Harley-Davidson reported a challenging fourth quarter and full year 2025, marked by declining revenues and operating losses, particularly within the Harley-Davidson Motor Company (HDMC) segment. The company is undertaking strategic actions to stabilize the business and align wholesale with retail demand, with a significant positive impact from the HDFS transaction which unlocked capital and transformed the segment into a capital-light business.
HDFS transaction with KKR and PIMCO completed, transforming HDFS into a capital-light business and unlocking over $1 billion in discretionary cash.
positiveHDFS operating income was a record-high $490 million for the full year 2025, up 97% from prior year.
positiveGlobal dealer inventory levels of new motorcycles finished the year down 17% vs. end of Q4 '24.
positiveNorth America retail motorcycle sales increased 5% in Q4 2025 compared to the prior year.
positiveReturned $434 million of capital to shareholders via share repurchases and dividends paid in full year 2025.
positiveConsolidated revenue declined 28% in Q4 FY2025 and 14% for the full year FY2025.
negativeConsolidated operating loss of $361 million in Q4 FY2025, compared to a loss of $193 million in the prior year.
negativeHDMC reported an operating loss of $29 million for the full year 2025, a significant decline from an operating income of $278 million in the prior year.
negativeHDMC gross margin was -8.0% in Q4 FY2025, a significant deterioration from -0.8% in the prior year, driven by increased tariff costs and net pricing/incentive spend.
negativeGlobal retail motorcycle sales decreased 12% for the full year 2025, with North America down 13% and EMEA down 11%.
negativeHDFS revenue was down 59% in Q4 FY2025 and 16% for the full year FY2025, driven by lower finance receivables.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Harley-Davidson Motor Company (HDMC) | N/A | — | — | — |
LiveWire | N/A | — | — | — |
Harley-Davidson Financial Services (HDFS) | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand.
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.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.