Harley-Davidson 2025 Q2 Earnings Sharp Drop in Net Income Amid Economic Uncertainty

Harley-Davidson (HOG) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The company delivered mixed results, with revenue falling short of the previous year and earnings significantly down. While it has maintained profitability for over 20 years in the corresponding quarter, the earnings and guidance withdrawal signal a challenging operating environment.

Revenue
Harley-Davidson’s total revenue dropped 19.3% to $1.31 billion in Q2 2025, compared to $1.62 billion in Q2 2024. The Harley-Davidson Motor Company (HDMC) remained the largest revenue generator, contributing $1.04 billion, primarily through its core motorcycle operations. Motorcycle sales alone brought in $778.05 million, followed by parts and accessories with $186.87 million. Apparel and licensing segments generated $55.24 million and $5.94 million respectively, while other operations added $17.54 million. LiveWire, the company’s electric motorcycle division, reported $6.01 million in revenue. Additionally, Harley-Davidson Financial Services (HDFS) contributed $257.44 million to the total, highlighting its continued role in the company’s financial ecosystem.

Earnings/Net Income
Harley-Davidson’s earnings per share (EPS) declined sharply by 45.7% to $0.89 in Q2 2025, down from $1.64 in the same period last year. Similarly, net income fell by 50.9% to $105.75 million compared to $215.41 million in Q2 2024. Despite these declines, the company maintained profitability for more than two decades during the same quarter, demonstrating resilience in challenging market conditions. The sharp drop in both EPS and net income indicates significant pressure from macroeconomic headwinds.

Price Action
Harley-Davidson’s stock price edged up slightly by 0.08% during the latest trading day, but saw a 6.92% drop during the most recent full trading week. On a monthly basis, the stock declined by 0.49% as of the report date, reflecting ongoing investor uncertainty.

Post-Earnings Price Action Review
The earnings-driven trading strategy for HOG—purchasing shares after an earnings beat and holding for 30 days—showed moderate performance, posting a 35.94% return. However, it significantly underperformed the benchmark, lagging by 55.17%. The strategy was marked by low risk, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.31, indicating modest returns relative to its volatility.

CEO Commentary
CEO Matt Levatich attributed the decline to a challenging macroeconomic environment and global trade uncertainties, with global motorcycle shipments dropping 33% to 38,600 units. He emphasized the company’s ongoing strategic investments in digital transformation and customer engagement, as well as its commitment to cost discipline and operational efficiency. Levatich expressed cautious optimism about the company’s liquidity position and long-term brand strength but withdrew 2025 financial guidance due to unpredictable market dynamics.

Guidance
Harley-Davidson has withdrawn its 2025 financial guidance amid ongoing macroeconomic and tariff uncertainties. The company provided no specific quantitative targets or qualitative expectations for revenue, earnings per share, or CAPEX, reflecting the heightened unpredictability of its operating environment.

Additional News
On August 4, 2025, Harley-Davidson announced the appointment of Artie Starrs as President and Chief Executive Officer, effective October 1, 2025. Starrs will join the company from Topgolf Callaway Brands, where he served as CEO of Topgolf International. With a proven track record of driving growth in global franchise-driven industries, Starrs previously led Pizza Hut to over 18,000 locations across 110 countries and oversaw Topgolf’s annual revenue growth to $1.8 billion. Current CEO Jochen Zeitz will remain in his role until October 1, 2025, after which he will serve as a senior advisor until February 2026 to ensure a smooth transition. Troy Alstead will assume the role of Chairman of the Board at that time. Starrs expressed enthusiasm about his new role, emphasizing his admiration for Harley-Davidson’s brand legacy and its strong connection with riders and fans worldwide.