Harley finishes ’24 with positive North American sales results in Q4

Harley-Davidson, Inc. recently reported its fourth quarter and full year 2024 results and provided its outlook for 2025. While global shipments were down significantly for the full year, the company recorded growth in some segments in North America during Q4.

“In 2024, we saw our performance being significantly impacted by the continued cyclical headwinds for discretionary products, including the high-interest rate environment affecting consumer confidence,” says Jochen Zeitz, chairman, president, and CEO of Harley-Davidson. “The launch of our new Street Glide and Road Glide touring motorcycles contributed to nearly 5% growth in the U.S. Touring segment and drove H-D’s market share to 74.5% in ’24. The decisions we have made and the bold actions we have taken as part of our Hardwire strategy are continuing to strengthen our foundation for the future. The industry has faced many challenges over the past couple of years, impacting at all levels, but we believe we are best positioned to take advantage of any uptick in consumption.”

2024 Highlights and Results

• 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%
• Harley-Davidson dealer inventory levels of new motorcycles finished the year down over 4% year-over-year

Q4 2024 Highlights

• HDMC revenue of $420 million, down 47% vs. prior year
• HDMC global motorcycle shipments of 14,010, down 53% from prior year
• Global retail sales of new motorcycles down 15% vs. prior year

Outlook for 2025

• HDMC: revenue flat to down 5% and operating income margin of 7.0% to 8.0%
• HDFS: operating income down 10% to 15%
• LiveWire: electric motorcycle unit sales of 1,000 – 1,500 and an operating loss of $70 to $80 million
• Harley-Davidson, Inc: capital investments of $225 to $250 million

Revenue

In the fourth quarter, revenue was down 35 percent across the company, driven by a revenue decline of 47 percent at HDMC, partially offset by revenue growth of 4 percent at HDFS. Harley reported an operating loss of $193 million in Q4, compared to an operating loss of $21 million in the prior year.

Revenue was down 11 percent for the full year compared to the prior year. This was driven by revenue decreases of 15 percent at HDMC and by $12 million at LiveWire, partially offset by a revenue increase of 9 percent at HDFS. For the full year, consolidated operating income was down 47 percent compared to last year. This was driven by an operating income decline of 58 percent at HDMC, partially offset by a 6 percent increase at HDFS. The full-year operating loss at LiveWire was $110 million, which was in line with our expectations.

HDMC

Global motorcycle shipments at HDMC decreased 53 percent from a year ago in Q4 due to a focus on dealer channel de-stocking and soft market conditions. HDMC revenue was down 47 percent due to lower volumes and an unfavorable mix, partially offset by higher pricing. Gross profit came in at a loss of $3 million compared to gross profit of $181 million in the prior year period.

The result was driven by the revenue drivers cited, negative operating leverage, and adverse foreign exchange, partially offset by lower raw material costs and supply management. Operating expenses were $15 million lower than a year ago. Operating loss was $214 million in the fourth quarter compared to an operating loss of $44 million in the prior period.

Global motorcycle shipments decreased 17 percent from the prior year for the full year. HDMC revenue was down 15 percent due to lower volumes and unfavorable net pricing, partially offset by positive impacts of shipment mix. Gross margin was lower by 4.3 points in 2024 compared to 2023. The lower margin was driven by the revenue drivers cited, negative operating leverage, and negative impacts of the net shipment mix, partially offset by the benefits of lower logistics and raw material costs. Operating expenses were $28 million lower than a year ago. The operating income margin was 6.7 percent, 6.9 points lower than in 2023.

Retail Sales

The Motor Company saw global retail sales of new motorcycles in 2024 were down 15 percent versus the prior year. In North America, retail sales declined by 13 percent, with the bulk of declines in the large cruiser category, which includes the Softail motorcycle. In EMEA, retail sales declined by 7 percent, driven by weakness in Germany and the surrounding region. The 26 percent decline in APAC was driven by weakness in Japan and China, partially offset by growth in Australia and New Zealand. Latin America sales decreased by 7 percent, driven by Brazil and Mexico’s decline.

For 2024, global retail sales of new motorcycles were down 7 percent compared to the prior year. North American retail sales declined by 4 percent, while the first half was up 2 percent and the second half was down. Touring, Trike, and CVO retail sales in North America were up more than 8 percent for 2024. EMEA retail sales declined by 11 percent for the full year, where most of the retail weakness was in non-core motorcycles. Touring, Trike, and CVO retail sales were up 10 percent year over year. APAC retail sales declined by 18 percent for the full year, driven by weakness in Japan and China.

Harley-Davidson Financial Services

HDFS revenue was up 4 percent in Q4 from the prior year, driven by higher interest income. HDFS’ operating income of $46 million was down by 20 percent, driven by higher provisions for credit losses and higher borrowing costs. The increase in the provision for credit losses was driven mainly by an unfavorable change in the allowance for credit loss reserve rate.

HDFS revenue was up 9 percent from the prior year for the full year, driven by higher interest income. HDFS’s operating income was $248 million, up 6 percent from the prior year despite higher borrowing costs, an increased provision for credit losses, and higher operating expenses. The full-year 2024 operating income margin was 24 percent.

LiveWire

In the fourth quarter, LiveWire revenue decreased 32 percent compared to the prior year, driven by lower unit sales of EV motorcycles in the quarter. LiveWire operating loss of $26 million, $9 million less than a year ago, was in-line with expectations.

LiveWire revenue decreased by 31 percent compared to the prior year, driven by lower unit sales of EV motorcycles and of STACYC electric bikes. LiveWire’s operating loss of $110 million was $7 million less than the prior year and was in line with its expectations. LiveWire sold 612 EV motorcycles in 2024, compared to 660 EV motorcycles in 2023. LiveWire continues to invest in new products and action initiatives to reduce the overall cost of sales for EV motorcycles.