Harley-Davidson(US:HOG)2026-02-26 16:57Financial Performance - Total revenue for 2025 was $4.47 billion, a decrease of 14% from $5.19 billion in 2024 [324]. - Net income attributable to Harley-Davidson, Inc. for 2025 was $338.74 million, down 26% from $455.36 million in 2024 [324]. - Earnings per share (EPS) for 2025 was $2.82, compared to $3.46 in 2024, reflecting an 18.5% decline [324]. - Operating income for 2025 was $386.64 million, a decrease of 7% from $416.63 million in 2024 [324]. - Comprehensive income for 2025 was $404.72 million, slightly down from $417.43 million in 2024 [326]. - The company reported a net income of $329.2 million for 2025, a decrease of 26.1% from $445.2 million in 2024 and a 52.7% decline from $695.0 million in 2023 [414]. Cash Flow and Liquidity - Cash and cash equivalents increased to $3.09 billion in 2025 from $1.59 billion in 2024, representing a 94% increase [330]. - Net cash provided by operating activities for 2025 was $568.9 million, a decrease from $1,063.8 million in 2024 and $754.9 million in 2023 [335]. - Total cash, cash equivalents, and restricted cash at the end of 2025 reached $3.1 billion, up from $1.7 billion in 2024 and $1.6 billion in 2023 [335]. - Net cash used by financing activities in 2025 was $3.0 billion, significantly higher than $572.3 million in 2024 and $174.6 million in 2023 [335]. Assets and Liabilities - Total assets decreased to $8.04 billion in 2025 from $11.88 billion in 2024, a decline of 32% [330]. - The company’s total equity remained relatively stable at $3.16 billion in 2025 compared to $3.16 billion in 2024 [330]. - The Company had accrued liabilities totaling $672.0 million as of December 31, 2025, an increase of 13.2% from $594.0 million in 2024, driven by higher sales incentive programs and payroll-related expenses [412]. - The Company’s total long-term debt as of December 31, 2025, was $2,469,241 thousand, down from $3,860,813 thousand in 2024 [466]. Derivative Financial Instruments and Risk Management - The Company selectively uses derivative financial instruments to manage market risks, including foreign currency exchange rates and interest rates [295]. - The notional U.S. dollar value of outstanding foreign currency contracts was $448.3 million, with a 10% weakening of the U.S. dollar estimated to decrease the fair value of these contracts by approximately $45.2 million [296]. - The notional value of derivative financial instruments used to hedge commodity prices was $4.5 million as of December 31, 2025, with a net liability of $0.2 million [297]. - The Company had cross-currency swaps with a notional value of $1.42 billion at December 31, 2025, with a 10% adverse change in foreign currency exchange rates estimated to decrease the fair value of the swaps by $157.3 million [302]. - The notional value of derivative financial instruments designated as cash flow hedging instruments was $1,106,380,000 in 2025, compared to $1,215,765,000 in 2024 [451]. - The company employs derivative financial instruments to manage risks related to foreign currency, interest rates, and commodity prices [445]. Internal Controls and Audit - Harley-Davidson, Inc. reported effective internal control over financial reporting as of December 31, 2025, based on COSO criteria [306]. - The company maintained effective internal control over financial reporting, with no material weaknesses identified during the audit [308]. - The audit covered the consolidated balance sheets and related financial statements for the three years ending December 31, 2025 [307]. - The company received an unqualified opinion on its financial statements, indicating no significant issues were found [317]. - Internal control limitations may affect the ability to prevent or detect misstatements, highlighting the importance of ongoing compliance [312]. Taxation - The effective tax rate for 2025 was 28.2%, influenced by federal, state, and foreign valuation allowances, as well as a global minimum tax provision [383]. - The total cash paid for income taxes in 2025 was $39.358 million, with no cash paid in 2024 and 2023 due to prior year adjustments [401]. - The Company recognized unrecognized tax benefits of $18.157 million at the end of 2025, an increase from $16.179 million in 2024, with $14.1 million potentially affecting the effective tax rate if recognized [395]. - The Company benefited from tax holidays in Thailand, reducing foreign taxes by $15.1 million, $16.6 million, and $13.0 million in 2025, 2024, and 2023, respectively, with a net income per share benefit of $0.12, $0.12, and $0.09 for the same years [388]. Inventory and Capital Expenditures - The Company’s inventories valued at $376.8 million in 2025 decreased from $395.5 million in 2024 [345]. - Capital expenditures for 2025 were $153.7 million, down from $196.6 million in 2024 and $207.4 million in 2023 [335]. Shareholder Activities - The Company repurchased 13.1 million shares for $347.5 million in 2025, compared to 12.5 million shares for $450.0 million in 2024 [404]. - Dividends paid per share were $0.66 in 2023, $0.69 in 2024, and increased to $0.72 in 2025 [337].