Harley-Davidson posts bigger Q4 loss, hurt by tariffs, lower sales

Overview

• Motorcycle maker's Q4 revenue beat analyst expectations despite a 28% yr/yr decline

• Q4 net loss widens, reflecting significant challenges

• North America Q4 retail motorcycle sales rose 5%, offsetting global sales decline

Outlook

• Harley-Davidson expects 2026 global motorcycle retail sales of 130,000 to 135,000 units

• Company projects 2026 operating income of $40 mln loss to $10 mln profit

• Harley-Davidson plans capital investments of $175 to $200 mln in 2026

Result Drivers

• HDFS PARTNERSHIP - Strategic partnership with KKR and PIMCO transformed HDFS into a capital-light business, contributing to record-high earnings

• TARIFF COSTS - Increased tariff costs and higher marketing expenses contributed to operating loss at HDMC

• LIVEWIRE SALES - LiveWire increased sales of electric motorcycles, though overall revenue decreased slightly for the full year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for Harley-Davidson Inc is $27.50, about 36.5% above its February 9 closing price of $20.14

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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