American Motorcycle Dealer 317 December 2026 AMD 317 December 2026 | Page 10

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mix. Third quarter operating income margin was down 1.3 points, while operating expense was $ 20m higher than a year ago. LiveWire revenue for the third quarter increased by 16 % versus prior year due to increased unit sales of electric motorcycles and electric bike units, partially offset by impacts from electric motorcycle pricing and incentives during the quarter. LiveWire ' s operating loss of $ 18m, $ 8m less than a year ago, was in line with our expectations. In YTD terms HDI generated $ 417m of cash from operating activities, on an effective tax rate of 24 %; paid cash dividends of $ 66m and repurchased $ 187m of shares( 6.8m shares) on a discretionary basis. Cash and cash equivalents were $ 1.8bn at the end of the quarter. Given that the global tariff and business outlook remains uncertain, especially for discretionary product purchases, the Company continues to withhold its full year HDMC 2025 financial outlook. For LiveWire, the Company is updating its previously issued guidance related to Operating Loss to $ 72- $ 77m. Its total net use of cash remains $ 50- $ 60m. On October 4, HDI announced plans to enter into an Accelerated Share Repurchase( ASR) Agreement with Goldman Sachs to repurchase $ 200m of shares of the Company ' s common stock. This announcement is part of the previously announced plan to repurchase $ 1bn in shares by the end of 2026. The Company expects the transactions under the ASR agreement to be completed by no later than the first quarter of 2026.

Harley-Davidson Financial Services( HDFS)

LiveWire

<<< Continued from page 48 and operational efficiencies compared to Q3 of 2024. Operating expenses were $ 380m in Q3 of 2025 compared to $ 313m in Q3 2024, primarily due to a non-cash property and equipment impairment charge and increased general and administrative expenses. Operating expenses as a percentage of sales, were 20.6 %, up 247 basis points in Q3 of 2025 compared to Q3 of 2024. For Q3, net loss attributable to Polaris was $ 16m, or $ 0.28 net loss per diluted share, compared to net income attributable to Polaris of $ 28m, or $ 0.49 per diluted share, in Q3 of 2024. Adjusted net income attributable to Polaris for the quarter was $ 23m, and adjusted EPS was $ 0.41. Third quarter 2025 results included a $ 42.3m impairment charge related to certain property and equipment assets in the Company ' s On Road segment. On Road segment sales were driven by lower volumes and continued market softness. PG & A sales increased 6 %. Gross profit margin performance was driven by negative product mix, partially offset by strong performance at Aixam( Quadricycles, Aix-les-Bains, France). North America unit retail sales for Indian Motorcycle were down midsingle digits percent. Estimated North America unit retail sales for the comparable motorcycle industry were down mid-single digits percent. Off Road segment sales were driven by positive product mix in off-road vehicles. PG & A sales increased 22 %; gross profit margin performance was driven by positive product mix and operational efficiencies. Polaris North America ORV unit retail sales were up 9 %. Estimated North America industry ORV unit retail sales were up low-single digits percent. Marine segment sales were driven by increased volumes of entry-level pontoon. Gross profit margin performance was impacted by negative mix. 2025 Business Outlook The Company reintroduced updated 2025 full year adjusted sales and adjusted EPS guidance. The Company now expects 2025 adjusted sales to be between $ 6.9bn to $ 7.1bn and adjusted EPS down by approx.- $ 0.05.

10 AMERICAN MOTORCYCLE DEALER- DECEMBER 2025