Q4 2025 Harley-Davidson Inc Earnings Call Transcript
Key Points
- Harley-Davidson Inc (HOG) has made significant progress in reducing dealer inventory, with a 16% decline in North America and a 17% global reduction, exceeding their 10% target.
- The company has implemented targeted promotions and interventions to align wholesale activity with retail demand, which has shown early signs of improving dealer profitability.
- Harley-Davidson Inc (HOG) is focusing on restoring dealer confidence and aligning inventory levels, which is expected to stabilize the business and support sustainable growth.
- The company is committed to enhancing financial flexibility and has identified at least $150 million in annual run rate savings starting in 2027.
- Harley-Davidson Inc (HOG) has renegotiated and funded a term loan with LiveWire, reducing the principal to $75 million, and is working to attract its own sources of capital.
- Harley-Davidson Inc (HOG) faced a challenging year in 2025, with consolidated revenue down 28% in Q4 and a consolidated operating loss of $361 million.
- The company expects margins to be under pressure in the near term due to production running below wholesale, creating operating deleverage.
- International retail sales, particularly in EMEA, were softer than expected, with a 24% decline in Q4.
- The company's e-commerce strategy has historically not delivered intended results, creating customer confusion and driving excessive discounting.
- Harley-Davidson Inc (HOG) anticipates a cost of $75 million to $105 million in new or increased tariffs for 2026, which will impact operating margins.
Thank you for standing by and welcome to the Harley Davidson 2025 fourth quarter Investor and Analyst conference call. (Operator Instructions) 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, Arthur Starrs and Chief Financial and Commercial Officer, Jonathan Root.
With that, let me turn it over to Harley Davidson CEO, Arthur Starrs.
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