Harley-Davidson Q2 Earnings Miss Estimates, Revenues Fall Y/Y

Harley-Davidson, Inc. HOG reported second-quarter 2025 adjusted earnings of 88 cents per share, which lagged the Zacks Consensus Estimate of 99 cents. The company had reported earnings of $1.63 per share in the year-ago quarter. The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1.31 billion, down 19% from the prior-year quarter.

Harley-Davidson, Inc. Price, Consensus and EPS Surprise

Harley-Davidson, Inc. price-consensus-eps-surprise-chart | Harley-Davidson, Inc. Quote

Segmental Highlights

Harley-Davidson Motor Company: Total revenues from the Motorcycle and Related Products segment, constituting the bulk of the firm’s overall revenues, fell 23% on a year-over-year basis to $1.04 billion and missed our forecast of $1.15 billion on lower-than-expected motorcycle shipments. Motorcycle shipments worldwide decreased 28% to 35,800 units and lagged our estimate of 40,923 units. In the quarter under review, revenues from the sale of motorcycles came in at $778 million, down 27% year over year. The segment generated an operating income of $61 million, which slumped 69% year over year and fell short of our estimate of $83.4 million.

During the reported quarter, Harley-Davidson retailed 42,300 motorcycle units globally, which declined 15% year over year and lagged our expectations of 46,094 units. Its retail motorcycle units sold in North America decreased 17% to 28,900. Sales in EMEA or Europe, the Middle East and Africa declined 5% year over year. Sales in Asia Pacific and Latin America fell 21% and 11%, respectively, year over year.

Revenues from parts & accessories were down 4% from a year ago to $187 million, but beat our estimate of $185.3 million. Revenues from apparel fell 13% year over year to $55 million and fell short of our forecast of $67.7 million.

Harley-Davidson Financial Services: Revenues for Harley-Davidson Financial Services totaled $257 million. The figure declined 2% year over year and missed our forecast of $289.6 million. Operating income also declined 2% to $70 million but beat our estimate of $63.6 million.

LiveWire: During the reported quarter, the total shipment for LiveWire was 55 units, declining 65% from the year-ago quarter levels. Revenues declined 7% to $6 million but topped our estimate of $2.9 million. Operating loss narrowed from $28 million to $19 million. The reported loss was wider than our projection of a $15 million loss.

Financial Position

In the second quarter, selling, general and administrative expenses from the HDMC unit increased to $237.4 million from $235.2 million in the year-ago quarter. The company paid dividends of 18 cents per share. No shares were repurchased in the second quarter of 2025.

Harley-Davidson had cash and cash equivalents of $1.59 billion as of June 30, 2025. The long-term debt decreased to $4.37 million from $4.47 million recorded as of Dec. 31, 2024.

HOG Updates LiveWire & HDFS Guidance

The company still withholds its 2025 HDMC financial outlook amid tariff uncertainties, but updates guidance for LiveWire and HDFS businesses.

For LiveWire, it now expects an operating loss of $59-$69 million compared with the previous estimate of $70-$80 million. It expects total cash usage of $50-$60 million.

Following the HDFS strategic partnership with KKR and PIMCO, it anticipates full-year 2025 HDFS operating income to range between $525 and $550 million.

Harley-Davidson’s Zacks Rank & Stocks to Consider

HOG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Ferrari N.V. RACE, PHINIA Inc. PHIN and XPeng Inc. XPEV. While RACE and PHIN sport a Zacks Rank #1 (Strong Buy) each at present, XPEV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s fiscal 2025 earnings indicates year-over-year growth of 12.1%. EPS estimates for fiscal 2025 and 2026 have improved 5 cents each over the past 30 days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 6 cents and 3 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 have improved 7 cents in the past 90 days. The EPS estimate for 2026 has increased a penny in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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