Harley-Davidson, Inc. (HOG) Bundle
A Brief History of Harley-Davidson
Harley-Davidson, Inc. has a storied history that dates back to its founding in 1903. Over the years, it has grown into a symbol of American motorcycle culture, known for its heavyweight bikes, distinct styling, and the lifestyle associated with its brand. As of 2024, Harley-Davidson continues to navigate challenges in the automotive market while striving to maintain its legacy.
Recent Financial Performance
In the third quarter of 2024, Harley-Davidson reported consolidated revenue of $1.151 billion, a decline of 26% from the same quarter in 2023, where revenue was $1.549 billion. The operating income for this period was $106 million, down 49% from $209 million in the previous year. The net income attributable to Harley-Davidson was $119 million, a decrease of 40% compared to $199 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1.151 billion | $1.549 billion | -26% |
| Operating Income | $106 million | $209 million | -49% |
| Net Income | $119 million | $199 million | -40% |
| Diluted EPS | $0.91 | $1.38 | -34% |
Harley-Davidson Motor Company (HDMC) Results
Within the HDMC segment, motorcycle shipments decreased significantly by 39% to 27,520 units in Q3 2024 from 45,269 units in Q3 2023. The revenue from motorcycle sales was $876 million, down 32% from $1.297 billion in the previous year. The gross margin for the segment was reported at 30.1% compared to 31.7% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Motorcycle Shipments | 27,520 | 45,269 | -39% |
| Revenue | $876 million | $1.297 billion | -32% |
| Gross Margin | 30.1% | 31.7% | -1.6 pts |
LiveWire and Electric Motorcycle Segment
LiveWire, Harley-Davidson's electric motorcycle division, reported unit sales of 99 in Q3 2024, a notable increase of 98% from 50 units in Q3 2023. However, revenue for LiveWire decreased by 41% to $5 million compared to $8 million in the same quarter the previous year, resulting in an operating loss of $26 million, slightly worse than the $25 million loss recorded in Q3 2023.
| LiveWire Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Electric Motorcycle Unit Sales | 99 | 50 | 98% |
| Revenue | $5 million | $8 million | -41% |
| Operating Loss | $26 million | $25 million | -3% |
Harley-Davidson Financial Services (HDFS)
HDFS experienced growth in revenue, reporting $269 million in Q3 2024, an increase of 10% from $244 million in Q3 2023. The operating income for this segment rose by 29% to $77 million from $59 million year-over-year. This was primarily driven by higher interest income and a lower provision for credit losses.
| HDFS Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $269 million | $244 million | 10% |
| Operating Income | $77 million | $59 million | 29% |
Market Outlook and Projections
For the full year 2024, Harley-Davidson expects HDMC revenue to decline by 14% to 16% compared to 2023, with operating income margins projected between 7.5% and 8.5%. LiveWire anticipates selling between 600 and 1,000 electric motorcycles, with an expected operating loss of $105 to $115 million. Capital investments for the year are estimated to be between $225 and $250 million.
A Who Owns Harley-Davidson, Inc. (HOG)
Major Shareholders
As of 2024, the ownership structure of Harley-Davidson, Inc. (HOG) is characterized by a mix of institutional and retail investors. The top institutional shareholders include:
| Shareholder | Shares Owned (Millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 30.5 | 11.9% |
| BlackRock, Inc. | 29.7 | 11.6% |
| State Street Corporation | 20.1 | 7.9% |
| Wellington Management Group LLP | 15.3 | 6.0% |
| Geode Capital Management, LLC | 10.9 | 4.3% |
Executive Ownership
Key executives of Harley-Davidson, Inc. also hold significant shares, enhancing their alignment with shareholder interests:
| Executive | Position | Shares Owned (Thousands) |
|---|---|---|
| Jochen Zeitz | Chairman, President & CEO | 1,200 |
| Gina Bianchini | CFO | 400 |
| Paul J. Jones | COO | 300 |
Stock Performance
As of the end of Q3 2024, Harley-Davidson's stock performance reflects a challenging market environment:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Stock Price (End of Quarter) | $38.50 | $51.75 |
| Market Capitalization | $9.8 Billion | $12.5 Billion |
| Dividend Per Share | $0.1725 | $0.1650 |
| P/E Ratio | 8.7 | 11.3 |
Recent Financial Highlights
In the third quarter of 2024, Harley-Davidson reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $1,151 Million | $1,549 Million |
| Operating Income | $106 Million | $209 Million |
| Net Income | $119 Million | $199 Million |
| EPS (Diluted) | $0.91 | $1.38 |
Shareholder Engagement
Harley-Davidson maintains active engagement with its shareholders, hosting regular meetings and providing updates on financial performance and strategic initiatives.
Conclusion on Ownership Dynamics
The ownership of Harley-Davidson, Inc. is predominantly in the hands of large institutional investors, with significant stakes held by key executives, reflecting a commitment to the company's long-term success amidst a fluctuating market environment.
Harley-Davidson, Inc. (HOG) Mission Statement
Harley-Davidson, Inc. articulates its mission as follows: "More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul." This mission highlights the brand's commitment to not only manufacturing motorcycles but also fostering a lifestyle and community centered around adventure and freedom. The company aims to maintain its position as the most desirable motorcycle brand globally.
Financial Overview as of 2024
As of the third quarter of 2024, Harley-Davidson reported significant financial metrics that illustrate its current market performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,151 million | $1,549 million | -26% |
| Operating Income | $106 million | $209 million | -49% |
| Net Income Attributable to HDI | $119 million | $199 million | -40% |
| Diluted EPS | $0.91 | $1.38 | -34% |
| Consolidated Operating Income Margin | 9.2% | 13.5% | -4.3 pts |
Motorcycle Shipment Data
In Q3 2024, Harley-Davidson's motorcycle shipments reflected a notable decline:
| Region | Motorcycle Shipments (thousands) | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|---|
| North America | 24.6 | 27.3 | -10% | |
| EMEA | 6.1 | 7.8 | -23% | |
| Asia Pacific | 4.8 | 5.8 | -16% | |
| Latin America | 0.7 | 0.7 | 0% | |
| Worldwide Total | 36.2 | 41.7 | -13% |
Retail Sales Performance
Global retail sales in Q3 2024 demonstrated a downward trend compared to the previous year:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Worldwide Retail Sales | 36,166 | 41,658 | -13% |
| North America | 24,573 | 27,346 | -10% |
| EMEA | 6,054 | 7,847 | -23% |
| Asia Pacific | 4,832 | 5,784 | -16% |
| Latin America | 707 | 681 | 4% |
Projected Financial Outlook
For the full year 2024, Harley-Davidson expects the following:
- HDMC: Revenue down 14% to 16% compared to 2023
- HDMC: Operating income margin between 7.5% and 8.5%
- HDFS: Operating income up 5% to 10% compared to 2023
- LiveWire: Electric motorcycle unit sales forecast of 600 to 1,000
- LiveWire: Operating loss expected between $105 million and $115 million
- Capital investments estimated at $225 million to $250 million
As of September 30, 2024, Harley-Davidson's cash and cash equivalents stood at $2.2 billion, reflecting a strong liquidity position despite the challenges faced in the market.
How Harley-Davidson, Inc. (HOG) Works
Company Overview
Harley-Davidson, Inc. operates primarily through two segments: the Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company focuses on designing, manufacturing, and selling motorcycles, as well as providing related services.
Financial Performance
As of the third quarter of 2024, Harley-Davidson reported significant changes in its financial metrics compared to the previous year. The following table summarizes the consolidated financial results for Q3 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,151 million | $1,549 million | -26% |
| Operating Income | $106 million | $209 million | -49% |
| Net Income Attributable to HDI | $119 million | $199 million | -40% |
| Diluted EPS | $0.91 | $1.38 | -34% |
Motorcycle Shipments and Sales
In Q3 2024, Harley-Davidson experienced a decline in motorcycle shipments and sales across various regions. The table below details motorcycle shipments and retail sales:
| Region | Motorcycle Shipments (thousands) | Retail Sales (thousands) |
|---|---|---|
| North America | 24.6 | 24.6 |
| EMEA | 6.1 | 6.1 |
| Asia Pacific | 4.8 | 4.8 |
| Latin America | 0.7 | 0.7 |
| Total Worldwide | 36.2 | 36.2 |
Segment Performance
The Harley-Davidson Motor Company (HDMC) reported significant declines in revenue and operating income. The following table provides a breakdown of HDMC revenue by category:
| Category | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | Change (%) |
|---|---|---|---|
| Motorcycles | $616 | $1,023 | -40% |
| Parts & Accessories | $174 | $185 | -6% |
| Apparel | $56 | $49 | 13% |
| Licensing | $4 | $10 | -59% |
| Other | $27 | $30 | -11% |
Harley-Davidson Financial Services (HDFS)
HDFS reported an increase in revenue and operating income for Q3 2024. The following table outlines HDFS performance:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $269 million | $244 million | 10% |
| Operating Income | $77 million | $59 million | 29% |
Cash Flow and Capital Allocation
Year-to-date through Q3 2024, Harley-Davidson generated substantial cash from operating activities. Key figures are as follows:
| Metric | Amount ($ million) |
|---|---|
| Cash from Operating Activities | $931 |
| Dividends Paid | $69 |
| Share Repurchases | $350 |
| Cash and Cash Equivalents (End of Q3) | $2,243 |
Market Outlook
For the full year 2024, Harley-Davidson anticipates continued challenges with a projected revenue decline of 14% to 16% compared to 2023. The company also expects HDFS operating income to increase by 5% to 10%.
How Harley-Davidson, Inc. (HOG) Makes Money
Revenue Streams
Harley-Davidson, Inc. generates revenue from multiple sources, primarily through the sale of motorcycles, parts and accessories, apparel, licensing, and financial services.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Motorcycles | $616 | $1,023 | -40% |
| Parts & Accessories | $174 | $185 | -6% |
| Apparel | $56 | $49 | +13% |
| Licensing | $4 | $10 | -59% |
| Other | $27 | $30 | -11% |
| Total HDMC Revenue | $876 | $1,297 | -32% |
Motorcycle Sales Performance
In Q3 2024, Harley-Davidson experienced a considerable decline in motorcycle shipments and retail sales across various regions.
| Region | Q3 2024 Shipments (thousands) | Q3 2023 Shipments (thousands) | Change (%) |
|---|---|---|---|
| North America | 24.6 | 27.3 | -10% |
| EMEA | 6.1 | 7.8 | -23% |
| Asia Pacific | 4.8 | 5.8 | -16% |
| Latin America | 0.7 | 0.7 | 0% |
| Total Worldwide | 36.2 | 41.7 | -13% |
Harley-Davidson Financial Services (HDFS)
HDFS has shown growth in revenue and operating income, contributing positively to the overall financial results of Harley-Davidson.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $269 | $244 | +10% |
| Operating Income | $77 | $59 | +29% |
LiveWire Performance
LiveWire, the electric motorcycle segment, reported significant unit sales growth but a decline in revenue.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Unit Sales | 99 | 50 | +98% |
| Revenue | $5 | $8 | -41% |
| Operating Loss | ($26) | ($25) | -3% |
Financial Overview
The overall financial performance of Harley-Davidson for Q3 2024 reflects challenges due to lower sales volumes and higher costs.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Revenue | $1,151 | $1,549 | -26% |
| Operating Income | $106 | $209 | -49% |
| Net Income Attributable to HDI | $119 | $199 | -40% |
| Diluted EPS | $0.91 | $1.38 | -34% |
Cash Flow and Investments
Harley-Davidson's cash flow from operating activities and capital investments are critical for sustaining operations.
| Metric | Q3 2024 |
|---|---|
| Cash from Operating Activities (YTD) | $931 million |
| Capital Investments (2024 Outlook) | $225 to $250 million |
| Cash and Cash Equivalents (End of Q3 2024) | $2.2 billion |
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Article updated on 8 Nov 2024
Resources:
- Harley-Davidson, Inc. (HOG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Harley-Davidson, Inc. (HOG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Harley-Davidson, Inc. (HOG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.