LiveWire Group (LVWR) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a challenging global market with macroeconomic and political uncertainty, high interest rates, and declining big-ticket discretionary spending, leading to a 13% drop in global retail motorcycle sales year-over-year.

• North America retail sales declined 10%, EMEA dropped 23%, Asia Pacific fell 16%, while LATAM grew 4% in Q3.

• Touring segment in the U.S. grew nearly 10% and gained over four percentage points of market share, outperforming other segments.

• LiveWire achieved recognition for its S2 Del Mar and maintained U.S. market leadership in on-road electric motorcycles.

• Company executed restructuring, relocating product development to Milwaukee and reducing headcount to drive future profitability.

Financial highlights

• Q3 consolidated revenue declined 26% year-over-year, with HDMC revenue down 32% and HDFS revenue up 10%.

• Q3 2024 revenue for LiveWire was $4.4M, down 45% year-over-year, mainly due to a 52% drop in STACYC revenue.

• Q3 consolidated operating income was $106 million, down 49% from the prior year; Q3 EPS was $0.91, down 34%.

• Net loss for Q3 2024 was $22.7M, up 56% year-over-year; operating loss widened to $26.5M.

• Cash and cash equivalents ended at $2.2 billion for the group and $88.4 million for LiveWire, both down from year-end 2023.

Outlook and guidance

• Full-year 2024 retail and wholesale unit guidance revised to 149,000–153,000 units, down from 163,000–168,000.

• LiveWire full-year guidance revised to 600–1,000 electric motorcycle unit sales, with operating loss expected at $105–$115 million.

• Retail expected to be down 6%-8% and wholesale down 16%-17% for the year.

• HDMC revenue now expected to decline 14%-16% for the year; operating income margin revised to 7.5%-8.5%.

• Management expects capital expenditures between $8M and $15M in 2024.