Q2 2025 Harley-Davidson Inc Earnings Call Transcript
Key Points
- Harley-Davidson Inc (HOG) entered into strategic partnerships with KKR and PIMCO for HDFS, reinforcing the strategic and financial value of the business.
- The transaction with KKR and PIMCO is expected to boost HDFS earnings by $275 million to $300 million in operating income this year.
- The company plans to reduce its debt by $450 million and accelerate its $1 billion share buyback program, purchasing $500 million in the second half of 2025.
- Harley-Davidson Inc (HOG) is launching a new small displacement motorcycle priced below $6,000, targeting a profitable entry into a new market segment.
- The company is committed to leveraging technology, including AI, to drive substantial cost savings and productivity gains across the business.
- Consolidated revenue for the second quarter declined 19%, driven by a planned reduction in motorcycle shipments and soft demand.
- Global motorcycle retail sales were down 15% year-over-year, reflecting the impact of elevated interest rates and economic uncertainty.
- The fluid global tariff environment and negative consumer sentiment remain challenges for the business.
- LiveWire segment reported a decrease in electric motorcycle revenue and an operating loss of $19 million in Q2 2025.
- Harley-Davidson Inc (HOG) withheld its full-year 2025 financial outlook for HDMC and HDI due to ongoing global tariff uncertainties.
Thank you for standing by, and welcome to the Harley-Davidson 2025 Second 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, Jochen Zeitz; also, Chief Financial Officer, Jonathan Root. And we have LiveWire's Chief Executive Officer, Karim Donnez.
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