Harley-Davidson, Inc.

What they do

HDMC designs, manufactures and sells Harley-Davidson internal combustion motorcycles, plus parts, accessories, apparel, and licensed products, sold primarily through 1,174 independently owned dealership points worldwide. LiveWire sells electric motorcycles, and HDFS provides financial services, including financing and credit to dealers and retail customers. Revenue is concentrated in HDMC, which was $3.58 billion of 2025's $4.47 billion total.

Revenue drivers

• HDMC - Motorcycles — Sale of internal combustion Harley-Davidson motorcycles through independent dealers; 74.3% of HDMC revenue in 2025.
• HDMC - Parts and accessories — Parts, accessories, and apparel sold through dealers and the company's eCommerce websites; 17.2% of HDMC revenue in 2025, up from 14.4% in 2023.
• HDFS financial services — Financing, credit, and insurance-related income; $869.2 million of 2025 revenue, the segment with the highest operating income at $490.4 million.
• LiveWire — Electric motorcycle sales; smallest segment at $25.7 million of 2025 revenue, with a $75.0 million operating loss in 2025.

Recent performance

For full-year 2025, revenue was $3.60 billion and net income was $338.7 million, or $2.78 per diluted share, down from $455.4 million and $3.44 in 2024. HDMC reported a 2025 operating loss of $28.7 million versus $277.8 million of operating income in 2024, on a 12.4% decline in worldwide retail motorcycle sales. LiveWire's operating loss narrowed to $75.0 million from $109.6 million, while HDFS operating income rose to $490.4 million from $248.4 million. In Q2 2026, revenue fell 6% to $1.23 billion and net income fell 26% to $80 million, though HDMC revenue rose 6% to $1.1 billion on shipments of 39,209 units, up 9%. North American retail sales rose 3% to 29,751 units and global retail sales rose 1% to 42,500 units.

Strategy

The Hardwire, the company's 2021-2025 strategic plan focused on profitable motorcycle segments, electric leadership, and growth beyond bikes, concluded at the end of 2025. Management plans to announce a new strategic plan with its first quarter 2026 earnings release. The Q2 2026 release describes progress against 'Back to the Bricks' strategic initiatives and cites market share gains. In the quarter, the company prioritized healthy dealer inventory, which ended Q2 2026 down 17% versus the prior year. It also introduced the 2026 Super Glide in June.

Risks

• Tariff costs — New or increased 2025 tariffs cost approximately $67 million in 2025, and the company estimated $75-$105 million for 2026 as of February 8, 2026.
• Weak premium motorcycle demand — High interest rates and depressed consumer sentiment slowed demand for premium discretionary products, with worldwide retail unit sales down 12.4% in 2025.
• HDMC profitability swing — HDMC moved from $277.8 million of 2024 operating income to a $28.7 million operating loss in 2025 on lower shipments and unfavorable manufacturing leverage.
• HDFS credit and funding exposure — HDFS results depend on credit loss provisions, interest expense, and a 2025 transaction with two counterparties that included a release of the allowance for credit losses.

Outlook

With Q2 2026 results, management raised full-year 2026 guidance for retail sales and wholesale shipments as well as HDMC and HDFS operating income. Management cited strength in the domestic retail business, healthy dealer inventory, market share gains, and progress on the 'Back to the Bricks' initiatives. The company still expects tariff costs of $75-$105 million in 2026, excluding mitigation actions. A new strategic plan is planned for announcement with first quarter 2026 earnings.