On February 5, 2025, Harley-Davidson Inc (HOG, Financial) announced its financial results for the fourth quarter and full year of 2024, alongside its outlook for 2025. The company faced significant challenges due to high-interest rates impacting consumer confidence, yet it achieved nearly 5% growth in the U.S. Touring segment, increasing its market share to 74.5%. Despite a decline in global motorcycle shipments, Harley-Davidson remains optimistic about future opportunities, driven by its Hardwire strategy.
Positive Highlights
- U.S. Touring segment grew by nearly 5%, boosting market share to 74.5%.
- North American retail sales of Touring, Trike, and CVO increased by over 8%.
- HDFS operating income rose by 6% to $248 million.
- Generated $1.1 billion in cash from operating activities.
Negative Highlights
- Global motorcycle shipments decreased by 17% year-over-year.
- Fourth-quarter revenue dropped by 35%, with a 47% decline at HDMC.
- LiveWire electric motorcycle sales fell by 54% in the fourth quarter.
- Full-year diluted EPS decreased by 29% to $3.44.
Financial Analyst Perspective
Harley-Davidson's financial performance in 2024 reflects the broader economic challenges faced by discretionary product sectors. The company's strategic focus on the U.S. Touring segment has yielded positive results, but global shipment declines highlight the need for diversification and innovation. The increase in HDFS operating income is a positive sign, suggesting resilience in financial services despite higher borrowing costs. The 2025 outlook indicates cautious optimism, with expectations of flat to slightly declining revenue and earnings.
Market Research Analyst Perspective
The motorcycle industry continues to face cyclical headwinds, with Harley-Davidson's performance mirroring these trends. The company's strong market share in the U.S. Touring segment underscores its brand strength and consumer loyalty. However, the decline in global sales, particularly in key markets like Japan and China, suggests a need for targeted marketing and product adaptation. The focus on electric motorcycles through LiveWire is a strategic move, but the segment's current losses indicate a challenging path to profitability.
Frequently Asked Questions
Q: What was Harley-Davidson's diluted EPS for 2024?
A: The diluted EPS for 2024 was $3.44.
Q: How did Harley-Davidson's U.S. Touring segment perform in 2024?
A: The U.S. Touring segment grew by nearly 5%, increasing the market share to 74.5%.
Q: What is the 2025 outlook for Harley-Davidson's revenue?
A: The company expects HDMC revenue to be flat to down 5% in 2025.
Q: How did LiveWire perform in 2024?
A: LiveWire's electric motorcycle shipments decreased by 54% in the fourth quarter, with a full-year operating loss of $110 million.
Read the original press release here.
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