Harley-Davidson (HOG) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $133.1 million ($1.07 per diluted share), down 43% year-over-year, as global retail sales declined 21% and North America dropped 24% due to economic and tariff headwinds.

• Operating income margin exceeded expectations at 12.1% due to strong product mix and cost control, despite a 23% revenue decline to $1.33 billion.

• Marketing initiatives and the largest co-marketing investment in company history are planned to support dealers and drive retail sales.

• New product launches include the CVO Road Glide RR, new entry-level and classic models, and six new Softail cruisers, aiming for affordability and profitability.

• LiveWire segment faces delayed EV adoption, with cost-saving measures reducing operating losses; no further investments planned beyond a $100M line of credit.

Financial highlights

• Consolidated Q1 revenue was $1.33 billion, down 23% year-over-year; net income was $133.1 million, a 43% decrease.

• Q1 operating income was $160 million, down 39% year-over-year; diluted EPS was $1.07.

• HDMC revenue fell 27% to $1.08 billion; operating income margin was 10.8%, down from 16.2% last year.

• HDFS revenue was $245 million (down 2%), operating income rose 19% to $64 million; retail credit loss ratio 3.8%.

• Operating cash flow was $142 million, up from $104 million last year; cash and equivalents ended at $1.9 billion.

Outlook and guidance

• 2025 financial guidance was withdrawn due to macroeconomic and tariff uncertainties.

• Tariff impacts are expected to increase in 2025, with a projected headwind of $130–$175 million.

• Capital expenditures for 2025 are now expected to be $200–$225 million; focus remains on dividends and share repurchases.

• Commitment to reduce year-end dealer inventory by approximately 10%.

• LiveWire segment now expected to post a $59 million operating loss and $50 million cash use in 2025.