Harley-Davidson Delivers Fourth Quarter and Full Year Financial Results and 2025 Outlook

Core Insights - Harley-Davidson reported a significant decline in financial performance for the fourth quarter and full year 2024, with a consolidated revenue drop of 35% in Q4 and 11% for the full year compared to 2023 [4][5][6] - The company faced challenges due to high-interest rates affecting consumer confidence and a cyclical downturn in discretionary products, but it aims to leverage its Hardwire strategy to strengthen its market position [2][4] Financial Performance - Fourth Quarter 2024 Results: - Revenue: $688 million, down 35% from $1,053 million in Q4 2023 [4] - Operating Loss: $193 million compared to a loss of $21 million in the prior year [5] - Net Income Attributable to HDI: Loss of $117 million versus a profit of $26 million in Q4 2023 [4] - Diluted EPS: Loss of $0.93 compared to earnings of $0.18 in Q4 2023 [4] - Full Year 2024 Results: - Revenue: $5.187 billion, down 11% from $5.836 billion in 2023 [4] - Operating Income: $417 million, down 47% from $779 million in 2023 [4] - Net Income Attributable to HDI: $455 million, down 36% from $707 million in 2023 [4] - Diluted EPS: $3.44, down 29% from $4.87 in 2023 [4] Segment Performance - Harley-Davidson Motor Company (HDMC): - Q4 Revenue: $420 million, down 47% from $792 million in Q4 2023 [8] - Global Motorcycle Shipments: 14,010 units, down 53% from 29,544 units in Q4 2023 [8] - Full Year Revenue: $4.122 billion, down 15% from $4.845 billion in 2023 [8] - Operating Income: $278 million, down 58% from $661 million in 2023 [8] - Harley-Davidson Financial Services (HDFS): - Q4 Revenue: $257 million, up 4% from $246 million in Q4 2023 [14] - Full Year Revenue: $1.039 billion, up 9% from $954 million in 2023 [15] - Operating Income: $248 million, up 6% from $235 million in 2023 [15] - LiveWire: - Q4 Revenue: $10 million, down 32% from $15 million in Q4 2023 [16] - Full Year Revenue: $26 million, down 31% from $38 million in 2023 [17] - Electric Motorcycle Shipments: 612 units, down 7% from 660 units in 2023 [17] Retail Sales - Global retail sales of new motorcycles decreased by 15% in Q4 2024 compared to Q4 2023, with North America down 13% and EMEA down 7% [12][13] - For the full year 2024, global retail sales were down 7%, with North America declining by 4% [13] Cash Flow and Investments - The company generated $1.1 billion in cash from operating activities for the full year 2024 [19] - Capital investments for 2025 are projected to be between $225 million and $250 million [6] Market Position - Harley-Davidson's market share in the U.S. Touring segment reached 74.5% in 2024, driven by the launch of new models [2] - The company aims to capitalize on any potential recovery in consumer spending as it navigates current market challenges [2]