Harley-Davidson Q2 Earnings Drop, Subsidiary Enters Into Partnership With KKR And PIMCO; Stock Up

(RTTNews) - Harley-Davidson, Inc. (HOG), Wednesday reported second-quarter financial results, revealing a net income of $107.6 million or $0.88 a share, compared to $218.3 million or $1.63 a share, last year.

On average, analysts estimated earnings of $0.96 a share for the quarter.

Revenue declined to $1.043 billion from $1.348 billion in the previous year, primarily due to a challenging commercial environment for discretionary products and an uncertain tariff situation.

Concurrently, the company announced a strategic collaboration entered into by its subsidiary, Harley-Davidson Financial Services, with KKR and PIMCO, which is expected to generate a significant value for Harley-Davidson on all levels.

The company expects the partnership to unlock $1.25 billion in cash, leaving the subsidiary to serve the customers and dealers.

Moreover, the company intends to use the cash to reduce debt, accelerate previously announced share buyback program, and make investments for future growth opportunities.

Additionally, based on the HDFS transaction, it now expects HDFS operating income of $525 to 550 million for full year 2025.

In the pre-market hours, HOG is moving up 9.15 percent, to $25.06 on the New York Stock Exchange.