Harley-Davidson 2025 Annual Report: Sales Dip, New CEO, and What It Means for Riders and Investors
A challenging year with lower revenue and shipments—but cost cuts, fresh leadership, and 2026 models signal a potential turnaround. Here’s the easy-to-read breakdown.
Raine Devries | 7 May 2026
If you’ve ever stared at your Harley’s service invoice and wondered how the big company behind your bike is actually doing, the 2025 Annual Report (their official Form 10-K) just dropped the full story. No corporate spin, just the numbers—translated into plain English for everyday motorcycle riders and anyone thinking about dipping a toe into H-D stock.
2025 was a tough lap for Harley-Davidson as total revenue came in at $4.47 billion, down about 14% from 2024. The core Harley-Davidson Motor Company (HDMC) segment, which includes the bikes, parts, apparel, and licensing we all love, dropped 13% to $3.58 billion. Worldwide wholesale motorcycle shipments fell roughly 16% to around 124,000 units, and retail sales of new Harley-Davidson motorcycles slid 12% globally. In the U.S., the brand’s heavyweight (601cc+) market share eased to 34.5%. Europe saw a similar softening.
Why the decline? High interest rates, inflation, and skittish consumer spending hit discretionary purchases like big-ticket motorcycles. Tariffs added another $67 million in costs last year (expect $75–105 million more in 2026). Dealers also worked hard to right-size inventory, so production was dialed back to match what riders were actually buying off the showroom floor.
Harley-Davidson 2025 Comparison to Other Major Manufacturers
While 2025 was a tough year across much of the industry, Harley-Davidson stood out in its own lane but faced stiffer headwinds than many rivals. Globally, massive-volume players like Honda (over 20 million units), Yamaha, and others dominated overall sales with affordable commuter and entry-level bikes, while Harley’s roughly 132,000 units placed it far lower in total volume rankings—around 39th worldwide. In the crucial U.S. market, Harley slipped to third place overall (behind surging Kawasaki, which posted gains, and Honda), with double-digit declines compared to Kawasaki’s growth and more modest drops from others.
Yet in the heavyweight cruiser and touring segments it owns, Harley remains the clear king—holding dominant market share (historically 60-70%+ in U.S. touring) that premium competitors like Indian (which showed some resilience), BMW, Triumph, and Ducati simply can’t match in volume or brand loyalty. Japanese brands focused more on sport, adventure, and mid-size bikes, while Harley’s challenges stemmed from higher pricing, an older core demographic, and sensitivity to interest rates and tariffs—issues that hit discretionary big-ticket purchases harder than the broader industry. The takeaway? Harley isn’t competing on sheer numbers like the volume giants, but it still rules the iconic American cruiser/touring world where margins and passion run deepest.
On the brighter side, Harley-Davidson Financial Services (HDFS) held up better than expected. They completed a smart transaction selling most of their retail finance receivables, which helped boost operating income in that segment to $490 million. Parts and accessories actually grew as a percentage of revenue—good news if you’re the type who keeps your bike running forever with genuine H-D bits.
LiveWire, the electric arm, is still in investment mode. Revenue was tiny at $26 million and the segment posted a $75 million operating loss (an improvement from the year before). Shipments ticked up slightly to 653 units, but the EV push is clearly a longer-term play while the core gas-powered lineup carries the load.
Leadership changed mid-year when Artie Starrs stepped in as CEO on October 1, 2025. One of his first moves? Launching a full strategy review. The old “Hardwire” plan wrapped up at the end of 2025, and the new roadmap drops with Q1 or Q2 2026 earnings. Riders and investors are both watching closely.
Here’s what stands out for us in the garage:
Cost discipline is real. The company has already delivered $360 million in savings since 2022 and is pushing for more than $400 million by the end of 2026, with another $150 million targeted annually starting in 2027. That kind of belt-tightening can protect quality and keep future price hikes in check.
New iron is coming. 2026 brings a new small-displacement motorcycle and an “iconic classic cruiser.” Those are exactly the kinds of bikes that could bring younger or budget-conscious riders into the family without watering down the brand.
Dealer network is still strong. 1,174 dealership points worldwide means you can still find service and parts pretty much anywhere you roam.
Shareholder moves. Harley kept buying back its own stock and paid a $0.72 per share dividend. For novice investors, that shows the company is still committed to returning cash even in a down year.
Bottom line for riders: Harley-Davidson isn’t going anywhere.
The brand remains the heavyweight champ in American touring and cruising motorcycles. Yes, 2025 numbers were softer than we’d like, but the focus on trimming costs, clearing excess inventory, and launching fresh models feels like a sensible reset rather than panic mode.
For anyone considering H-D as an investment, the 10-K paints a picture of a mature company navigating a cyclical industry. Revenue and earnings took a hit, but the balance sheet is solid, the financial-services arm provides a buffer, and the new CEO is already shaking things up. The upcoming strategic plan will be the real tell—will they double down on what made Harley iconic, or pivot harder toward electric and global markets?
If you ride a Harley (or dream about the next one), keep an eye on those Q1 2026 numbers and the new strategy reveal. In the meantime, the best thing any of us can do is keep the rubber side down, support our local dealers, and ride the bikes we love. The company that built them has been through rough roads before - think of the AMF years in the 70’s! —and come out the other side stronger.
~Keep the shiny side up!