Harley-Davidson ( (HOG) ) has released its Q1 earnings. Here is a breakdown of the information Harley-Davidson presented to its investors.
Harley-Davidson, Inc. is a renowned manufacturer of motorcycles, known for its iconic brand and distinctive, customizable bikes, operating primarily in the automotive industry with a focus on motorcycles and related products, including financial services through its subsidiary, Harley-Davidson Financial Services.
In its first quarter of 2025, Harley-Davidson reported financial results that surpassed expectations in several areas despite facing challenges such as a volatile economic environment and softer-than-expected retail sales in the U.S. The company emphasized its commitment to cost productivity, supply chain management, and marketing initiatives to boost retail sales.
Key financial metrics for the quarter included a diluted EPS of $1.07, with a significant decrease in global motorcycle retail sales by 21% year-over-year, primarily due to economic volatility and consumer uncertainty. The company’s revenue dropped by 23%, with Harley-Davidson Motor Company (HDMC) revenue down 27% due to a planned decrease in shipments. However, Harley-Davidson Financial Services (HDFS) saw a 19% increase in operating income, driven by lower credit losses and operating expenses.
Despite the challenges, Harley-Davidson managed to generate $142 million in cash from operating activities and repurchased $87 million worth of shares. The company has withdrawn its full-year financial outlook for 2025 due to ongoing uncertainties in global tariffs and macroeconomic conditions.
Looking ahead, Harley-Davidson remains focused on navigating economic challenges and driving retail sales through strategic initiatives, while continuing to manage costs and optimize its operations to maintain its position as a leading motorcycle brand.