HDFS originations rise 2% as North American sales improve

Harley-Davidson Financial Services ’ originations rose in the fourth quarter as retail sales of motorcycles improved in North America. The captive’s retail loan originations totaled $487 million, up 2% year over year in Q4, Chief Financial Officer Jonathan Root said during Harley-Davidson ’s earnings call today. Harley-Davidson Financial Services’ (HDFS) total outstandings were $2 billion at yearend 2025, including retail receivables of $1 billion and commercial receivables of $949 million, he said. “The Q4 decrease was driven by lower retail and wholesale finance receivables at lower yields,” he said. “The decline in retail receivables was due to the sale of the retail back book in the HDFS transaction.” The declines followed the sale of more than $5 billion in loans to KKR and Pacific Investment Management in October, Root said. “For comparison purposes, gross financing receivables were $7.7 billion at the end of 2024, which includes both retail loans and commercial financing,” he said. “Total HDFS loan assets fell 74% year over year as we shift to a capital-light business model that carried less risk.” The captive’s revenue plummeted 59% YoY to $106 million in Q4, due to lower receivables at lower yields, Root said. For the full year, revenue declined 16% YoY to $869 million. Many other financial metrics were impacted by the sale of its portfolio, according to the release, including: HDFS’s operating income dropped to an $82 million loss in Q4; For the full year, operating income rose 97% YoY to $490 million; Provision for credit losses in Q4 landed at $7 million; and Full-year 2025 provisions for credit losses improved to a $191.4 million gain, compared with $247.2 million in 2024. Additionally, annualized retail credit losses rose 10 basis points YoY to 3.4%, according to the presentation. North American sales up 5.5% YoY Meanwhile, Harley-Davidson’s North American motorcycle sales rose 4.8% YoY to 15,847 units in Q4, according to the earnings release. North American 2025 sales fell to 89,132 units, down 12.6% YoY. A global retail sales decline of 1% YoY in Q4 and 12% YoY for full-year 2025 was in line with the company’s expectations as it restructures operations and aims to improve dealer conditions, Harley Chief Executive and President Arthur Starrs said during the earnings call. “We expect the actions we are taking to assist dealers in moving through inventory to restore dealer health to have a near-term impact on our financial results,” he said. “With that in mind, we view 2026 as a transition year as we reset business and finalize our new strategy.” As part of the operational changes, global dealer inventory fell 17% YoY to 40,000 units, according to the presentation. Sales also exceeded analysts’ and investors’ expectations, according to a BMO Capital Markets research note today. LiveWire sales up Q4 sales were up 61% YoY to 381 units at Harley-Davidson’s electric motorcycle subsidiary, LiveWire , according to Harley-Davidson’s presentation. For the full year, LiveWire’s motorcycle sales increased to 653 units, up 6.7% YoY. The company’s revenue increased 9% YoY to $11.4 million in Q4, but decreased 3% YoY to $25.7 million for the full year, according to the presentation. LiveWire’s Q4 operating losses improved to $18.4 million in Q4 from a loss of $26 million in Q4 2024; and to a loss of $75 million from a loss of $110 million for the fiscal year. Harley-Davidson also provided a $75 million term loan to LiveWire in Q4 to support its continued operations, Starrs said. “LiveWire is now working diligently to attract its own sources of capital to continue to finance its operations and future plans,” he said. Shares of Harley-Davidson Inc. [ NYSE: HOG ] were up 3.97% or 80 cents from market open to $20.94 at market close. The manufacturer has a market capitalization of $2.4 billion. Shares of LiveWire Group Inc. [NYSE: LVWR] were down 12.64% or 33 cents from market open to $2.28 at market close. The manufacturer has a market capitalization of $532.4 million. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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HDFS originations rise 2% as North American sales improve

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