Finance
Harley-Davidson Forecasts Weak 2025 as Spending Falters
Published by Global Banking & Finance Review®
Posted on February 5, 2025
2 min readLast updated: January 26, 2026
Add as preferred source on Google
Quick Summary
Harley-Davidson forecasts flat to down 5% revenue in 2025 due to declining consumer spending on big-ticket items and struggles to attract younger riders.
Harley-Davidson Expects Flat Revenue in 2025 Amid Spending Cuts
(Reuters) -Harley-Davidson on Wednesday forecast 2025 profit and motorcycle revenue to be flat to down 5% as the company feels the heat from consumers tempering big-ticket purchases, sending its shares down 2% in premarket trading.
Analysts were expecting motorcycle revenue to rise 1.5% in 2025, according to data compiled by LSEG.
Demand for leisure vehicles has fallen off since the pandemic, while sticky inflation and steep borrowing costs have forced cash-tight Americans to prioritize spending on necessities rather than luxuries.
The storied motorcycle maker has also struggled to gain traction with younger riders, who are choosing modern, feature-packed and affordable bikes from other manufacturers instead.
Retail sales of Harley's motorcycles in top market North America fell 13% in the fourth quarter, with the company flagging persistent pressure from higher interest rates and lower sales of non-core motorcycles.
In an attempt to fend off some of the strain on profitability, Harley has updated its lineup for 2025 to include more higher-margin Touring bikes and sharpen focus on custom-vehicle operations targeted at its more affluent customers.
"The industry has faced many challenges over the past couple of years, impacting at all levels, but we believe we are best-positioned to take advantage of any uptick in consumption," said Jochen Zeitz, chairman, president and CEO of Harley-Davidson.
Rival Polaris, maker of motorcycle brand "Indian", also reported a lower fourth-quarter income in January and said it anticipated "challenging headwinds" to carry forward into 2025.
Harley posted a fourth-quarter net loss of $117 million, or 93 cents per share, compared with a profit of $26 million, or 18 cents per share, a year earlier.
Total revenue for the quarter ended Dec. 31 was $688 million, down 35% from a year earlier.
(Reporting by Nathan Gomes and Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)
Key Takeaways
- •Harley-Davidson forecasts flat to down 5% revenue in 2025.
- •Consumer spending on big-ticket items is declining.
- •Harley struggles to attract younger riders.
- •Retail sales in North America fell 13% in Q4.
- •Company focuses on higher-margin Touring bikes.
Frequently Asked Questions about Harley-Davidson forecasts weak 2025 as spending falters
1What is the main topic?
The main topic is Harley-Davidson's forecast for flat to declining revenue in 2025 due to reduced consumer spending on big-ticket items.
2Why is Harley-Davidson's revenue forecasted to decline?
The decline is attributed to reduced consumer spending on luxury items and challenges in attracting younger riders.
3What strategies is Harley-Davidson implementing?
Harley-Davidson is focusing on higher-margin Touring bikes and custom-vehicle operations to target affluent customers.