Harley-Davidson notified an undisclosed number of workers that it would reduce its global workforce, Wisconsin Public Radio reported. A company spokesperson confirmed the layoffs but did not specify the number of impacted workers or where they work. WPR cited the sub-district director of the United Steelworkers District 7, who stated that none of the union’s 500-plus members at Harley-Davidson facilities in Milwaukee or Menomonee Falls, Wisconsin, will be affected by the job cuts. Most Read in Manufacturi ...

Core Insights - A senior executive at Harley-Davidson sold shares amid a year of declining stock prices, indicating potential concerns about the company's performance [1][10] Transaction Summary - Charles Do, Senior Vice President in the Financial Services division, sold 4,241 shares for a total transaction value of $77,000, leaving him with 183 shares valued at approximately $3,288.51 post-transaction [2][6] - The shares were sold at a price of $18.09, while the stock closed at $17.97 on the same day, reflecting a 25.75% decline over the past year [2][10] Company Overview - Harley-Davidson reported a total revenue of $4.47 billion and a net income of $338.74 million, with a dividend yield of 4.14% [4] - The company's stock has experienced a significant decline, with a 1-year price change of -25.75% as of March 12, 2026 [4] Business Model - Harley-Davidson operates a dual-segment business model, with the Motorcycles and Related Products segment driving sales through a global dealer network and e-commerce, while the Financial Services segment provides financing and insurance products [7][8] - The company targets retail motorcycle consumers globally, focusing on markets in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia-Pacific [7] Market Context - The company's stock price has been struggling, hovering between $17 and $19, significantly lower than its 52-week high of $31.25 [10] - In Q4 of the previous year, Harley-Davidson's revenue fell by 28%, and management is forecasting a consolidated operating loss for 2026 [10] Long-term Challenges - The core customer base of Harley-Davidson is aging and shrinking, posing challenges in appealing to younger consumers [11] - The company's pricing strategy may hinder its competitiveness, as Harley-Davidson motorcycles tend to be more expensive than alternatives [11]

Company Overview - Harley-Davidson, Inc. (NYSE:HOG) is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, operating through three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS) [4] Investment Recommendations - UBS has lowered its price recommendation on Harley-Davidson to $19 from $27 while maintaining a Neutral rating on the shares [2] - Morgan Stanley analyst Stephen Grambling reduced the price objective on Harley-Davidson to $12 from $18, reiterating an Underweight rating on the stock [3] Market Environment - The consumer environment for original equipment manufacturers is described as choppy, with expectations that innovation will help drive share gains once demand begins to recover [3]

Core Viewpoint - Harley-Davidson Financial Services, Inc. is announcing the full redemption of its outstanding €700,000,000 5.125% Guaranteed Notes due 2026, with a redemption date set for March 15, 2026 [1] Group 1: Redemption Details - The redemption price for the Notes will be 100% of the nominal amount plus accrued and unpaid interest up to the redemption date [1] - The company plans to fund the redemption using its cash and cash equivalents on hand [1] - The company will request the cancellation of the Notes' listing on the Official List of Euronext Dublin and their admission to trading on the Global Exchange Market of Euronext Dublin [1] Group 2: Company Overview - Harley-Davidson Financial Services, Inc. is a subsidiary of Harley-Davidson, Inc. and operates primarily in financing and servicing wholesale inventory receivables and retail consumer loans for Harley-Davidson and LiveWire motorcycles [1] - The company collaborates with third parties to provide motorcycle insurance and voluntary protection products, mainly in the United States and Canada [1] - Financing options are available to Harley-Davidson dealers and retail customers in various regions, including Europe, the Middle East, Africa, Asia Pacific, and Latin America, through third-party financial institutions [1]

Core Viewpoint - Harley-Davidson, Inc. will present at Citi's 2026 Global Consumer & Retail Conference on March 10, 2026, where Investor Relations Director Shawn Collins will engage in one-on-one and group sessions to discuss the company [1]. Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, aiming to lead the motorcycle industry through innovation and emotional connection [2]. - The company's mission emphasizes the pursuit of adventure and freedom, positioning itself as the most desirable motorcycle brand globally since its establishment in 1903 [2]. - Harley-Davidson offers a lifestyle that includes customizable motorcycles, experiences, accessories, riding gear, and apparel, alongside financial services to support riders [2]. - The company holds a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., which aims to become the leading electric motorcycle brand [2].

Core Insights - Harbor Capital Advisors' Mid Cap Value Fund outperformed the Russell Midcap Value Index in Q4 2025, returning 4.07% compared to the index's 1.42% [1] - The Fund achieved a total return of 15.95% for 2025, surpassing the benchmark's return of 11.05% [1] - The Fund's performance was driven by selection effects, emphasizing a quantitative value discipline focused on fundamental undervaluation and risk control [1] Fund Performance - The S&P 500 Index rose 2.7% in Q4 2025 and 17.9% for the full year, while the Russell Midcap Index only increased by 0.2% in Q4 [1] - The Fund's quarterly excess return was 2.82%, primarily attributed to stock selection [1] Investment Focus - Management noted that mid- and small-cap value stocks are trading at more attractive multiples compared to AI-driven large-cap stocks, indicating potential investment opportunities [1] - The Fund is positioned to capitalize on economically sensitive and cash-generative businesses [1] Company Spotlight: Harley-Davidson, Inc. - Harley-Davidson, Inc. (NYSE:HOG) experienced a one-month return of -7.12% and had a market capitalization of approximately $2.235 billion as of February 26, 2026 [2] - The company faced challenges with sharp declines in motorcycle revenue, increased costs, and pricing pressure, yet remains a holding in the Fund [3] - Harley-Davidson was held by 37 hedge fund portfolios at the end of Q4 2025, an increase from 30 in the previous quarter [5]

Financial Performance - Total revenue for 2025 was $4.47 billion, a decrease of 14% from $5.19 billion in 2024 [324]. - Net income attributable to Harley-Davidson, Inc. for 2025 was $338.74 million, down 26% from $455.36 million in 2024 [324]. - Earnings per share (EPS) for 2025 was $2.82, compared to $3.46 in 2024, reflecting an 18.5% decline [324]. - Operating income for 2025 was $386.64 million, a decrease of 7% from $416.63 million in 2024 [324]. - Comprehensive income for 2025 was $404.72 million, slightly down from $417.43 million in 2024 [326]. - The company reported a net income of $329.2 million for 2025, a decrease of 26.1% from $445.2 million in 2024 and a 52.7% decline from $695.0 million in 2023 [414]. Cash Flow and Liquidity - Cash and cash equivalents increased to $3.09 billion in 2025 from $1.59 billion in 2024, representing a 94% increase [330]. - Net cash provided by operating activities for 2025 was $568.9 million, a decrease from $1,063.8 million in 2024 and $754.9 million in 2023 [335]. - Total cash, cash equivalents, and restricted cash at the end of 2025 reached $3.1 billion, up from $1.7 billion in 2024 and $1.6 billion in 2023 [335]. - Net cash used by financing activities in 2025 was $3.0 billion, significantly higher than $572.3 million in 2024 and $174.6 million in 2023 [335]. Assets and Liabilities - Total assets decreased to $8.04 billion in 2025 from $11.88 billion in 2024, a decline of 32% [330]. - The company’s total equity remained relatively stable at $3.16 billion in 2025 compared to $3.16 billion in 2024 [330]. - The Company had accrued liabilities totaling $672.0 million as of December 31, 2025, an increase of 13.2% from $594.0 million in 2024, driven by higher sales incentive programs and payroll-related expenses [412]. - The Company’s total long-term debt as of December 31, 2025, was $2,469,241 thousand, down from $3,860,813 thousand in 2024 [466]. Derivative Financial Instruments and Risk Management - The Company selectively uses derivative financial instruments to manage market risks, including foreign currency exchange rates and interest rates [295]. - The notional U.S. dollar value of outstanding foreign currency contracts was $448.3 million, with a 10% weakening of the U.S. dollar estimated to decrease the fair value of these contracts by approximately $45.2 million [296]. - The notional value of derivative financial instruments used to hedge commodity prices was $4.5 million as of December 31, 2025, with a net liability of $0.2 million [297]. - The Company had cross-currency swaps with a notional value of $1.42 billion at December 31, 2025, with a 10% adverse change in foreign currency exchange rates estimated to decrease the fair value of the swaps by $157.3 million [302]. - The notional value of derivative financial instruments designated as cash flow hedging instruments was $1,106,380,000 in 2025, compared to $1,215,765,000 in 2024 [451]. - The company employs derivative financial instruments to manage risks related to foreign currency, interest rates, and commodity prices [445]. Internal Controls and Audit - Harley-Davidson, Inc. reported effective internal control over financial reporting as of December 31, 2025, based on COSO criteria [306]. - The company maintained effective internal control over financial reporting, with no material weaknesses identified during the audit [308]. - The audit covered the consolidated balance sheets and related financial statements for the three years ending December 31, 2025 [307]. - The company received an unqualified opinion on its financial statements, indicating no significant issues were found [317]. - Internal control limitations may affect the ability to prevent or detect misstatements, highlighting the importance of ongoing compliance [312]. Taxation - The effective tax rate for 2025 was 28.2%, influenced by federal, state, and foreign valuation allowances, as well as a global minimum tax provision [383]. - The total cash paid for income taxes in 2025 was $39.358 million, with no cash paid in 2024 and 2023 due to prior year adjustments [401]. - The Company recognized unrecognized tax benefits of $18.157 million at the end of 2025, an increase from $16.179 million in 2024, with $14.1 million potentially affecting the effective tax rate if recognized [395]. - The Company benefited from tax holidays in Thailand, reducing foreign taxes by $15.1 million, $16.6 million, and $13.0 million in 2025, 2024, and 2023, respectively, with a net income per share benefit of $0.12, $0.12, and $0.09 for the same years [388]. Inventory and Capital Expenditures - The Company’s inventories valued at $376.8 million in 2025 decreased from $395.5 million in 2024 [345]. - Capital expenditures for 2025 were $153.7 million, down from $196.6 million in 2024 and $207.4 million in 2023 [335]. Shareholder Activities - The Company repurchased 13.1 million shares for $347.5 million in 2025, compared to 12.5 million shares for $450.0 million in 2024 [404]. - Dividends paid per share were $0.66 in 2023, $0.69 in 2024, and increased to $0.72 in 2025 [337].

Group 1 - Harley-Davidson, Inc. (NYSE:HOG) has received multiple price target adjustments from various analysts, indicating a consensus that the company's fiscal Q4 and fiscal year 2026 guidance fell below expectations [1][3][4] - DA Davidson lowered its price target to $25 from $30 while maintaining a Buy rating, highlighting management's commitment to a turnaround and inventory cleanup [1] - BMO Capital revised its price target to $24 from $30, citing pressures from "reset" actions affecting the company's initial 2026 guidance [3] - Baird adjusted its price target to $22 from $28 while maintaining a Neutral rating following the fiscal Q4 results [4] Group 2 - Harley-Davidson operates Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services, manufacturing luxury motorcycles, parts, apparel, and accessories globally [5]

Core Viewpoint - Harley-Davidson, Inc. (NYSE:HOG) is facing challenges with its fourth-quarter results and fiscal 2026 guidance, prompting analysts to lower their price targets while maintaining positive ratings, indicating a potential turnaround strategy in place [2][3]. Financial Performance - Harley-Davidson reported fourth-quarter revenue of $496 million, exceeding the consensus estimate of $479.83 million [4]. - The company is taking steps to stabilize operations and align wholesale shipments with retail demand, reflecting a commitment to long-term earnings and cash-flow potential [4]. Analyst Ratings and Price Targets - DA Davidson lowered its price target on Harley-Davidson to $25 from $30 while maintaining a Buy rating, citing fourth-quarter results and fiscal 2026 guidance below expectations [2]. - BMO Capital also reduced its price target to $24 from $30, keeping an Outperform rating, and noted that initial 2026 guidance was disappointing due to various strategic adjustments [3]. Strategic Initiatives - Management is focused on inventory cleanup and rebuilding dealer confidence as part of a turnaround strategy for 2026 [2][4]. - The company is undergoing "reset" actions, including channel right-sizing and strengthening the dealer network, which are seen as reasonable steps to improve performance [3].

Core Insights - Harley-Davidson reported a loss of $2.44 per share in Q4 2025, a significant increase from a loss of 93 cents per share in the same quarter last year, with consolidated revenues of $496 million, down 28% year-over-year [1][9] Financial Performance - The company experienced a decline in gross margins, with HDMC's gross margin falling to 24.2% in 2025 from 28% in 2024, impacted by tariffs costing $67 million in 2025 [3] - Harley-Davidson Financial Services (HDFS) operating income is projected to drop to $45-$60 million in 2026, down from $490 million in 2025, due to lower volumes and reduced dealer inventory [6][10] Market Conditions - Global retail sales fell by 12% in 2025, with North America down 13% and EMEA down 11%, attributed to weak consumer confidence, high interest rates, and inflation concerns [4] - The company faces challenges in the EV market, with a lack of consumer incentives and a less supportive regulatory environment expected to hinder the growth of its LiveWire segment, projecting an operating loss of $70-$80 million in 2026 [5][10] Inventory and Sales Dynamics - Dealer inventory imbalances are evident, particularly with Touring models, which are above desired levels despite a 17% year-over-year decline in global dealer motorcycle inventories [7] - The company is implementing targeted promotions to manage inventory but faces risks of pricing pressure and uneven shipments due to macroeconomic uncertainties [8][10]