NYSE:HOG
HARLEY-DAVIDSON, INC.
A leading manufacturer of premium motorcycles serving enthusiasts in North America and growing international markets.
Key Metrics
Investment Thesis
Bull Case
Despite recent top-line contraction, the company maintains a robust balance sheet with $3.09B in cash and equivalents against manageable debt levels, allowing for continued shareholder returns via dividends and buybacks while positioning the brand to capitalize on future demand cycles or potential EV transitions.
Bear Case
The steep decline in revenue over the last three years suggests a structural headwind that has not yet reversed, with net income dropping by nearly 50% since 2023, raising concerns about the durability of current sales volumes and the ability to restore profitability without significant cost restructuring.
About HARLEY-DAVIDSON, INC.
Harley-Davidson Inc. designs, manufactures, markets, and distributes motorcycles and related products globally, with a primary focus on the United States market while expanding into international territories through its premium motorcycle brand.
Analysis
Management Discussion
Revenue contracted notably from $5.19B in 2024 to $4.47B in 2025, reflecting a challenging macroeconomic environment or strategic inventory adjustments, while net income declined further from $445.2M to $329.2M, indicating persistent margin pressure despite the reduction in operating scale.
Industry Overview
The global motorcycle industry is currently navigating a transition period characterized by supply chain normalization, shifting consumer preferences toward electric mobility, and cyclical sensitivity to economic conditions that impact discretionary spending on recreational vehicles.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.76B | $5.84B | $5.19B | $4.47B |
| Cost of Revenue | $3.40B | $3.32B | $3.01B | $2.74B |
| Gross Profit | $2.35B | $2.51B | $2.18B | $1.73B |
| Operating Expenses | $1.44B | $1.74B | $1.76B | $1.34B |
| Operating Income | $909.3M | $779.1M | $416.6M | $386.6M |
| R&D | $158.6M | $159.3M | — | — |
| G&A | $1.08B | $1.18B | $1.15B | $1.15B |
| Stock-Based Comp | $54.4M | $82.9M | $49.0M | $31.7M |
| D&A | $151.9M | $158.1M | $160.7M | $172.4M |
| Amortization | $800.0K | $900.0K | $1.1M | — |
| Other OpEx | $203.6M | $400.2M | $619.0M | $197.2M |
| Non-Operating Income | $22.0M | $87.8M | $100.5M | $72.1M |
| Interest Expense | $31.2M | $30.8M | — | — |
| Pre-Tax Income | $931.2M | $866.9M | $517.1M | $458.7M |
| Income Tax | $192.0M | $171.8M | $72.0M | $129.6M |
| Continuing Ops | $739.2M | $695.0M | $445.2M | $329.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $739.2M | $695.0M | $445.2M | $329.2M |
| Minority Interest | $-2.2M | $0 | $-10.2M | $-9.6M |
| Net to Common | $741.4M | $695.0M | $455.4M | $338.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.75B | $5.16B | $5.00B | $5.59B |
| Cash & Equivalents | $1.43B | $1.53B | $1.59B | $3.09B |
| Accounts Receivable | $252.2M | $267.2M | $234.3M | $225.8M |
| Inventory | $951.0M | $930.0M | $745.8M | $730.9M |
| Other Current Assets | $2.11B | $2.43B | $2.43B | $1.54B |
| Long-Term Assets | $6.74B | $6.98B | $6.88B | $2.46B |
| PP&E (Net) | $689.9M | $731.7M | $757.1M | $750.2M |
| Goodwill | $62.1M | $62.7M | $61.7M | $63.9M |
| Operating Leases | $43.9M | $69.7M | $63.9M | $82.5M |
| Other LT Assets | $5.95B | $6.11B | $6.00B | $1.56B |
| Total Assets | $11.49B | $12.14B | $11.88B | $8.04B |
| Current Liabilities | $3.53B | $3.38B | $3.56B | $2.66B |
| Accounts Payable | $378.0M | $349.2M | $298.7M | $389.2M |
| Current Debt | $1.68B | $1.26B | $1.85B | $819.6M |
| Current Leases | $16.2M | $18.7M | $18.7M | $17.3M |
| Deferred Revenue | $17.6M | $23.4M | $23.1M | $34.7M |
| Other Current Liab | $816.4M | $1.09B | $771.6M | $725.9M |
| Long-Term Liabilities | $5.05B | $5.50B | $5.17B | $2.23B |
| Long-Term Debt | $4.46B | $4.99B | $4.47B | $1.65B |
| LT Operating Leases | $26.8M | $51.8M | $47.4M | $69.4M |
| Other LT Liab | $567.9M | $461.6M | $649.5M | $510.2M |
| Total Liabilities | $8.59B | $8.89B | $8.72B | $4.89B |
| Shareholders' Equity | $2.91B | $3.25B | $3.16B | $3.16B |
| Paid-In Capital | $1.69B | $1.75B | $1.79B | $1.79B |
| Retained Earnings | $2.49B | $3.10B | $3.47B | $3.72B |
| AOCI | $-341.9M | $-305.0M | $-332.7M | $-257.1M |
| Total L&E | $11.49B | $12.14B | $11.88B | $8.04B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $739.2M | $695.0M | $445.2M | $329.2M |
| Non-Cash Adjustments | $-614.8M | $-102.8M | $725.9M | $219.3M |
| Working Capital Changes | $424.0M | $162.7M | $-107.2M | $20.5M |
| Cash from Operations | $548.5M | $754.9M | $1.06B | $568.9M |
| Capital Expenditures | $151.7M | $207.4M | $196.6M | $153.7M |
| Cash from Investing | $-773.0M | $-512.3M | $-383.3M | $3.78B |
| Share Buybacks | $338.6M | $364.0M | $459.8M | $353.3M |
| Dividends Paid | $93.2M | $96.3M | $91.2M | $86.4M |
| Cash from Financing | $-202.0M | $-174.6M | $-572.3M | $-3.01B |
| FX Effect | $-19.5M | $1.7M | $-16.1M | $13.5M |
| Net Change in Cash | $-446.0M | $69.6M | $92.0M | $1.35B |
| Beginning Cash | $2.03B | $1.58B | $1.65B | $1.74B |
| Ending Cash | $1.58B | $1.65B | $1.74B | $3.09B |
Frequently Asked Questions
How does HARLEY-DAVIDSON, INC. make money?
The company generates revenue primarily from the sale of motorcycles, which includes both new production models and limited-edition special editions, alongside sales of aftermarket parts, apparel, accessories, and licensed products that support the brand lifestyle ecosystem.
What are the main risks for HOG?
Significant exposure to fluctuations in raw material costs such as steel and aluminum, rising interest rates that dampen discretionary consumer spending on premium vehicles, and intense competition from electric motorcycle entrants and other legacy brands seeking market share.
What is HOG's competitive advantage?
Harley-Davidson possesses an unassailable brand heritage and intense emotional loyalty among its core enthusiast demographic, combined with a diverse product portfolio spanning cruiser, touring, sport, and softail categories that mitigates single-model risk.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.