Harley-Davidson, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net income attributable to the company falling to $455.4 million, or $3.44 per diluted share, compared to $706.6 million, or $4.87 per diluted share, in 2023. The company's consolidated operating income also decreased sharply, dropping to $416.6 million from $779.1 million the previous year. This decline was primarily driven by a 7.1% decrease in worldwide retail unit sales of new motorcycles, which fell to 151,229 units, reflecting a challenging macroeconomic environment characterized by high interest rates that adversely impacted consumer discretionary spending.
The company's revenue from its Harley-Davidson Motor Company (HDMC) segment decreased by 14.9% to $4.12 billion, down from $4.84 billion in 2023. This decline was attributed to lower motorcycle shipments and a shift in the product mix, with a notable decrease in sales of Cruiser models, which fell by 27.7%. Conversely, the Harley-Davidson Financial Services (HDFS) segment saw an increase in operating income to $248.4 million, up from $234.7 million in 2023, primarily due to higher interest income. The LiveWire segment, focused on electric motorcycles, reported a reduced operating loss of $109.6 million, an improvement from the previous year's loss of $116.8 million, despite a 31.2% drop in revenue.
Operationally, Harley-Davidson's retail sales in the U.S. decreased by 3.6%, while international sales saw a more significant decline of 12.4%. The company's market share for new 601+cc motorcycle registrations in the U.S. fell to 37.3%, down from 37.9% in 2023, while its European market share increased slightly to 5.0%. The company ended 2024 with approximately 48,000 units of retail inventory, a 5% decrease from the previous year, as it worked to align inventory levels with expected demand.
Looking ahead, Harley-Davidson anticipates flat to a 5% decline in HDMC revenue for 2025, with expectations of a similar decrease in wholesale shipments. The company plans to focus on cost productivity initiatives, targeting $100 million in savings for 2025, and aims to continue its share repurchase program, having authorized up to $1 billion in discretionary repurchases through the end of 2026. The company remains committed to its strategic plan, "The Hardwire," which emphasizes enhancing its motorcycle offerings and expanding its electric vehicle segment through LiveWire.
About HARLEY-DAVIDSON, INC.
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