Harley-Davidson(US:HOG)2025-07-30 10:50Financial 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]