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; consolidated operating income was $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, partially offset by restructuring costs and lower STACYC sales.

• Achieved 35% sequential growth in electric motorcycle unit sales to 158, maintaining #1 U.S. on-road electric motorcycle retailer status for H1 2024.

• Announced a $1 billion share repurchase plan through 2026; dividend policy remains unchanged.

Financial highlights

• Q2 consolidated margin was 14.9%, down from 15.3% last year.

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

• Net loss per share improved to $(0.12) from $(0.20) in Q2 2023.

• Operating cash flow for the first half was $578 million, up from $411 million last year.

• Cash and cash equivalents at quarter-end: $1.8 billion; LiveWire at $113M, down from $167.9M at year-end 2023.

Outlook and guidance

• Retail and wholesale units for 2024 expected in the range of 163,000–168,000.

• Retail sales guidance: flat to up 3% for the full year; wholesale shipments down 7–10%.

• HDMC revenue now expected to be down 5–9% for the year; operating income margin revised to 10.6–11.6%.

• LiveWire full-year 2024 guidance: 1,000–1,500 electric motorcycle unit sales and operating loss of $105M–$115M.

• Capital investment expected at $225–$250 million for 2024; LiveWire capex estimated at $10M–$20M.