LiveWire Group Earnings Call Transcripts
Fiscal Year 2025
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2025 saw significant revenue and margin declines due to inventory actions and macro pressures, but dealer inventory reductions exceeded targets and early signs of retail recovery emerged. The HDFS transaction transformed the financial services segment, and 2026 is expected to be a transition year with continued margin pressure and strategic reset.
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Q3 revenue rose 17% year-over-year, driven by HDMC growth and the HDFS transaction, which unlocked $1.2B+ in cash and transformed HDFS into a capital-light model. Dealer inventory and retail sales declined, but new product and pricing strategies aim to boost future growth.
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Entered strategic partnerships for HDFS, unlocking $1.25B in cash and reducing leverage. Q2 revenue fell 19% year-over-year amid soft demand, but dealer inventory was reduced 28%. New product launches and efficiency programs are expected to drive future growth.
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Q1 saw a 23% revenue decline and 21% drop in global retail sales, but margins and cash flow exceeded expectations due to cost control and product mix. Guidance was withdrawn amid macro and tariff uncertainty, while new entry-level models and a major marketing fund aim to support future growth.
Fiscal Year 2024
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2024 saw a 7% global retail sales decline amid macro headwinds, but market share in the US touring segment rose to nearly 75%. Cost productivity and inventory management drove strong cash flow, while 2025 guidance calls for flat retail sales and continued margin discipline.
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Q3 2024 saw a 13% global retail sales decline and a 26% revenue drop, with significant inventory reductions and revised full-year guidance. Touring segment outperformed, while cost controls and share repurchases supported financials. Macroeconomic headwinds persist.
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Q2 revenue rose 12% year-over-year, with EPS up 34% and strong gains in the touring segment. Guidance was narrowed, with retail sales expected flat to up 3% and a $1 billion share repurchase plan announced.