Harley-Davidson Inc., in its first earnings report since former Topgolf CEO Artie Starrs joined the company as president and CEO, reported revenues grew 17 percent to $1.34 billion in the third quarter ended September 30. Earnings increased significantly due to a July deal that saw KKR and Pacific Investment Management Co. (PIMCO) monetize a portion of the Harley-Davidson Financial Services (HDFS) segment.

“Our Q3 results demonstrate the positive impact of the HDFS transaction and reinforce the strategic value HDFS brings to Harley-Davidson’s overall business model,” explained Starrs, who joined the motorcycle brand on October 1, 2025. “While retail sales remain challenged, I’m truly energized by what I’ve experienced across the company, in dealerships, and with the broader rider community. While there is a lot of work ahead of us, our success begins with our dealers — when they thrive, Harley-Davidson thrives.”

Looking ahead, Starrs said that the market can expect an intensified focus on the key drivers of sustainable growth:

  • strong and profitable dealerships,
  • growing the connection riders have with the HD brand,
  • locally relevant marketing, and
  • capital-efficient growth.

Commenting on the HDFS transaction, company CFO Jonathan Root said, “The completion of the HDFS transaction with KKR and PIMCO marks a transformative milestone for Harley-Davidson. We are unlocking significant value while transforming Harley-Davidson Financial Services into a capital-light, de-risked business. This transaction releases over $1.2 billion in discretionary cash, setting the foundation for higher returns and sustained growth. Importantly, Harley-Davidson retains full control and majority ownership of HDFS — ensuring no change for our dealers or customers, which we believe continues to drive long-term value creation.”

Third Quarter 2025 Results

Harley-Davidson, Inc. Consolidated Financial Results
Consolidated revenue in the third quarter was up 17 percent versus the prior year, driven primarily by a revenue increase of 23 percent at HDMC.

Consolidated operating income in the third quarter was $475 million versus $106 million in the prior year period. The increase was primarily driven by HDFS operating income, which was favorably impacted by the HDFS transaction. As a result of the transaction, HDFS realized a benefit in the provision for credit losses in the third quarter, related to the reversal of a portion of its retail allowance for credit losses, triggered by the held-for-sale classification of its retail finance receivables. At HDMC, operating income was down 2 percent. LiveWire segment operating loss improved by $8 million, which was 30 percent lower than the prior year’s loss.

Harley-Davidson Motor Company (HDMC) Results
Third-quarter HDMC Revenue was up 23 percent, driven primarily by an increase in wholesale shipments, where net global pricing was flat and product mix and foreign currency were slightly favorable.

Motorcycles revenue was up 34 percent, driven by global motorcycle shipments increasing 33 percent versus the prior year. Parts & Accessories revenue was down 4 percent, and Apparel revenue was up 1 percent.

Third-quarter HDMC gross margin was down 3.7 points compared to the prior year, due to unfavorable operating leverage, the cost of new or increased tariffs implemented this year, and unfavorable foreign currency impacts. These factors were partially offset by the favorable impact of net pricing and mix. The third-quarter operating income margin decreased by 1.3 points due to the aforementioned factors, while operating expenses were $20 million higher than in the same period last year.

Harley-Davidson Retail Motorcycle Sales
Global retail motorcycle sales in the third quarter declined 6 percent compared to the prior year, reflecting continued soft demand amid unfavorable consumer confidence, high relative interest rates, and concerns about inflation. North America retail performance was down 5 percent. International retail performance declined by 9 percent, with the EMEA region performing weaker than the APAC region, and Latin America experiencing modest growth.

Harley-Davidson Financial Services (HDFS) Results
HDFS’s operating income increased by $362 million in the third quarter, or 472 percent compared to the prior year, driven by the impact of the HDFS transaction. The increase was primarily due to a lower provision for credit losses and higher other income, partially offset by lower net interest income and higher operating expenses. The increase in other income includes a $27 million gain on the sale of residual interests in securitized finance receivables.

The provision for credit loss expense was favorable primarily due to the reversal of the allowance for credit losses on held-for-sale retail finance receivables, which resulted in a $301 million benefit in Q3 ’25 compared with an expense of $58 million recorded in the provision for credit losses in Q3 ’24. Total finance receivables at the end of Q3 ’25 were $6.0 billion, a decline of 24 percent versus the prior year, primarily due to the HDFS transaction. The $6.0 billion of quarter-end finance receivables included $4.1 billion of finance receivables classified as held for sale. The held-for-sale finance receivables were sold in October as part of the HDFS transaction.

LiveWire Results
LiveWire revenue for the third quarter increased by 16 percent versus the prior year due to increased unit sales of electric motorcycles and electric bike units, partially offset by impacts from electric motorcycle pricing and incentives during the quarter. LiveWire’s operating loss of $18 million, $8 million less than a year ago, was in line with internal expectations.

2025 Financial Outlook
On May 1, 2025, due to the uncertain global tariff situation and overall macroeconomic conditions, the company withdrew its full-year 2025 financial outlook, which was provided on February 5, 2025. Given that the global tariff and business outlook remain uncertain, especially for discretionary product purchases, the company continues to withhold its full-year HDMC 2025 financial outlook.

For LiveWire, the company is updating its previously issued guidance related to operating loss to $72 million to $77 million. Its total net use of cash remains $50 million to $60 million.

Images courtesy Harley Davidson