• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Harley Davidon shares jump 16% after plans to monetise finance unit to private equity

by July 31, 2025
by July 31, 2025

Shares of Harley-Davidson Inc. surged as much as 24% on Wednesday—their biggest gain since October 2020—after the iconic motorcycle manufacturer announced a major monetization effort involving its finance arm.

The company revealed plans to sell a nearly 10% stake in Harley-Davidson Financial Services (HDFS) and more than $5 billion in retail loans to investment giants KKR & Co. and Pacific Investment Management Co. (PIMCO).

While the deal boosted investor sentiment, Harley-Davidson also reported disappointing second-quarter results, with sharp declines in revenue, motorcycle shipments, and earnings, driven in part by tariffs and high borrowing costs.

At the time of writing, Harley Davidson shares were trading 16.58% higher at $26.76.

Finance unit stake sale unlocks capital for growth

Harley-Davidson said in a statement that KKR and PIMCO will each acquire a 4.9% common equity interest in HDFS, alongside the purchase of retail loan receivables at a premium to face value.

The transaction is expected to unlock approximately $1.25 billion in cash for the company.

Harley plans to allocate those funds toward reinvestment in its core business, debt reduction of around $450 million, and approximately $500 million in returns to shareholders, including a resumption of share buybacks.

The company had suspended repurchases during the second quarter due to tariff uncertainty.

CEO Jochen Zeitz said the partnership would provide a “long-term stable funding mechanism” for the finance unit while maintaining continuity for customers and dealers. Importantly, Harley-Davidson will retain control of HDFS.

The announcement came on the same day as Harley Davidson announced their second-quarter earnings release.

Tariffs and economic headwinds pressure Q2 results

Despite the positive market reaction to the finance deal, Harley-Davidson’s second-quarter financial results underscored the challenges the company continues to face.

Revenue fell 19% year-over-year to $1.3 billion, missing analyst expectations, while earnings per share declined 46% to 88 cents.

Global retail motorcycle sales dropped 15%, including a 17% decline in the critical North American market.

Motorcycle shipments plummeted 28% from the prior year, a drop attributed to weakening demand amid elevated interest rates and tariff-related production cuts.

The company reported $17 million in tariff costs during the first half of 2025 and forecasted a full-year impact of up to $85 million.

These costs shaved 125 basis points off Harley’s second-quarter operating income margin, according to Chief Financial Officer Jonathan Root.

CEO Zeitz highlighted ongoing engagement with governments and expressed “cautious optimism” that future trade agreements could reduce the impact of tariffs on the company’s operations.

However, he acknowledged that global trade uncertainty and weak consumer sentiment remain significant hurdles.

Strategic initiatives signal path forward

To combat these headwinds, Harley-Davidson is pursuing several strategic initiatives.

The company plans to launch a new sub-$6,000 motorcycle next year to attract cost-conscious buyers and broaden its customer base.

Additionally, Harley is implementing a new efficiency program that leverages artificial intelligence to drive productivity and cost savings.

The company is also in a leadership transition, with Zeitz having announced his intention to resign in April. A CEO search is currently underway.

The post Harley Davidon shares jump 16% after plans to monetise finance unit to private equity appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Cathie Wood loads up on Bitmine stock: should you too?
next post
Liberal Heritage and ‘Political Philosophy: The Basics’

Related Posts

Cathie Wood loads up on Bitmine stock: should...

July 31, 2025

Asian markets open: Japan’s Nikkei rises 0.21%, Sensex...

July 31, 2025

Takeaway of Rolls-Royce earnings and impact on its...

July 31, 2025

Trump tariff reversal sinks copper prices, bearish outlook...

July 31, 2025

Europe markets open: Stoxx 600 gains 0.4%; Rolls-Royce...

July 31, 2025

St. James Place share price rare pattern points...

July 31, 2025

Nvidia’s $4.5B H20 chip export plan faces national...

July 31, 2025

OpenAI expands to Europe with $2B Norway data...

July 31, 2025

Interview: H2 outlook optimistic with US production push,...

July 31, 2025

ASX 200 Index forecast: can it hit $9k...

July 30, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • IOUs to Inflation: The Realistic Limits of Magic Money Theory

    July 31, 2025
  • Liberal Heritage and ‘Political Philosophy: The Basics’

    July 31, 2025
  • Fed Holds Rates Steady Amid Political Pressure

    July 31, 2025
  • IOUs to Inflation: The Realistic Limits of Magic Money Theory

    July 31, 2025
  • Fed Holds Rates Steady Amid Political Pressure

    July 31, 2025
  • Liberal Heritage and ‘Political Philosophy: The Basics’

    July 31, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,031)
  • Editor's Pick (201)
  • Investing (185)
  • Stock (1,351)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Jamie Dimon’s leadership playbook: 4 keys to...

March 22, 2025

Nvidia hits $3.17 tn, closes in on...

May 14, 2025

Chinese companies look to Southeast Asia for...

April 25, 2025