Core Viewpoint - Harley-Davidson has appointed two new independent directors, Daniel Nova and Matt Reintjes, to its Board of Directors, effective September 15, 2025, to enhance the company's strategic direction and governance [1][2]. Group 1: New Board Appointments - Daniel Nova is a General Partner at Highland Capital Partners and has extensive experience in advising companies through growth and transition, along with a strong background in corporate governance and finance [2][4]. - Matt Reintjes has been the President and CEO of YETI Holdings since 2015, leading the company to become a prominent global outdoor brand, and brings valuable insights from his previous executive roles [4][5]. - The appointments come as part of a broader strategy to strengthen the Board, which has seen four new independent members added in the last three years [6]. Group 2: Board Changes and Leadership - The retirements of directors Sara Levinson and Norman Thomas Linebarger were announced prior to the new appointments, indicating a shift in the Board's composition [5][6]. - Troy Alstead has been appointed as the Presiding Director effective July 30, 2025, and will become Chairman of the Board on October 1, 2025, further indicating leadership changes within the company [6]. Group 3: Company Background - Harley-Davidson, established in 1903, is known for its iconic brand representing freedom and adventure, focusing on motorcycles, accessories, and financial services [7]. - The company aims to maintain its status as the most desirable motorcycle brand globally and has a controlling interest in LiveWire Group, Inc., which focuses on electric motorcycles [7][8].

Core Viewpoint - Harley-Davidson, Inc. (HOG) is showing potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The formation of a golden cross typically follows three stages: a downtrend, the crossover of moving averages, and an upward price movement [3]. Recent Performance - HOG has experienced a rally of 21.1% over the past four weeks, indicating strong momentum [4]. - The current Zacks Rank for HOG is 3 (Hold), suggesting a stable outlook [4]. Earnings Outlook - The earnings outlook for HOG is positive, with no downward revisions in the past two months and four upward revisions, leading to an increase in the Zacks Consensus Estimate [4][5]. - The combination of positive earnings revisions and technical indicators suggests that HOG may continue to see gains in the near future [5].

Core Viewpoint - Harley-Davidson's recent earnings report indicates a significant decline in revenues and earnings, raising concerns about the company's future performance as it approaches its next earnings release [2][3][4]. Financial Performance - In Q2 2025, Harley-Davidson reported adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents, and down from $1.63 per share in the same quarter last year [2]. - Consolidated revenues totaled $1.31 billion, a decrease of 19% year-over-year [2]. - Revenues from the Motorcycle and Related Products segment fell 23% to $1.04 billion, missing the forecast of $1.15 billion, with motorcycle shipments down 28% to 35,800 units [3]. - Retail motorcycle units sold globally declined 15% to 42,300, with North America seeing a 17% drop [4]. Segment Highlights - Revenues from parts and accessories decreased 4% to $187 million, while apparel revenues fell 13% to $55 million [5]. - Harley-Davidson Financial Services reported revenues of $257 million, down 2% year-over-year, and operating income also declined 2% to $70 million [5]. - LiveWire shipments were only 55 units, a 65% decline from the previous year, with revenues of $6 million [6]. Financial Position - As of June 30, 2025, Harley-Davidson had cash and cash equivalents of $1.59 billion, and long-term debt decreased to $4.37 million [7]. - The company paid dividends of 18 cents per share, with no shares repurchased during the quarter [7]. Guidance and Outlook - Harley-Davidson has withheld its 2025 HDMC financial outlook due to tariff uncertainties but updated guidance for LiveWire and HDFS [8]. - The expected operating loss for LiveWire is now projected to be between $59-$69 million, while HDFS operating income is anticipated to range between $525 and $550 million for the full year [9]. - Estimates for Harley-Davidson have been trending upward, with a consensus estimate shift of 47.38% [10]. Industry Comparison - Harley-Davidson belongs to the Zacks Automotive - Domestic industry, where Tesla reported revenues of $22.5 billion, down 11.8% year-over-year, and an EPS of $0.40, compared to $0.52 a year ago [13]. - Tesla's Zacks Rank is 4 (Sell), while Harley-Davidson holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12][14].

Core Insights - Harley-Davidson is experiencing heightened uncertainty due to shifting tariffs and trade policies, leading to the withholding of its 2025 guidance for Harley-Davidson Motor Company (HDMC) [2][9] - The company is facing a decline in wholesale shipments as dealers maintain tighter inventory levels, which is expected to pressure top-line volumes [2][9] - LiveWire, the electric vehicle segment, is encountering challenges in the broader EV market, including delayed adoption and insufficient charging infrastructure [3][9] - Harley-Davidson Financial Services (HDFS) is under pressure from rising interest rates, lower dealer inventory levels, and growing credit stress among lower-tier consumers [4][9] - The company's elevated debt levels, with a total debt-to-capital ratio of approximately 0.70 as of June 30, 2025, constrain financial flexibility and growth initiatives [5] Segment Analysis - Harley-Davidson has three reportable segments: HDMC, HDFS, and LiveWire, each facing unique challenges [1] - The motorcycle segment (HDMC) is likely to see reduced wholesale unit demand due to better alignment of dealer inventories with consumer demand [2] - LiveWire's growth trajectory is hindered by a lack of consumer incentives and a less supportive regulatory environment for electric vehicles [3] - HDFS is experiencing increased borrowing costs due to rising interest rates and reduced commercial balances from lower dealer inventories [4] - The company's high leverage limits its ability to pursue growth initiatives amid ongoing capital requirements [5]

Part I – Financial Information This section presents the unaudited consolidated financial statements for Q2 2025 and 2024, detailing financial performance, position, and cash flows, alongside notes on segment operations and a key HDFS transaction [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides the unaudited consolidated financial statements for Q2 2025 and 2024, covering operations, balance sheets, cash flows, and equity, with detailed accounting notes [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, operating income, and net income for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations Highlights (Unaudited) | Metric (in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,307.1 | $1,618.9 | $2,636.3 | $3,348.5 | | **Operating Income** | $112.4 | $241.1 | $272.9 | $504.2 | | **Net Income Attributable to Harley-Davidson, Inc.** | $107.6 | $218.3 | $240.7 | $453.2 | | **Diluted Earnings Per Share** | $0.88 | $1.63 | $1.95 | $3.34 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and equity as of June 30, 2025, December 31, 2024, and June 30, 2024 Consolidated Balance Sheet Highlights (Unaudited) | Metric (in billions) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Total Assets** | $12.05 | $11.88 | $12.76 | | **Total Liabilities** | $8.74 | $8.72 | $9.33 | | **Total Equity** | $3.31 | $3.16 | $3.43 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Cash Flow Highlights (Unaudited) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $509.5 | $577.6 | | **Net Cash Used by Investing Activities** | ($89.9) | ($397.0) | | **Net Cash (Used) Provided by Financing Activities** | ($416.5) | $182.0 | | **Net Increase in Cash, Cash Equivalents and Restricted Cash** | $15.5 | $351.8 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, segment performance, revenue breakdown, and significant subsequent events - The company operates in three reportable segments: **Harley-Davidson Motor Company (HDMC)**, **LiveWire**, and **Harley-Davidson Financial Services (HDFS)**[25](index=25&type=chunk) Disaggregated Revenue by Major Source (Six Months Ended June 30) | Revenue Source (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **HDMC Motorcycles** | $1,641.9 | $2,290.2 | | **HDMC Parts and accessories** | $330.3 | $360.1 | | **LiveWire** | $8.8 | $11.2 | | **HDFS Interest income** | $424.5 | $433.9 | - The company's effective income tax rate for the six months ended June 30, 2025, was **23.2%**, an increase from **19.3%** for the same period in 2024[39](index=39&type=chunk) - On July 30, 2025, the company entered into a significant transaction involving its HDFS segment, including the sale of the majority of existing retail finance receivables and a portion of future originations, along with equity investments in HDFS by two counterparties. The transaction is expected to close in the second half of 2025[137](index=137&type=chunk)[139](index=139&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q2 2025 net income decline, driven by lower HDMC operating income and retail sales, and outlines key impacts, revised HDFS guidance, and planned share repurchases [Overview](index=48&type=section&id=Overview) This section provides a high-level summary of the company's Q2 2025 financial performance, highlighting key drivers of income changes and retail sales trends Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Income Attributable to Harley-Davidson, Inc.** | $107.6 million | $218.3 million | | **Diluted EPS** | $0.88 | $1.63 | - The decrease in operating income was primarily driven by the HDMC segment, which saw income fall by **$136.6 million** due to a planned decrease in motorcycle shipments and softer than expected retail demand[144](index=144&type=chunk) - Worldwide retail sales of new Harley-Davidson motorcycles declined by **15.5%** in Q2 2025 compared to Q2 2024, with North America down **17.0%**[145](index=145&type=chunk) [Key Factors Impacting the Company](index=49&type=section&id=Key%20Factors%20Impacting%20the%20Company) This section details significant external and internal factors influencing the company's operations, including tariffs, interest rates, and strategic transactions - The company incurred approximately **$17 million** in tariff-related costs in the first six months of 2025 and estimates the potential full-year impact to be between **$50 million** and **$85 million**[146](index=146&type=chunk) - A significant transaction for the HDFS segment is expected to close in H2 2025, involving the sale of over **$5 billion** in existing retail finance receivables and a reduction of over **$4 billion** in HDFS debt[148](index=148&type=chunk) - The company plans to introduce new models, including a small displacement motorcycle priced below **$6,000**, and shift its annual new model year launch from January to the preceding fall[153](index=153&type=chunk) [Guidance](index=50&type=section&id=Guidance) This section presents the company's revised financial outlook for 2025, including segment operating income expectations and planned capital allocation - The company revised its 2025 guidance for the HDFS segment, now expecting operating income of approximately **$525 million to $550 million**, which includes a benefit of **$275 million to $300 million** from the HDFS transaction[156](index=156&type=chunk) - LiveWire segment's expected operating loss for 2025 is revised to approximately **$59 million to $69 million**[158](index=158&type=chunk) - The company plans to execute **$500 million** of discretionary share repurchases in the second half of 2025, assuming the HDFS transaction successfully closes[161](index=161&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the financial performance for each operating segment, including revenue and operating income drivers HDMC Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating Income** | $61.3 million | $197.9 million | | **Operating Margin** | 5.9% | 14.7% | | **Motorcycle Shipments** | 35,837 units | 49,660 units | HDFS Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating Income** | $69.8 million | $71.4 million | | **Provision for Credit Losses** | $49.7 million | $56.0 million | - For the first six months of 2025, worldwide retail sales of new Harley-Davidson motorcycles were down **18.1%** compared to the prior year, driven by declines in North America (**-20.1%**) and Asia Pacific (**-24.5%**)[193](index=193&type=chunk)[194](index=194&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, available liquidity, and cash flow activities from operations, investing, and financing - As of June 30, 2025, the company had **$1.59 billion** in cash and cash equivalents and total available liquidity of **$3.60 billion**[220](index=220&type=chunk) - Net cash provided by operating activities for the first six months of 2025 was **$509.5 million**, a decrease from **$577.6 million** in the same period of 2024, primarily due to lower net income and negative changes in working capital[224](index=224&type=chunk)[225](index=225&type=chunk) - Cash outflows for share repurchases were **$93.1 million** in the first half of 2025, compared to **$209.7 million** in the same period last year[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency, commodity prices, and interest rates using derivatives, with no material changes since 2024 - The company is exposed to market risks from fluctuations in foreign currency exchange rates, commodity prices, and interest rates, and uses derivative financial instruments to mitigate these risks[256](index=256&type=chunk) - The HDMC segment's most significant foreign currency exposures relate to the **Euro**, **Australian dollar**, **Japanese yen**, and **Canadian dollar**, among others[257](index=257&type=chunk) - The HDFS segment is affected by changes in interest rates on its financial receivables and debt, and uses interest rate caps and cross-currency swaps to manage these risks[260](index=260&type=chunk)[262](index=262&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (June 30, 2025)[264](index=264&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[265](index=265&type=chunk) Part II – Other Information This section provides additional information on legal proceedings, updated risk factors, equity security sales, and other relevant disclosures [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal matters, including a Japan FTC investigation into Harley-Davidson Japan KK regarding alleged improper sales quotas - The Japan Fair Trade Commission (Japan FTC) is investigating the company's subsidiary, **Harley-Davidson Japan KK**, for alleged improper activity, including setting excessive sales quotas for dealers[268](index=268&type=chunk) - The company is cooperating with the Japan FTC's investigation and does not expect the matter to result in material costs[268](index=268&type=chunk)[269](index=269&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing global tariff impacts and the critical dependency on attracting and retaining skilled employees, especially during CEO transition - The global tariff landscape, with new tariffs from the U.S. and retaliatory tariffs from other countries, poses a significant risk that could negatively impact the company's ability to sell products at current prices and increase the cost of raw materials[270](index=270&type=chunk)[271](index=271&type=chunk) - The company's future success is highly dependent on attracting and retaining skilled personnel, and any perceived uncertainties related to the search for a new CEO and the subsequent transition could adversely affect operations[272](index=272&type=chunk)[273](index=273&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details equity share acquisitions for tax withholding, reports no discretionary repurchases in Q2 2025, and notes new share repurchase authorizations - The company did not repurchase any shares on a discretionary basis during the quarter ended June 30, 2025[275](index=275&type=chunk) - In July 2025, the Board of Directors authorized a new plan to repurchase up to **15.0 million shares** of common stock[275](index=275&type=chunk) - During Q2 2025, the company acquired **1,873 shares** from employees to satisfy withholding tax obligations related to vested stock awards[279](index=279&type=chunk) [Other Information](index=74&type=section&id=Item%205.%20Other%20Information) This section confirms no director or Section 16 officer adopted or terminated Rule 10b5-1 trading arrangements during Q2 2025 - No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[280](index=280&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Term Loan Agreement, CEO/CFO certifications, and XBRL data files - The exhibits filed with this report include a Term Loan Agreement dated July 1, 2025, CEO/CFO certifications (Rule 13a-14(a) and 18 U.S.C. §1350), and XBRL data files[283](index=283&type=chunk)

Harley-Davidson named Topgolf Callaway executive Artie Starrs as its new CEO, replacing Jochen Zeitz. https://t.co/sx1XT1lYy4 ...

Core Insights - Harley-Davidson, Inc. reported second-quarter 2025 adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents and down from $1.63 per share in the same quarter last year [1][8] - Consolidated revenues totaled $1.31 billion, a decline of 19% year-over-year [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 23% year-over-year to $1.04 billion, missing the forecast of $1.15 billion due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased by 28% to 35,800 units, lagging behind the estimate of 40,923 units [2] - Revenues from motorcycle sales were $778 million, down 27% year-over-year [2] - Operating income for the motorcycle segment dropped 69% year-over-year to $61 million, below the estimate of $83.4 million [2] Retail Performance - Harley-Davidson retailed 42,300 motorcycle units globally, a decline of 15% year-over-year, and below expectations of 46,094 units [3] - Retail motorcycle sales in North America decreased by 17% to 28,900 units [3] - Sales in EMEA declined by 5%, while Asia Pacific and Latin America saw declines of 21% and 11%, respectively [3] Parts, Accessories, and Financial Services - Revenues from parts and accessories decreased by 4% year-over-year to $187 million, slightly exceeding the estimate of $185.3 million [4] - Apparel revenues fell 13% year-over-year to $55 million, missing the forecast of $67.7 million [4] - Harley-Davidson Financial Services reported revenues of $257 million, down 2% year-over-year and below the estimate of $289.6 million [4] LiveWire Performance - Total shipments for LiveWire were 55 units, a decline of 65% from the previous year [5] - Revenues for LiveWire decreased by 7% to $6 million, surpassing the estimate of $2.9 million [5] - Operating loss for LiveWire narrowed from $28 million to $19 million, which was wider than the projected loss of $15 million [5] Financial Position - Selling, general, and administrative expenses increased to $237.4 million from $235.2 million year-over-year [6] - Harley-Davidson paid dividends of 18 cents per share and did not repurchase any shares in the second quarter [6] - As of June 30, 2025, the company had cash and cash equivalents of $1.59 billion, with long-term debt decreasing to $4.37 million from $4.47 million at the end of 2024 [6] Guidance Updates - The company has withheld its 2025 HDMC financial outlook due to tariff uncertainties but updated guidance for LiveWire and HDFS [7] - For LiveWire, the expected operating loss is now projected to be between $59 million and $69 million, down from the previous estimate of $70 million to $80 million [7] - HDFS anticipates full-year 2025 operating income to range between $525 million and $550 million following a new partnership with KKR and PIMCO [9]

Leadership Change - Harley-Davidson appoints Artie Starrs, former head of Topgolf, as the new CEO [1]

Leadership Change - Harley-Davidson appoints Arthur Starrs, former head of Topgolf, as its new president and chief executive [1]

MILWAUKEE, Wis., Aug. 4, 2025 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson" or the "Company") (NYSE: HOG) today announced that its Board of Directors ("Board") has appointed Artie Starrs as President and Chief Executive Officer, effective October 1, 2025. Artie joins Harley-Davidson from Topgolf Callaway Brands, where he served as CEO of the Topgolf International, Inc. ("Topgolf") subsidiary. "Artie is an accomplished business leader who brings extensive experience managing strong brands and glob ...