Harley-davidson, Inc. · NYSE:HOG
Harley-davidson — Q4 2024 Earnings Presentation
18 slides from Harley-davidson's earnings presentation, Feb 5, 2025
Slide 1: Q4 and Full Year 2024 Results
Q4 and Full Year 2024 Results Wednesday, February 5, 2025
Slide 2: Call Participants
Q4 AND FULL YEAR 2024 RESULTS – EARNINGS CALL Call Participants ▪ Jochen Zeitz, Chairman, President and CEO ▪ Jonathan Root, Chief Financial Officer and President, Commercial ▪ Karim Donnez, CEO – LiveWire (NYSE: LVWR) ▪ Shawn Collins, Director Investor Relations 2
Slide 3: Full Year 2024 Performance Headlines
FULL YEAR 2024 PERFORMANCE HEADLINES • Delivered diluted EPS of $3.44 • HDMC operating income of $278 million for an operating margin of 6.7% • HDMC global motorcycle shipments of 148,862, down 17% from prior year • In North America, retail sales of Touring, Trike, and CVO were up more than 8% • Har
Slide 4: Consolidated – Q4 2024 Results
CONSOLIDATED – Q4 2024 RESULTS Q4 2024 Results1, 2 Total ($ millions, except earnings per share) HDMC HDFS LiveWire HDI Revenue $420 $257 $10 $688 % vs PY -47% 4% -32% -35% Operating Income (Loss) ($214) $46 ($26) ($193) Margin % NM 18.1% NM NM % vs PY NM -20% NM NM Net Income Attributable to HDI ($
Slide 5: Consolidated – Full Year 2024 Results
CONSOLIDATED – FULL YEAR 2024 RESULTS Full Year 2024 Results1, 2 Total ($ millions, except earnings per share) HDMC HDFS LiveWire HDI Revenue $4,122 $1,039 $26 $5,187 % vs PY -15% 9% -31% -11% Operating Income (Loss) $278 $248 ($110) $417 Margin % 6.7% 23.9% NM 8.0% % vs PY -58% 6% NM -47% Net Incom
Slide 6: Harley-Davidson Worldwide Retail Sales and Inventory
HARLEY-DAVIDSON WORLDWIDE RETAIL SALES AND INVENTORY Harley-Davidson Retail Sales Dealer Inventory Units Retail Motorcycle Sales of H-D Q4 Full Year Worldwide Harley-Davidson Dealer Inventory Units Motorcycles (vs. PY) 2024 2024 (Thousands)4 North America -13% -4% EMEA -7% -11% Asia Pacific -26% -18
Slide 7: HDMC Revenue Bridge
HDMC REVENUE BRIDGE Q4 2024 HDMC Revenue Bridge1 5% 0% -9% -43% -47% Volume Pricing Mix FX Total Full Year 2024 HDMC Revenue Bridge1 1% -1% 0% -15% -15% Volume Pricing Mix FX Total 1 HDMC Revenue Bridge compares Q4 ‘24 revenue to Q4 ‘23 revenue on a year-over-year basis and Full Year 2024 revenue to
Slide 8: Full Year 2024: HDMC Operating Income Margin
FULL YEAR 2024: HDMC OPERATING INCOME MARGIN Operating Income Margin FY 2023 Op Income Margin $661 mm 13.6% 13.6% Volume ($241) -3.4 Pts Pricing ($33) -0.7 Pts FX ($17) -0.4 Pts 6.7% Mix ($9) -0.4 Pts Manufacturing & Other ($112) -2.7 Pts Operating Expenses $29 0.7 Pts FY 2024 Op Income Margin $278
Slide 9: HDFS Segment: Q4 2024 Results
HDFS SEGMENT: Q4 2024 RESULTS Summary Financials Q4 +/- % vs. PY ($ millions) 2024 PY Revenue $257 $11 4% Interest Expense $95 $6 7% Provision for Credit Losses $72 $16 27% Operating Expense $43 $0 0% Total Expenses $210 $22 12% Operating Income $46 ($12) -20% Margin % 18.1% 9
Slide 10: HDFS Segment: Full Year 2024 Results
HDFS SEGMENT: FULL YEAR 2024 RESULTS Summary Financials FY +/- % vs. PY ($ millions) 2024 PY Revenue $1,039 $85 9% Interest Expense $372 $39 12% Provision for Credit Losses $247 $20 9% Operating Expense $171 $12 7% Total Expenses $790 $71 10% Operating Income $248 $14 6% Margin % 23.9% 10
Slide 11: HDFS Segment Performance
HDFS SEGMENT PERFORMANCE Annual Retail Credit Losses1, 2 Retail Finance Receivables & Allowance Receivables ($B) Allowance Percentage 5.9% 5.7% 5.4% 5.5% 3.3% 5.0% 5.1% 3.0% 4.4% $7.0 $6.8 $6.7 $6.7 $6.5 $6.4 2.0% 1.9% $6.3 1.4% 1.2% FY '19 FY '20 FY '21 FY '22 FY '23 FY '24 CECL Q4 '20 Q4 '21 Q4 '2
Slide 12: LiveWire Segment: Business Update
LIVEWIRE SEGMENT: BUSINESS UPDATE 2024 Highlights: • Launch of S2 Mulholland and start of production and shipping for S2 Alpinista • Announced plans for electric maxi-scooter in November at EICMA • Aligned go-to-market strategy in EMEA and entered Spain and Italy markets in late Q4 • Ended year with
Slide 13: LiveWire Segment: Q4 and Full Year 2024 Results
LIVEWIRE SEGMENT: Q4 AND FULL YEAR 2024 RESULTS1, 2, 3 ▪ FY 2024 Operating loss improvement of $7 Actual Units Q4 Q4 % vs FY FY % vs million in-line with our expectations $ millions 2023 2024 PY 2023 2024 PY ▪ FY 2024 selling, administrative and engineering expenses down $14 million compared to FY 2
Slide 14: Consolidated – Full Year 2024 Results
CONSOLIDATED – FULL YEAR 2024 RESULTS HDI Operating Cash Flow ($ millions) HDI Financial Metrics $1,064 ▪ Capital Investments1 – $204 million ▪ Effective Tax Rate – 14% $755 ▪ Cash & Cash Equivalents2 – $1.6 billion ▪ Dividends Paid – $91 million ▪ Shares Repurchased on Discretionary Basis – $450 mi
Slide 15: Share Repurchases / Dividends
SHARE REPURCHASES / DIVIDENDS $1.4 Billion in Total Capital Returned 31.1 Million Shares Repurchased $1.1B of Shares Repurchased2 + $281M in Cash Dividends 20% of Shares Outstanding 1,2 $541 12.5 $418 $446 10.2 8.4 2022 2023 2024 2022 2023 2024 Cash Dividends (in $ Millions) Shares Repurchased (in $
Slide 16: Harley-Davidson, Inc. – 2025 Financial Guidance
HARLEY-DAVIDSON, INC. – 2025 FINANCIAL GUIDANCE HDMC HDFS LiveWire Revenue Operating Income Y-o-Y LiveWire Units1 Flat to Down 5% Down 10% to 15% 1,000 – 1,500 Operating Income Margin Operating Loss 7.0% to 8.0% ($70M) to ($80M) Earnings Per Share Flat to Down 5% Harley-Davidson, Inc. Capital Invest
Slide 17: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements The Company intends that certain matters discussed in this report are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 199
Slide 18: Forward Looking Statements Continued
FORWARD LOOKING STATEMENTS CONTINUED The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s dealers to sell its motorcycles and related products and services to retail customers. The Company