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Harley-Davidson Reports Q4 2025 Financial Results and 2026 Outlook

In a statement released on February 10, 2026, Harley-Davidson, Inc. (NYSE: HOG) shared its financial performance for the fourth quarter and full year of 2025. The results come during a period marked by various challenges for the company, prompting proactive measures to stabilize the business and regain dealer confidence. Artie Starrs, the President and CEO, expressed optimism regarding the iconic brand's potential despite the hurdles faced.

Overview of Financial Performance

2025 Full Year Highlights

• - Earnings Per Share (EPS): Harley-Davidson reported a diluted EPS of $2.78 for the year.
• - Retail Sales: The company reached a total global retail motorcycle sales figure of 132,535 units, representing a 12% decrease compared to the previous year.
• - Shipments: Global motorcycle shipments were recorded at 124,477 units, down 16% from 2024.
• - Capital Returns: The company returned $434 million to shareholders, composed of $347 million in share repurchases and $86 million paid in dividends.

Q4 2025 Financial Highlights

• - EPS Loss: In the fourth quarter, Harley-Davidson reported a diluted EPS loss of $2.44.
• - Retail Sales: Despite overall challenges, North American retail motorcycle sales rose by 5% year-on-year, totaling 15,847 units.
• - Revenue: The overall revenue for this quarter decreased by 28% to $496 million, reflecting a 10% drop in motorcycle sales.

Strategic Developments

The company has implemented a strategic partnership with KKR and PIMCO aimed at enhancing Harley-Davidson Financial Services (HDFS). This initiative not only reduces debt but also aligns the company toward a capital-light business model, enhancing resilience and long-term profitability.

HDFS's operating income reached a record high of $490 million, benefiting from the strategic transaction that allowed a dividend payment of $1 billion to HDI in the fourth quarter.

2026 Outlook

Looking ahead, Harley-Davidson anticipates several key metrics for the year:

• - Global motorcycle retail sales are expected to range between 130,000 and 135,000 units.
• - Global motorcycle wholesale shipments are set to mirror retail estimates, with projections of 130,000 to 135,000 units.
• - Operating income for HDMC is anticipated to pivot from a loss of $40 million to a profit of $10 million, showcasing the company's potential recovery.
• - The operating loss for LiveWire is projected between $70 million and $80 million, reflecting ongoing investments in electric motorcycle development.

Conclusion

Harley-Davidson has faced a challenging year but is taking decisive steps to regain its footing in the motorcycle market. With a robust dealer network and a loyal customer base, the company aims to navigate these difficulties and emerge stronger in the future. The outlook for 2026 aims to restore confidence and foster stability as Harley-Davidson charts its path forward, strengthening its iconic brand and expanding its reach in the evolving motorcycle industry.