Harley-Davidson, Inc. Corporate Profile & Financial

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Quick Facts / Company Snapshot

Metric	Value
Official Company Name	Harley-Davidson, Inc.
Ticker Symbol / Exchange	HOG / New York Stock Exchange
Reporting Period	Fiscal Year Ended December 31, 2025
Total Consolidated Revenue	$4,473,175,000
Net Income Attributable to Harley-Davidson, Inc.	$338,738,000
Diluted Earnings Per Share	$2.78
Total Assets	$8,044,815,000
Total Liabilities	$4,887,965,000 (Calculated by FirmsWorld)
Total Shareholders’ Equity	$3,156,850,000
Operating Cash Flow	$568,922,000
Total Global Workforce	Approximately 5,500 employees
Chief Executive Officer	Artie Starrs
Headquarters	3700 West Juneau Avenue, Milwaukee, Wisconsin 53208
Total Retail Motorcycle Sales (Units)	132,535
HDMC Operating Margin	(0.8)%
HDFS Operating Income	$490,382,000
LiveWire Operating Loss	$(75,016,000)
Discretionary Share Repurchases	$347,500,000
Cash Dividends Per Share	$0.72
Total Dealership Points	1,174

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Company Overview

Harley-Davidson, Inc. operates as a globally recognized manufacturer of premium motorcycles, accessories, and riding apparel. The enterprise manages its operations through a distinct structure that separates its traditional internal combustion engine manufacturing, its emerging electric vehicle initiatives, and its robust financial services arm. Management directs these divisions to cater to diverse consumer preferences while maintaining the organization’s unique combination of product heritage and design innovation.

• The corporate structure is designed to support long-term profitable growth through three strategic business units: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS).
• Operations are supported by a global manufacturing footprint, enabling the delivery of products to various international markets while navigating complex supply chain logistics.

The organisation relies heavily on a network of independent dealers to retail its vehicles globally. This distribution strategy is supplemented by eCommerce websites in select markets and independent distributors in specific overseas territories. Management actively monitors retail inventory levels and dealer performance to ensure alignment with broader macroeconomic conditions and consumer demand trends.

• During the reporting period, the enterprise implemented a strategic shift in its annual new model year launch timing, moving from January to the preceding fall for certain models to capture additional retail selling opportunities.
• The company is currently undergoing a comprehensive operational evaluation under new executive leadership to formulate a revised strategic plan.

Business Segments

Business Segment	2025 Revenue (in thousands)	% of Total Revenue	2025 Operating Income / (Loss) (in thousands)
Harley-Davidson Motor Company (HDMC)	$3,578,308	80.0% (Calculated by FirmsWorld)	$(28,731)
Harley-Davidson Financial Services (HDFS)	$869,196	19.4% (Calculated by FirmsWorld)	$490,382
LiveWire	$25,671	0.6% (Calculated by FirmsWorld)	$(75,016)
Total Consolidated	$4,473,175	100.0%	$386,635

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Harley-Davidson Motor Company (HDMC)

The HDMC segment focuses on the design, manufacturing, and sale of internal combustion engine motorcycles. This division produces models ranging in displacement from smaller lightweight variants up to approximately 2,000cc engines. The segment also generates revenue through the sale of replacement parts, mechanical accessories, cosmetic enhancements, and branded riding gear.

• HDMC utilises a network of 1,174 independent dealership points globally to retail its primary product lines and merchandise.
• The segment experienced a reduction in operating results driven primarily by lower wholesale shipments, which fell in response to a decline in worldwide retail sales.

Operating margins within this division are highly sensitive to manufacturing leverage and production volumes. When production decreases, fixed costs are allocated over fewer units, resulting in higher unit costs. Furthermore, this segment bears the direct impact of international trade policies, logistics expenses, and raw material pricing fluctuations.

Harley-Davidson Financial Services (HDFS)

HDFS provides wholesale and retail financing options, primarily supporting the purchase of Harley-Davidson and LiveWire vehicles. Wholesale services include floorplan and open account financing for independent dealers in the United States and Canada. Retail services consist of instalment lending for consumers purchasing new and used motorcycles.

• HDFS works with unaffiliated third parties to offer point-of-sale motorcycle insurance and voluntary protection products.
• The segment’s operating income is heavily influenced by interest rate environments, credit loss provisions, and strategic capital structuring transactions.

The division manages its retail credit risk through a comprehensive approval process utilising FICO scores to evaluate expected default rates. HDFS operations are funded through a diversified strategy involving unsecured debt, commercial paper, asset-backed securitisations, and brokered certificates of deposit offered through its bank subsidiary.

LiveWire

The LiveWire segment operates as an all-electric motorcycle brand focused on pioneering the two-wheel electric vehicle market. The product portfolio includes heavy-weight electric motorcycles and electric balance bikes designed for children. Products are distributed through a mix of wholesale relationships with independent retail partners and direct-to-consumer online sales channels.

• LiveWire does not possess independent manufacturing facilities; its electric motorcycles are assembled by HDMC, while its balance bikes are produced via contract manufacturing in Asia.
• The division operates in an emerging sector where adoption rates are highly dependent on government incentives, charging infrastructure expansion, and regulatory environments.

Management acknowledges that the electric vehicle sector presents unique challenges, including slower-than-anticipated consumer adoption. The segment is currently adjusting its long-term product strategy to align with evolving customer preferences, which includes a planned introduction of smaller, urban-oriented mini-motorcycles.

History and Evolution

The enterprise traces its origins to 1903, establishing itself as a foundational entity in the American motorcycle industry. Over subsequent decades, the organisation built a highly recognisable brand associated with unique styling, distinctive engine sound, and an enthusiastic rider community. The corporate structure evolved significantly in the late 20th century to adapt to changing market dynamics.

• Harley-Davidson, Inc. was formally incorporated in 1981 following a management buyout that separated the motorcycle business from AMF Incorporated.
• The corporation subsequently transitioned to a publicly held entity in 1986, trading on the New York Stock Exchange.

Between 2021 and 2025, the company operated under a strategic plan titled “The Hardwire.” This initiative targeted long-term profitable growth by focusing on the most profitable motorcycle segments, selective market expansion, and investments in electric vehicle technology. Following the conclusion of this plan, the enterprise began formulating a new strategic direction set to be announced in 2026.

Products and Services

Product / Service Category	2025 Revenue (in thousands)	% of HDMC Revenue
Motorcycles	$2,657,675	74.3%
Parts and Accessories	$614,072	17.2%
Apparel	$215,783	6.0%
Other Products and Services	$69,106	1.9%
Licensing	$21,672	0.6%

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Motorcycles

The core internal combustion engine motorcycle lineup is categorised into six distinct groups reflecting specific customer preferences and riding applications. These categories include Grand American Touring, Trike, Cruiser, Sport, Lightweight, and Adventure Touring. The Grand American Touring segment emphasises rider comfort and load capacity for long-distance travel, representing the company’s highest-volume family.

• During the reporting period, the company shipped 124,477 motorcycles worldwide, representing a 16.4% volume decline compared to the prior year.
• The shipment mix shifted favourably toward new limited-edition models and updated Cruiser variants, partially offsetting the lower overall volume.

Management carefully balances wholesale shipments with actual retail demand to prevent excessive dealer inventory. Revenue generation in this category is influenced by the manufacturer’s suggested retail price, which commands a premium relative to competitors, supported by unique styling and customisation options.

Parts and Accessories

This category encompasses Genuine Motor Parts used for replacement and maintenance, alongside Genuine Motor Accessories intended for mechanical and cosmetic customisation. These products are retailed through the independent dealer network and the company’s regional eCommerce platforms.

• The availability of a comprehensive line of proprietary parts is considered a significant competitive advantage for the enterprise.
• Revenue in this category benefits from the extensive base of legacy motorcycles currently in operation that require ongoing maintenance and modification.

Apparel

The apparel division produces and markets clothing and specialised riding gear, including the Genuine MotorClothes line. This product category serves dual purposes: providing functional equipment for active riders and lifestyle fashion items for brand enthusiasts. Sales are executed through physical dealerships and direct-to-consumer digital channels.

• Apparel revenues are subject to seasonal shifts and general consumer discretionary spending trends.
• The company occasionally implements promotional incentives within this category to manage seasonal inventory levels.

Financial Services and Insurance

While not part of the HDMC revenue breakdown, the HDFS segment delivers critical financial products that facilitate the acquisition of the company’s physical goods. This includes retail instalment lending for consumers and floorplan financing for dealers to stock inventory.

• During 2025, HDFS financed 68.4% of new motorcycles retailed by dealers in the United States and 20.7% in Canada.
• The division also generates revenue by marketing comprehensive business insurance coverages to independent dealership owners.

Licensing

The enterprise generates reach and brand awareness by licensing its trademarks to third parties for use on a wide array of consumer products. This strategy monetises the brand’s cultural capital without requiring direct manufacturing investment from the company.

• Licensing arrangements extend to third-party financial institutions that issue co-branded credit cards in domestic and international markets.
• Revenue from this category is recognised as sales-based royalties when the licensees’ subsequent retail sales occur.

Brand Portfolio

Brand Name	Primary Application
Harley-Davidson	Core internal combustion engine motorcycles, apparel, and financial services.
LiveWire	Heavy-weight electric motorcycles.
STACYC	Electric balance bikes for children.
Screamin’ Eagle	High-performance parts and engine upgrades.
MotorClothes	Official riding gear and lifestyle apparel.
H.O.G. (Harley Owners Group)	Official riding club and community membership.

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Harley-Davidson Core Brands

The primary trademark has been in continuous use since 1903, while the iconic Bar & Shield logo has been utilised since at least 1910. The company actively manages a vigorous worldwide registration and enforcement program to prevent unauthorised use and protect the asset’s inherent value.

• Substantially all core trademarks are owned by a specific subsidiary, Harley-Davidson Motor Company, Inc., which dictates the global trademark strategy.
• The portfolio includes model-specific intellectual property such as Softail and Sportster, which carry significant recognition among motorcycle enthusiasts.

The company connects these brands directly to the consumer experience through the Harley Owners Group (H.O.G.), H-D Membership, and the Harley-Davidson Riding Academy. These programs foster brand advocacy, build community among riders, and serve as vital marketing tools.

LiveWire and STACYC

The LiveWire brand represents the organisation’s dedicated foray into the electric vehicle space. Trademarks under this umbrella include LiveWire One, Mulholland, Alpinista, and Del Mar. The brand is positioned to attract a different demographic than the core internal combustion line, focusing on urban mobility and sustainable transport.

• The STACYC brand targets the youth demographic, introducing electric two-wheel dynamics to children through specialised balance bikes.
• LiveWire design patents carry a term of 15 years from issuance, while its utility patents carry a term of 20 years from the priority application date.

Geographical Presence

Region	2025 Retail Sales (Units)	% of Total Retail Sales	2025 Dealership Points
United States	82,698	62.4% (Calculated by FirmsWorld)	554
Europe/Middle East/Africa (EMEA)	21,454	16.2% (Calculated by FirmsWorld)	296
Asia Pacific	18,975	14.3% (Calculated by FirmsWorld)	247
Canada	6,434	4.9% (Calculated by FirmsWorld)	46
Latin America	2,974	2.2% (Calculated by FirmsWorld)	31
Total	132,535	100.0%	1,174

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

United States

The domestic market remains the enterprise’s most significant geographic segment, accounting for the vast majority of retail sales and dealership points. The company commands a 34.5% market share in the U.S. for new motorcycles with displacements greater than 600cc.

• Retail sales in this region decreased 12.9% year-over-year, heavily impacted by a challenging macroeconomic environment and high interest rates.
• The U.S. serves as the primary manufacturing hub, housing powertrain production, component fabrication, and final vehicle assembly facilities.

Consumer demand in the domestic market is highly susceptible to discretionary income levels, credit availability, and the supply and pricing dynamics of the used motorcycle market. The company actively manages promotional incentives in this region to assist dealers in reducing inventory, particularly within the Grand American Touring category.

Europe / Middle East / Africa (EMEA)

The EMEA region constitutes the second-largest retail market for the enterprise. The company held a 3.4% market share of new 601+cc motorcycle registrations in Europe during the reporting period. Sales operations in this territory are supported by independent distributors and direct-to-consumer eCommerce platforms in select nations.

• Retail sales in EMEA were soft during the fiscal year, declining 10.9% due to challenging regional economic conditions.
• The region’s registration data in 2025 was adversely impacted by a high volume of non-retail registrations executed in late 2024 to comply with incoming Euro 5+ emissions standards.

Operations in this jurisdiction are heavily exposed to international trade policies. The company successfully appealed a previous revocation of Binding Origin Information decisions in the European Union, which had previously subjected its imported motorcycles to elevated tariff rates.

Asia Pacific

The Asia Pacific region represents a critical growth territory, encompassing major markets such as Japan, Australia, New Zealand, and China. Distribution in several of these markets, including India, is managed through independent distributors who leverage both dedicated Harley-Davidson dealerships and their own existing retail networks.

• Retail volumes in this geography declined 14.6% during the year, reflecting broader macroeconomic pressures impacting discretionary consumer spending.
• The company maintains a strategic manufacturing facility in Rayong, Thailand, which supplies motorcycles to certain Asian and European markets to optimise tariff exposures and logistics.

Canada and Latin America

Canada operates as a closely integrated market with the United States, sharing similar consumer preferences and financing availability through HDFS. Latin America is a smaller, targeted market served by a dedicated assembly facility in Manaus, Brazil, which constructs motorcycles from component kits sourced from U.S. facilities and suppliers.

• Canadian retail sales declined 9.3% in 2025, mirroring the broader North American economic headwinds.
• Conversely, Latin America demonstrated resilience, recording a slight 2.2% increase in retail unit sales during the reporting period.

Profit and Loss

Consolidated Statements of Operations (in thousands, except per share data)	2025	2024	2023
Revenue: Motorcycles and related products	$3,603,979	$4,148,264	$4,882,892
Revenue: Financial services	$869,196	$1,038,538	$953,586
Total Revenue	$4,473,175	$5,186,802	$5,836,478
Cost of goods sold (Motorcycles and related)	$2,741,821	$3,005,940	$3,322,306
Financial services interest expense	$388,636	$371,766	$332,380
Financial services provision for credit losses	$(191,392)	$247,225	$227,158
Selling, administrative and engineering expense	$1,147,475	$1,145,244	$1,175,550
Total Costs and Expenses	$4,086,540	$4,770,175	$5,057,394
Operating Income	$386,635	$416,627	$779,084
Other income, net	$61,270	$72,295	$71,808
Investment income	$44,270	$58,964	$46,771
Interest expense	$33,444	$30,748	$30,787
Income before income taxes	$458,731	$517,138	$866,876
Income tax provision	$129,577	$71,963	$171,830
Net Income	$329,154	$445,175	$695,046
Loss attributable to noncontrolling interests	$9,584	$10,182	$11,540
Net income attributable to Harley-Davidson, Inc.	$338,738	$455,357	$706,586
Diluted earnings per share	$2.78	$3.44	$4.87

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Consolidated operating income decreased by $30.0 million in 2025. This contraction was primarily driven by unfavourable manufacturing leverage within the HDMC segment, as lower production volumes forced fixed costs to be allocated across fewer units. Furthermore, the enterprise absorbed approximately $67 million in newly implemented or increased international tariffs.

• The significant benefit recorded in the financial services provision for credit losses ($(191.4) million) directly resulted from the release of allowances associated with loans sold during a major strategic financial transaction.
• The effective income tax rate surged to 28.2% in 2025, up from 13.9% the previous year, primarily due to valuation allowances recorded against deferred tax assets and a global minimum tax provision.

Financial services interest expense increased, partially driven by $72.6 million in debt extinguishment costs incurred when the company executed tender offers and make-whole redemptions on specific medium-term notes. Selling, administrative, and engineering expenses remained relatively flat year-over-year, as increased marketing support for dealers and costs related to a shareholder proxy contest were offset by reduced personnel and warranty expenses.

Balance Sheet

Consolidated Balance Sheets (in thousands)	December 31, 2025	December 31, 2024
Cash and cash equivalents	$3,091,744	$1,589,608
Accounts receivable, net	$225,760	$234,315
Finance receivables held for sale, net	$264,238	$0
Finance receivables held for investment, net (Current)	$981,926	$2,031,496
Inventories, net	$730,898	$745,793
Restricted cash	$0	$135,661
Other current assets	$292,383	$259,764
Total Current Assets	$5,586,949	$4,996,637
Finance receivables held for investment, net (Long-term)	$719,060	$5,256,798
Property, plant and equipment, net	$750,224	$757,072
Pension and postretirement assets	$546,303	$440,825
Goodwill	$63,913	$61,655
Deferred income taxes	$73,792	$175,826
Lease assets	$82,542	$63,853
Other long-term assets	$222,032	$128,913
Total Assets	$8,044,815	$11,881,579
Accounts payable	$389,237	$298,718
Accrued liabilities	$671,957	$593,960
Short-term deposits, net	$280,095	$173,099
Short-term debt	$497,776	$640,204
Current portion of long-term debt, net	$819,629	$1,851,513
Total Current Liabilities	$2,658,694	$3,557,494
Long-term deposits, net	$256,549	$377,487
Long-term debt, net	$1,649,612	$4,468,665
Lease liabilities	$69,425	$47,420
Pension and postretirement liabilities	$53,135	$53,874
Deferred income taxes	$5,506	$16,889
Other long-term liabilities	$195,044	$201,250
Total Harley-Davidson, Inc. shareholders’ equity	$3,140,668	$3,166,047
Noncontrolling interest	$16,182	$(7,547)
Total Equity	$3,156,850	$3,158,500

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

The corporation’s balance sheet underwent a massive transformation during 2025, resulting in total assets declining from $11.88 billion to $8.04 billion. This dramatic reduction was primarily triggered by a strategic transaction in the financial services division, resulting in the sale of $4.1 billion in retail finance receivables and the deconsolidation of $1.9 billion in net finance receivables previously held in variable interest entities (VIEs).

• Cash and cash equivalents nearly doubled to $3.09 billion, bolstered by the proceeds from the massive sale of retail finance receivables and securitisation interests.
• Long-term debt contracted sharply from $4.46 billion to $1.64 billion as the enterprise utilised transaction proceeds to redeem medium-term notes and pay down a $450 million term loan.

The introduction of the “Finance receivables held for sale, net” line item reflects the company’s new Forward Flow Agreement, wherein it intends to systematically sell up to two-thirds of future retail loan originations to strategic counterparties. Goodwill remained stable at $63.9 million, with adjustments solely related to foreign currency translation.

Cash Flow

Consolidated Statements of Cash Flows (in thousands)	2025	2024	2023
Net cash provided by operating activities	$568,922	$1,063,833	$754,887
Capital expenditures	$(153,679)	$(196,563)	$(207,404)
Origination of finance receivables held for investment	$(2,553,575)	$(3,639,279) \vert{}$(3,873,542)
Collections of finance receivables held for investment	$2,650,199	$3,440,340	$3,570,822
Proceeds from sale of finance receivables initially held for investment	$3,685,613	$0	$0
Proceeds from sale of securitization beneficial interests, net	$125,369	$0	$0
Other investing activities	$24,848	$12,172	$(2,180)
Net cash provided (used) by investing activities	$3,778,775	$(383,330)	$(512,304)
Net cash used by financing activities	$(3,010,300)	$(572,315)	$(363,987)
Effect of exchange rate changes on cash	$13,493	$(16,145)	$1,946
Net increase in cash, cash equivalents and restricted cash	$1,350,890	$92,043	$69,634

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Operating cash flow declined sharply in 2025, largely due to lower motorcycle shipment volumes, elevated manufacturing costs, and the reclassification of certain new retail finance receivable originations. Because the company now intends to sell these originations under its new Forward Flow Agreement, the cash outflows to fund them are classified as operating activities rather than investing activities.

• Investing cash flows saw an unprecedented $3.77 billion net inflow, driven entirely by the bulk sale of legacy retail finance receivables that were previously held for investment.
• Financing cash outflows surged to over $3.0 billion as the company deployed the massive investing proceeds to systematically retire debt, including asset-backed commercial paper and medium-term notes.

The enterprise continued returning capital to shareholders throughout the period, executing $347.5 million in discretionary share repurchases (including funds deployed into an accelerated share repurchase program) and distributing $86.4 million in cash dividends. Capital expenditures were slightly constrained to $153.7 million, reflecting disciplined capital allocation amidst softer retail demand.

Leadership Team

Executive continuity and strategic vision are dictated by a specialised corporate leadership team. The management structure is responsible for navigating complex global supply chains, financial services compliance, and brand positioning.

• Artie Starrs: Appointed as Chief Executive Officer effective October 1, 2025. Upon assuming the role, he immediately initiated a comprehensive evaluation of corporate strategy and daily operations to formulate a new strategic plan.
• The enterprise relies on specialised functional leaders, including a Chief Legal, Compliance and Corporate Affairs Officer, and a Chief Information Security Officer (CISO), to manage regulatory adherence and cybersecurity governance.

Subsidiaries, Associates, Joint Ventures

Subsidiary / Entity	Ownership / Interest	Primary Function
Harley-Davidson Financial Services, Inc. (HDFS)	90.2% (Calculated by FirmsWorld)	Wholesale and retail consumer financing.
LiveWire Group, Inc.	Controlling equity interest	Development and sale of electric vehicles.
Eaglemark Savings Bank (ESB)	Wholly-owned subsidiary of HDFS	Nevada state thrift chartered to originate retail loans.
Eaglemark Insurance Company Ltd. (EICL)	Direct subsidiary of Harley-Davidson, Inc.	Captive reinsurance for voluntary protection products.
Harley-Davidson Japan KK	Subsidiary	Regional distribution and dealer management in Japan.

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Harley-Davidson Financial Services, Inc. (HDFS)

HDFS acts as the financial engine facilitating the movement of physical inventory from the factory floor to the end consumer. In late 2025, the parent company executed a landmark transaction, selling a 9.8% equity stake in this subsidiary to strategic counterparties KKR and PIMCO for a combined $46.6 million.

• This transaction establishes a non-controlling interest that participates in 9.8% of HDFS’s earnings going forward.
• The counterparties hold the right to exchange their HDFS ownership for Harley-Davidson common stock after seven years, or in the event of a change of control.

LiveWire Group, Inc.

Operating as a separate business entity with significant ongoing commercial ties to the parent organisation, LiveWire Group manages the electrification strategy. The subsidiary requires continuous external capital to sustain operations while it attempts to scale production and establish a viable consumer base in the nascent electric motorcycle sector.

• Harley-Davidson provided LiveWire with a $75.0 million term loan in December 2025, which matures in December 2027 and carries an interest rate based on the Secured Overnight Financing Rate plus 4.00%.
• The parent company explicitly stated it does not plan to make additional investments in LiveWire beyond this outstanding term loan.

Eaglemark Savings Bank & Eaglemark Insurance Company Ltd.

Eaglemark Savings Bank is subjected to strict supervision by the Federal Deposit Insurance Corporation and Nevada state examiners. The bank originates retail loans and retains a portion while selling the remainder to a non-banking subsidiary to homogenise product offerings across the United States. Concurrently, Eaglemark Insurance Company operates as a direct captive reinsurance vehicle, underwriting risks associated with branded protection products sold at dealerships.

Other Investments (Including Minority / Portfolio Holdings)

Investment / Holding	Ownership / Interest	Asset Classification
Retained Securitization Beneficial Interests	5%	Available for sale (AFS) securities

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

Retained Securitization Beneficial Interests

Following the deconsolidation of specific Variable Interest Entities (VIEs) associated with its asset-backed financing programs, the enterprise was legally required to maintain a financial stake in the residual structures. In accordance with Regulation RR of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the company recorded an investment representing a 5% interest in all previously issued notes.

• The company also retained a 5% investment in the residual cash flows of these deconsolidated VIEs.
• These assets are classified as available for sale securities, evaluated quarterly for impairment, and are restricted from transfer due to federal risk retention rules.

Physical Properties

Facility Type / Function	Location	Ownership Status
Corporate Office (HDMC and LiveWire)	Milwaukee, Wisconsin	Owned
Product Development Center	Wauwatosa, Wisconsin	Owned
Manufacturing – Powertrain Production	Menomonee Falls, Wisconsin	Owned
Manufacturing – Components and Painting	Tomahawk, Wisconsin	Owned
Manufacturing – Fabrication and Assembly	York, Pennsylvania	Owned
Manufacturing – Production for Selected Markets	Rayong, Thailand	Owned
Manufacturing – Assembly for Brazilian Market	Manaus, Brazil	Leased
Corporate and Retail Operations (HDFS)	Reno, Nevada	Leased
Wholesale and Retail Operations (HDFS)	Plano, Texas	Leased
LiveWire Labs – Customer Experience Center	Malibu, California	Leased
LiveWire Labs – Retail Operations	Carson, California	Leased
STACYC – Corporate Office and R&D	Fort Worth, Texas	Leased

Source: Harley-Davidson, Inc. Form 10-K For The Year Ended December 31, 2025.

The organisation relies heavily on a concentrated domestic footprint for its heavy manufacturing and assembly. The York, Pennsylvania facility serves as the primary assembly hub, while Wisconsin facilities handle essential component fabrication and powertrain construction.

• The workforce within these domestic manufacturing sites includes approximately 1,700 hourly unionised employees, operating under collective bargaining agreements that expire between 2027 and 2029.
• The strategic facility in Rayong, Thailand allows the company to produce limited non-core models for North America while efficiently supplying specific Asian and European territories.

Late in the reporting period, management issued a mandate requiring corporate employees who had been working remotely for five years to return to on-site work at specified locations, including the historic Juneau Avenue campus in Milwaukee.

Investments and Capital Expenditure Plans

The enterprise maintains a disciplined approach to capital allocation, balancing necessary infrastructure investments with shareholder returns. Capital expenditures for the 2025 fiscal year totalled $153.7 million, representing a reduction from previous periods as the company adapted to softer retail demand.

• Management has forecasted capital investments for 2026 to fall between $175 million and $200 million.
• Research and development expenditures for HDMC reached $154.3 million in 2025, while LiveWire required an additional $23.9 million.

The organisation is aggressively pursuing structural cost optimisations. After achieving $103 million in productivity savings in 2025, management extended its cumulative savings target to exceed $400 million by the end of 2026. Furthermore, a comprehensive review of operating expenses is expected to identify an additional $150 million in total annual savings to be realised beginning in 2027.

Shareholding Pattern

The corporation’s equity structure is actively managed through extensive buyback programs. As of late January 2026, there were 111,850,563 shares of common stock outstanding, held by 58,612 shareholders of record.

• The company executed an Accelerated Share Repurchase (ASR) agreement with Goldman Sachs for $200 million in November 2025, resulting in the immediate delivery of over 6.2 million shares.
• The Board of Directors maintains open authorisations allowing for the repurchase of an additional 23.4 million shares as of the end of the fiscal year.

The shareholder base includes highly active institutional investors. During the spring of 2025, the enterprise was forced to navigate a proxy contest initiated by H Partners, a major shareholder expressing disagreement with the Board of Directors and senior management. While the company prevailed, the campaign required significant financial expenditure and management attention.

Future Strategy

The enterprise is navigating a transitional phase under new executive leadership. The forthcoming strategic plan, expected in the second quarter of 2026, will dictate the long-term positioning of the brand. In the interim, the company is adjusting its near-term product pipeline to stimulate demand across diverse demographics.

• Management has confirmed plans to introduce a new small-displacement motorcycle and a classic cruiser beginning in 2026.
• The LiveWire subsidiary will pivot its strategy toward urban mobility, introducing production versions of two concept mini-motorcycles to counter slower-than-expected heavy electric vehicle adoption.

Financially, the organisation intends to aggressively utilise the new Forward Flow Agreement established during the HDFS transaction. By selling up to two-thirds of all new retail loan originations directly to institutional counterparties, the company drastically reduces its reliance on debt capital markets while generating consistent servicing fee income.

Key Strengths

The organisation’s primary competitive advantage lies in the immense cultural capital and recognition of the Harley-Davidson trademark. This brand strength allows the enterprise to command premium pricing relative to its competitors, supported by unique vehicle styling and a distinctive auditory signature.

• The integration of HDFS provides a massive structural advantage, ensuring that dedicated retail financing and insurance products are available at the point of sale, facilitating 68.4% of all U.S. purchases.
• The Harley Owners Group (H.O.G.) and extensive dealership network create a robust, enclosed ecosystem that drives immense customer loyalty and high-margin aftermarket parts and apparel sales.

Key Challenges and Risks

The enterprise faces severe headwinds from a volatile global macroeconomic environment. Persistently high interest rates directly suppress consumer appetite for premium discretionary purchases while simultaneously inflating the borrowing costs required for the HDFS segment to fund dealer and consumer loans.

• International trade policy presents an acute financial risk; the company absorbed approximately $67 million in newly implemented or increased tariffs during 2025, with management forecasting a $75 million to $105 million impact in 2026.
• The global supply chain remains vulnerable to geopolitical tensions and logistics disruptions, requiring constant monitoring of raw material pricing (such as steel and aluminium) and critical component availability.

Regulatory compliance introduces substantial operational friction. The company is actively engaged in a regulatory dialogue with the National Highway Traffic Safety Administration regarding a Tier 2 supplier’s brake hose assemblies. If the agency does not grant requested exemptions, the enterprise may be forced to initiate a costly product recall. Furthermore, an international subsidiary is currently under investigation by the Japan Fair Trade Commission regarding alleged improper sales quotas.

Conclusion and Strategic Outlook

Harley-Davidson, Inc. concludes 2025 as an enterprise in profound transition. While the core brand retains unmatched loyalty and premium pricing power, macroeconomic realities—characterised by high interest rates and inflation—have severely contracted retail motorcycle volumes. The company’s decisive action to execute the HDFS equity and receivables transaction fundamentally derisked its balance sheet, generating massive cash inflows and shifting the financing model toward a capital-light servicing structure.

Looking forward to 2026, the organisation will operate under constrained production levels to manage dealer inventory while absorbing severe international tariff burdens. The ultimate trajectory of the business relies entirely on the successful deployment of the new CEO’s forthcoming strategic plan, the targeted launch of smaller displacement models to capture new riders, and disciplined cost-cutting measures designed to protect margins in a hostile economic environment.

Official Site: http://www.harley-davidson.com