Harley-Davidson has reached a key milestone in its recently announced partnership with global investment firms KKR and PIMCO, completing the sale of residual interests in securitized consumer loan receivables.

The move is part of a strategy to make Harley-Davidson Financial Services( HDFS) a capital-light business while continuing to originate and service retail loans for dealers and customers. By shifting its financing structure, Harley-Davidson says it will strengthen its balance sheet and reduce

risk, while maintaining financing support for motorcycle sales.

The transaction generated more than $ 230 million in proceeds through the sale of interests tied to roughly $ 2 billion in retail loan receivables and $ 1.8 billion in related debt. Additional elements of the deal, including the sale of minority equity stakes to KKR and PIMCO, are expected to close by the end of October. At that point, the firms will also begin acquiring new retail loan receivables originated by HDFS.

“ Completing this step eliminates approximately $ 2 billion in entities and $ 1.8 billion of debt from our balance sheet, while generating proceeds to support our capital allocation priorities,” says Jochen Zeitz, Harley-Davidson chairman, president and CEO.” We remain committed to delivering outstanding service levels for our dealers and customers as we move into the next phase of this partnership.”

Dealer Takeaway: This change means Harley-Davidson’ s retail financing arm will continue to operate as before, but with the

With this transaction, Harley is shifting to a capitallight model, which frees up resources and could support new initiatives that benefit dealers and customers alike.

backing of deep-pocketed financial partners designed to provide long-term stability and growth. Harley is shifting to a capital-light model, which frees up resources and could support new initiatives that benefit dealers and customers alike.

AUGUST 2025 VS. AUGUST 2024

Major unit sales in August were up a combined 7.1 % across the U. S. compared to 2024, according to composite data from more than 1,800 U. S. dealers that use the Lightspeed DMS. Both the Northeast and the Northwest saw 10 % increases in major unit sales, while the Midwest, 6.8 %, and the West, 6.7 %, both had signifi cant gains. Not far off was the South region, gaining 5.9 %. Service revenue was up a combined 1.2 %, with the Northeast gaining 4.1 %, followed by the South at 2.8 %. The Northwest and Midwest remained

mostly fl at for the month— up less than 1 %— while the West was the lone region with a decrease in service revenue, dropping 2.9 %. Parts sales were down across the board for August, with a combined drop of 3 %. The West and Northwest were hit the hardest, dropping 5.2 % and 5.1 %, respectively. The South was down 3.2 % and the Midwest 1.9 %, while the Northeast remained relatively fl at. Combined, every region increased its total revenue in August, most signifi- cantly the Northeast, 7.9 %, and the Northwest, 5.4 %. The Midwest and South averaged a gain of 4.65 %, and the West jumped up 3.2 %.

PARTS SALES Parts revenue was up at 849 dealerships and down at 1,069.

SERVICE SALES Service revenue was up at 963 dealerships and down at 915.

MAJOR UNIT SALES Major unit revenue was up at 719 dealerships and down at 577.

FOR MORE ON THE SAME STORE SALES DATA

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