LiveWire Group (LVWR) Q1 2025 earnings summary

Executive summary

• Q1 operating income margin was 12.1%, with bottom line performance exceeding expectations due to strong product mix and cost control, despite a 21% global retail sales decline and 24% drop in North America, mainly from low U.S. consumer confidence.

• Net loss narrowed to $19.3 million for Q1 2025 from $23.6 million in Q1 2024, reflecting cost reductions and lower operating expenses.

• The company is shifting its model year 2025 campaign later in the year, allocating the largest-ever Marketing Development Fund to support dealers closer to the riding season.

• Entered four new European markets and launched new products, including S2 Alpinista and STACYC for teens/adults.

• Wholesale shipments fell 33% and dealer inventory dropped 19% year-over-year, with U.S. inventory down 23%.

Financial highlights

• Consolidated Q1 revenue declined 23% year-over-year, in line with expectations across all segments.

• Revenue for LiveWire declined 45% year-over-year to $2.7 million, driven by lower unit sales in both Electric Motorcycles and STACYC segments.

• Consolidated operating income was $160 million, with a 51% decline at HDMC, partially offset by a 19% increase at HDFS.

• LiveWire segment posted a $20 million operating loss, improved from $29 million loss last year.

• Cash and cash equivalents ended at $1.9 billion for the group and $46.2 million for LiveWire.

Outlook and guidance

• Previous 2025 guidance has been withdrawn due to macroeconomic and tariff uncertainties.

• Now targeting operating loss below $60 million for 2025, improved from prior guidance of $70–80 million.

• Capital allocation priorities include funding Hardwire growth, reduced capex ($200–$225 million), dividends, and share repurchases.

• Capital expenditures for LiveWire estimated between $5 million and $10 million for 2025.

• Management expects negative cash flow from operations over the next twelve months but believes current liquidity and loan facility are sufficient.