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Harley-Davidson, Inc. (NYSE:HOG) stock fell Tuesday after reporting third-quarter fiscal 2025 earnings. The company reported a 23% year-on-year (Y/Y) quarterly sales growth to $1.074 billion, beating the analyst consensus estimate of $1.005 billion. Harley-Davidson's earnings per share of $3.10 topped the analyst consensus estimate of $1.46. Also Read: Harley-Davidson Names Artie Starrs CEO As Sales Decline Global motorcycle retail sales down 6% Y/Y, driven by a volatile macroeconomic environment and overall consumer uncertainty. Revenue from the Motorcycles and Related Products segment (HDMC) increased 23%, driven by an increase in wholesale shipments, where net global pricing was flat and product mix and foreign currency were slightly favorable. Global motorcycle shipments rose by 33%. Revenue from Motorcycles increased 34%, Parts & Accessories dropped 4%, Apparel rose 1%, and Licensing grew by 42%. The gross profit margin in HDMC contracted 370 basis points Y/Y to 26.4% due to unfavorable operating leverage, the cost of new or increased tariffs implemented this year, and unfavorable foreign currency impacts. Consolidated operating income rose 349% driven by HDFS operating income, which was favorably impacted by the HDFS transaction. At the LiveWire segment, the operating loss improved by $8 million, 30% lower than the prior year's loss. Harley-Davidson generated approximately $417 million in cash from operating activities in the quarter. As of September 30, it held cash and equivalents of $1.8 billion. Buyback Harley-Davidson also announced plans to enter into a $200 million accelerated share repurchase (ASR) agreement with Goldman Sachs. The announcement is part of its previously disclosed $1 billion share buyback program scheduled for completion by the end of 2026. The company expects to complete transactions under the ASR agreement by the first quarter of 2026. Product Offering Harley-Davidson launched new motorcycles from its 2026 lineup on H-D.com and premiered its "Model Year 2026 Reveal – Chapter One" video on YouTube. The newly unveiled models will arrive soon at authorized Harley-Davidson dealerships worldwide. The company plans to reveal additional 2026 models, including the limited-edition Custom Vehicle Operation (CVO) collection, on January 14, 2026. For 2026, Harley-Davidson introduced a new Solo Trim Package for the Heritage Classic, Street Bob, and Street Glide models, offering a solo seat, Dark Billiard Gray paint, and cast aluminum wheels. The company also expanded its Grand American Touring, Cruiser, Sport, and Adventure Touring lines—each powered by Harley-Davidson's latest performance engines and featuring enhanced rider safety systems. These models will be available globally in early 2026. Harley-Davidson CEO Artie Starrs noted that while retail sales remain under pressure, momentum across the organization, dealerships, and rider community is growing. CFO Jonathan Root said the completed HDFS transaction with KKR and PIMCO marks a major milestone that transforms Harley-Davidson Financial Services into a capital-light, lower-risk business. He explained that the deal unlocks more than $1.2 billion in discretionary cash and positions the company for stronger returns and long-term growth. Outlook On May 1, 2025, Harley-Davidson withdrew its full-year 2025 financial outlook, originally issued on February 5, due to uncertainty surrounding global tariffs and broader macroeconomic conditions. As these challenges persist, particularly affecting discretionary spending, the company continues to withhold its full-year 2025 financial guidance for Harley-Davidson Motor Company (HDMC). For its LiveWire segment, the company revised its guidance, projecting an operating loss of $72–$77 million (more than prior operating loss forecast of $59–$69 million)and maintained a total net cash use of $50–$60 million. Price Action: HOG shares were trading lower by 9.44% to $24.55 premarket at last check Tuesday. Read Next: Spotify Premium Subscribers Boost Q3 Revenue, Eyes Strong Holiday Quarter Photo by Bryan J. Kelly via Shutterstock
