LiveWire Group (LVWR) Q4 2024 earnings summary

Executive summary

• 2024 performance was impacted by cyclical headwinds, high interest rates, and weakened consumer confidence, resulting in a 7% global retail sales decline and a 15% drop in Q4.

• Strategic initiatives included cost reductions, operational consolidation, and a focus on core profitable segments, yielding $257 million in savings and $1.1 billion in operating cash flow.

• The company gained 3.5% market share in the US touring segment, reaching nearly 75%, and was the only manufacturer to gain meaningful share.

• Inventory was tightly managed, with dealer inventory down 19% sequentially in Q4 and over 4% year-over-year.

• S2 Del Mar® won MCN's Best Electric Bike of 2024; two new models launched and a collaboration with KYMCO announced.

Financial highlights

• Full-year 2024 consolidated revenue was $5.2 billion, down 11%, and operating income was $417 million, down 47% from 2023.

• Q4 consolidated revenue fell 35% year-over-year, with a $193 million operating loss versus a $21 million loss in Q4 2023.

• LiveWire's full-year revenue declined 30% to $26.6M, with a net loss of $93.9M, a 14% improvement from 2023.

• Q4 EPS was a loss of $0.93, down from a profit of $0.18 in Q4 2023; full-year EPS was $3.44, down from $4.87.

• Operating cash flow reached $1.1 billion, up $309 million from 2023.

Outlook and guidance

• 2025 retail sales expected to be flat, with performance skewed to the second half; wholesale units forecasted flat to down 5%.

• HDMC revenue projected flat to down 5%, with operating income margin between 7% and 8%.

• LiveWire unit sales forecasted at 1,000–1,500 with an operating loss of $70–80 million; cash burn to be reduced by 40%.

• EPS expected flat to down 5% from 2024; HDFS operating income to decline 10%-15% due to higher borrowing costs.

• Capital investments planned at $225–250 million; $350 million in share repurchases planned for 2025.