Group 1 - KKR has announced a long-term strategic partnership with Harley-Davidson's financial services company, HDFS, with a transaction value of $5 billion (approximately 36 billion RMB) [1] - Harley-Davidson has faced declining sales among younger consumers, prompting the company to sell its financial services division [5][6] - The sale of HDFS is part of Harley-Davidson's strategy to reduce its financial burden amid a significant drop in motorcycle sales and revenue [5][6] Group 2 - KKR's recent financial performance shows a 17% increase in management fee income to $887 million, with adjusted net income reaching $1.1 billion [8] - KKR raised $28 billion (over 200 billion RMB) in the last three months, increasing its total assets under management to $686 billion [8] - KKR's investment strategy remains active, with significant capital allocated to various sectors, including a focus on the Asian market [9][10]

Core Viewpoint - KKR has announced a strategic partnership with Harley-Davidson's financial services company HDFS, with a transaction value of $5 billion (approximately 36 billion RMB) [4][5]. Group 1: KKR and Harley-Davidson - KKR has a historical connection with Harley-Davidson, having previously shown interest in acquiring the company about a decade ago [4]. - The acquisition of HDFS is part of Harley-Davidson's strategy to divest non-core assets amid declining sales and market challenges, particularly among younger consumers [9][10]. - Harley-Davidson's overall revenue decreased by 19% to $130.7 million in Q2, with motorcycle shipments down 28% year-over-year [9][10]. Group 2: Financial Performance and Market Context - KKR's management fee income grew by 17% to $887 million in the last quarter, with adjusted net income reaching $1.1 billion, slightly exceeding market expectations [11]. - KKR raised $28 billion (over 200 billion RMB) in the last three months, increasing its total assets under management to $686 billion, aiming for $1 trillion by 2029 [11][12]. - KKR's private equity portfolio shows that about 60% of its investments are valued at over 1.5 times their cost, indicating strong performance in its investment strategy [12].

Financial Performance - Harley-Davidson expects to have $1250 million (12.5 亿) in new discretionary cash [1] Corporate Strategy - Harley-Davidson 通过出售近 10% 的融资部门股份获得资金 [1]

Core Insights - Harley-Davidson reported Q2 2025 results with GAAP revenue of $1,307 million, exceeding analyst expectations of $1,099 million, but GAAP earnings per share (EPS) fell to $0.88, below the anticipated $0.96 [1][2] - Year-over-year metrics showed significant declines: revenue decreased by 19%, operating income dropped by 53%, and EPS fell by 46% [1][2] - Management did not provide full-year guidance due to uncertainties related to global tariffs and weak demand for discretionary goods [1] Financial Performance - Q2 2025 GAAP EPS was $0.88, down 46% from $1.63 in Q2 2024 [2] - GAAP revenue was $1,307 million, a 19.3% decline from $1,619 million in Q2 2024 [2] - Operating income fell to $112 million, a 53.5% decrease from $241 million in the previous year [2] - Net income attributable to Harley-Davidson, Inc. was $108 million, down 50.5% from $218 million in Q2 2024 [2] - HDMC operating margin contracted to 5.9%, down from 14.7% a year earlier [2] Business Overview - Harley-Davidson manufactures heavyweight motorcycles known for their distinctive style and brand image, and operates Harley-Davidson Financial Services and LiveWire, its electric motorcycle business [3] - The company has a global presence supported by a widespread dealer network and a robust lifestyle brand [3] Strategic Developments - A significant strategic move involved selling a 4.9% stake in its financial services arm to KKR and PIMCO, unlocking $1.25 billion in discretionary cash [5] - This transaction is expected to fund $450 million in debt repayment and $500 million in share repurchases in the second half of 2025 [5] Market Trends - The core motorcycle segment experienced a contraction, with global retail sales down 15% and shipments falling 28% [6] - North America retail sales declined by 17%, while the Asia-Pacific region saw a 21% drop, attributed to weak demand in China and Japan [6] - Dealer inventory levels were 28% lower compared to Q2 2024 [6] Product Innovation - New product launches included the limited CVO Road Glide RR, targeting both affordability and profitability in smaller displacement and classic motorcycle segments [7] - Parts and accessories revenue decreased by 4%, and apparel revenue was down 13% due to slowed discretionary spending [7] Electric Motorcycle Segment - LiveWire revenue was subdued at $6 million, with units delivered plunging 65% to just 55 [8] - Future investments in LiveWire are restricted to an existing $100 million credit line, with expected operating losses of $59–69 million for full year 2025 [9] Financial Services - Harley-Davidson Financial Services segment revenue slipped 2% to $257 million, maintaining a high margin of 27.1% [10] - Operating income for Financial Services is estimated at $525–550 million for the year, reflecting benefits from the recent transaction [12] Dividend and Share Repurchase - The company continued dividend payments, distributing $0.18 per share, a slight increase from the previous year's $0.1725 [11] - Plans to accelerate share repurchases with proceeds from the KKR and PIMCO transaction in the second half of 2025 [11]

Harley Davidson Shares Soar on Captive Deal. Listen for more on Bloomberg Intelligence. https://t.co/yNw0AEdzm8 ...

Harley-Davidson said tariffs crimped profits in the second quarter as high borrowing costs sapped demand and forced the motorcycle manufacturer to cut production https://t.co/gxQjGTB92h ...

Harley-Davidson, Inc. (NYSE:HOG) Q2 2025 Earnings Call July 30, 2025 9:00 AM ET Company Participants Jochen Zeitz - Chairman, President & CEO Jonathan R. Root - CFO & President of Commercial Shawn Michael Collins - Director of Investor Relations Conference Call Participants Alexander Thomas Perry - BofA Securities, Research Division Craig R. Kennison - Robert W. Baird & Co. Incorporated, Research Division Jaime M. Katz - Morningstar Inc., Research Division James Lloyd Hardiman - Citigroup Inc., Research Div ...

摩托车制造商哈雷戴维森(HOG.US)盘初一度大涨超24%，最高触及28.55美元，创逾半年新高。消息面 上，哈雷戴维森第二季度营收为13.1亿美元，高于分析师预期的11亿美元。此外，公司同意将其金融服 务部门4.9%的股份出售给私募KKR和投资管理公司PIMCO，作为长期合作伙伴关系的一部分，这笔交 易将提供12.5亿美元的自由现金。该金融服务部门还将以溢价形式出售超过50亿美元的零售贷款应收账 款。公司计划利用收益来减少4.5亿美元的债务、向股东返还5亿美元，并为增长投资提供资金。(格隆 汇) ...

Core Insights - Harley-Davidson reported a revenue of $1.05 billion for the quarter ended June 2025, reflecting a year-over-year decline of 22.6% and an EPS of $0.88 compared to $1.63 a year ago, indicating a significant drop in financial performance [1] - The reported revenue was 7.04% lower than the Zacks Consensus Estimate of $1.13 billion, and the EPS fell short of the consensus estimate of $0.99 by 11.11% [1] Financial Performance Metrics - Total worldwide retail sales of Harley-Davidson motorcycles were 42,254, below the estimated 45,308 [4] - Total worldwide motorcycle shipments were 35,837, compared to the estimated 39,622 [4] - Revenue from motorcycles and related products (HDMC) was $1.04 billion, missing the estimated $1.13 billion, marking a 22.6% decline year-over-year [4] - Financial services revenue (HDFS) was $257.44 million, slightly below the estimated $268.81 million, representing a 2.3% decline year-over-year [4] - Live Wire revenue was $6.01 million, below the estimated $7.35 million, reflecting a 6.8% decline year-over-year [4] - Revenue from parts and accessories was $186.87 million, compared to the estimated $189.7 million, showing a 3.6% decline year-over-year [4] - Apparel revenue was $55.24 million, significantly lower than the estimated $63.64 million [4] - Licensing revenue increased to $5.94 million, exceeding the estimated $4.57 million, with an 8.4% increase year-over-year [4] - Motorcycle revenue was $778.05 million, below the estimated $848.49 million, indicating a 27.2% decline year-over-year [4] Stock Performance - Harley-Davidson shares have returned -8.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change, indicating underperformance in the market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential continued underperformance in the near term [3]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 decreased by 19%, primarily due to a planned reduction in motorcycle shipments and soft demand [10][26] - Consolidated operating income was $112 million, reflecting a 69% decline at HDMC [27] - Earnings per share for Q2 was $0.88, with global retail sales down 15% year over year [27][28] - Cash and cash equivalents at the end of Q2 were $1.6 billion, down $261 million from the previous year [47][48] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 23% in Q2, driven by a 28% decline in motorcycle shipments [34] - HDFS revenue was $257 million, a decrease of 2%, while operating income was $70 million, also down 2% [43][44] - LiveWire reported an operating loss of $19 million, an improvement from a $28 million loss in the prior year [46] Market Data and Key Metrics Changes - North American retail sales were down 17%, while international markets saw a 12% decline [27][28] - In Asia Pacific, retail sales decreased by 21% due to intense competition [31] - The U.S. cruiser category experienced a 6% volume growth, increasing market share to 53% [32] Company Strategy and Development Direction - The company entered strategic partnerships with KKR and PIMCO for HDFS, enhancing flexibility and reducing overall leverage [4][6] - Plans to reduce debt by $450 million and accelerate a $1 billion share buyback program [9][50] - Introduction of new entry-level products and a small displacement motorcycle targeting a price below $6,000 [20][19] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty and elevated interest rates impacting customer purchasing behavior [10][11] - There is cautious optimism regarding future trade agreements that may mitigate operational impacts [14] - Management expects a significant improvement in retail performance in July, with positive trends anticipated for the remainder of the year [67][68] Other Important Information - The company plans to implement a new efficiency program leveraging technology, including AI, to drive cost savings [11] - The global tariff environment remains uncertain, with an estimated full-year impact from tariffs projected between $50 million and $85 million [42] Q&A Session Summary Question: What are the components used to calculate the 1.75 times book value marker for the HDFS transaction? - The calculation is based on the proceeds from KKR and PIMCO's equity investment relative to the post-transaction book value of HDFS [52][54] Question: What is driving the underlying profitability of HDFS, and what is the normalized profitability expected in 2026? - The profitability has improved due to stabilization in used values and better repossession rates, with normalized earnings expected to be around $240 million to $250 million annually [56][65] Question: How does the company feel about current dealer inventories and the target for year-end? - The company expects a significant reduction in dealer inventory, targeting a double-digit decline by year-end [73] Question: Why was the 4.9% equity sale the right level, and are there any tax ramifications? - The 4.9% limit is due to regulatory requirements from the FDIC, and the $1.25 billion figure is a pretax amount [78][82] Question: Is there any guarantee of growth in retail sales or receivables associated with the HDFS transaction? - There are no guarantees regarding growth rates or loss levels associated with the transaction [89]