Tue, May 6, 4:02 PM (13 days ago)
**Harley-Davidson, Inc. (HOG) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,329.2 million, down 26.7% YoY. - **Net Income:** $130.8 million, down 43.7% YoY. - **Earnings per Share (EPS):** $1.07, down 37.8% YoY. - **Operating Income:** $160.5 million, down 39% YoY. - **Cash Flow from Operations:** $141.5 million, up 35.9% YoY. **Profit Margins:** - **Operating Margin:** 12.1%, down from 15.7% in Q1 2024. - **Net Margin:** 9.8%, down from 16.2% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $141.5 million, up 35.9% YoY. - **Investing Cash Flow:** $61.4 million, up from -$112.5 million in Q1 2024. - **Financing Cash Flow:** $150.2 million, up from -$25.9 million in Q1 2024. **Earnings Changes:** - **Operating Income (HDMC):** $116.3 million, down 51.2% YoY. - **Operating Loss (LiveWire):** $19.8 million, down 32.3% YoY. - **Operating Income (HDFS):** $64.0 million, up 18.9% YoY. **Quarterly Performance:** - **HDMC Revenue:** $1,081.5 million, down 26.7% YoY. - **HDFS Revenue:** $244.9 million, down 1.5% YoY. - **LiveWire Revenue:** $2.7 million, down 41.7% YoY. **Trends and Uncertainties:** - **Tariffs:** Potential impact of tariffs on raw materials and components. - **Interest Rates:** Higher interest rates affecting consumer spending and HDFS margins. - **Economic Conditions:** Uncertainty due to high interest rates, inflation, and muted consumer confidence. - **Product Launch:** New small displacement motorcycle and iconic classic cruiser planned for next year. **Future Operations Impact:** - **Guidance Withdrawn:** Due to tariff and economic uncertainties. - **Cost Savings:** $100 million in productivity savings expected for 2025 and 2026. - **Capital Investments:** Range of $200 million to $225 million for 2025. - **Share Repurchases:** $350 million planned for 2025. **Segment Performance:** - **HDMC:** Decline in motorcycle shipments and operating income. - **LiveWire:** Reduction in operating loss due to cost-cutting. - **HDFS:** Improvement in operating income due to lower credit losses and expenses. **Market Share:** - **U.S. Market Share:** Decreased to 36.2% from 41.6% YoY. - **Europe Market Share:** Decreased to 2.5% from 4.6% YoY. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $1,931.2 million. - **Debt:** $7,300.9 million, with future principal payments of $7,330.4 million. **Risk Factors:** - **Tariffs and Trade:** Impact on raw materials, components, and motorcycle prices. - **Economic Conditions:** High interest rates and inflation affecting consumer spending. - **Activist Shareholders:** Potential impact on management and strategy. **Conclusion:** Harley-Davidson faced significant challenges in Q1 2025, including tariffs, high interest rates, and economic uncertainty. The company withdrew its guidance due to these uncertainties and focused on cost savings and strategic investments. Despite these headwinds, Harley-Davidson remains committed to its long-term strategy and shareholder value.