Milwaukee-based Harley-Davidson expects tariffs to cost the company between $130 million and $175 million throughout the remainder of 2025.
Citing this economic uncertainty, company leadership said Thursday they are withdrawing full-year 2025 guidance.
This decision follows that of one of Harley’s biggest competitors. Earlier this week, Minneapolis-based Polaris, a manufacturer of vehicles including Indian Motorcycles, also withdrew full-year 2025 guidance due to trade and economic uncertainty.
“It’s difficult to predict what policies may impact customers over the course of a year and how consumer confidence will affect discretionary purchase,” said Jochen Zeitz, CEO at Harley-Davidson. “While the tariff environment remains fluid, our continued engagement with various administrations leads us to be cautiously optimistic that there will be trade deals that at least limit the overall tariff impact on the company and its operations.”
Already, Harley-Davidson has taken a $9 million hit from tariffs during the first quarter of 2021, the company says.
The company reported that first quarter consolidated revenue was down 23%, driven largely by a 27% revenue decrease within Harley-Davidson Motor Company.
Harley-Davidson operates through three business segments: Harley-Davidson Motor Company, Harley-Davidson Financial Services and Livewire.
Consolidated operating income was also down 39% in the first quarter, driven by a 51% decline at HDMC. First quarter motorcycle shipments decreased by 33%, which company leadership says reflects the “softer than expected” demand environment.
“We have a number of actions underway to mitigate the impact, and the situation remains fluid given the uncertainty that still exists,” said Jonathan Root, chief financial officer at Harley-Davidson.
Specifically, Harley-Davison is making some supply chain adjustments where possible and slowing down shipments of motorcycles. Harley-Davidson is also looking at pricing but has not made any changes yet due to “the current recessionary environment” for leisure products.
Root also addressed earlier reports that Harley-Davidson is exploring the sale of its financial services business.
“As part of the Hardwire (strategy), we are pursuing value enhancing opportunities for all stakeholders, including customers, dealers, lenders, debt holders and shareholders,” he said. “With that in mind, we can confirm today that we are evaluating an investment into HDFS.”
Root explained several “transaction objectives” would need to be met before a deal is made, including proof that the deal would establish significant value for shareholders.
“There is significant value (in HDFS) that is not being appreciated,” said Zeitz. “If there is a win-win scenario for our customers, dealers and shareholders, it’s something we need to look into. It’s part of our overall strategy, but there is no sale of HDFS imminent.”
CEO search
After an activist campaign was launched last month by New York-based investment firm H Partners Management, Zeitz gave analysts a brief update on the ongoing CEO search process within the company.
H Partners’ campaign is aimed at getting Harley shareholders to withhold the re-election of three Harley board members: Zeitz, board member Sara Levinson, and board member Tom Linebarger.
H Partners, which owns a 9.1% stake in Harley, is also calling on the board to immediately remove Zeitz as CEO and install a senior leader to the position temporarily.
“I’m committed to head the company until a successor has been appointed,” said Zeitz. “Timing is really at the discretion of the board.”
Livewire investment
Livewire, the electric motorcycle business spun off by Harley-Davidson, reported a net loss of $19.3 million in the first quarter of 2025, down from $23.6 million during the same period last year.
The company sold 33 electric motorcycles in the first quarter of 2025, compared to 117 last year.
“Recognizing the heavyweight two-wheel EV market remains limited in size for now, we remain focused on what we can control,” said Karim Donnez, CEO of LiveWire. “Expenses are down by over 30% compared to the prior year same quarter with continued efforts to optimize. We opened four new countries in Europe and introduced LiveWire S2 Alpinista globally, as well as the first pedal assist STACYC product for teens and adults looking to join the ride.”
Livewire’s four new markets include Poland, Portugal, Finland and Belgium.
The company will continue evaluating “all options” for its business including seeking external capital when needed, Zeitz said Thursday.
A slower than expected ramp-up of EV infrastructure and soft consumer demand has made the EV segment of the market “even more complicated,” according to Zeitz.
Harley-Davidson does not immediately plan to provide additional investments into Livewire beyond a line of credit agreement announced in quarter one of 2024, which provides up to $100 million.
Livewire now expects an operating loss of $59 million in 2025 versus previous operating loss guidance of between $70 million and $80 million.
More articles about Harley-Davidson:
- Georgia-based investment firm throws support behind H Partners’ push to shake up Harley-Davidson leadership
- H Partners says Harley-Davidson recommended CFO as next CEO candidate
- Harley-Davidson board picks candidate to replace member who resigned
- Harley-Davidson to occupy 160,000-square-foot warehouse space at former JCPenney distribution center in Wauwatosa
- Investment firm launches activist campaign against Harley-Davidson leadership
- Split vote on CEO candidate played role in Harley-Davidson board member’s resignation
- Harley-Davidson board member resigns citing ‘severe underperformance’ and ‘cultural depletion’ of brand
- $365 million drop in Q4 leaves Harley sales down 11% for the year
