Harley-Davidson Reports Significant Q4 & Full-Year Losses for Core Motorcycle Business, Weak 2026 Outlook
Summary
Harley-Davidson reported significant Q4 and full-year 2025 operating losses for its core motorcycle business and provided a weak outlook for 2026, despite a one-time boost from a financial services transaction.
Key Events
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Core Motorcycle Business Reports Significant Losses
Harley-Davidson Motor Company (HDMC) reported an operating loss of $29 million for the full year 2025, a substantial decline from an operating income of $278 million in 2024. Q4 2025 also saw an increased operating loss of $260 million for HDMC.
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Weak 2026 Outlook for HDMC
The company projects HDMC operating income for full year 2026 to range from a $40 million loss to a $10 million profit, indicating continued struggles in the core business.
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HDFS Boosted by Strategic Partnership
Harley-Davidson Financial Services (HDFS) achieved record operating income of $490 million for 2025, primarily due to a strategic partnership with KKR and PIMCO, which included a $1 billion dividend to Harley-Davidson, Inc. However, the 2026 outlook for HDFS operating income is significantly lower, at $45 million to $60 million.
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Director Not Seeking Re-election
James Duncan Farley, Jr. notified the Board that he will not stand for re-election, with the decision not attributed to any disagreement with the company's operations or policies. The Board expects to decrease its size from nine to eight members.
Analysis
Harley-Davidson's core motorcycle business (HDMC) experienced a substantial deterioration in performance, reporting an operating loss of $29 million for the full year 2025, a significant decline from a $278 million operating income in 2024. Fourth-quarter results also showed a worsening diluted EPS loss and increased operating losses for HDMC. While Harley-Davidson Financial Services (HDFS) posted record operating income for 2025, this was primarily driven by a strategic partnership transaction with KKR and PIMCO, which included a $1 billion dividend to the parent company, rather than organic growth. The 2026 outlook for HDMC remains weak, projecting an operating income ranging from a $40 million loss to a $10 million profit, indicating continued challenges in stabilizing the business. This weak performance and outlook for the core segment, especially with the stock trading near its 52-week low, signals ongoing headwinds for the company. The announced departure of a board member is noted as not due to any disagreement and is a secondary, less impactful event.
At the time of this filing, HOG was trading at $20.15 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $19.33 to $31.25. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.