Financial Data and Key Metrics Changes - Consolidated revenue in Q4 2025 was down 28%, with HDMC revenue down 10% and HDFS revenue down 59% [25] - Consolidated operating income for Q4 was a loss of $361 million, compared to a loss of $193 million in Q4 2024 [25] - For the full year 2025, consolidated revenue was $4.5 billion, a 14% decrease compared to the previous year, and earnings per share was $2.78, down from $3.44 in 2024 [27] Business Line Data and Key Metrics Changes - HDMC retail sales in Q4 increased by 5% in North America, while international retail sales decreased by 10%, leading to a global retail sales decline of 1% [27] - For the full year 2025, North American retail sales were down 13%, while EMEA retail sales were down 11% [28][29] - HDFS revenue for Q4 was $106 million, down from $257 million in the prior year, primarily due to lower retail and wholesale finance receivables [39] Market Data and Key Metrics Changes - North American dealer inventory declined by 16% relative to year-end 2024 levels, while global dealer inventory was down 17%, exceeding the 10% reduction target [11][31] - In Latin America, Q4 retail sales increased by 10%, with both Brazil and Mexico showing growth [30] - Asia Pacific retail sales declined by 1% in Q4, with significant weakness in China [29] Company Strategy and Development Direction - The company is focused on stabilizing the business by restoring dealer confidence and aligning wholesale activity with retail demand [6][12] - Immediate priorities include improving dealer profitability, reigniting brand momentum, and reducing costs [7] - A strategic plan is expected to be announced in May 2026, with a focus on sustainable growth and optimizing inventory management [4][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year, with macro-driven pressures and internal challenges [4] - The company expects margins to be under pressure in the near term due to production levels running below wholesale [13] - 2026 is viewed as a transition year to reset the business and finalize the new strategy, with expectations for improved dealer health and financial results [12][16] Other Important Information - The HDFS transaction is expected to transform the business into a capital-light model, with a significant reduction in debt and improved financial flexibility [24][38] - The company plans to conduct a rigorous review of its cost base and operating expenses, targeting at least $150 million in annual run rate savings starting in 2027 [20][21] Q&A Session Questions and Answers Question: Inquiry about HDFS operating income expectations - Management indicated that HDFS operating income is expected to be between $45 million and $60 million for 2026, with a long-term view of tripling that income over the next few years [55][56] Question: Wholesale guidance and inventory levels - Management noted that Q1 2026 wholesale shipments are expected to be down slightly compared to the previous year, with a gradual increase anticipated in Q2 [60][62] Question: Retail sales expectations and LiveWire investment - Management expressed optimism about retail sales growth in 2026, driven by new model introductions and a focus on supporting dealers [70][72]

Financial Data and Key Metrics Changes - Consolidated revenue in Q4 2025 decreased by 28%, with HDMC revenue down 10% and HDFS revenue down 59% [25] - Consolidated operating income for Q4 was a loss of $361 million, compared to a loss of $193 million in Q4 2024 [26] - For the full year 2025, consolidated revenue was $4.5 billion, a 14% decrease compared to the previous year, and operating income was $387 million, down from $417 million in 2024 [27] Business Line Data and Key Metrics Changes - HDMC retail performance saw North American retail sales of new motorcycles up 5% in Q4, while international retail sales were down 10% [27] - For the full year 2025, global retail sales of new motorcycles were down 12%, with North America and international markets performing similarly [30] - HDFS revenue for Q4 was $106 million, down from $257 million in the prior year, primarily due to lower retail and wholesale finance receivables [38] Market Data and Key Metrics Changes - North American retail sales for Q4 were up 5%, while EMEA retail sales declined by 24% due to macroeconomic conditions [28][29] - In Asia-Pacific, Q4 retail sales declined by 1%, with significant weakness in China [29] - Latin American retail sales increased by 10% in Q4, with both Brazil and Mexico showing growth [30] Company Strategy and Development Direction - The company is focused on stabilizing the business by restoring dealer confidence and aligning wholesale activity with retail demand [6] - Immediate priorities include improving dealer profitability, reigniting brand momentum, and reducing costs [7] - A strategic plan is expected to be announced in May 2026, with a focus on sustainable growth and optimizing inventory management [4][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year, with macro-driven pressures and internal challenges [4] - The company expects 2026 to be a transition year as it resets the business and finalizes its new strategy [12] - Margins are expected to be under pressure in the near term due to production runs being below wholesale [13] Other Important Information - Dealer inventory at the end of Q4 was down 17% compared to the previous year, exceeding the target reduction of 10% [30] - The HDFS transaction is expected to transform the business into a capital-light, de-risked model, with a significant reduction in debt [25][37] - The company plans to conduct a rigorous review of its cost base and operating expenses to align with current demand levels [20] Q&A Session Summary Question: Inquiry about HDFS operating income expectations - Management indicated that HDFS operating income for 2026 is expected to be between $45 million and $60 million, with long-term profitability projected to be significantly higher [51][52] Question: Wholesale guidance and inventory levels - Management noted that Q1 2026 wholesale shipments are expected to be down slightly compared to the previous year, with a gradual increase anticipated in Q2 [57][60] Question: Expectations for global retail sales - Management expressed optimism about U.S. retail sales, particularly with the introduction of new models, while being cautious about overall retail performance [64][66]

Financial Data and Key Metrics Changes - Consolidated revenue in Q4 2025 decreased by 28%, with HDMC revenue down 10% and HDFS revenue down 59% [25] - Consolidated operating income for Q4 was a loss of $361 million, compared to a loss of $193 million in Q4 2024 [26] - For the full year 2025, consolidated revenue was $4.5 billion, a 14% decrease compared to the previous year, and operating income was $387 million, down from $417 million in 2024 [27] Business Line Data and Key Metrics Changes - HDMC retail performance saw North American sales of new motorcycles increase by 5% in Q4, while international sales decreased by 10%, leading to a global retail sales decline of 1% [27][28] - HDFS revenue for Q4 was $106 million, down from $257 million in the prior year, primarily due to lower retail and wholesale finance receivables [38] - LiveWire's consolidated revenue increased by 9% in Q4, driven by a 61% increase in electric motorcycle units [42] Market Data and Key Metrics Changes - North American retail sales for the full year 2025 were down 13%, while EMEA retail sales declined by 11% [28][30] - In Latin America, Q4 retail sales increased by 10%, with both Brazil and Mexico showing growth [30] - Asia-Pacific retail sales were down 15% for the full year, with significant weakness in China [29] Company Strategy and Development Direction - The company is focused on stabilizing the business by restoring dealer confidence and aligning wholesale activity with retail demand [6][12] - Immediate priorities include improving dealer profitability, reigniting brand momentum, and reducing costs [7] - A strategic plan is expected to be announced in May 2026, aiming for sustainable growth and improved dealer relationships [4][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year, with macro-driven pressures and internal challenges [4] - The company expects 2026 to be a transition year as it resets the business and finalizes its new strategy [12] - Margins are anticipated to be under pressure in the near term due to production runs being below wholesale [13] Other Important Information - Dealer inventory at the end of Q4 was down 17% compared to the previous year, exceeding the target reduction of 10% [30] - The company is conducting a thorough review of its cost base and operating expenses to align with current demand [20] - A dividend of $1 billion was facilitated from HDFS to HDI in Q4, with further dividends expected [45] Q&A Session Summary Question: Inquiry about HDFS operating income expectations - Management indicated that HDFS operating income for 2026 is expected to be between $45 million and $60 million, with a long-term view of potentially tripling that figure [53][54] Question: Wholesale guidance and inventory levels - Management noted that Q1 2026 wholesale shipments are expected to be down slightly, with a potential increase in Q2 as dealers are positioned for the season [60][63] Question: Retail sales expectations and LiveWire investment - Management expressed optimism about retail sales growth in 2026, particularly with new model introductions, while also confirming continued investment in LiveWire despite potential losses [66][68]

Financial Data and Key Metrics Changes - Consolidated revenue in Q4 2025 decreased by 28%, with HDMC revenue down 10% and HDFS revenue down 59% [24] - Consolidated operating income for Q4 was a loss of $361 million, compared to a loss of $193 million in Q4 2024 [25] - Full year 2025 consolidated revenue was $4.5 billion, a 14% decrease compared to the previous year, with operating income of $387 million, down from $417 million in 2024 [26] Business Line Data and Key Metrics Changes - HDMC retail sales in Q4 increased by 5% in North America but decreased by 10% internationally, leading to a global retail sales decline of 1% [26] - For the full year 2025, HDMC revenue decreased by 13% to $3.6 billion, driven by a 16% drop in wholesale volumes [31] - HDFS revenue for Q4 was $106 million, down from $257 million in the prior year, primarily due to lower retail and wholesale finance receivables [37] Market Data and Key Metrics Changes - North American retail sales were up 5% in Q4, while EMEA retail sales declined by 24% due to adverse macroeconomic conditions [27][28] - Asia-Pacific retail sales decreased by 1% in Q4, with significant weakness in China, while Latin America saw a 10% increase in Q4 [29] - Global retail sales of new motorcycles were down 12% for the full year 2025 [29] Company Strategy and Development Direction - The company is focused on stabilizing the business by restoring dealer confidence and aligning wholesale activity with retail demand [5] - Immediate priorities include improving dealer profitability, reigniting brand momentum, and reducing costs [6] - A strategic plan announcement is expected in May 2026, with a focus on sustainable growth and optimizing inventory management [4][12] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a transition year to reset the business and expects margins to be under pressure due to production running below wholesale [12] - The company anticipates a cost of $75 million to $105 million in new or increased tariffs for 2026, which will impact operating margins [46] - Management is optimistic about returning to long-term earnings and free cash flow levels, emphasizing the importance of dealer health and inventory management [12][23] Other Important Information - The HDFS transaction is expected to transform the business into a capital-light, de-risked model, with a significant reduction in HDFS debt [24][36] - The company plans to conduct a rigorous review of its cost base and operating expenses to align with current demand levels [19] - A total of $150 million in annual run rate savings is anticipated starting in 2027, excluding LiveWire [70] Q&A Session Summary Question: HDFS operating income expectations - Management indicated that HDFS operating income for 2026 is expected to be between $45 million and $60 million, with a long-term view of potentially tripling that figure [50][52] Question: Wholesale guidance and inventory levels - Management expects Q1 2026 wholesale shipments to be slightly down compared to the previous year, with an increase anticipated in Q2 [56][58] Question: Global retail expectations - Management is optimistic about U.S. retail sales, particularly with new model introductions, and expects some upside in 2026 compared to 2025 [63][66] Question: Annual run rate savings distribution - The $150 million in annual run rate savings will not include LiveWire and is expected to be realized starting in the back half of 2026 [70][71] Question: Bridging wholesale growth to operating income - Management acknowledged the challenges in achieving operating income amidst tariff impacts and production versus wholesale dynamics [74]

Core Insights - Harley reported a per-share loss of $2.44, which was significantly worse than Wall Street's expectation of a $1.07 loss [1] - The company's sales amounted to $496 million, exceeding Wall Street's forecast of $485 million [1] Financial Performance - The reported loss per share of $2.44 indicates a larger financial setback than anticipated by analysts [1] - Sales figures of $496 million reflect a positive deviation from the expected sales of $485 million, suggesting stronger revenue generation despite the loss [1]

▪ Artie Starrs, President and CEO ▪ Jonathan Root, Chief Financial Officer and Chief Commercial Officer ▪ Shawn Collins, Director Investor Relations Q4 & FY 2025 PERFORMANCE HEADLINES 2025 Full Year Highlights and Results Q4 & FY 2025 RESULTS TUESDAY, FEB RUARY 10, 2026 Q4 & FY 2025 RESULTS – EARNINGS CALL 2 CONSOLIDATED – Q4 2025 RESULTS Fourth Quarter 2025 Highlights and Results | 1, 2 Q4 2025 Results | HDMC | HDFS | LiveWire | Total | | --- | --- | --- | --- | --- | | ($ millions, except earnings per sha ...

Core Insights - Harley-Davidson reported a significant increase in losses for the fourth quarter, more than doubling its previous losses as motorcycle sales continued to decline [1] Company Performance - The company's losses in the fourth quarter exceeded previous figures, indicating a troubling trend in financial performance [1] - Motorcycle sales have been a major factor in the company's financial struggles, contributing to the overall decline in revenue [1] Industry Context - The motorcycle industry is facing challenges, with Harley-Davidson's performance reflecting broader market trends that may impact other manufacturers as well [1]

Core Insights - Harley-Davidson reported a challenging year in 2025, with significant declines in revenue and motorcycle shipments, but is taking steps to stabilize the business and restore dealer confidence [1] Financial Performance - Full year 2025 revenue decreased by 14% to $4.473 billion from $5.187 billion in 2024 [1] - Fourth quarter revenue was down 28% to $496 million compared to $688 million in the same quarter of 2024 [1] - HDMC operating loss for 2025 was $29 million, a significant decline from an operating income of $278 million in 2024 [1] - Diluted EPS for 2025 was $2.78, down 19% from $3.44 in 2024, while the fourth quarter reported a diluted EPS loss of $2.44 [1] Motorcycle Shipments and Sales - Global motorcycle shipments for 2025 totaled 124,477 units, down 16% from 148,862 units in 2024 [1] - Global retail motorcycle sales decreased by 12% to 132,535 units in 2025 from 151,229 units in 2024 [1] - In North America, retail motorcycle sales increased by 5% in Q4 2025, but full year sales were down 13% [1] Harley-Davidson Financial Services (HDFS) - HDFS reported record-high operating income of $490 million for 2025, up from $248 million in 2024, driven by favorable credit loss provisions [1] - HDFS revenue decreased by 16% to $869 million in 2025 from $1.039 billion in 2024 [1] LiveWire Performance - LiveWire, the electric motorcycle segment, reported a 9% increase in revenue in Q4 2025, with an operating loss of $18 million, which is 30% less than the previous year [1] - For the full year, LiveWire sold 653 electric motorcycles, a slight increase from 612 units in 2024 [1] Capital Management - The company returned $434 million to shareholders through share repurchases and dividends in 2025 [1] - Cash and cash equivalents at year-end 2025 were $3.1 billion, up from $1.6 billion in 2024 [1] 2026 Outlook - For 2026, Harley-Davidson expects capital investments of $175 to $200 million and global motorcycle wholesale shipments of 130,000 to 135,000 units [1] - The company anticipates HDMC operating income to range from a loss of $40 million to a profit of $10 million [1]

Harley-Davidson reported a wider loss in the fourth quarter on Tuesday, hurt by a pullback in consumer spending toward recreational vehicles. ...

Fiscal Third Quarter Ended December 31, 2025 Financial Results February 10, 2026 Summary Financial Results for Nine Months Ended Operating Profit 591.5 billion yen Motorcycle business Group Unit Sales: 16.44 million units Achieved record-high unit sales, operating profit, and operating margin for nine months ended December 31, 2025 Automobile business Group Unit Sales: 2.561 million units Operating profit: - 166.4 billion yen (Operating margin - 1.6%) incl. tariff impacts and one-time EV-related expenses (- ...