Financial Data and Key Metrics Changes - Harley-Davidson's consolidated revenue in Q1 2025 decreased by 23%, with operating income at $160 million, a decline of 51% at HDMC, partially offset by a 19% increase in HDFS operating income [20][28] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the previous year, primarily due to lower volume impacting dealer inventory [20][25] - Earnings per share for Q1 was reported at $1.7, reflecting the overall decline in revenue and operating income [21] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [22][23] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [27][28] - LiveWire segment reported an operating loss of $20 million, with revenue decreasing due to lower unit sales of electric motorcycles [30] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [5][6] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [7] - LATAM reported a 6% decline in retail sales year-over-year [7] Company Strategy and Development Direction - The company is focusing on a significant marketing development fund to support dealer networks and product launches closer to the riding season [6][10] - Harley-Davidson plans to introduce new entry-level products and expand its cruiser offerings, aiming for affordability and profitability [11][88] - The company is evaluating its investment in LiveWire due to challenges in the EV market, including slower adoption rates and regulatory hurdles [12][97] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of previous 2025 guidance [13][34] - There is cautious optimism regarding potential trade deals that may mitigate tariff impacts, although the situation remains fluid [14][59] - Sequential improvement in retail sales was noted from February to April, indicating a slight recovery in consumer demand [66] Other Important Information - The company achieved $142 million in operating cash flow, an increase of $38 million from the prior period, with total cash and cash equivalents at $1.9 billion [31][32] - Harley-Davidson repurchased 3.4 million shares for $87 million in Q1 2025 as part of its capital allocation strategy [33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining attractive offers for customers and dealers [39][40] Question: What has changed regarding the strategic value of HDFS? - The focus is on ensuring a market-based view of HDFS's value while still recognizing its strategic importance to the company [42] Question: Can you provide insight into the tariff impacts and anti-American sentiment? - Management noted that while tariffs pose challenges, the company has a strong U.S.-centric manufacturing base, and there has not been significant negative sentiment affecting sales [56][64] Question: How is the retail environment evolving, especially in April? - Sequential improvement was observed in retail sales from February to April, with management noting that April showed signs of recovery compared to March [66] Question: What led to the decision to bring back entry-level bikes? - The company aims to capitalize on the opportunity to create profitable entry-level models, having previously focused on core business investments [88] Question: How are cost savings being tracked for LiveWire? - LiveWire is projected to reduce operating losses significantly, with ongoing efforts to drive cost savings and achieve a sustainable business model [97]

Harley-Davidson (HOG) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.75%. A quarter ago, it was expected that this motorcycle maker would post a loss of $0.68 per share when it actually produced a loss of $0.93, delivering a surprise of -36.76%.Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - Harley Davidson's consolidated revenue in Q1 2025 decreased by 23% compared to the previous year, with operating income down 51% at HDMC, partially offset by a 19% increase in operating income at HDFS [18][19][26] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the same quarter last year, primarily due to lower volume and dealer inventory management [19][32] - Earnings per share for Q1 was reported at $1.07 [19] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [21][22] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [26][27] - LiveWire segment reported an operating loss of $20 million, which was an improvement from a $29 million loss in the prior year [29] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [5][6] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [7] - LATAM reported a 6% decline in retail sales year over year [7] Company Strategy and Development Direction - The company is focusing on a significant marketing development fund to support dealer networks and product launches closer to the riding season [6][10] - Harley Davidson plans to introduce new entry-level products and expand its cruiser offerings, aiming for affordability and profitability [10][11] - The company is evaluating its investment in LiveWire due to challenges in the EV segment and plans to drive cost savings to achieve a sustainable business model [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of previous 2025 guidance [12][32] - There is cautious optimism regarding trade deals that may mitigate tariff impacts, although the situation remains fluid [13][56] - Sequential improvement in retail sales was noted from February to April, indicating potential recovery [65][66] Other Important Information - The company achieved $142 million in operating cash flow, an increase from the prior period, and ended Q1 with $1.9 billion in cash and cash equivalents [31][32] - Harley Davidson repurchased 3.4 million shares for $87 million in Q1 as part of its capital allocation strategy [31][33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining long-term funding optionality [36][38] Question: Is it fair to say that the genesis of the HDFS sale consideration is due to not receiving full value in stock? - Management confirmed the strategic nature of HDFS and the need to ensure its value is recognized [44][45] Question: Can you provide color on the various tariff sources and their impacts? - Management discussed the significant impact of tariffs, particularly from China, and the proactive measures taken to mitigate these effects [51][57] Question: How has the retail environment changed recently? - Management noted sequential improvement in retail sales from February to April, with expectations for easier comparisons in the second half of the year [65][66] Question: What led to the decision to bring back entry-level bikes? - The decision was based on a strategic focus on selective expansion and the belief that new entry-level models can be competitive and profitable [88][90] Question: What are the annual cost savings targets for LiveWire? - LiveWire is targeting reduced operating losses and cash burn, with significant cost-saving measures in place [98][99]

Financial Data and Key Metrics Changes - Harley-Davidson's consolidated revenue in Q1 2025 decreased by 23% compared to the previous year, with operating income down 51% at HDMC, partially offset by a 19% increase in operating income at HDFS [18][20][26] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the same quarter last year, primarily due to lower volume and efforts to reduce dealer inventory [18][22] - Earnings per share for Q1 was reported at $1.07 [18] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [20][21] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [26][27] - LiveWire segment reported an operating loss of $20 million, which was an improvement from a $29 million loss in the prior year [29] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [4][5] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [6] - LATAM reported a 6% decline in retail sales year over year [6] Company Strategy and Development Direction - The company is focusing on a selective expansion strategy, planning to introduce new entry-level products and an iconic classic motorcycle starting next year [9][88] - A significant marketing development fund is being allocated to support dealer networks closer to the riding season [5][14] - The company is evaluating its investment in LiveWire due to challenges in the EV segment and plans to drive cost savings to achieve a sustainable business model [10][11][96] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of the 2025 financial guidance [11][31] - There is cautious optimism regarding potential trade deals that may mitigate tariff impacts [12][56] - Sequential improvement in retail sales was noted from February to April, indicating a slight recovery in consumer demand [64][65] Other Important Information - The company achieved $142 million in operating cash flow, an increase of $38 million from the prior year, and ended Q1 with $1.9 billion in cash and cash equivalents [30][31] - Harley-Davidson repurchased 3.4 million shares for $87 million in Q1 as part of its capital allocation strategy [30][33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining long-term funding optionality [36][38] Question: Is it fair to say that the strategic nature of HDFS is being reconsidered due to stock valuation? - Management confirmed that while HDFS remains strategic, they are exploring options to ensure its value is recognized in the market [44][46] Question: Can you provide insight into the tariff impacts and anti-American sentiment? - Management clarified that while tariffs pose challenges, the majority of their products are manufactured in the U.S., and they have a U.S.-centric sourcing strategy [50][54] Question: How has the retail environment changed in April compared to previous months? - Management reported sequential improvement in retail sales from February to April, indicating a positive trend [64][65] Question: What led to the decision to bring back entry-level bikes? - The company believes it can now offer competitive entry-level models that are profitable, following significant investments in core business areas [88][89]

Financial Performance - Harley-Davidson's diluted EPS was $1.07[6], a decrease of 38% year-over-year[12] - HDMC revenue decreased by 27% year-over-year to $1,082 million[6, 12], primarily due to a planned decrease in motorcycle shipments[6] - HDMC operating income margin was 10.8%[6, 12], a decrease from 16.2% in Q1 2024[21, 22] - HDFS operating income margin increased to 26.1%[6, 12], with operating income of $64 million, a 19% increase year-over-year[12, 27] - LiveWire revenue decreased by 42% to $3 million[12, 31], with a 72% decrease in motorcycle units sold (33 units)[31] Retail Sales and Market Share - Global motorcycle retail sales decreased by 21% year-over-year[6, 13], driven by a volatile macro environment and consumer uncertainty[6] - North America retail sales decreased by 24%[13] - Asia Pacific retail sales decreased by 28%[13] - Harley-Davidson's U.S market share was 36% for new 601+CC motorcycles[13] Capital Allocation - The company repurchased $87 million of shares (3.4 million shares) on a discretionary basis[6, 35] - The company has repurchased 10.5 million shares on a discretionary basis or $337 million of HOG stock towards the $1 billion target[38] Tariffs - The net new 2025 tariff headwind is estimated at $130 - $175 million[26]

[First Quarter 2025 Financial Results Overview](index=1&type=section&id=Q1%202025%20Financial%20Results%20Overview) This section provides a comprehensive overview of Harley-Davidson's Q1 2025 financial performance, including consolidated results, segment-specific outcomes, and the withdrawal of the full-year outlook [Executive Summary and Consolidated Results](index=1&type=section&id=First%20Quarter%202025%20Highlights%20and%20Results) Harley-Davidson reported Q1 2025 results that were ahead of expectations in many areas, despite softer U.S. retail sales, actively managing challenging economic and tariff environments - CEO Statement: "Our first quarter results were ahead of our expectations in many areas, while retail sales in the U.S. came in softer than anticipated" The company is focused on navigating challenging economic and tariff environments through diligent execution of cost productivity, supply chain mitigation, tight operating expense control, and reducing dealer inventory, alongside increased marketing initiatives[3](index=3&type=chunk) Consolidated Financial Results (Q1 2025 vs. Q1 2024) | Metric | 2025 ($ in millions) | 2024 ($ in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,329 | $1,730 | -23% | | Operating Income | $160 | $263 | -39% | | Net Income Attributable to HDI | $133 | $235 | -43% | | Diluted EPS | $1.07 | $1.72 | -38% | - Consolidated operating income decreased **39%**, driven by a **51%** decline at HDMC, partially offset by a **19%** increase at HDFS LiveWire's operating loss improved by **$9 million** (**32%**) Consolidated operating income margin was **12%** in Q1 2025, down from **15%** in Q1 2024[5](index=5&type=chunk) - Repurchased **$87 million** of shares (**3.4 million** shares) on a discretionary basis[6](index=6&type=chunk) [Harley-Davidson Motor Company (HDMC) Performance](index=2&type=section&id=Harley-Davidson%20Motor%20Company%20(HDMC)%20%E2%80%93%20Results) HDMC experienced a significant decline in Q1 2025, with motorcycle shipments down 33% and revenue down 27%, primarily due to planned shipment decreases and softer demand HDMC Key Financials (Q1 2025 vs. Q1 2024) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Motorcycle Shipments (thousands) | 38.6 | 57.7 | -33% | | Revenue | $1,082M | $1,476M | -27% | | Motorcycles Revenue | $864M | $1,222M | -29% | | Parts & Accessories Revenue | $143M | $166M | -14% | | Apparel Revenue | $57M | $64M | -11% | | Gross Margin | 29.1% | 31.2% | -2.1 pts. | | Operating Income | $116M | $238M | -51% | | Operating Margin | 10.8% | 16.2% | -5.4 pts. | - Revenue decline was primarily due to a planned decrease in wholesale shipments and unfavorable foreign currency, partially offset by favorable mix and global pricing/net incentives Parts & Accessories and Apparel revenue declines were attributed to lower customer traffic at dealer stores[7](index=7&type=chunk) - Gross margin decreased by **2.1 points** due to the negative impact of lower volume on operating leverage, partially offset by favorable pricing Operating expense was **$24 million** lower than a year ago[8](index=8&type=chunk) [Harley-Davidson Retail Motorcycle Sales](index=2&type=section&id=Harley-Davidson%20Retail%20Motorcycle%20Sales) Global retail motorcycle sales in Q1 2025 decreased 21% year-over-year, reflecting weak demand influenced by a high interest rate environment and an uncertain economic outlook Global Retail Motorcycle Sales (Q1 2025 vs. Q1 2024) | Region | 2025 (thousands) | 2024 (thousands) | Change | | :--- | :--- | :--- | :--- | | North America | 20.9 | 27.5 | -24% | | EMEA | 5.2 | 5.3 | -2% | | Asia Pacific | 4.4 | 6.0 | -28% | | Latin America | 0.6 | 0.6 | -6% | | **Worldwide Total** | **31.0** | **39.4** | **-21%** | - Weak demand was attributed to a high interest rate environment and an uncertain economic outlook, leading to unfavorable consumer confidence[9](index=9&type=chunk) - Asia Pacific retail performance was significantly weak in China and Japan[10](index=10&type=chunk) [Harley-Davidson Financial Services (HDFS) Performance](index=3&type=section&id=Harley-Davidson%20Financial%20Services%20(HDFS)%20%E2%80%93%20Results) HDFS reported a 19% increase in operating income for Q1 2025, primarily driven by a lower provision for credit losses and reduced operating expenses, despite a modest decline in financing receivables HDFS Key Financials (Q1 2025 vs. Q1 2024) | Metric | 2025 ($ in millions) | 2024 ($ in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $245 | $249 | -2% | | Operating Income | $64 | $54 | 19% | - Operating income increase was due to a lower provision for credit losses and lower operating expenses Interest expense remained largely flat[11](index=11&type=chunk) - Total quarter-ending financing receivables were **$7.4 billion**, down **6%** year-over-year, due to a decrease in retail loan and commercial finance receivables[11](index=11&type=chunk) [LiveWire Performance](index=3&type=section&id=LiveWire%20%E2%80%93%20Results) LiveWire's Q1 2025 revenue decreased by 42% due to lower electric motorcycle unit sales and STACYC electric bike sales, though its operating loss improved by 32% LiveWire Key Financials (Q1 2025 vs. Q1 2024) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Electric Motorcycle Unit Sales | 33 | 117 | -72% | | Revenue | $3M | $5M | -42% | | Operating Loss | ($20M) | ($29M) | 32% (improvement) | - The operating loss improvement includes a **$7.3 million** reduction in selling, administrative, and engineering expense from cost reduction activities taken in 2024[12](index=12&type=chunk) [Other Financial Highlights and 2025 Outlook](index=3&type=section&id=Harley-Davidson%2C%20Inc.%20Other%20Results%20%E2%80%93%20First%20Quarter%202025) Harley-Davidson generated $142 million in cash from operating activities and ended the quarter with $1.9 billion in cash, withdrawing its full-year 2025 financial outlook due to global uncertainties - Generated **$142 million** of cash from operating activities[14](index=14&type=chunk) - Cash and cash equivalents totaled **$1.9 billion** at the end of the quarter[14](index=14&type=chunk) - Effective tax rate was **27 percent**[14](index=14&type=chunk) - Paid cash dividends of **$23 million**[14](index=14&type=chunk) - Withdrew full year 2025 financial outlook due to uncertain global tariff situation and macroeconomic conditions[13](index=13&type=chunk) [Company Background](index=4&type=section&id=Company%20Profile) This section outlines Harley-Davidson, Inc.'s corporate structure, vision, mission, and its strategic interest in LiveWire Group, Inc [Company Background](index=4&type=section&id=Company%20Background) 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, and holds a controlling interest in LiveWire Group, Inc - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS)[15](index=15&type=chunk) - Vision: Building our legend and leading our industry through innovation, evolution and emotion Mission: More than building machines, we stand for the timeless pursuit of adventure Freedom for the soul Ambition: Maintain our place as the most desirable motorcycle brand in the world[15](index=15&type=chunk) - Holds a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States, with an ambition to be the most desirable electric motorcycle brand in the world[15](index=15&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section provides a cautionary note on forward-looking statements and details various material factors that could impact Harley-Davidson's future financial results and operations [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary note that statements in the press release regarding future expectations, plans, or goals are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially - Statements discussing future expectations, plans, strategies, objectives, outlooks, targets, guidance, commitments, or goals are considered "forward-looking statements" and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995[17](index=17&type=chunk) - Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably The Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances[17](index=17&type=chunk) [Important Factors Affecting Future Results](index=5&type=section&id=Important%20factors%20that%20could%20affect%20future%20results) Harley-Davidson's future results are subject to numerous material factors, including strategic execution, supply chain management, tariff impacts, market conditions, brand value, economic fluctuations, capital access, product development, competition, credit quality, and various operational and regulatory risks - Key factors include the ability to execute business plans (e.g., Hardwire strategic plan, LiveWire evolution), manage supply chain and logistics issues (quality, interruptions, price increases, raw material shortages, inflation), and manage the impact of new or adjusted tariffs[18](index=18&type=chunk) - Other important factors include accurately analyzing and reacting to changing market conditions, interest rates, and geopolitical environments, maintaining and enhancing the Harley-Davidson brand value, and managing through changes in general economic and business conditions[18](index=18&type=chunk) - HDFS's retail credit losses have normalized to higher levels and are expected to continue changing due to consumer credit behavior, macroeconomic conditions (including inflation), and efforts to increase prudently structured loan approvals to sub-prime borrowers[21](index=21&type=chunk) - The Company's operations, demand for its products, and its liquidity could be adversely impacted by tariff impacts, inflation, work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Harley-Davidson's condensed consolidated statements of operations, balance sheets, and cash flows for the first quarter of 2025, highlighting key financial movements [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Condensed Consolidated Statements of Operations for Q1 2025 show a significant decline in overall revenue and profitability compared to Q1 2024, with HDMC revenue down 27% and LiveWire revenue down 42%, leading to a 43% decrease in net income attributable to Harley-Davidson, Inc Condensed Consolidated Statements of Operations (Q1 2025 vs. Q1 2024) | Metric (in thousands) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | HDMC Revenue | $1,081,505 | $1,476,106 | | Operating income from HDMC | $116,272 | $238,445 | | LiveWire revenue | $2,743 | $4,704 | | Operating loss from LiveWire | ($19,809) | ($29,241) | | HDFS revenue | $244,961 | $248,797 | | Operating income from HDFS | $64,036 | $53,875 | | Operating income (Consolidated) | $160,499 | $263,079 | | Net income attributable to Harley-Davidson, Inc. | $133,104 | $234,941 | | Diluted EPS | $1.07 | $1.72 | | Cash dividends per share | $0.1800 | $0.1725 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets show an increase in total assets from December 31, 2024, to March 31, 2025, primarily driven by higher cash and cash equivalents and current finance receivables Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $1,931,175 | $1,589,608 | $1,464,614 | | Finance receivables, net (current) | $2,286,672 | $2,031,496 | $2,523,250 | | Inventories, net | $712,312 | $745,793 | $779,575 | | Total Assets | $12,382,381 | $11,881,579 | $12,334,920 | | Short-term debt | $498,500 | $640,204 | $938,719 | | Current portion of long-term debt, net | $1,839,100 | $1,851,513 | $1,281,840 | | Long-term debt, net | $4,963,261 | $4,468,665 | $4,988,891 | | Shareholders' equity | $3,173,690 | $3,158,500 | $3,336,086 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities increased to $141.5 million, with investing activities shifting to a net provision of cash and financing activities also providing net cash, resulting in a significant net increase in cash Condensed Consolidated Statements of Cash Flows (Q1 2025 vs. Q1 2024, in thousands) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141,534 | $103,997 | | Net cash provided (used) by investing activities | $61,395 | ($112,500) | | Net cash provided (used) by financing activities | $150,185 | ($25,925) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $356,413 | ($41,448) | | Cash, cash equivalents and restricted cash, end of period | $2,097,267 | $1,607,363 | - Investing activities shifted from a net cash use of **$112.5 million** in Q1 2024 to a net cash provision of **$61.4 million** in Q1 2025, primarily influenced by finance receivables[30](index=30&type=chunk) - Financing activities provided **$150.2 million** in net cash in Q1 2025, a significant change from a net use of **$25.9 million** in Q1 2024, driven by proceeds from medium-term notes and repayments of securitization debt[30](index=30&type=chunk) [Supplemental Financial Data](index=10&type=section&id=Detailed%20Supplemental%20Financial%20Data) This section provides detailed supplemental financial data for HDMC revenue, motorcycle shipments, gross profit analysis, HDFS credit loss allowances, and worldwide retail sales [HDMC Revenue and Motorcycle Shipment Data (Detailed)](index=10&type=section&id=HDMC%20Revenue%20and%20Motorcycle%20Shipment%20Data) HDMC's Q1 2025 revenue declined across all categories, with motorcycles down 29% and licensing down 66%, while total worldwide motorcycle shipments decreased 33% HDMC Revenue Breakdown (Q1 2025 vs. Q1 2024, in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Motorcycles | $863,863 | $1,221,540 | | Parts & Accessories | $143,433 | $166,193 | | Apparel | $57,322 | $64,112 | | Licensing | $3,058 | $8,930 | | Other | $13,829 | $15,331 | | **Total HDMC Revenue** | **$1,081,505** | **$1,476,106** | HDMC Worldwide Motorcycle Shipments by Category (Q1 2025 vs. Q1 2024) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Grand American Touring | 23,678 | 35,356 | | Cruiser | 11,860 | 15,691 | | Sport and Lightweight | 2,108 | 4,963 | | Adventure Touring | 955 | 1,662 | | **Total Worldwide Shipments** | **38,601** | **57,672** | - LiveWire Motorcycle Shipments decreased significantly from **117 units** in Q1 2024 to **33 units** in Q1 2025[32](index=32&type=chunk) [HDMC Gross Profit Analysis](index=10&type=section&id=HDMC%20Gross%20Profit) HDMC's gross profit decreased by $146 million from Q1 2024 to Q1 2025, primarily driven by lower volume and manufacturing costs, partially offset by favorable pricing and shipment mix Estimated Impact on HDMC Gross Profit (Q1 2024 to Q1 2025, in millions) | Factor | Impact | | :--- | :--- | | 2024 gross profit | $461 | | Volume | ($140) | | Price and sales incentives | $23 | | Foreign currency exchange rates and hedging | — | | Shipment mix | $12 | | Raw material prices | ($1) | | Manufacturing and other costs | ($40) | | **Total Change** | **($146)** | | **2025 gross profit** | **$315** | [HDFS Receivables Allowance for Credit Losses (Detailed)](index=11&type=section&id=HDFS%20Receivables%20Allowance%20for%20Credit%20Losses) The allowance for credit losses for HDFS receivables decreased slightly from $401.2 million at the beginning of Q1 2025 to $393.2 million at the end, as charge-offs exceeded the provision for credit losses HDFS Receivables Allowance for Credit Losses (Q1 2025 vs. Q1 2024, in thousands) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Balance, beginning of period | $401,183 | $381,966 | | Provision for credit losses | $53,334 | $61,010 | | Charge-offs, net of recoveries | ($61,339) | ($62,615) | | Balances, end of period | $393,178 | $380,361 | [Worldwide Retail Sales of Harley-Davidson Motorcycles (Detailed)](index=11&type=section&id=Worldwide%20Retail%20Sales%20of%20Harley-Davidson%20Motorcycles) Detailed retail sales data confirms a 21% global decline in Q1 2025, with the United States experiencing a 25% drop and Asia Pacific a 28% drop, contributing to the overall weak demand Worldwide Retail Sales of Harley-Davidson Motorcycles by Region (Q1 2025 vs. Q1 2024) | Region | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | United States | 19,207 | 25,726 | | Canada | 1,685 | 1,760 | | **Total North America** | **20,892** | **27,486** | | EMEA | 5,175 | 5,264 | | Asia Pacific | 4,362 | 6,034 | | Latin America | 581 | 621 | | **Total worldwide retail sales** | **31,010** | **39,405** | - Data source for retail sales figures is new sales warranty and registration information provided by dealers, which is subject to revision[38](index=38&type=chunk) [Media and Financial Contacts](index=6&type=section&id=Corporate%20Contacts) This section provides essential contact information for media and financial inquiries regarding Harley-Davidson, Inc [Media and Financial Contacts](index=6&type=section&id=Media%20Contact) This section provides contact information for media and financial inquiries related to Harley-Davidson, Inc - Media Contact: Jenni Coats, jenni.coats@Harley-Davidson.com, 414.343.7902[23](index=23&type=chunk) - Financial Contact: Shawn Collins, shawn.collins@Harley-Davidson.com, 414.343.8002[23](index=23&type=chunk)

Group 1 - The "Trump Tariff Losers" index increased by 0.85%, reaching 84.49 points [1] - Zebra Technologies saw a rise of 5.16%, while Five Below increased by 3.12% [1] - Gap and Coach also experienced gains, with increases of 1.35% and 1.13% respectively [1] Group 2 - Dollar Tree rose by 0.9%, indicating a positive performance among some retailers [1] - Best Buy declined by 1.19%, and Harley-Davidson fell by 1.24%, showing mixed results in the sector [1]

Company Overview - Harley-Davidson is facing significant challenges as the motorcycle industry experiences a demographic shift, with its core audience aging and younger consumers showing less interest in traditional motorcycles [2][3] - The company's LiveWire EV project has not generated sufficient interest or revenue to counterbalance the decline in traditional bike sales [3] Financial Performance - The latest earnings report indicated that Harley-Davidson's revenue missed expectations, with international sales particularly weak [3] - Analysts have revised earnings per share (EPS) estimates downward for both the current quarter and the full year, reflecting a bearish outlook [4] - Current year Zacks Consensus Estimates for EPS have decreased from $4.20 to $3.24, representing a contraction of 5.81%, alongside a sales contraction of 1.99% [4] Industry Context - The Automotive – Domestic industry, which includes Harley-Davidson, is ranked in the bottom 18% of the Zacks Industry Rank, indicating overall sector weakness [5] - Despite the challenges faced by Harley-Davidson, there are other companies within the industry, such as Xos and Zapp Electric Vehicles, that are performing better according to Zacks Rank [5]

Group 1 - Harley-Davidson, Inc. will release its first quarter 2025 financial results before market hours on May 1, 2025 [1] - An audio webcast is scheduled for May 1, 2025, from 8-9 a.m. CT, where senior management will discuss financial results and business developments [1] - A slide presentation supporting the discussion will be available prior to the audio webcast [1] Group 2 - Participants should log on and register at least 10 minutes before the start time for the webcast [2] - A replay of the audio webcast will be available approximately two hours after the call concludes [2] Group 3 - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services [3]

Core Viewpoint - Wall Street anticipates a year-over-year decline in Harley-Davidson's earnings and revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][3]. Earnings Expectations - Harley-Davidson is expected to report quarterly earnings of $0.90 per share, reflecting a year-over-year decrease of 47.7% [3]. - Revenues are projected to be $1.12 billion, down 24.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Harley-Davidson is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +20.82% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - However, Harley-Davidson currently holds a Zacks Rank of 5, complicating the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Harley-Davidson was expected to post a loss of $0.68 per share but actually reported a loss of $0.93, resulting in a surprise of -36.76% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - Tesla, another player in the automotive industry, is expected to report earnings of $0.45 per share, with revenues projected at $21.5 billion, reflecting a 1% increase year-over-year [17]. - Tesla's consensus EPS estimate has been revised 19.5% lower in the last 30 days, resulting in a negative Earnings ESP of -3.79% and a Zacks Rank of 4 [18].