H-D FY 2025 Financial Results 'Not Pretty' - But Unit Sales Were Up On 1997!
In delivering its fourth quarter and full year 2025 financial results (February 10, 2026) Harley-Davidson was able to use the shield of new CEO Artie Starrs' recent appointment (October 2025) as cover for what, by any measure, were abysmal results.
Starrs is not playing the blame game though - not yet at any rate. He is simply pointing to the facts and to the steps that he plans to take to turn Harley's performance around. It may well feel like trying to turn an aircraft carrier around on a swimming pool (for some time yet) but with a new Strategic Plan due to be unveiled in May (yes, another one) he is at least starting to get a feeling for the problems the company is facing.
However, following his European Dealer, Vendor and Custom Show swing he says he is seeing the positives of the "widespread and deep-rooted brand enthusiasm that our customers have for Harley-Davidson."
Meanwhile, yes, at global retail motorcycle sales of 132,535 units, Harley's 2025-unit sales performance was ahead of the 96,216 units that records suggest were sold in 1997, but behind the 157,100 the company reported a year later.
In reporting Q4 and FY 2025 fiscals (and providing 2026 outlook) Starrs accepted that Harley had closed out "a challenging year for the Company," and that they were "taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand.
"While near-term results reflect these actions, the progress we are seeing reinforces our confidence in the reset underway and our ability to rebuild Harley-Davidson's long-term earnings and cash-flow power.
"With an iconic brand, a deeply loyal rider community, and a dealer network unlike any other, we believe Harley-Davidson is well positioned as we chart a clear path forward," he said.
It has to be said that the dealer network clearly believes in the new CEO so far. All concerned think his abundant focus on the concerns of dealers is a much-needed and appropriate start-point, a decisive break with the past and that all the steps that have so far been made public are positive ones.
FY 2025 results highlights - Harley delivered diluted EPS of $2.78. Global dealer inventory levels of new motorcycles finished the year down 17% vs. end of Q4 '24 with global retail motorcycle sales of 132,535 units, down 12% from prior year.
HDMC posted an operating loss of $29m for the year and global motorcycle shipments of 124,477 were down 16% from the prior year. HDMC returned $434m of capital to shareholders via $347m of discretionary share repurchases and $86m of dividends paid.
For Q4 of 2025 Harley delivered a diluted EPS loss of $2.44. North America retail motorcycle sales of 15,847 units were up 5% vs. prior year, and Artie Starrs pointed to an unseasonal acceleration in unit sales growth through December 2025 and "positive" reaction to the 2026 model line-up.
However, he did state that for the time being he and his team remain "hyper focussed on inventory levels" with the focus squarely on 2025 Touring inventory in the first instance.
For Q4, at 25,287 units, global retail motorcycle sales were down only 1% vs. prior year. HDMC global motorcycle shipments of 13,515, down 4% vs. prior year with revenue for the quarter down 10% vs. prior year at $379m.
As CFO Jonathan Root's presentation moved into the detail about HDMC's performance, the more apparent it became that the capital income generated by the sale of 9.8% equity in Harley-Davidson Financial Servies (to KKK and Pimco), the more the transition of the HDFS balance sheet and ongoing business operations into one that is "capital lite" and "de-risked" has had a significantly positive impact on the overall HDI Q4 and TY 2025 reported performance.
The "refreshed debt structure contributed significantly to the reduction in HDFS debt from $6.1bn at the end of Q2 2025 to $2.7bn at the end of the year. The HDFS transaction facilitated a dividend from HDFS to HDI of $1bn in Q4 '25. HDFS operating income was reported at $490m, with record-high earnings driven by the HDFS transaction."
For the record, following publication of these results, Harley's present Market Cap was languishing at less than $2.5bn and the share price was hovering close to its 12-month low at around the $20.00 mark.
For 2026, Harley says it expects inventory management to be largely balanced with HDMC global motorcycle retail sales and wholesale shipments of between 130,000 to 135,000 units, generating operating income of between a $40m loss to a $10m profit. The forecast is for HDFS operating income of $45 to $60m and a LiveWire operating loss of $70 to $80m - pretty much the same as the $75m operating loss reported for FY 2025.
FY 2025 results highlights - In the fourth quarter, global motorcycle shipments at HDMC decreased 4% from a year ago. HDMC revenue was down 10%, due to net pricing and incentive spend and lower volumes. Gross profit came in at a loss of $30m compared to a loss of $3m in the prior year period, due to increased tariff costs and net pricing and incentive spend.
Operating expenses totaled $230m, which was $19m higher compared to prior year, primarily due to higher marketing expense. Operating loss was $260m in the fourth quarter compared to an operating loss of $214m in the prior year period.
For the full year, global motorcycle shipments decreased 16% from the prior year. HDMC revenue was down 13%, due primarily to lower wholesale volumes. Gross margin was lower by 3.8 points in 2025 compared to 2024, driven by incremental tariffs, negative operating leverage and lower volumes. Operating expenses were $895m, $18m higher than a year ago. Operating loss was $29m for the full year 2025 compared to operating income of $278m in the prior year.
In the fourth quarter, global retail sales of new motorcycles were down 1% versus the prior year. In North America, retail sales increased by 5%, driven by strength in the Touring category. In EMEA, retail sales declined by 24%, driven by weakness across the region. The 1% decline in APAC was an improvement from the first half of 2025, with continued weakness in China. Latin America sales increased by 10%, where both Brazil and Mexico were positive.
For the full year 2025, global retail sales of new motorcycles were down 12% versus prior year. In North America, retail sales were down 13% for the full year, driven by weakness in the Touring category in the first half of the year, as customer traffic declined and affordability became more of a focus.
EMEA retail sales declined by 11% for the full year, driven by weakness across all countries. APAC retail sales declined by 15%, with the most significant weakness experienced within non-core motorcycle models.
In the fourth quarter, HDFS revenue was down 59% from prior year, driven by lower retail and wholesale finance receivables at lower yields. The decline in retail receivables was due to the sale of loan assets as part of the HDFS transaction. On the expense side, fourth quarter interest expense increased year-over-year, due to discrete liability management costs incurred in the fourth quarter to retire debt as a result of the HDFS Transaction. In the fourth quarter, HDFS had an operating loss of $82m.
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| Harley released a first tranche of MY2026 details in early November, with additional 2026 models, including the limited-production Custom Vehicle Operation (CVO) collection, slated to be revealed as a Second Chapter on January 14, 2026. Meanwhile Chapter One highlights include these three Solo Seat Trim Package models with cast aluminum wheels and seen here in Dark Billiard Gray paint. The Solo Trim Package is available for the Heritage Classic (United States MRSP $19,999), Street Bob ($14,999), and the Street Glide ($24,999). |
For the full year, HDFS revenue was $869m, down 16% from the prior year, primarily due to lower retail and wholesale receivables. HDFS operating income was $490m, driven by favorable provision for credit loss expense due to the HDFS transaction impacts and higher other income, partially offset by lower net interest income and higher operating expense. For the full year 2025, HDFS operating Income was $490m, up from $248m in full year 2024.
In the fourth quarter, LiveWire revenue increased 9% compared to the prior year, driven by higher unit sales of EV motorcycles and electric bikes in the quarter. LiveWire operating loss of $18m, 30% less than a year ago, was in line with Harley's expectations.
For the full year, LiveWire revenue decreased by 3% compared to the prior year. LiveWire operating loss of $75m was 32% less than prior year and was in line with our expectations. For the full year, LiveWire sold 653 EV motorcycles, which compares to 612 EV motorcycles sold in 2024.
Cash and cash equivalents of $3.1bn at year end were $1.5bn up on 2024.
In 2025 Harley paid cash dividends of $86m and repurchased $347m of shares (13.1 million shares) on a discretionary basis. On November 5, 2025, Harley-Davidson entered into an Accelerated Share Repurchase agreement (ASR) with Goldman Sachs to repurchase $200m of shares of the Company's common stock.
