Q2 2025 Performance - Harley-Davidson diluted EPS was $0.88[6] - HDMC operating income margin was 5.9%[6] - HDMC revenue decreased by 23% year-over-year[6] - Global motorcycle shipments decreased by 28%, primarily due to planned dealer inventory reduction[6] - Global motorcycle retail sales decreased by 15% year-over-year[6] - Global dealer inventories decreased by 28% compared to Q2 '24[6, 21] - The cost of new or increased tariffs implemented in '25 was $13 million in Q2 '25[6] - HDFS operating income margin was 27.1%[6] HDFS Transaction - Strategic partners valued the HDFS business at approximately 1.75x post-transaction book value[7, 11, 14] - HDFS agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO[7] - HDFS will sell approximately two-thirds of HDFS future retail loan originations at a premium on an annual basis for five years[7, 14, 55, 58] - The transaction unlocks $1.25 billion in discretionary cash, representing approximately 40% of current Harley-Davidson market capitalization[7] - HDFS agreed to sell over $5 billion of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium[7, 14, 55] - HDFS expects to use a portion of the proceeds to reduce indebtedness to optimize its post-transaction capital structure[7] Financial Outlook & Capital Allocation - HDFS transaction is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H-D from HDFS[14, 67] - The company intends to use available cash for share buyback of $500M, HDI debt reduction of $450M and reinvestment in HDMC[14, 66]