Harley Q4 Earnings Miss Expectations, Revenues Fall Y/Y

Harley-Davidson, Inc. HOG reported a loss of $2.44 per share in fourth-quarter 2025, wider than the Zacks Consensus Estimate of a loss of 92 cents. The company had incurred a loss of 93 cents per share in the year-ago quarter. The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $496 million, down 28% from the prior-year quarter.

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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 10% on a year-over-year basis to $379 million and missed our forecast of $527 million on lower-than-expected motorcycle shipments. Motorcycle shipments worldwide decreased 4% to 13,500 units and missed our estimate of 20,845 units. In the quarter under review, revenues from the sale of motorcycles came in at $194 million, down 16% year over year. The segment incurred an operating loss of $260 million, wider than the operating loss of $214 million in the corresponding quarter of 2024.

During the reported quarter, Harley-Davidson retailed 25,300 motorcycle units globally, which declined 1% year over year but topped our expectations of 23,467 units. Its retail motorcycle units sold in North America increased 5% to 15,900. Sales in EMEA or Europe, the Middle East and Africa declined 24% year over year. Sales in the Asia Pacific fell 1% while sales in Latin America rose 10% year over year.

Revenues from parts & accessories were down 1% from a year ago to $117 million, but beat our estimate of $100.5 million. Revenues from apparel fell 13% year over year to $47 million and fell short of our forecast of $48.7 million.

Harley-Davidson Financial Services: Revenues for Harley-Davidson Financial Services totaled $106 million. The figure declined 59% year over year. Operating income fell 277% to $82 million.

LiveWire: During the reported quarter, the total shipment for LiveWire was 381 units, rising 61% from the year-ago quarter levels. Revenues rose 9% to $11 million but missed our estimate of $14.6 million. Operating loss narrowed from $26 million to $18 million. The reported loss was slightly wider than our projection of a loss of $17.6 million.

Financial Position

In the fourth quarter, selling, general and administrative expenses from the HDMC unit increased to $229.7 million from $210.5 million in the year-ago quarter. The company paid dividends of 18 cents per share. The company repurchased $347 million worth of shares on a discretionary basis in the fourth quarter of 2025.

Harley-Davidson had cash and cash equivalents of $3.1 billion as of Dec. 31, 2025. The long-term debt decreased to $1.65 million from $4.47 million recorded as of Dec. 31, 2024.

HOG Provides 2026 Guidance

For 2026, the company expects HDMC global motorcycle retail sales in the range of 130,000-135,000 units compared with 132,500 in 2025. HDMC's operating income is projected in the range of a $40 million loss to a $10 million profit compared with the operating loss of $29 million incurred in 2025. HDFS' operating income is estimated in the range of $45-$60 million compared with the operating income of $490 million in 2025. 

Harley expects LiveWire's operating loss to be in the range of $70- $80 million compared with the operating loss of $75 million incurred in 2025. The company expects capital expenditure in the range of $175-$200 million compared with $153.7 million in 2025.

Harley’s Zacks Rank & Key Picks

HOG carries a Zacks Rank #3 (Hold) at present. 

Some better-ranked stocks in the auto space are Modine Manufacturing Company MOD, Ford Motor Company F and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 65 cents, respectively, in the past seven days. 

The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 4 cents and 10 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days. 

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

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