Finance
Harley-Davidson warns of tariff hit, pulls 2025 outlook
Published by Global Banking & Finance Review®
Posted on May 1, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 1, 2025
2 min readLast updated: January 24, 2026
Harley-Davidson warns of tariff impacts, suspends 2025 forecasts. Despite challenges, first-quarter profits beat expectations.
By Nathan Gomes
(Reuters) - Harley-Davidson on Thursday warned of a hit to its full-year results from tariffs and suspended its 2025 forecasts as the motorcycle maker expects a bumpy ride due to U.S. President Donald Trump's trade policies.
The company, which had previously projected a flat to 5% decline in annual per-share profit, took a $9 million hit in the first quarter and said it expects a cost headwind of between $130 million and $175 million this year.
Still, cost-saving measures and demand for its high-margin touring models helped Harley power a first-quarter profit beat, nudging its shares 5% higher.
On a post-earnings call, outgoing CEO Jochen Zeitz said the company was adjusting its supply chain to current demand and building new capacity. It also plans to introduce entry-level models with smaller engines to win young riders, who have stayed away from its expensive legacy bikes
Harley said it would lean on its U.S. manufacturing and cost cuts, among other measures, to offset the tariff hit.
"The tariff expenses are problematic. Given the current affordability concerns, HOG has very little room to maneuver on pricing without giving up significantly on unit sales," Longbow research analyst David MacGregor said.
Rival Polaris, which makes the "Indian" brand of motorcycles, has also withdrawn its annual sales and profit forecasts and flagged a hit from weak consumer demand and tariffs.
Harley is also in the midst of a boardroom battle with H Partners, which wants to remove three directors from the company's board, including its CEO, who it holds responsible for the company's declining sales and falling stock price.
The company on Thursday confirmed a Bloomberg report from April and said it was evaluating an investment for its financial business.
It earned a quarterly profit of $1.07 per share, down from $1.72 a year ago, but above analysts' estimate of 78 cents, according to data compiled by LSEG.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)
Harley-Davidson reported a $9 million hit in the first quarter due to tariffs and expects a cost headwind of between $130 million and $150 million for the year.
Following the earnings report, Harley-Davidson's shares rose by 5% due to a profit beat driven by cost-saving measures and strong demand for high-margin touring models.
Harley-Davidson is adjusting its supply chain to align with current demand and is planning to introduce entry-level models with smaller engines.
Rival Polaris has also withdrawn its annual sales and profit forecasts, citing weak consumer demand and tariffs as significant challenges.
Harley-Davidson is in a boardroom battle with H Partners, which is seeking to remove three directors, including the CEO, due to concerns over the company's declining performance.
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