Harley-davidson, Inc. · NYSE:HOG
Harley-davidson — Q1 2025 Earnings Presentation
16 slides from Harley-davidson's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results Thursday, May 1, 2025
Slide 2: Q1 2025 Results – Earnings Call: Call Participants
Q1 2025 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: Q1 2025 Performance Headlines
Q1 2025 PERFORMANCE HEADLINES ▪ Delivered diluted EPS of $1.07 ▪ HDMC operating income margin of 10.8 percent ▪ HDFS operating income margin of 26.1 percent ▪ Global motorcycle retail sales down 21 percent year-over-year, driven by a volatile macro environment and overall consumer uncertainty ▪ HDMC
Slide 4: New Model Year 2025 Softail Motorcycle Launch
NEW MODEL YEAR 2025 SOFTAIL MOTORCYCLE LAUNCH ▪ Initial response to new cruisers has been very positive ▪ Launch included six new cruiser models featuring: ▪ New Milwaukee-Eight 117 powertrains designed to match each bike’s unique personality and customer ▪ Three ride-modes (Road/Rain/Sport) ▪ New f
Slide 5: Consolidated – Q1 2025 Results
CONSOLIDATED – Q1 2025 RESULTS Q1 2025 Results1, 2 Total ($ millions, except earnings per share) HDMC HDFS LiveWire HDI Revenue $1,082 $245 $3 $1,329 % vs PY -27% -2% -42% -23% Operating Income (Loss) $116 $64 ($20) $160 Margin % 10.8% 26.1% NM 12% % vs PY -51% 19% 32% -39% Net Income Attributable t
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 Motorcycles (vs. PY) Worldwide Harley-Davidson Dealer Inventory Units (Thousands) Q1 2025 Q1 2024 North America -24% 6% -19% vs. Q1 ’24 EMEA -2% -11% 69 Asia Pacifi
Slide 7: HDMC Revenue Bridge
HDMC REVENUE BRIDGE Q1 2025 HDMC Revenue Bridge1 2% 2% -1% -27% -30% 2 3 Volume Pricing Mix FX Total Revenue decline driven largely by corresponding lower volume, partially offset by higher pricing and favorable mix 1 Q1 2025 HDMC Revenue Bridge compares Q1 ‘25 revenue to Q1 ‘24 revenue on a year-ov
Slide 8: Q1 2025: HDMC Operating Income Margin
Q1 2025: HDMC OPERATING INCOME MARGIN Operating Income Margin Q1 2024 Op Income Margin $238 mm 16.2% Volume ($140) -6.6 Pts 16.2% Pricing $23 1.9 Pts FX $0 0.1 Pts 10.8% Mix $12 0.7 Pts Manufacturing & Other ($41) -3.6 Pts Operating Expenses $24 2.1 Pts Q1 2025 Op Income Margin $116 mm 10.8% Q1 2024
Slide 9: HDMC: Tariff Update
HDMC: TARIFF UPDATE Q1 2025 new tariff impact has been minimal at $9 million; we expect tariff impact will increase starting in Q2 but environment remains volatile US-Centric Manufacturing Footprint 1) Motorcycle Final Assembly for NA - York, PA Current Tariff Picture (as of April 29, 2025) 2) Power
Slide 10: HDFS Segment: Q1 2025 Results
HDFS SEGMENT: Q1 2025 RESULTS Summary Financials Q1 +/- % vs. PY ($ millions) 2025 PY Revenue $245 ($4) -2% Interest Expense $89 $- 0% Provision for Credit Losses $53 ($8) -13% Operating Expense $39 ($6) -14% Total Expenses $181 ($14) -7% Operating Income $64 $10 19% Margin % 26.1% 10
Slide 11: HDFS Segment Performance
HDFS SEGMENT PERFORMANCE Annualized Retail Credit Losses1, 2 Retail Finance Receivables & Allowance Receivables ($B) Allowance Percentage 3.7% 3.8% 5.9% 5.7% 5.7% 3.2% 5.4% 5.0% 5.1% 4.4% 2.7% $6.8 $6.7 $6.7 $6.5 $6.5 $6.4 $6.3 1.8% 1.5% Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 CECL Q4 '20 Q4 '21 Q
Slide 12: LiveWire Segment: Q1 2025 Results
LIVEWIRE SEGMENT: Q1 2025 RESULTS1, 2,3 ▪ Operating loss decrease of $9 million driven by a $ millions Q1 Q1 decrease in selling, administrative and Actual Units % vs PY 2024 2025 engineering expense. ▪ Revenue decline due to decrease in sales of Motorcycle Units 117 33 -72% electric motorcycles res
Slide 13: Consolidated – Q1 2025 Results
CONSOLIDATED – Q1 2025 RESULTS HDI Operating Cash Flow ($ millions) HDI Financial Metrics $142 ▪ Capital Investments1 – $32 million ▪ Effective Tax Rate – 27% $104 ▪ Cash & Cash Equivalents2 – $1.9 billion ▪ Dividends Paid – $23 million ▪ Shares Repurchased on Discretionary Basis – $87 million (3.4
Slide 14: Share Repurchases / Dividends
SHARE REPURCHASES / DIVIDENDS $1.5 Billion in Total Capital Returned 34.5 Million Shares Repurchased $1.2B of Shares Repurchased2 + $304M in Cash Dividends 22% of Shares Outstanding 1,2 $541 12.5 $418 $446 10.2 8.4 $110 3.4 2022 2023 2024 Q1 2025 2022 2023 2024 Q1 2025 Cash Dividends (in $ millions)
Slide 15: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements The Company intends that certain matters discussed in this presentation are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act
Slide 16: 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