Harley-Davidson Faces Financial Road Bumps in 2025 Amid Declining Sales and Tariff Challenges
(STL.News) Harley-Davidson, the iconic American motorcycle manufacturer beloved by riders worldwide, including myself, is currently navigating a challenging financial stretch in 2025. Despite its rich heritage and loyal community, the company is grappling with steep sales drops, global economic headwinds, and growing investor unrest.
For motorcycle enthusiasts like me, the thunder of a V-twin engine rolling down the open road represents freedom, identity, and tradition. But even brands that embody freedom aren’t immune to market turbulence, as Harley-Davidson’s recent first-quarter earnings report reveals.
Harley-Davidson – First Quarter 2025 Earnings Reveal Financial Setbacks
According to Harley-Davidson’s Q1 2025 financial results, total revenue declined to $1.33 billion, representing a sharp 23% drop from the $1.73 billion reported during the same period in 2024. The company’s net income fell even further, plummeting 43% to $133 million, down from $235 million a year earlier. Diluted earnings per share (EPS) dropped to $1.07 from $1.72—a reflection of the company’s tightening margins and sluggish retail environment.
The company also unexpectedly pulled its full-year 2025 guidance, citing uncertainty over global tariffs and economic instability. While this decision underscores a cautious and conservative approach, it also spooked investors looking for signs of resilience and a strong strategic roadmap.
Harley-Davidson – Motorcycle Shipments and Retail Sales Take a Hit
Perhaps the most concerning trend for passionate Harley riders is the significant drop in motorcycle shipments and retail sales. Harley-Davidson shipped just 38,600 motorcycles in Q1 2025, a 33% decline compared to Q1 2024. Retail sales followed a similar trajectory, with approximately 31,000 motorcycles sold globally, down from around 39,400 a year ago.
North America, Harley-Davidson’s largest and most loyal market, saw a 24% decrease in sales, with only 20,900 units sold. This statistic is especially disheartening as someone who rides and values the camaraderie built at Harley events and local dealerships. A slowdown in new ownership could ripple through the entire Harley community, affecting dealerships, clubs, and even independent repair shops.
Harley Davidson – Financial Services and LiveWire: A Mixed Bag
Harley-Davidson Financial Services (HDFS), the company’s financing arm, showed mixed results. While revenue dipped slightly to $245 million (a 2% decrease), operating income rose 19% to $64 million. This uptick is encouraging, suggesting that the financial services unit remains a dependable revenue stream amid industry headwinds.
On the other hand, LiveWire—the company’s electric motorcycle division—is still struggling to gain traction. Revenue for LiveWire reached $2.74 million in Q1, but it posted a $20 million operating loss, albeit better than the $29 million loss reported in Q1 2024. Only 33 electric bikes were sold during the quarter, starkly contrasting with 117 units sold in the same period last year.
Although innovation in the electric vehicle space is vital for long-term survival, LiveWire’s slow sales suggest that many riders—myself included—are still drawn to the classic rumble of combustion engines over the quiet hum of electrics.
Harley-Davidson – Tariff Uncertainty and Leadership Shake-Up
A major contributor to Harley-Davidson’s instability is the unpredictable global tariff environment. The company has indicated that tariffs could cost as much as $175 million in 2025. These levies impact international production and export costs, and have forced Harley-Davidson to reevaluate its global supply chain strategy.
Adding to the turbulence is the impending retirement of CEO Jochen Zeitz, who led the company through the pandemic and into its electrification phase. With Zeitz stepping down, the search for new leadership is underway, and investors are watching closely for signs of a turnaround strategy.
H Partners, a hedge fund with nearly a 9% stake in Harley-Davidson, has been vocal in its criticism of the current board and executive team. The investor group is pushing for significant changes, citing the brand’s declining market share and strategic missteps. This brewing shareholder battle could influence everything from production priorities to dealership relationships.
The Road Ahead for Harley-Davidson
As both an investor and a lifelong rider, it’s clear that Harley Davidson is at a critical crossroads. While the financial data presents a sobering picture, the brand’s cultural value and customer loyalty remain strong. Many of us who ride Harley-Davidsons do so not just for the machine, but for what it represents: tradition, freedom, and a uniquely American spirit.
To secure a prosperous future, Harley-Davidson must address several key challenges:
- Reignite Demand: Revitalizing interest among younger riders and diversifying product offerings could help boost sales in a saturated market.
- Strengthen Global Strategy: Reshaping the supply chain to reduce exposure to tariffs and improve cost efficiency is vital.
- Balance Innovation with Heritage: While LiveWire is promising, Harley must ensure it doesn’t alienate its core customer base.
- Leadership Continuity: A strong CEO successor must be appointed with a clear vision to guide the company forward.
Conclusion: Holding onto Hope and the Handlebars
For those of us who bleed Harley black and chrome, these developments are more than numbers on a spreadsheet—they affect the soul of our riding culture. But Harley-Davidson has weathered storms before. From the Great Depression to the 2008 financial crisis, the company has always found a way to ride through adversity and keep the engine running.
Let’s hope that 2025 becomes a year of recalibration rather than decline. The open road is still calling, and there’s no better companion for many riders than a Harley. With strategic adjustments and strong leadership, this legendary brand can find its way back onto stable financial ground and into the fast lane.
Copyright 2025 – St. Louis Media, LLC. All rights reserved. This material may not be published, broadcast, or redistributed.
For the latest news, weather, and video, head to STL.News.