Loading...
01/11 16:19
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects several negative indicators: substantial declines in global retail and wholesale sales, reduced operating margins, and a drop in consolidated revenue. Despite positive elements like share repurchases and improved cash flow, the weak financial performance and unclear guidance on strategic partnerships and tariff impacts outweigh these. The market cap indicates a moderate reaction, leading to a negative sentiment prediction (-2% to -8%).
Operating Income Margin 12.1%, down from 15.2% year-over-year, primarily due to lower volume impacting operating leverage.
Global Retail Sales Down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence and macroeconomic uncertainty.
Global Wholesale Shipments Down 33% year-over-year, contributing to reduced dealer inventory, which was down 19% overall.
HDFS Operating Income $64,000,000, up 19% year-over-year, driven by lower provision for credit losses and operating expenses.
Consolidated Revenue Down 23% year-over-year, largely in line with expectations across HDMC and HDFS.
HDMC Revenue Decreased by 27% in Q1, with 30 points of decline from decreased wholesale volume.
Operating Income $160,000,000, driven by a decline of 51% at HDMC, partially offset by an increase at HDFS.
Earnings Per Share $1.7, reflecting the overall performance of the company.
Cash Flow from Operations $142,000,000, up $38,000,000 from the prior period, due to lower net cash outflows for wholesale financing.
Total Cash and Cash Equivalents $1,900,000,000, which is $467,000,000 higher than at the end of Q1 last year.
Share Repurchases 3,400,000 shares bought back at a value of $87,000,000 in Q1.
LiveWire Operating Loss $20,000,000, improved from a $29,000,000 loss in the prior Q1.
LiveWire Cash Burn $18,000,000, which is $9,000,000 less than Q1 of the previous year.
HDFS Revenue $245,000,000, a decrease of 2% year-over-year, driven by lower retail and commercial receivables.
Retail Credit Loss Ratio 3.8%, slightly up from 3.7% in the prior year, driven by lower retail receivables.
Operating Expenses $199,000,000, which is $24,000,000 lower than the prior year.
HDMC Operating Margin 10.8%, down from 16.2% in the prior year, impacted by lower production volumes.
Productivity Savings Achieved $24,000,000 in Q1, part of a $400,000,000 improvement target by 2025.
Direct Tariff Impact $9,000,000 in Q1, with an estimated 2025 impact from new tariffs between $130,000,000 to $175,000,000.
New Product Launch: Launched the limited production CVO Road Glide RR, the most powerful on-road production motorcycle in Harley Davidson's history, with 131 hand-assembled units available.
Entry Level Products: Planning to introduce new entry-level products in smaller displacements and an iconic classic for U.S. and international markets starting next year.
Market Expansion: Shifting model year launch timing to fall to create additional selling opportunities and support dealer health.
Marketing Development Fund: Allocated significant marketing funds to support dealer network closer to the riding season.
Operational Efficiency: Achieved $24 million in productivity savings primarily from logistics and supply chain initiatives.
Inventory Management: Global wholesale shipments down 33% and dealer inventory down 19% compared to Q1 last year.
Strategic Shift: Withdrew 2025 financial guidance due to macroeconomic uncertainty and tariff impacts.
LiveWire Investment Evaluation: Evaluating options for investment in LiveWire, focusing on cost savings and sustainable business model.
Global Retail Sales: Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence and an uncertain macro environment.
Supply Chain Challenges: Harley Davidson is managing wholesale shipments to maintain reduced dealer inventory, with global wholesale shipments down 33% and dealer inventory down 19%.
Economic Factors: The company is facing a challenging macroeconomic environment, leading to the withdrawal of its 2025 guidance due to uncertainty in consumer confidence and discretionary spending.
Tariff and Trade Issues: The fluid tariff environment poses risks, with potential impacts estimated between $130 million to $175 million for 2025, necessitating ongoing engagement with administrations to mitigate effects.
LiveWire Investment Risks: LiveWire faces significant headwinds in the EV market, including slower adoption rates, lack of incentives, and a less favorable regulatory environment, leading to a projected operating loss of approximately $59 million.
Consumer Sentiment: Research indicates that 60% of non-owners and half of existing owners are delaying purchases due to economic uncertainty and high interest rates.
Marketing Development Fund: The Marketing Development Fund is the most significant co-marketing investment made in the company’s history, aimed at supporting the network well into and beyond the riding season.
Entry Level Products: Harley Davidson plans to introduce new entry-level products in smaller displacements and an iconic classic for the U.S. and international markets starting next year, expected to be affordable and profitable.
Product Launch Timing: The company is shifting model year timing to the fall to create additional selling opportunities later in the year.
HDFS Strategic Evaluation: Harley Davidson is evaluating an investment into HDFS to enhance value for shareholders and maintain competitive financing offers.
Cost Savings Initiatives: LiveWire plans to drive significant cost savings to reduce cash burn and operating losses, aiming for a sustainable business model.
2025 Financial Guidance: Harley Davidson has withdrawn its previous 2025 guidance due to uncertainty in the global economy and tariff landscape.
Capex Expectations: Capital expenditures are now expected to be in the range of $200 million to $225 million for 2025.
Share Repurchase Commitment: The company is committed to delivering $1 billion in share repurchases by the end of 2026.
Tariff Impact: The estimated impact from new tariffs in 2025 is projected to be between $130 million to $175 million.
Operating Losses for LiveWire: LiveWire now expects operating losses of approximately $59 million for the full year, reduced from previous guidance.
Share Repurchase Program: Harley Davidson bought back 3,400,000 shares of its stock at a value of $87,000,000 in Q1 of 2025. The company is committed to a total of $1,000,000,000 in share repurchases by the end of 2026, which was announced in July 2024.
The earnings report shows significant declines in key metrics, including a 28% drop in motorcycle shipments, decreased margins, and lower operating income. Although there are some improvements, such as reduced operating losses for LiveWire and positive trends in retail sales, the overall financial health is concerning. The Q&A reveals a cautious outlook with uncertainties in dealer inventories and incomplete information on new initiatives. The withdrawal of 2025 guidance and tariff impacts further dampen sentiment, leading to a negative outlook for the stock price.
The earnings call highlights several negative aspects: a decline in gross margin and operating margin, a 23% drop in consolidated revenue, and a mixed Q&A session with unclear management responses. While there are positive elements like increased operating income in HDFS and cost savings, the overall sentiment is overshadowed by weak financial performance and lack of clarity on strategic issues. Given the company's small-cap status, these factors are likely to result in a negative stock price movement in the short term.
The earnings call reflects several negative indicators: substantial declines in global retail and wholesale sales, reduced operating margins, and a drop in consolidated revenue. Despite positive elements like share repurchases and improved cash flow, the weak financial performance and unclear guidance on strategic partnerships and tariff impacts outweigh these. The market cap indicates a moderate reaction, leading to a negative sentiment prediction (-2% to -8%).
Despite the share repurchase program, the financial performance was weak with significant revenue decline and operating losses. The guidance was revised downward, and there are concerns about future profitability, especially in the LiveWire segment. The Q&A highlighted inventory and margin issues, and management's vague responses on LiveWire's profitability timeline add uncertainty. The market cap suggests moderate reaction, leading to an expected negative stock price movement of -2% to -8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
