Harley-Davidson Q4 Loss Wider Than Expected, Revenues Fall Y/Y

Core Insights - Harley-Davidson, Inc. reported a fourth-quarter 2024 adjusted loss of 93 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 68 cents, and a significant decline from earnings of 18 cents per share in the same quarter last year [1] - The company generated consolidated revenues of $688 million, down 35% from the prior-year quarter [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 47% year-over-year to $420 million, missing the forecast of $463 million due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased 15% to 25,700 units, lagging behind the estimate of 27,122 units [2] - Revenues from motorcycle sales were $231 million, down 60% year-over-year, with an operating loss of $214 million, wider than the loss of $44 million in the same quarter of 2023 [2] - Retail motorcycle units sold globally were 25,660, down 14.9% year-over-year, with North America sales decreasing 4% to 15,127 units [3] Financial Performance - Revenues for parts and accessories were down 10% year-over-year to $118 million, but exceeded the estimate of $94.7 million [4] - Revenues from Harley-Davidson Financial Services totaled $257 million, up 4% year-over-year, but missed the forecast of $267.1 million [4] - Operating income for Financial Services fell 20% to $46 million, missing the estimate of $56.1 million [4] LiveWire Segment - Total shipments for LiveWire were 236 units, declining 54% from the year-ago quarter, with revenues down 32% to $10 million [5] - Operating loss for LiveWire narrowed from $35 million to $26 million, which was better than the projected loss of $29 million [5] Financial Position - Selling, general and administrative expenses decreased to $210.5 million from $225.5 million in the year-ago quarter [6] - Cash and cash equivalents were $1.59 billion as of December 31, 2024, up from $1.53 billion a year earlier [6] - Long-term debt decreased to $4.47 million from $4.99 million recorded as of December 31, 2023 [6] 2025 Guidance - For 2025, the company expects revenues from HDMC to remain flat to down 5% year-over-year, with an operating income margin expectation of 7-8% for the motorcycle segment [7] - Operating income for Financial Services is anticipated to fall 10-15% compared to 2024 [7] - Electric motorcycle wholesale units for the LiveWire segment are expected to be in the range of 1,000-1,500, with an anticipated operating loss of $70-$80 million [8] - Capital expenditure projection for the full year is estimated to be in the range of $225-$250 million [8]