Harley-Davidson (HOG) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 12% year-over-year to $1.62 billion, with net income up 23% to $218 million and diluted EPS up 34% to $1.63; HDMC revenue up 13% and HDFS up 10%.

• HDMC operating income margin was 14.7% for Q2, with global motorcycle shipments up 16% and U.S. Touring and CVO retail sales up over 12%, driving U.S. Touring market share to 75%, up 5.3 points.

• HDFS operating income increased 21% and revenue rose 10% year-over-year in Q2.

• Global retail sales of new motorcycles declined 3% year-over-year, with U.S. sales up slightly and international markets, especially Asia-Pacific, down.

• Announced a $1 billion share repurchase plan through 2026, with $200 million repurchased and $47 million in dividends paid in H1 2024.

Financial highlights

• Q2 consolidated revenue was $1.62 billion, up 12% year-over-year; net income was $218 million, with a margin of 13.5%.

• Diluted EPS for Q2 was $1.63, up 34% year-over-year; first-half EPS was $3.34, up 2%.

• Operating cash flow for the first half was $578 million, up from $411 million last year; cash and equivalents at quarter-end were $1.8 billion.

• HDMC Q2 operating margin was 14.7%, down from 16.2% last year; gross margin declined to 32.1% due to pricing, cost inflation, and FX.

• HDFS annualized retail credit loss ratio rose to 3.1% from 2.6% last year; receivables up 7% to $8.0 billion.

Outlook and guidance

• HDMC full-year 2024 revenue now expected to be down 5–9%, with operating income margin of 10.6–11.6%.

• HDFS full-year operating income expected flat to up 5%.

• LiveWire unit sales forecasted at 1,000–1,500 for 2024, with an operating loss of $105–$115 million.

• Capital investment for 2024 projected at $225–$250 million.

• Share repurchases planned up to $500 million in 2024.