North America retail sales declined 13% for the full year but rose 5% in the fourth quarter, driven by strength in the touring category.
Harley-Davidson is positioning 2026 as a transition year as it works to stabilize operations, align wholesale with retail demand and restore dealer confidence following a challenging 2025.
The Milwaukee-based OEM reported a fourth-quarter net loss of $279 million, compared to a loss of $117 million a year earlier. Consolidated revenue fell 28% to $496 million in the quarter. For the full year, revenue declined 14% to $4.47 billion from 2024.
According to Reuters, executives pointed to ongoing “choppiness and volatility” in global retail results amid continued pressure on big-ticket discretionary purchases. Sticky inflation, elevated borrowing costs and pricing sensitivity have weighed on demand, particularly outside North America.
“As we close out a challenging year for the company, we are taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand,” Starrs said in a statement. “While near-term results reflect these actions, the progress we are seeing reinforces our confidence in the reset underway.”
Global retail motorcycle sales totaled 132,535 units in 2025, down 12% year over year. North America retail sales declined 13% for the full year but rose 5% in the fourth quarter, driven by strength in the Touring category. EMEA retail sales were down 24% in Q4 and 11% for the year, while Asia Pacific fell 15% for the year.
Harley-Davidson Motor Company (HDMC) shipped 124,477 motorcycles in 2025, a 16% decline from the prior year. Fourth-quarter shipments were down 4%.
Notably for dealers, global dealer inventory of new motorcycles ended the year down 17% versus the end of Q4 2024, reflecting the company’s push to better match wholesale shipments with retail demand.
HDMC posted a full-year operating loss of $29 million, compared to operating income of $278 million in 2024. Gross margin declined 3.8 percentage points in 2025, pressured by lower volumes, incentive spend and tariffs.
Reuters reported that new tariffs cost Harley-Davidson $22 million in the fourth quarter and $67 million for the full year 2025. The company manufactures most of its core products domestically and sources roughly 75% of components from U.S. suppliers, but imported components — including semiconductors — remain a cost factor.
Executives said they plan to sharpen the product lineup and adjust its e-commerce strategy under Starrs’ leadership. The company is leaning into higher-margin Touring and Custom models while preparing to introduce a smaller, lower-priced “Sprint” model in 2026 aimed at attracting entry-level riders.
Additional details of the company’s broader strategic plan are expected in May during its first-quarter earnings call.
Harley-Davidson Financial Services (HDFS) played a significant role in the company’s 2025 financial picture. HDFS operating income reached a record $490 million for the year, nearly doubling 2024 results, aided by a strategic partnership transaction with KKR and PIMCO that shifted the business toward a more capital-light model.
The transaction facilitated a $1 billion dividend from HDFS to Harley-Davidson, Inc. in Q4.
For the full year, Harley returned $434 million to shareholders through $347 million in discretionary share repurchases and $86 million in dividends. The company generated $569 million in operating cash flow and ended the year with $3.1 billion in cash and cash equivalents.
LiveWire shipped 653 electric motorcycles in 2025, up from 612 units in 2024, but still far from optimum sales levels. The EV division posted a full-year operating loss of $75 million, an improvement from a $110 million loss the prior year.
For 2026, Harley-Davidson projects:
Global motorcycle retail sales of 130,000 to 135,000 units
Wholesale shipments of 130,000 to 135,000 units
HDMC operating income ranging from a $40 million loss to a $10 million profit
HDFS operating income of $45 million to $60 million
LiveWire operating loss of $70 million to $80 million
The company cautioned that these figures may be impacted by the new strategic plan expected to be announced in May.
For dealers, the message is clear: 2026 will be about recalibration — tighter inventories, disciplined wholesale, margin protection and renewed focus on core segments — as Harley works to regain momentum in a still-challenging retail environment.
Yamaha Motor Corp. reported a sharp decline in profitability for the fiscal year ended Dec. 31, 2025, as U.S. tariffs, higher costs and weakness in personal watercraft and side-by-side sales weighed on results.
Revenue for the year totaled ¥2.53 trillion ($16.6 billion USD), down 1.6% year over year. Operating income fell 30.4% to ¥126.4 billion ($825 million), while net income attributable to owners of the parent dropped 85.1% to ¥16.1 billion ($105 million).
Yamaha Motor’s President and CEO Motofumi Shitara cited continued global uncertainty, including U.S. tariff policy and foreign exchange fluctuations, as key headwinds. Higher procurement costs, increased R&D and SG&A spending, and impairment losses in the company’s Outdoor Land Vehicle (OLV), i.e., ORV, business further pressured margins.
Yamaha’s Land Mobility segment — which includes motorcycles — generated ¥1.62 trillion ($10.6 billion) in revenue, essentially flat year over year. Operating income in the segment increased 4.6% to ¥108.7 billion ($710 million).
Unit sales increased in Indonesia, the Philippines and Thailand, while demand in Europe and the U.S. softened slightly. Production and shipment suspensions in Vietnam also weighed on volume.
Although revenue remained stable, the company says higher procurement costs, tariff impacts and increased expenses limited margin expansion.
In Yamaha’s Marine segment, revenue declined 1.9% to ¥527.6 billion ($3.45 billion), while operating income dropped 39% to ¥53.6 billion ($350 million).
Demand for outboard motors in the U.S. — Yamaha’s primary market — remained roughly in line with the prior year. However, personal watercraft demand declined in the U.S., contributing to lower overall marine revenue and profitability. Higher R&D spending, increased labor costs and the continued impact of U.S. tariffs compounded the decline in segment earnings.
Yamaha’s Outdoor Land Vehicle segment — which includes ATVs, side-by-sides and low-speed mobility vehicles — was the company’s largest profitability drag, according to the company.
Revenue fell 17.2% to ¥148.5 billion ($970 million), and the segment posted an operating loss of ¥39.8 billion, widening from a ¥17.4 billion ($260 million) loss the previous year.
While ATV sales were described as strong, lower ROV sales, tariff impacts and impairment losses on tangible fixed assets drove the decline. The low-speed mobility business, including golf cars, also experienced weaker demand in the U.S.
Both Polaris and BRP worked to reduce excess network stock, which has helped stabilize dealer turnover and protect margins. Yamaha’s broader OLV weakness, combined with inventory impairment charges, suggests dealers may have faced slower turns and promotional pressure.
Despite continued tariff exposure, Yamaha is forecasting higher revenue and profits in fiscal 2026.
The company expects stronger motorcycle unit sales in emerging markets and growth in outboard motors. In strategic businesses — including Robotics, Smart Power Vehicles and OLV — Yamaha projects improved profitability due to structural reforms and the absence of impairment losses recorded in 2025.
For U.S. powersports dealers, the results underscore continued tariff-related margin pressure and softness in the personal watercraft and side-by-side categories, even as Yamaha’s core motorcycle business remains resilient globally.
Ducati closed 2025 with global deliveries of 50,895 motorcycles, down 7% from 2024, as regulatory changes, currency pressures, and broader geopolitical and macroeconomic challenges weighed on the worldwide powersports market, the company reported.
Despite the decline, Ducati leadership said the brand used the year to stabilize operations, protect core segments, and position its dealer network for a stronger 2026 driven by new product introductions and the return of key models delayed by Euro 5+ emissions compliance.
“2025 was a complex year, marked by external factors that impacted the global context, but we addressed these with determination,” says Francesco Milicia, Ducati vice president of global sales and after-sales. “We consolidated our presence in our reference segments and laid the groundwork for an even stronger future.”
Italy remained Ducati’s largest market with 8,803 motorcycles delivered, down 8% year over year. The United States ranked second at 7,268 units, posting a 4% increase, while Germany finished third with 5,759 deliveries, down 12%. Spain and Austria recorded standout performances, growing 15% and 14%, respectively, and Japan posted an 11% increase. China continued its downturn, declining 31% compared to 2024.
The Multistrada family led global sales with 13,873 units delivered in 2025, followed by the Panigale range at 10,606 units and the Scrambler family at 5,814 units.
Ducati cited limited availability of the Monster, Hypermotard and DesertX throughout much of the year as key factors impacting volumes. Those models were temporarily constrained as the manufacturer transitioned them to meet Euro 5+ emissions regulations and are now at dealerships with Ducati’s new V2 engine.