Harley-Davidson $HOG ( ▲ 3.97% ) shares revved lower after the iconic motorcycle maker posted a much larger than expected loss and issued a soft outlook for the year ahead. Investors were already wary about slowing demand, and the latest report did little to calm those nerves.
The company’s results show a brand still battling weaker sales and margin pressure in a tough consumer environment.
Losses Widen as Bike Sales Stall
In the fourth quarter, Harley-Davidson $HOG reported an adjusted loss of $2.44 per share, more than double the $1.06 loss Wall Street was expecting. Motorcycle shipments fell 4% from a year earlier, a sharp contrast to analyst expectations for a big increase.
Margins also took a hit. Full-year gross margin dropped by about 4 percentage points year over year, with the company pointing to tariffs as a key driver of the decline.
Management Hits the Brakes
CEO Artie Starrs described 2025 as a challenging year and said Harley-Davidson $HOG is taking deliberate steps to stabilize the business. Those efforts include rebuilding dealer confidence and better aligning how many bikes it ships with actual retail demand.
In the short term, those adjustments are weighing on performance, as the company pulls back to avoid overloading dealers with inventory.
A Cautious Road Ahead
The outlook for 2026 did not inspire much confidence either. Harley-Davidson $HOG expects its motorcycle division to post operating income ranging from a $40 million loss to a $10 million profit. Analysts had been looking for around $128 million in profit.
The company noted that its guidance could shift once it unveils a new strategic plan in May. Until then, investors are left with a picture of a company still trying to regain balance as demand for its core product remains under pressure.