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H-D Q3 Results- " Not as Bad and Just as Bad " as Expected
Making his debut in the quarterly results hotseat, newly minted Harley President and CEO Artie Starrs fielded questions from analysts following release of a set of Q3 results that were simultaneously not as bad and just as bad as expected. The noise surrounding the results has primarily been focussed on the first( theoretically) beneficial impacts of the deal that Harley did with KKR and Pimco to offload HDFS loan debt. Though that move( in return for a 9.8 % combined equity in HDFS) reduces the capital requirements that HDFS has, it also reduces the longterm benefits that HDFS( and therefore parent company HDI) accrue from fully controlling their loan-book revenue. A drill down into the details of the Q3 fiscals reveals some good news- namely that the decline in unit sales and reducing inventory levels are gradually heading towards a kind of balance with revenue, though not one that yet will provide a platform for growth. The ongoing bad news was that for a quarter that traditionally should be Harley ' s second strongest of the year, certainly in sales revenue if not also unit sales terms, it really didn ' t deliver. Starrs is quoted as saying: " Our Q3 results demonstrate the positive impact of the HDFS transaction and reinforce the strategic value HDFS brings to Harley-Davidson ' s overall business model.
CEO Artie Starrs
" While retail sales remain challenged, I ' m truly energized by what I ' ve experienced across the Company, in dealerships, and with the broader rider community. While there is a lot of work ahead of us, our success begins with our dealers- when they thrive,
Harley-Davidson thrives. " Going forward you can expect an intensified focus on the key drivers of sustainable growth: strong and profitable dealerships, growing the powerful connection riders have with our brand, locally relevant marketing, and capitalefficient growth." There is a clue there. A clue that exposes just how weak the KKR / Pimco deal is. With most of the money being raised intended to be thrown at " shareholder value ", the company still needs to be creative where the necessary capital resources to drive engineering and subsequent genuine growth is concerned. In this context " efficiency " looks a lot like stating that Harley is going to remain short of the capital resources it needs. Commenting on the HDFS transaction, Jonathan Root, Chief Financial Officer and a man thought to have been a contender for the CEO job said: " The completion of the HDFS transaction with KKR and PIMCO marks a transformative milestone for Harley-Davidson. We are unlocking
Continues on page 8 >>>
DEC 2025
ISSUE # 317
ROCKINGHAM DRAGWAY
CCE REBORN
INDIAN PARTNERS WITH VANCE & HINES
‘ Red Rooster’ Best of Show Custom Nationals 2025, Geiselwind, Germany- for more see pages 24-25...