Harley-Davidson Q4 2025 Results Wider Losses
Harley-Davidson Q4 2025 results show a wider loss and softer motorcycle sales; a financing partnership funded a dividend and could pressure shares.
KEY TAKEAWAYS
- Harley-Davidson reported Q4 consolidated revenue of $496 million and a diluted EPS loss of $2.44.
- HDMC posted a $260 million operating loss on $379 million revenue, signaling softer motorcycle demand.
- HDFS closed a strategic KKR-PIMCO partnership enabling a $1.0 billion dividend and lower financing risk.
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Harley-Davidson (HOG) reported wider losses in its Q4 2025 results released Feb. 10, reflecting softer motorcycle demand. The company said a financing partnership enabled a major dividend payout while it set shipment and segment-profit targets for 2026.
Fourth Quarter and Full-Year Results
Harley-Davidson’s consolidated revenue for Q4 2025 was $496 million, down 28% year over year, with a diluted EPS loss of $2.44, missing analysts' expectations. The motorcycle division, Harley-Davidson Motor Company (HDMC), posted revenue of $379 million, down 10%, and an operating loss of $260 million, wider than the prior year’s $214 million loss. Global retail motorcycle sales declined 1% to 25,287 units, with North American sales rising 5% to 15,847 units. HDMC wholesale shipments fell 4% to 13,515 units.
For the full year, consolidated revenue declined 14% to $4.47 billion, and diluted EPS fell 19% to $2.78. HDMC revenue dropped 13% to $3.578 billion, recording an operating loss of $29 million compared with operating income the prior year. The operating margin swung to -0.8% from 6.7%. Global retail motorcycle sales fell 12% to 132,535 units, while HDMC wholesale shipments dropped 16% to 124,477 units.
Tariff costs in 2025 totaled about $67 million, including $31 million related to steel and aluminum, reducing HDMC’s margin by roughly 1.9 percentage points. The electric motorcycle brand LiveWire posted a full-year operating loss of $75 million, a 32% improvement from the previous year.
Harley-Davidson Financial Services (HDFS) delivered a record full-year operating income of $490 million, up from $248 million. The company closed a strategic partnership with KKR and PIMCO that enabled a $1.0 billion dividend to Harley-Davidson Inc. (HDI), reduced HDFS debt, and shifted the financing arm toward a capital-light model. Capital returns in 2025 totaled $434 million, including $347 million in share repurchases and $86 million in dividends. The company ended the year with $3.1 billion in cash and $569 million in operating cash flow.
2026 Outlook and Tariff Costs
For 2026, Harley-Davidson projects global retail sales and wholesale shipments between 130,000 and 135,000 units. It set HDMC operating income or loss guidance between a $40 million loss and a $10 million gain. The company expects tariff costs of $75 million to $105 million for the year and plans to release a strategic plan in May 2026.
