Harley-Davidson Exceeds Q1 Earnings Expectations but Suspends Future Guidance

Updated On: May 2, 2025 10:29 am

Harley-Davidson Reports Decline in Q1 2025 Earnings and Revenues

Harley-Davidson, Inc. HOG announced adjusted earnings of $1.07 per share for the first quarter of 2025, exceeding the Zacks Consensus Estimate of 80 cents. However, this figure is down from $1.72 per share reported in the same quarter last year. The company’s consolidated revenues, which include motorcycle sales and financial services, totalled $1.33 billion, a 23% decrease from the prior year.

Harley-Davidson, Inc. Price, Consensus and EPS Surprise

Harley-Davidson, Inc. price-consensus-eps-surprise-chart | Harley-Davidson, Inc. Quote

Segment Overview

Harley-Davidson Motor Company: Revenues from the Motorcycle and Related Products segment, which makes up a significant share of the total revenue, declined by 27% year over year to $1.08 billion. This performance fell short of the forecast of $1.17 billion due to lower-than-expected motorcycle shipments. Worldwide motorcycle shipments decreased 33% to 38,600 units, missing the estimate of 43,571 units. Motorcycle sales revenue reached $864 million, a 29% drop compared to the previous year. The operating income for this segment dropped 51% year over year to $116 million, which was below our estimate of $165.2 million.

In the reviewed quarter, Harley-Davidson retailed 31,000 motorcycle units globally, representing a 21% decline from last year and falling short of the 38,000 unit expectation. In North America, retail motorcycle sales decreased by 24% to 20,900 units, while sales in EMEA (Europe, the Middle East, and Africa) fell by 2%. The Asia Pacific region experienced a 28% drop, with Latin America down by 6% year over year.

Revenues from parts and accessories dropped 14% to $143 million, missing the estimate of $162.2 million. Apparel revenues also fell, down 11% year over year to $57 million, failing to meet the $63 million forecast.

Harley-Davidson Financial Services: The Financial Services segment reported revenues of $245 million, a 2% year-over-year decline, which was below the expected $273 million. However, operating income increased by 19% to $64 million, surpassing our estimate of $51.4 million, attributed to lower provisions for credit losses and diminished operating expenses.

LiveWire: LiveWire shipments totaled 33 units, a significant 72% decline compared to the previous year. Revenues fell by 42% to $3 million, missing the anticipated $6.5 million. The operating loss narrowed from $29 million to $20 million, which was better than the projected loss of $29.7 million.

Financial Overview

For the first quarter, selling, general, and administrative expenses from the HDMC unit decreased to $199 million from $222.6 million in the prior year. Harley-Davidson paid a dividend of 18 cents per share and repurchased 3.4 million shares during the quarter.

As of March 31, 2025, the company had cash and cash equivalents of $1.93 billion, an increase from $1.59 billion on December 31, 2024. However, long-term debt increased to $4.96 million from $4.46 million as of December 31, 2024.

Harley-Davidson chose to withdraw its 2025 guidance due to ongoing macroeconomic uncertainties and tariff-related issues. Currently, HOG holds a Zacks Rank #2 (Buy).

Industry Highlights

Tesla: TSLA reported first-quarter 2025 earnings of 27 cents per share, missing the consensus estimate of 44 cents and down from 45 cents year-over-year. Total revenues were $19.33 billion, falling short of the anticipated $21 billion and reflecting a 9% year-over-year decline. Tesla plans to pilot robotaxi services in Austin by June but will reevaluate 2025 delivery volume guidance amid ongoing tariff and business uncertainties in China.

As of March 31, 2025, Tesla held cash, equivalents, and investments of $37 billion, up from $36.5 billion at year-end 2024. Its long-term debt and finance leases amount to $5.3 billion, down from $5.7 billion.

PACCAR Inc.: PCAR reported earnings of $1.46 per share for Q1 2025, falling short of the Zacks Consensus Estimate of $1.57 and decreasing from $2.27 year-over-year. The consolidated revenues for the quarter were $7.44 billion, down from $8.74 billion in Q1 2024. Revenue from trucks, parts, and others totaled $6.91 billion.

PACCAR’s cash and marketable debt securities on March 31, 2025, were $8.1 billion, down from $9.65 billion at the end of 2024. The company anticipates capital expenditures between $700-$800 million and R&D expenses of $450-$480 million, revised from a previous estimate of $460-$500 million.

General Motors: GM reported adjusted earnings of $2.78 per share for Q1 2025, surpassing the Zacks Consensus Estimate of $2.69 and increasing from $2.62 a year ago. Revenues reached $44.02 billion, exceeding the consensus estimate of $42.5 billion and showing an increase from $43.01 billion the previous year. General Motors recorded adjusted EBIT of $3.49 billion, lower than $3.87 billion for the same period last year.

As of March 31, 2025, General Motors had cash and cash equivalents of $20.57 billion, with long-term automotive debt at $13.44 billion. The company reported adjusted automotive free cash flow of $811 million in Q1 2025, down from $1.09 billion generated in the preceding year.