Q3 2025 Harley-Davidson Inc Earnings Call Transcript
Key Points
- Harley-Davidson Inc (HOG) reported a 17% increase in consolidated revenue for the third quarter, driven by a 23% rise in HDMC revenue.
- The company successfully executed a strategic partnership with KKR and PIMCO, transforming Harley-Davidson Financial Services into a capital-light model, unlocking $1.2 billion to $1.25 billion in discretionary cash.
- The Softail family delivered strong growth of 9% in North America, reflecting the strength of the revised product lineup.
- Harley-Davidson Inc (HOG) plans to use proceeds from the HDFS transaction for debt reduction, share repurchases, and investment in organic growth initiatives.
- The company is focusing on improving dealer health and profitability, with initiatives like reducing inventory levels and introducing market-responsive promotions.
- Global retail sales were down 6% in the third quarter, with North American market sales down 5% and international markets down 9%, reflecting soft demand and unfavorable consumer confidence.
- The LiveWire segment reported an operating loss of $18 million, despite an increase in revenue.
- Harley-Davidson Inc (HOG) faced a decline in operating income at HDMC by 2% relative to the prior year.
- The company experienced a decrease in gross margin due to unfavorable operating leverage, higher unit costs, and increased tariffs.
- The global tariff environment remains uncertain, with new or increased tariffs costing the company $45 million through the end of Q3 2025.
Thank you for standing by, and welcome to the Harley-Davidson 2025 third quarter investor and analyst conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Shawn Collins. Thank you. Please go ahead.
Thank you. Good morning. This is Shawn Collins, the Director of Investor Relations at Harley-Davidson. You can access the slides supporting today's call on the internet at the Harley-Davidson Investor Relations website. As you might expect, our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in today's earnings release and in our latest filings with the SEC.
Joining me for this morning's call are Harley-Davidson, Chief Executive Officer, Artie Starrs; and Chief Financial Officer and President of Commercial, Jonathan Root, who is also the Chairman of LiveWire Group, Inc. And will
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