Financial Performance - Harley-Davidson reported a diluted EPS of $0.88, down 46% from $1.63 in Q2 2024[7] - Consolidated revenue decreased by 19% year-over-year to $1,307 million, primarily due to a 23% decline in HDMC revenue[7] - HDMC revenue for Q2 2025 was $1,043,649,000, a decrease of 22.6% compared to $1,348,906,000 in Q2 2024[27] - Gross profit for HDMC in Q2 2025 was $298,705,000, down 31.0% from $433,126,000 in Q2 2024[27] - Operating income from HDMC for the first half of 2025 was $177,587,000, a decline of 59.3% compared to $436,351,000 in the same period of 2024[27] - HDFS revenue for Q2 2025 was $257,438,000, slightly down from $263,539,000 in Q2 2024[27] - Net income attributable to Harley-Davidson, Inc. for Q2 2025 was $107,569,000, a decrease of 50.7% from $218,269,000 in Q2 2024[27] - Basic earnings per share for Q2 2025 was $0.89, down from $1.64 in Q2 2024, representing a decline of 45.7%[27] - Gross profit for Q2 2025 was $299 million, down 30.9% from $433 million in Q2 2024, primarily due to a volume decline of $101 million[36] Sales and Shipments - Global motorcycle shipments fell by 28% to 35.8 thousand units, with retail sales down 15% year-over-year[8][10] - U.S. motorcycle shipments decreased to 21,736 units in Q2 2025, down 32.8% from 32,334 units in Q2 2024[34] - Worldwide retail sales of Harley-Davidson motorcycles totaled 42,254 units in Q2 2025, a decline of 15.5% compared to 49,998 units in Q2 2024[40] - North America retail sales decreased to 28,931 units in Q2 2025, down 17.0% from 34,837 units in Q2 2024[40] - LiveWire motorcycle shipments were 55 units in Q2 2025, down from 158 units in Q2 2024[34] Operational Metrics - Operating income margin for HDMC was 5.9%, down from 14.7% in Q2 2024, reflecting a 69% decline in operating income[8][9] - Global dealer inventories decreased by 28% compared to Q2 2024, as the company prioritized inventory reduction[6] - The company reported a net cash provided by operating activities of $509,492,000 for the first half of 2025, down from $577,642,000 in the same period of 2024[32] - The company experienced a negative impact of $134 million on gross profit due to manufacturing and other costs in Q2 2025[36] Debt and Financial Strategy - HDFS transaction is valued at approximately 1.75x post-transaction book value, unlocking $1.25 billion in cash, about 40% of current market capitalization[3][6] - HDFS plans to reduce debt by $450 million and accelerate a $1 billion share buyback program, purchasing $500 million in the second half of 2025[3] - HDFS expects operating income of $525-$550 million for the full year 2025 following the transaction[16] Market Conditions and Outlook - The company withdrew its full-year 2025 financial outlook due to uncertain global tariff situations and macroeconomic conditions[14] - The provision for credit losses increased to $49,738 thousand in Q2 2025 from $56,030 thousand in Q2 2024[38] - The balance for receivables allowance for credit losses at the end of Q2 2025 was $399,293 thousand, slightly up from $393,517 thousand at the end of Q2 2024[38] - The company is adjusting its underwriting criteria based on market and economic conditions, which may impact retail credit losses[23]

Group 1 - Harley-Davidson is in advanced negotiations with Pimco and KKR to sell a stake in its financial subsidiary and existing motorcycle loan portfolio, with a potential deal size of $5 billion [1] - The financial services subsidiary, Harley-Davidson Financial Services (HDFS), provides inventory financing for dealers and loans for consumers purchasing Harley-Davidson and LiveWire motorcycles [1] - The transaction may be announced in the coming weeks, although details and scale could change as negotiations are ongoing [1] Group 2 - Harley-Davidson is facing challenges with sluggish sales growth and intense competition from rivals like Honda and BMW, with its stock price down approximately 22% this year [2] - The CEO, Jochen Zeitz, indicated in May that the HDFS transaction is progressing, with multiple institutions expressing interest [2] - The private credit market, valued at $5.2 trillion, is expanding, with firms acquiring stakes in consumer loan issuing entities and purchasing the loans they issue [2]

Financial Transactions - Harley-Davidson is in advanced talks to sell a stake in its financing unit [1] - The deal is worth $5 billion [1] - The deal includes Harley-Davidson's existing motorcycle loan portfolio [1] - Pimco and KKR are the potential buyers [1]

Group 1 - Harley-Davidson is expected to report Q2 2025 earnings on July 30, 2025, with consensus forecasts indicating earnings of approximately $0.96 per share, down from $1.63 in the same quarter last year, and revenue expected to be around $1.1 billion, reflecting a nearly 19% year-over-year decrease [2] - The decline in earnings and revenue suggests a diminishing interest in Harley's high-end motorcycles, attributed to low consumer confidence amid high interest rates and economic uncertainty [2] - The company has retracted its full-year 2025 outlook due to uncertainties related to trade policies and macroeconomic fluctuations, while management emphasizes commitment to cost control and stricter inventory management [2] Group 2 - Harley-Davidson currently has a market capitalization of $3.0 billion, with revenue for the past twelve months at $4.8 billion, generating $314 million in operating profits and $354 million in net income [3] - Historical trends indicate that there have been 17 earnings data points over the past five years, with 11 positive and 6 negative one-day returns, resulting in a 65% occurrence of positive returns [5] - The median of the 11 positive returns is 7.8%, while the median of the 6 negative returns is -6.8% [5] Group 3 - A strategy to analyze the correlation between short-term and medium-term returns post-earnings can be effective, particularly if the correlation is strong [6] - The correlation between 1D and 5D returns can guide traders to position themselves "long" for the subsequent 5 days if the 1D post-earnings return is positive [6] - The performance of peers can influence Harley-Davidson's stock reaction following earnings, with market adjustments potentially beginning prior to the earnings announcement [7]

Group 1 - Harley-Davidson has been facing challenges recently, with a previous recommendation of 'buy' made in late October 2022 [1] - The overall picture for the motorcycle manufacturer has deteriorated since the earlier positive outlook [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth potential [1] - Subscribers benefit from a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Points - Harley-Davidson, Inc. will release its second quarter 2025 financial results on July 30, 2025, before market hours [1] - An audio webcast for discussing financial results and business developments is scheduled from 8-9 a.m. CT on the same day [1] - A slide presentation supporting the discussion will be available prior to the audio webcast [1] Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services [3]

Group 1 - Harley-Davidson has been fined $1.4 million by Japan for violating market quota regulations [1]

Core Insights - Central Standard Craft Distillery will relocate its main operations to a refurbished 73,000-square-foot space on the historic Harley-Davidson campus in Milwaukee, aiming to open in late spring 2026 [1][3] - The expansion is expected to increase distillery production capacity by 20 times and create new job opportunities, with headcount projected to double [4][3] - Both Central Standard and Harley-Davidson have a strong history of investing in the Milwaukee community, enhancing local economic and tourism landscapes [2][6] Company Developments - Central Standard's new facility will include full distillery production, a tasting room, tours, and private events, consolidating operations currently spread across three locations [1][4] - The project is designed by Minnesota-based firm HGA, which has previously worked on Central Standard's Crafthouse & Kitchen [5] - Harley-Davidson continues to invest in the Juneau Avenue area, recently unveiling Davidson Park as part of its commitment to community revitalization [6][7] Market Position - Central Standard Craft Distillery is recognized as the fastest-growing top-10 distiller in Wisconsin, producing award-winning spirits from locally sourced ingredients [9] - The partnership with Harley-Davidson is seen as a strategic move to enhance Central Standard's presence and engagement within the Milwaukee community [4][3]

Core Viewpoint - The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Harley-Davidson, Inc. regarding possible breaches of fiduciary duties to shareholders and allegations of gross mismanagement of the company [1]. Group 1 - The investigation focuses on whether the board of directors of Harley-Davidson has acted in the best interests of shareholders [1]. - Shareholders are encouraged to participate in the investigation if they hold shares in Harley-Davidson [1]. Group 2 - The Law Offices of Frank R. Cruz provides contact information for shareholders who wish to discuss their rights and interests related to the investigation [3].

Core Points - Harley-Davidson confirmed the election of all nine Director nominees at the 2025 Annual Meeting of Shareholders [1] - The search for Harley-Davidson's next CEO is ongoing, led by the search committee [1] - CEO Jochen Zeitz expressed gratitude to shareholders and emphasized the company's commitment to long-term value creation [2] Company Overview - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, aiming to be the most desirable motorcycle brand globally [3] - The company has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., focusing on urban adventure and electric motorcycle innovation [3]