Total Revenue

-23% (from $1,729.6M to $1,329.2M)

Total Revenue declined due to a marked drop in motorcycle sales—evidenced by a 29% decline in Motorcycles revenue—and weaker overall consumer demand, reflecting a shift from the stronger shipment performance in Q1 2024. " "

Motorcycles Revenue

-29% (from $1,221.5M to $863.9M)

Motorcycles revenue dropped sharply as a result of lower shipment volumes and pricing strategy adjustments compounded by adverse market conditions that had supported relatively higher revenue in Q1 2024. " "

Operating Income

-39% (from $263.1M to $160.5M)

Operating Income fell substantially, driven by reduced volume and unfavorable operating leverage, as the decline in shipments coupled with a tougher pricing mix eroded margins compared to the previous quarter. " "

Net Income

-43% (from $234.9M to $133.1M)

Net Income decreased due to the compounded negative impact of lower operating income, decreased revenue, and adverse external factors like currency effects, continuing a trend of declining profitability from Q1 2024. " "

Basic Earnings Per Share (EPS)

-38% (from $1.73 to $1.07)

Basic EPS fell in line with net income decline, as the substantial drop in profitability was only partially offset by share repurchase benefits that had reduced the outstanding share count in earlier periods. " "

Operating Cash Provided

+36% (from $104.0M to $141.5M)

Operating cash flow improved despite lower net income, driven by better working capital management and favorable changes in receivables—contrasting with lower prior profitability but stronger cash generation in Q1 2025. " " "

Capital Expenditures

-35% (from $46.4M to $30.0M)

Capital expenditures decreased as the company scaled back on asset investments to match the lower revenue outlook, aligning with cost control efforts observed in previous periods. " " "

Cash and Cash Equivalents

+32% (from $1,464.6M to $1,931.2M)

Cash balances increased significantly, benefiting from higher operating cash generation and reduced investing outflows, which reflects a strategic focus on liquidity compared to Q1 2024. " "

Short-Term Debt

-47% (from $938.7M to $498.5M)

Short-Term Debt nearly halved due to a major reduction in unsecured commercial paper balances and targeted debt repayment initiatives—an active adjustment from the higher levels seen in Q1 2024. " "

Current Portion of Long-Term Debt

+43% (from $1,281.8M to $1,839.1M)

The Current Portion of Long-Term Debt increased as maturing long-term obligations were reclassified and new refinancing activities were undertaken, reflecting a shift in the debt structure relative to the previous period. " "

Retail Units

FY 2025

Expected to be flat in FY 2025, with positive performance skewed towards the second half "

Withdrawn guidance " " "

withdrawn

Wholesale Units

FY 2025

Expected to be flat to down 5% in FY 2025 "

Withdrawn guidance " " "

withdrawn

Revenue

FY 2025

Expected to be flat to down 5% in FY 2025 "

Withdrawn guidance " " "

withdrawn

Operating Income Margin

FY 2025

Expected to be between 7% and 8% in FY 2025 "

Withdrawn guidance " " "

withdrawn

Global Inventory Levels

FY 2025

Expected to decrease by more than 10% by the end of FY 2025, with a more than 30% reduction in the first half "

Withdrawn guidance " " "

withdrawn

Operating Income (HDFS)

FY 2025

Expected to be down 10% to 15% in FY 2025 "

Withdrawn guidance " " "

withdrawn

EPS

FY 2025

Expected to be flat to down 5% relative to $3.44 in FY 2024 "

Withdrawn guidance " " "

withdrawn

HDFS Performance

In Q2–Q4 2024, earnings calls consistently highlighted robust HDFS revenue and operating income growth, detailed credit loss provisions, reserve changes, and evolving credit loss ratios ( " " " " " " " ).

In Q1 2025, HDFS revenue declined by 2% while operating income improved by 19% due to lower credit loss provisions and costs; credit risk metrics (including retail credit loss ratio and allowances) were stable despite lower loan originations ( " ).

There is a recurring focus on balancing revenue declines with tighter credit risk management. While revenue is slightly down, improved operating income and cost control signal an operational efficiency focus. This trend suggests that the company is shifting toward a more risk‐managed, cost-efficient portfolio even amid softer top‐line performance.

Retail Demand Dynamics

Q2–Q4 2024 discussions emphasized broad declines in global and regional retail sales, significant macroeconomic headwinds, consumer confidence issues, and diverse regional performances ( " " " " " ).

In Q1 2025, global retail sales declined by 21% (with North America down 24%), though sequential improvements were noted in North America, and adjustments in marketing and dealer strategies were in place to address softness ( " " " ).

Retail demand continues to face macroeconomic and sentiment pressures. Despite ongoing softness and a significant decline in sales, there is some sequential improvement regionally. The consistent focus on monitoring demand dynamics and tactical adjustments in marketing underscores this as a material and persistent challenge affecting near-term sales performance.

Product Innovation

Previous periods (Q2–Q4 2024) featured discussions on launching refreshed touring and cruiser models, new technological enhancements, and an ambitious product pipeline that differentiated Harley-Davidson from competitors ( " " " " ).

In Q1 2025, the company reiterated its commitment through launches such as the limited-production CVO World Light, plans for new entry-level and iconic classic models, and adjustments in marketing funds to support these initiatives ( " " " ).

Product innovation remains a strategic pillar. The message is consistently positive across periods with continuous model refreshes and new product introductions fueling excitement. The focus on expanding and diversifying the portfolio signals long-term growth potential and sustained competitive differentiation.

Electric Vehicle (LiveWire) Segment

In Q2–Q4 2024, the discussions centered around LiveWire’s strong market leadership in the on‐road EV segment, unit sales performance, operating losses, and significant cost-reduction initiatives with revised guidance for full-year losses ( " " " " " " " ).

Q1 2025 reported lower unit sales (33 vs 117 year-over-year) but noted an improvement in operating loss (from $29 million to $20 million) and emphasized further cost savings and a more sustainable business approach ( " " " ).

The EV segment shows mixed performance. While unit sales have declined, there is a clear emphasis on improving operating efficiency and reducing cash burn. This reflects a cautious but proactive approach to navigating a challenging segment with significant potential if cost management efforts are successful. The evolving guidance and targeted investments underscore a strategic recalibration in response to broader market headwinds.

Operating Margin & Manufacturing Cost

Across Q2–Q4 2024, guidance was revised downward in the near-term while reinforcing a long-term 15% operating margin target, underpinned by ongoing productivity and cost-saving initiatives, including supply chain adjustments and tariff mitigations ( " " " " " " " " ).

In Q1 2025, margins were under pressure—with consolidated and HDMC margins lower than Q1 2024 due to reduced volumes—but significant productivity savings (e.g., $24 million in Q1) were realized as part of the Hardwire strategy, amid continued efforts to manage fixed costs and tariff impacts ( " " " " ).

Short-term operating margins remain under pressure due to production cuts and lower volumes, yet the focus on manufacturing efficiency persists. The consistent narrative on achieving significant cost productivity gains reinforces a long-term commitment to improving margins despite temporary setbacks. This dual focus on tactical cost reductions and strategic margin targets is expected to positively shape future profitability.

Inventory Management

Q2–Q4 2024 calls stressed aggressive dealer inventory reductions, improved product availability, and aligning wholesale shipments with retail demand, including targets of 30–35% reduction and improved inventory quality across regions ( " " " " " " " ).

In Q1 2025, dealer inventories remained on track with a global reduction of 19% (23% in the U.S.), and the company reaffirmed its strategy of aligning shipments with retail trends to avoid overhang, ensuring disciplined inventory management ( " " " ).

Inventory management has been a consistent, disciplined focus. The recurring emphasis on striking an optimal balance between dealer inventory levels and market demand demonstrates effective execution. There is no indication of overhang, suggesting that the strategy is working well and will continue to benefit operational efficiency and dealer health.

Tariff Uncertainty & Supply Chain Risks

Q4 2024 discussions indicated concerns over tariff impacts in Europe with uncertain future measures but maintained reliance on U.S.-centric sourcing for mitigation ( " ). Q2 and Q3 2024 had no notable mentions of these risks.

Q1 2025 featured a detailed discussion with quantified impacts ($9 million in Q1 and $130–$175 million forecast for full-year impacts), emphasizing active engagement with trade administrations, accelerated shipment adjustments, and supply chain diversification efforts ( " " " " " ).

An increased focus on tariff-related risks is evident. While previous periods provided limited commentary outside of Q4, Q1 2025 delved deeper into quantifying tariff impacts and outlining proactive mitigation strategies. This heightened attention reflects growing concern over global trade uncertainties and their potential impact on costs and supply continuity, which could significantly affect future operations.

Customer Awareness & Engagement

Q2–Q4 2024 earnings calls highlighted gradual increases in customer awareness through digital engagement, positive feedback on touring models, significant increases in digital interactions (e.g., a 177% surge for model year ‘25), and physical event successes. Citations from these periods include mentions of digital innovations, dealer events, and positive media reviews ( " " " " " ).

In Q1 2025, customer engagement was emphasized through strong feedback on new launches like the CVO World Light, targeted marketing development fund allocations timed with peak riding season, and a clear focus on enhancing dealer support and product awareness ( " " ).

Customer engagement initiatives are evolving positively. There is a clear trajectory from moderate awareness levels to robust digital and physical engagement, reflecting continued investments and strategic marketing adjustments. These measures are expected to drive stronger customer loyalty and brand perception, which are critical for sustaining long-term growth.