Harley-Davidson is reporting declining sales as economic uncertainty and softening consumer demand continue to weigh on the company.
On Wednesday, the company reported a revenue decrease of 19% in the second quarter of 2025 compared to the same period a year ago. Global motorcycle shipments also decreased 28% for the quarter year-over-year.
The second quarter decline was driven primarily by a planned reduction in motorcycle shipments and soft demand, said Jochen Zeitz, CEO of Harley-Davidson. Second quarter shipments were down to 36,000 units compared to 50,000 units a year ago.
A newly announced deal with global investment firms KKR and PIMCO will see the companies purchase a $5 billion minority stake in Harley-Davidson Financial Services, unlocking $1.25 billion in cash and $300 million in funds for “future growth opportunities” for the company.
“Most importantly, this transaction will free up cash and allow additional flexibility to support demand, driving initiatives,” said Zeitz. “Overall, we believe the new partnership is a big win on all levels.”
Tariffs cost the company $13 million in quarter two. Year-to-date tariffs have cost Harley-Davidson $17 million.
For the remainder of the year, Harley-Davidson expects tariffs to have between a $50 million and $85 million impact on the business. This has been reduced from an earlier estimate of between $130 million to $175 million.
“We have a number of actions underway to mitigate the impact and we expect the situation will remain fluid, given uncertainty still exists,” said Jonathan Root, chief financial officer at Harley-Davidson.
To continue broadening its product portfolio, Harley-Davidson plans to release a new entry-level motorcycle at a cost of less than $6,000 in the first half of 2026. This will be the company’s first new entry-level motorcycle in several years.
“We believe this motorcycle will not only be highly accessible, but also profitable, marking a significant step forward in driving Harley Davidson’s future profitability goals and opening up a new path to motorcycle segments for the company in future years,” said Zeitz.
Harley-Davidson has continued to withhold guidance due to economic uncertainty. The company withdrew full-year guidance in May.
LiveWire
LiveWire revenue for the second quarter decreased 7% versus the prior year. Consolidate revenue for the quarter was $5.9 million, down from $6.5 million in 2024.
LiveWire is an electric motorcycle company spun off from Harley-Davidson.
The company’s net loss was $18.8 million for the second quarter compared to $24.8 million last year. LiveWire sold just 55 electric motorcycles in the second quarter compared to 158 last year.
“During the second quarter, we continued our focus on what can be controlled, reducing consolidated operating loss by 35% compared to the prior-year same quarter,” said Karim Donnez, CEO of LiveWire.
Also looking to broaden its product portfolio, LiveWire will soon launch production versions of its two latest concept models which were showcased at the recent Harley Homecoming event in Milwaukee.
LiveWire is not issuing guidance for the year, citing “ongoing market volatility and evolving macroeconomic conditions.”
More articles about Harley-Davidson:
- See photos: Chris Stapleton headlines Saturday’s Harley Homecoming festivities
- See photos: Harley-Davidson enthusiasts arrive for day one of 2025 Homecoming festival
- Harley-Davidson recalls more than 82,000 Softail motorcycles due to tire pressure issue
- Harley-Davidson shareholders re-elect incumbent board members, including CEO
- Second Harley-Davidson dealers association backing investment firm’s campaign to oust senior leadership
- Harley-Davidson expects deal involving financial services business to close in Q3
- H Partners alleges Harley-Davidson board has made ‘secret, undisclosed’ commitments with some shareholders
- Harley-Davidson dealers across the U.S. vocalize support of leadership change
- Proxy advisor firms pick sides in H Partners, Harley-Davidson dispute
- Harley-Davidson expects tariff hit of at least $130 million this year
- 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
