LiveWire Group (LVWR) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue increased 12% year-over-year, with HDMC up 13% and HDFS up 10%.

• EPS rose to $1.63, up 34% from $1.22 last year, and consolidated operating income reached $241 million, up 9%.

• Net loss for Q2 2024 was $24.8M, a 39% improvement year-over-year, driven by higher electric motorcycle sales and cost reductions, aided by a $13.2M warrant liability revaluation gain.

• Dealer inventory is expected to decrease by about 30% globally and 35% in the U.S. by year-end, aligning with retail and wholesale balancing.

• Announced relocation of LiveWire Labs from California to Wisconsin and workforce streamlining to enhance efficiency and future profitability.

Financial highlights

• Q2 consolidated revenue up 12% year-over-year; HDMC revenue up 13%, HDFS up 10%.

• Q2 2024 revenue was $6.4M, down 8% year-over-year; Electric Motorcycles revenue up 219% to $2.4M, STACYC revenue down 36% to $4.0M.

• Q2 consolidated operating income $241 million (+9%); HDMC operating income up 2%, HDFS up 21%, LiveWire loss improved by $4 million.

• Q2 EPS $1.63 (+34%); first-half EPS $3.34 (+2%).

• Cash and cash equivalents at quarter-end were $1.8 billion for consolidated operations and $113M for LiveWire, with LiveWire's cash down from $167.9M at year-end 2023.

Outlook and guidance

• Retail and wholesale units expected to balance at 163,000–168,000 by year-end.

• Full-year retail guidance: flat to up 3%; wholesale shipments down 7–10%.

• HDMC revenue now expected to be down 5–9% (previously flat to down 9%).

• LiveWire full-year guidance unchanged: 1,000–1,500 electric motorcycle unit sales and operating loss of $105M–$115M.

• Capital investment expected at $225–$250 million for consolidated operations; LiveWire capital expenditures estimated at $10M–$20M.