Core Viewpoint - Harley-Davidson's recent earnings report indicates a significant decline in revenues and earnings, raising concerns about the company's future performance as it approaches its next earnings release [2][3][4]. Financial Performance - In Q2 2025, Harley-Davidson reported adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents, and down from $1.63 per share in the same quarter last year [2]. - Consolidated revenues totaled $1.31 billion, a decrease of 19% year-over-year [2]. - Revenues from the Motorcycle and Related Products segment fell 23% to $1.04 billion, missing the forecast of $1.15 billion, with motorcycle shipments down 28% to 35,800 units [3]. - Retail motorcycle units sold globally declined 15% to 42,300, with North America seeing a 17% drop [4]. Segment Highlights - Revenues from parts and accessories decreased 4% to $187 million, while apparel revenues fell 13% to $55 million [5]. - Harley-Davidson Financial Services reported revenues of $257 million, down 2% year-over-year, and operating income also declined 2% to $70 million [5]. - LiveWire shipments were only 55 units, a 65% decline from the previous year, with revenues of $6 million [6]. Financial Position - As of June 30, 2025, Harley-Davidson had cash and cash equivalents of $1.59 billion, and long-term debt decreased to $4.37 million [7]. - The company paid dividends of 18 cents per share, with no shares repurchased during the quarter [7]. Guidance and Outlook - Harley-Davidson has withheld its 2025 HDMC financial outlook due to tariff uncertainties but updated guidance for LiveWire and HDFS [8]. - The expected operating loss for LiveWire is now projected to be between $59-$69 million, while HDFS operating income is anticipated to range between $525 and $550 million for the full year [9]. - Estimates for Harley-Davidson have been trending upward, with a consensus estimate shift of 47.38% [10]. Industry Comparison - Harley-Davidson belongs to the Zacks Automotive - Domestic industry, where Tesla reported revenues of $22.5 billion, down 11.8% year-over-year, and an EPS of $0.40, compared to $0.52 a year ago [13]. - Tesla's Zacks Rank is 4 (Sell), while Harley-Davidson holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12][14].

Core Insights - Honda reported earnings of $0.97 per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $0.51, but down from $1.57 in the same quarter last year [1][10] - Quarterly revenues reached $37 billion, slightly below the Zacks Consensus Estimate of $37.8 billion, but higher than $34.7 billion from the previous year [1] Segmental Highlights - The Automobile segment's revenues increased by 1.1% year over year to ¥3.54 trillion ($24.4 billion), but it incurred an operating loss of ¥29.6 billion ($204 million), contrasting with an operating income of ¥222.8 billion in the same quarter last year [2] - Motorcycle segment revenues were approximately ¥951.6 billion ($6.58 billion), up 1.5% year over year, with an operating profit of ¥189 billion ($1.30 billion), reflecting a 6.8% increase year over year [3] - Financial Services segment revenues totaled ¥832.6 billion ($5.76 billion), down 11.4% year over year, with operating profit remaining flat at ¥85 billion ($588 million) [3] - Power Products and Other Businesses generated revenues of ¥92.8 billion ($641 million), a decrease of 2.2% year over year, but the operating loss narrowed to ¥219 million from ¥753 million in the same period last year [4] Financials & FY26 Outlook - As of June 30, 2025, Honda's consolidated cash and cash equivalents stood at ¥4.01 trillion ($27.7 billion), with long-term debt around ¥6.95 trillion ($48.1 billion) [5] - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.83 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycles but declines of 0.3% and 0.8% in Automobiles and Power Products, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥21.1 trillion, a decline of 2.7% year over year, with an operating profit expected at ¥700 billion, down 42.3% year over year, and a pretax profit forecasted at ¥710 billion, suggesting a drop of 46.1% year over year, attributed to macroeconomic and tariff-related challenges [7]

Core Insights - Harley-Davidson, Inc. reported second-quarter 2025 adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents and down from $1.63 per share in the same quarter last year [1][8] - Consolidated revenues totaled $1.31 billion, a decline of 19% year-over-year [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 23% year-over-year to $1.04 billion, missing the forecast of $1.15 billion due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased by 28% to 35,800 units, lagging behind the estimate of 40,923 units [2] - Revenues from motorcycle sales were $778 million, down 27% year-over-year [2] - Operating income for the motorcycle segment dropped 69% year-over-year to $61 million, below the estimate of $83.4 million [2] Retail Performance - Harley-Davidson retailed 42,300 motorcycle units globally, a decline of 15% year-over-year, and below expectations of 46,094 units [3] - Retail motorcycle sales in North America decreased by 17% to 28,900 units [3] - Sales in EMEA declined by 5%, while Asia Pacific and Latin America saw declines of 21% and 11%, respectively [3] Parts, Accessories, and Financial Services - Revenues from parts and accessories decreased by 4% year-over-year to $187 million, slightly exceeding the estimate of $185.3 million [4] - Apparel revenues fell 13% year-over-year to $55 million, missing the forecast of $67.7 million [4] - Harley-Davidson Financial Services reported revenues of $257 million, down 2% year-over-year and below the estimate of $289.6 million [4] LiveWire Performance - Total shipments for LiveWire were 55 units, a decline of 65% from the previous year [5] - Revenues for LiveWire decreased by 7% to $6 million, surpassing the estimate of $2.9 million [5] - Operating loss for LiveWire narrowed from $28 million to $19 million, which was wider than the projected loss of $15 million [5] Financial Position - Selling, general, and administrative expenses increased to $237.4 million from $235.2 million year-over-year [6] - Harley-Davidson paid dividends of 18 cents per share and did not repurchase any shares in the second quarter [6] - As of June 30, 2025, the company had cash and cash equivalents of $1.59 billion, with long-term debt decreasing to $4.37 million from $4.47 million at the end of 2024 [6] Guidance Updates - The company has withheld its 2025 HDMC financial outlook due to tariff uncertainties but updated guidance for LiveWire and HDFS [7] - For LiveWire, the expected operating loss is now projected to be between $59 million and $69 million, down from the previous estimate of $70 million to $80 million [7] - HDFS anticipates full-year 2025 operating income to range between $525 million and $550 million following a new partnership with KKR and PIMCO [9]

Core Insights - Honda reported earnings of 18 cents per share for Q4 fiscal 2025, missing the Zacks Consensus Estimate of 72 cents and declining from 99 cents per share in the previous year [1] - Quarterly revenues totaled $35.1 billion, falling short of the Zacks Consensus Estimate of $35.6 billion and the year-ago figure of $36.5 billion [1] Segment Performance - The Automobile segment's revenues decreased by 2.8% year over year to ¥3.57 trillion ($23.4 billion), but exceeded projections of ¥3.4 trillion. The segment recorded an operating loss of ¥158.7 billion ($1.04 billion), compared to an operating income of ¥100.1 billion in the same quarter of fiscal 2024 [2] - Revenues from the Motorcycle segment increased by 6.7% year over year to ¥919.6 billion ($6.12 billion), surpassing estimates of ¥873 billion. The operating profit rose by 11.8% year over year to ¥161.7 billion ($1.06 billion), exceeding the forecast of ¥160.8 billion [3] - The Financial Services segment reported revenues of ¥849 billion ($5.56 billion), down 1.7% year on year and below the prediction of ¥879 billion. Operating profit increased by 2.2% year over year to ¥70.6 billion ($462 million), but fell short of the estimate of ¥75.2 billion [4] - Revenues from Power Products and Other Businesses were ¥113.2 billion ($742 million), down 2.2% year over year, yet exceeded the forecast of ¥104.2 billion. The segment achieved breakeven compared to a loss of ¥8.3 billion in the same period last year [5] Financial Overview - As of March 31, 2025, consolidated cash and cash equivalents were ¥4.53 trillion ($31.04 billion), while long-term debt increased to ¥6.95 trillion ($47.67 billion) from ¥6.06 trillion a year earlier [5] Future Projections - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.83 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycle unit sales, but declines of 0.3% and 0.8% in Automobile and Power Product unit sales, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥20.3 trillion, reflecting a decline of 6.4% year over year. Operating profit is expected to be ¥500 billion, indicating a contraction of 58.8% year over year, while pretax profit is projected at ¥490 billion, suggesting a drop of 62.8% year over year, attributed to macroeconomic and tariff-related challenges [7]