Core Insights - Harley-Davidson's shares have declined approximately 19% over the past year due to weak demand for motorcycles amid a sluggish consumer spending environment [1] Company Performance - The company is facing challenges with lackluster demand for its motorcycles, which is impacting its stock performance negatively [1] Market Context - The broader economic backdrop is characterized by muted consumer spending, which is contributing to the difficulties faced by Harley-Davidson [1]

Core Viewpoint - Harley-Davidson has appointed two new independent directors, Daniel Nova and Matt Reintjes, to its Board of Directors, effective September 15, 2025, to enhance the company's strategic direction and governance [1][2]. Group 1: New Board Appointments - Daniel Nova is a General Partner at Highland Capital Partners and has extensive experience in advising companies through growth and transition, along with a strong background in corporate governance and finance [2][4]. - Matt Reintjes has been the President and CEO of YETI Holdings since 2015, leading the company to become a prominent global outdoor brand, and brings valuable insights from his previous executive roles [4][5]. - The appointments come as part of a broader strategy to strengthen the Board, which has seen four new independent members added in the last three years [6]. Group 2: Board Changes and Leadership - The retirements of directors Sara Levinson and Norman Thomas Linebarger were announced prior to the new appointments, indicating a shift in the Board's composition [5][6]. - Troy Alstead has been appointed as the Presiding Director effective July 30, 2025, and will become Chairman of the Board on October 1, 2025, further indicating leadership changes within the company [6]. Group 3: Company Background - Harley-Davidson, established in 1903, is known for its iconic brand representing freedom and adventure, focusing on motorcycles, accessories, and financial services [7]. - The company aims to maintain its status as the most desirable motorcycle brand globally and has a controlling interest in LiveWire Group, Inc., which focuses on electric motorcycles [7][8].

Core Viewpoint - Harley-Davidson, Inc. (HOG) is showing potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The formation of a golden cross typically follows three stages: a downtrend, the crossover of moving averages, and an upward price movement [3]. Recent Performance - HOG has experienced a rally of 21.1% over the past four weeks, indicating strong momentum [4]. - The current Zacks Rank for HOG is 3 (Hold), suggesting a stable outlook [4]. Earnings Outlook - The earnings outlook for HOG is positive, with no downward revisions in the past two months and four upward revisions, leading to an increase in the Zacks Consensus Estimate [4][5]. - The combination of positive earnings revisions and technical indicators suggests that HOG may continue to see gains in the near future [5].

Core Insights - Ituran Location and Control Ltd. is expanding into the motorcycle market in Brazil through partnerships with Yamaha and BMW Motorrad, marking the beginning of a broader growth strategy in the two-wheeler segment [1][4] - The global motorcycle market is expected to grow from $127 billion in 2025 to over $200 billion by 2032, with significant demand anticipated from Latin America, India, and Southeast Asia [4] Company Strategy - Brazil was selected as the launchpad for this initiative due to its status as the largest market in Latin America and Ituran's strong presence in connected vehicle services [3][4] - The company aims to leverage its existing telematics and recovery services to provide enhanced security and real-time visibility for motorcycle users, addressing the widespread issue of motorcycle theft in Brazil [2][7] Market Position - Ituran has a subscriber base of over 2.5 million globally, with a leading position in connected vehicle services in Israel and Latin America [2][9] - The company has a proven track record in vehicle recovery, boasting an average recovery rate of 85%, which it plans to extend to two-wheel vehicles [6][7] Future Outlook - The CEO of Ituran emphasized that this initiative is not just a product deployment but the start of a larger market opportunity, with plans to scale into other high-growth two-wheeler markets through partnerships with local OEMs and aftermarket sales [4]

[Music] Good afternoon. Good afternoon everybody. >> How many of you rides motorcycles? >> Everybody. >> I I count everybody. So there are some things that I would like to share with you. Uh they are not experienced. there are something that I've seen that I they are something that I've experienced over the time but whenever I try to recall I feel like there are stories some good some bad multiple kinds of uh roads I've seen multiple kinds of bikes I've taken so it is a combination of everything but for tha ...

Core Insights - The Vietnamese electric motorcycle market is experiencing significant growth, with new vehicle sales reaching approximately 209,000 units in the first half of 2025, representing a year-on-year increase of 99.2%, making it the third-largest electric motorcycle market globally after China and India [1] Market Performance - The L1 electric motorcycle segment (under 50cc engine) has seen a remarkable increase in sales, soaring by 112.6% in the first half of 2025. This model targets middle and high school students, offering convenience and low operating costs [1] - Traditional fuel motorcycle sales have also risen, with Vietnamese consumers purchasing 1,284,291 motorcycles in the first half of 2025, a 6.4% increase compared to 1,206,872 units in the same period of 2024 [1] Market Composition - The Vietnamese electric motorcycle market is primarily dominated by local and Chinese brands, with VinFast accounting for over 55% of total electric motorcycle sales in the first half of 2025 [1]

Core Insights - Harley-Davidson has appointed Artie Starrs as the new President and CEO, effective October 1, 2025, succeeding Jochen Zeitz [1][4] - Artie Starrs brings extensive experience from Topgolf, where he led significant revenue growth and global expansion [2][3] - The transition aims to enhance Harley-Davidson's connection with its riders and attract new customers [2][4] Leadership Transition - Jochen Zeitz will remain as Chairman, President, and CEO until October 1, 2025, after which he will serve as a senior advisor until February 2026 [4][5] - Troy Alstead has been appointed to succeed Zeitz as Chairman of the Board effective October 1, 2025 [4][5] - The Board expressed gratitude for Zeitz's leadership and contributions during challenging times [5] Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, focusing on innovation and adventure [6] - The company aims to maintain its status as the most desirable motorcycle brand globally, offering customizable motorcycles and related experiences [6] - Harley-Davidson has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., aiming to lead in the electric motorcycle market [7]

Core Insights - Harley-Davidson reported Q2 2025 results with GAAP revenue of $1,307 million, exceeding analyst expectations of $1,099 million, but GAAP earnings per share (EPS) fell to $0.88, below the anticipated $0.96 [1][2] - Year-over-year metrics showed significant declines: revenue decreased by 19%, operating income dropped by 53%, and EPS fell by 46% [1][2] - Management did not provide full-year guidance due to uncertainties related to global tariffs and weak demand for discretionary goods [1] Financial Performance - Q2 2025 GAAP EPS was $0.88, down 46% from $1.63 in Q2 2024 [2] - GAAP revenue was $1,307 million, a 19.3% decline from $1,619 million in Q2 2024 [2] - Operating income fell to $112 million, a 53.5% decrease from $241 million in the previous year [2] - Net income attributable to Harley-Davidson, Inc. was $108 million, down 50.5% from $218 million in Q2 2024 [2] - HDMC operating margin contracted to 5.9%, down from 14.7% a year earlier [2] Business Overview - Harley-Davidson manufactures heavyweight motorcycles known for their distinctive style and brand image, and operates Harley-Davidson Financial Services and LiveWire, its electric motorcycle business [3] - The company has a global presence supported by a widespread dealer network and a robust lifestyle brand [3] Strategic Developments - A significant strategic move involved selling a 4.9% stake in its financial services arm to KKR and PIMCO, unlocking $1.25 billion in discretionary cash [5] - This transaction is expected to fund $450 million in debt repayment and $500 million in share repurchases in the second half of 2025 [5] Market Trends - The core motorcycle segment experienced a contraction, with global retail sales down 15% and shipments falling 28% [6] - North America retail sales declined by 17%, while the Asia-Pacific region saw a 21% drop, attributed to weak demand in China and Japan [6] - Dealer inventory levels were 28% lower compared to Q2 2024 [6] Product Innovation - New product launches included the limited CVO Road Glide RR, targeting both affordability and profitability in smaller displacement and classic motorcycle segments [7] - Parts and accessories revenue decreased by 4%, and apparel revenue was down 13% due to slowed discretionary spending [7] Electric Motorcycle Segment - LiveWire revenue was subdued at $6 million, with units delivered plunging 65% to just 55 [8] - Future investments in LiveWire are restricted to an existing $100 million credit line, with expected operating losses of $59–69 million for full year 2025 [9] Financial Services - Harley-Davidson Financial Services segment revenue slipped 2% to $257 million, maintaining a high margin of 27.1% [10] - Operating income for Financial Services is estimated at $525–550 million for the year, reflecting benefits from the recent transaction [12] Dividend and Share Repurchase - The company continued dividend payments, distributing $0.18 per share, a slight increase from the previous year's $0.1725 [11] - Plans to accelerate share repurchases with proceeds from the KKR and PIMCO transaction in the second half of 2025 [11]

Core Insights - Harley-Davidson reported a revenue of $1.05 billion for the quarter ended June 2025, reflecting a year-over-year decline of 22.6% and an EPS of $0.88 compared to $1.63 a year ago, indicating a significant drop in financial performance [1] - The reported revenue was 7.04% lower than the Zacks Consensus Estimate of $1.13 billion, and the EPS fell short of the consensus estimate of $0.99 by 11.11% [1] Financial Performance Metrics - Total worldwide retail sales of Harley-Davidson motorcycles were 42,254, below the estimated 45,308 [4] - Total worldwide motorcycle shipments were 35,837, compared to the estimated 39,622 [4] - Revenue from motorcycles and related products (HDMC) was $1.04 billion, missing the estimated $1.13 billion, marking a 22.6% decline year-over-year [4] - Financial services revenue (HDFS) was $257.44 million, slightly below the estimated $268.81 million, representing a 2.3% decline year-over-year [4] - Live Wire revenue was $6.01 million, below the estimated $7.35 million, reflecting a 6.8% decline year-over-year [4] - Revenue from parts and accessories was $186.87 million, compared to the estimated $189.7 million, showing a 3.6% decline year-over-year [4] - Apparel revenue was $55.24 million, significantly lower than the estimated $63.64 million [4] - Licensing revenue increased to $5.94 million, exceeding the estimated $4.57 million, with an 8.4% increase year-over-year [4] - Motorcycle revenue was $778.05 million, below the estimated $848.49 million, indicating a 27.2% decline year-over-year [4] Stock Performance - Harley-Davidson shares have returned -8.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change, indicating underperformance in the market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential continued underperformance in the near term [3]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 decreased by 19%, primarily due to a planned reduction in motorcycle shipments and soft demand [10][26] - Consolidated operating income was $112 million, reflecting a 69% decline at HDMC [27] - Earnings per share for Q2 was $0.88, with global retail sales down 15% year over year [27][28] - Cash and cash equivalents at the end of Q2 were $1.6 billion, down $261 million from the previous year [47][48] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 23% in Q2, driven by a 28% decline in motorcycle shipments [34] - HDFS revenue was $257 million, a decrease of 2%, while operating income was $70 million, also down 2% [43][44] - LiveWire reported an operating loss of $19 million, an improvement from a $28 million loss in the prior year [46] Market Data and Key Metrics Changes - North American retail sales were down 17%, while international markets saw a 12% decline [27][28] - In Asia Pacific, retail sales decreased by 21% due to intense competition [31] - The U.S. cruiser category experienced a 6% volume growth, increasing market share to 53% [32] Company Strategy and Development Direction - The company entered strategic partnerships with KKR and PIMCO for HDFS, enhancing flexibility and reducing overall leverage [4][6] - Plans to reduce debt by $450 million and accelerate a $1 billion share buyback program [9][50] - Introduction of new entry-level products and a small displacement motorcycle targeting a price below $6,000 [20][19] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty and elevated interest rates impacting customer purchasing behavior [10][11] - There is cautious optimism regarding future trade agreements that may mitigate operational impacts [14] - Management expects a significant improvement in retail performance in July, with positive trends anticipated for the remainder of the year [67][68] Other Important Information - The company plans to implement a new efficiency program leveraging technology, including AI, to drive cost savings [11] - The global tariff environment remains uncertain, with an estimated full-year impact from tariffs projected between $50 million and $85 million [42] Q&A Session Summary Question: What are the components used to calculate the 1.75 times book value marker for the HDFS transaction? - The calculation is based on the proceeds from KKR and PIMCO's equity investment relative to the post-transaction book value of HDFS [52][54] Question: What is driving the underlying profitability of HDFS, and what is the normalized profitability expected in 2026? - The profitability has improved due to stabilization in used values and better repossession rates, with normalized earnings expected to be around $240 million to $250 million annually [56][65] Question: How does the company feel about current dealer inventories and the target for year-end? - The company expects a significant reduction in dealer inventory, targeting a double-digit decline by year-end [73] Question: Why was the 4.9% equity sale the right level, and are there any tax ramifications? - The 4.9% limit is due to regulatory requirements from the FDIC, and the $1.25 billion figure is a pretax amount [78][82] Question: Is there any guarantee of growth in retail sales or receivables associated with the HDFS transaction? - There are no guarantees regarding growth rates or loss levels associated with the transaction [89]