year motorcycle financial outlook mid-year, citing uncertainty in global economics and tariff impact.
Challenges:
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Demand for new motorcycles remained weak due to high borrowing costs and cautious consumer sentiment, particularly for large, premium models.
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Leadership notes tariffs are now a significant new drag on profitability.
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The core Harley-Davidson brand continues to wrestle with demographic shifts as younger buyers remain hesitant to adopt traditional heavyweight motorcycles.
Current State (Mid-2025):
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Harley-Davidson is in a notably weaker financial position compared to 2024. Margins, shipments, and net income are all sharply lower.
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Management’s strategy focuses on cost control, supply chain adjustments, reduced dealer inventory, and cash generation from the financial services segment, but near-term growth prospects are limited amid continuing economic and tariff headwinds.
Important Caveats:
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These figures represent primarily Q1 and early Q2 results for 2025. Harley-Davidson has withdrawn detailed full-year financial guidance for its motorcycle segment, reflecting volatility and external uncertainties.
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The situation may change as further quarterly results are released later in 2025, and all numbers are subject to revision.
LiveWire Electric Segment (2025):
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Unit Sales: LiveWire sold only 33 motorcycles in Q1 2025, a 72% decline compared to Q1 2024.
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Full-Year Outlook: Industry forecasts suggest 2025 volumes unlikely to surpass 1,000 units internationally, down from under 660 in 2024.
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Financial Performance: The LiveWire segment reported quarterly losses exceeding $20 million, with annual losses expected to top $80 million if current trends continue. Since launch, the brand’s cumulative cash burn is near $115 million.
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Revenue: The LiveWire segment’s revenue declined 42% year-over-year in Q1, followed by another 7% drop in Q2 compared to 2024.
Regional Retail Sales (Q1 2025, Harley-Davidson Motorcycles):
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United States: 19,207 units, down from 25,726 units in Q1 2024.
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Canada: 1,685 units.
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Europe, Middle East, Africa (EMEA): 5,175 units.
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Asia Pacific: 4,362 units.
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Latin America: 581 units.
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Total Worldwide: 31,010 units, down from 39,405 units in Q1 2024.
Debt and Cash Balances (Harley-Davidson Financial Services - HDFS):
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Beginning of 2025 Allowance for Credit Losses: $401 million.
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End of Q1 2025 Allowance for Credit Losses: $393 million.
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Provision for Credit Losses in Q1 2025: $53 million.
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In Q2 2025, Harley-Davidson completed a significant asset sale by transferring over $5 billion in retail loan assets to external investors, which generated $1.25 billion in additional discretionary cash and improved liquidity.
Additional Financial Highlights:
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Motorcycle Shipments: 38,600 units shipped in Q1 2025, a sharp decline from 57,700 units in Q1 2024.
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Profitability: Despite liquidity improvements from the financial services segment transaction, both the motorcycle division and the LiveWire electric segment remain unprofitable in 2025.
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Strategic Considerations: The LiveWire segment’s underperformance and sustained high losses highlight the challenge the electric motorcycle division faces, while traditional motorcycle sales are decreasing broadly across most global markets.
