Mission Statement, Vision, & Core Values of Harley-Davidson, Inc. (HOG)

Harley-Davidson, Inc.'s mission-More than building machines, we stand for the timeless pursuit of adventure-is iconic, but does that emotion defintely translate to long-term shareholder value when the rubber meets the road? You just saw their Q3 2025 diluted EPS hit $3.10, a great number, but that was heavily boosted by a financial services transaction that unlocked over $1.2 billion in discretionary cash, not core motorcycle sales, which were down 6% globally. Can a vision built on innovation, evolution, and emotion truly overcome a projected full-year operating loss of up to $77 million for their LiveWire electric segment and persistent tariff headwinds? Let's break down if their core values are strong enough to steer the company through this challenging market and what that means for your investment thesis.

Harley-Davidson, Inc. (HOG) Overview

Harley-Davidson, Inc. (HOG) is more than just a motorcycle company; it's a century-old American icon, and its financial story in 2025 is a classic tale of strategic maneuvering in a tough market. You need to know that while retail demand is soft, the company's financial engineering and focus on operational efficiency are paying off big right now.

The company was founded in 1903 in Milwaukee, Wisconsin, by William S. Harley, Arthur Davidson, Walter Davidson, and William A. Davidson. It's one of the few American motorcycle manufacturers that survived the Great Depression, which tells you everything about its staying power. Today, its core business is designing, manufacturing, and selling heavyweight motorcycles-the classic Grand American Touring and Cruiser models-plus a full line of parts, accessories, and riding gear. They also operate Harley-Davidson Financial Services (HDFS) and the electric motorcycle brand LiveWire.

For the third quarter of the 2025 fiscal year, the company reported consolidated revenue of $1.08 billion. This figure, while reflecting a complex market, demonstrates the scale of this operation. The total analyst-projected sales for the full 2025 fiscal year are around $3.73 billion, showing the continued, immense size of their market footprint, even as they navigate shifting consumer preferences. Honestly, their brand loyalty is a financial asset you can't model easily.

• Founded: 1903 in Milwaukee, Wisconsin.
• Core Products: Heavyweight motorcycles, parts, accessories, LiveWire electric motorcycles.
• Q3 2025 Consolidated Revenue: $1.08 billion.

Q3 2025 Financial Performance: Strategic Wins Over Retail Headwinds

The latest results, reported in November 2025, show a clear divergence between retail challenges and strategic financial success. Consolidated revenue for the third quarter was up a strong 17% year-over-year, driven primarily by the Harley-Davidson Motor Company (HDMC) segment, which saw its revenue jump by 23%. This massive jump in HDMC revenue is a direct result of a 33% increase in global motorcycle shipments, a deliberate move to rebalance dealer inventory levels.

The real story, though, is in the bottom line, largely due to a major financial transaction. Diluted Earnings Per Share (EPS) for Q3 2025 hit an impressive $3.10. This surge was heavily influenced by the strategic partnership for Harley-Davidson Financial Services (HDFS) with KKR and PIMCO, which is transforming HDFS into a capital-light business. This deal unlocked over $1.2 billion in discretionary cash and helped HDFS post an operating income of $439 million for the quarter.

Now, here's the quick math on the risk: global motorcycle retail sales were still down 6% year-over-year. This is a headwind, reflecting high interest rates and cautious consumer spending on big-ticket, discretionary items. But the strategic focus on premium products is working; certain models like the Softail family saw strong growth of 9% in North America. The forecast for HDFS operating income for the full 2025 fiscal year is a robust $525 million to $550 million, which is a huge, stable anchor for the business.

A Global Leader Forging a New Path

Harley-Davidson, Inc. is defintely a global leader, holding a dominant market position in the heavyweight motorcycle segment, especially in North America. Its vision is clear: 'Building our legend and leading our industry through innovation, evolution and emotion.' This isn't just marketing fluff; it's a strategic mandate that guides their product mix, from the iconic V-Twin cruisers to the newer Revolution Max-powered Adventure Touring and LiveWire electric bikes.

The company's strength isn't just in manufacturing; it's in the community it built-the Harley Owners Group (H.O.G.), a massive, factory-sponsored riding club. This brand loyalty is what sustains the business even when broader retail sales are challenged. They've successfully navigated a major leadership change, with Artie Starrs taking over as President and CEO in October 2025, signaling a commitment to both operational discipline and brand connection.

Their ability to execute a major financial transformation while simultaneously managing a challenging retail environment is a testament to their strategic depth. They are a case study in balancing heritage with necessary innovation. To truly understand the investor sentiment and the drivers behind this complex financial picture, you should continue your analysis. You can learn more by Exploring Harley-Davidson, Inc. (HOG) Investor Profile: Who's Buying and Why?

Harley-Davidson, Inc. (HOG) Mission Statement

Harley-Davidson's mission statement is not just a marketing slogan; it's the strategic blueprint guiding the company's capital allocation and product development, especially in a challenging market. The core message is: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. This focus on experience over hardware is crucial for a brand navigating a volatile macroeconomic environment where discretionary spending is tight, as seen by the 6% drop in global motorcycle retail sales in Q3 2025.

For an investor, understanding this mission clarifies why Harley-Davidson Motor Company (HDMC) continues to invest heavily in brand-related experiences and premium segments, even as overall volume declines. It's about maximizing the value of the customer relationship, not just chasing unit sales. This strategic clarity is what allowed the company to deliver a diluted EPS of $3.10 in the third quarter of 2025.

More Than Machines: The Lifestyle Multiplier

The first component, 'More Than Machines,' emphasizes that the company sells a lifestyle, a community, and an identity that extends far beyond the physical product. This is where the high-margin Parts & Accessories (P&A) and General Merchandise (GM) segments-the lifestyle brand-create significant value. This brand power is what supports the company's financial engineering moves, like the transformative deal with KKR and PIMCO involving Harley-Davidson Financial Services (HDFS).

That HDFS transaction, completed in Q3 2025, unlocked over $1.2 billion in discretionary cash for Harley-Davidson, Inc. Here's the quick math: monetizing a portion of the financing arm allows the company to de-risk its balance sheet and fund strategic growth, proving the brand's financial value is tied to its community's loyalty. That's a powerful statement about brand equity.

Timeless Pursuit of Adventure: Expanding the Rider Base

This mission component highlights a dedication to the spirit of adventure that transcends the traditional cruiser segment, pushing the company to innovate and attract new riders. You can see this commitment in the expansion of their product line into new categories. The introduction of the Pan America adventure touring model is a concrete example of this pursuit.

The Pan America ST, for instance, contributed to a 4% increase in Harley-Davidson's adventure bike sales in Q3 2025, showing the strategy is starting to gain traction in diversifying the customer base. This move is essential for future-proofing the brand against an aging core demographic. Also, the electric motorcycle segment, LiveWire, while still operating at a loss-projected to be between $72 million and $77 million for the full year 2025-is part of this long-term pursuit to lead moto-culture into the future. You should also be Exploring Harley-Davidson, Inc. (HOG) Investor Profile: Who's Buying and Why? to see how this new product mix is affecting institutional ownership.

Freedom for the Soul: Quality and Performance as the Foundation

The final element, 'Freedom for the soul,' connects the brand to the emotional fulfillment customers seek, but this feeling is defintely only possible if the product itself is high-quality and reliable. This emotional bond is built on the foundation of engineering excellence, which is why product quality remains paramount.

The recent success of the revamped core models validates this commitment. The 2025 Softail lineup, featuring updates that enhance performance and ride quality, saw a 9% growth in the U.S. market. This performance helped increase Harley-Davidson's market share in the large cruiser category from 61% to a commanding 68%. The CVO Street Glide, a pinnacle of their touring line, exemplifies this with its Milwaukee-Eight 117 engine, generating an impressive 106 horsepower and 127 pound-feet of torque. What this estimate hides, however, is the challenge of maintaining that quality perception while battling global supply chain issues, which can increase manufacturing costs and put pressure on margins.

The company's core values-Tell the Truth, Be Fair, Keep Your Promises, Respect the Individual, and Encourage Intellectual Curiosity-are the operational guardrails for delivering this soul-satisfying product.

• Tell the Truth: Essential for transparent dealer and customer relations.
• Be Fair: Guides pricing and trade practices globally.
• Keep Your Promises: Directly relates to product quality and warranty support.

Harley-Davidson, Inc. (HOG) Vision Statement

You're looking at Harley-Davidson, Inc. (HOG) right now and seeing a company in a tough spot: navigating high interest rates and cautious consumer spending, but still making big, strategic moves. The company's vision statement-Building our legend and leading our industry through innovation, evolution and emotion-isn't just a feel-good phrase; it's the blueprint for how they're trying to turn a challenging market around. This vision is what guides their capital allocation and their product strategy, especially now that they've made significant changes to their financial services arm.

Building Our Legend and Leading Our Industry

The first part of the vision is about maintaining a dominant brand position, which is a significant competitive moat (economic advantage) that few companies possess. Harley-Davidson's legend is its history and culture, but leading the industry means outperforming competitors like Polaris's Indian Motorcycle and others. The financial health of their dealer network is key here. As of the end of Q3 2025, global dealer inventories were down 13% compared to Q3 2024, which is a defintely healthy move to reduce pressure on the sales channel. When dealers thrive, Harley-Davidson thrives. That's the simple math.

The company's focus is on sustainable growth, not just chasing volume at any cost. This is reflected in the Q3 2025 diluted earnings per share (EPS) of $3.10, showing the core business is still generating significant profit despite retail sales being down 6% globally versus the prior year. This is a strong signal that management is prioritizing margin and efficiency over sheer unit sales, a realist approach for a discretionary product in a soft market. You can dive into the specifics of how they got here by reading Harley-Davidson, Inc. (HOG): History, Ownership, Mission, How It Works & Makes Money.

Innovation, Evolution, and Emotion

This is where the rubber meets the road for future growth, especially as the core customer base ages. The 'innovation' and 'evolution' components are best seen in the two-pronged approach to their product line: reinforcing the core and exploring electric. The launch of the new Street Glide and Road Glide touring motorcycles, for example, is a core evolution that drove H-D's market share to 74.5% in the U.S. Touring segment in 2024.

On the innovation front, the electric motorcycle subsidiary, LiveWire, is the clearest example, but it's a near-term risk. For 2025, the company updated its outlook for LiveWire's operating loss to between $72 million and $77 million, a substantial drag on consolidated results. They are holding the line on investment, capping future spending at a $100 million credit facility, because EV adoption has been slower than anticipated.

• Innovation: Electric efforts like LiveWire.
• Evolution: New models strengthening core touring segments.
• Emotion: The brand connection that drives accessory sales.

Mission: The Timeless Pursuit of Adventure

Harley-Davidson's mission statement is: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. This is pure marketing genius, but it's also a financial strategy because it justifies the premium price and the high-margin branded products. The 'adventure' part is evident in the push into segments like the Pan America adventure touring model. The 'emotion' and 'soul' connection is what allows the Harley-Davidson Motor Company (HDMC) to see revenue growth even when times are tough.

For instance, the HDMC revenue was up 23% in Q3 2025 versus the prior year, largely due to a strategic increase in shipments to dealers to meet demand for new models. This growth, even with retail sales softness, shows the power of the brand to move product. North America remains their primary market, and while Q1 2025 retail sales of motorcycles were down to about 20,900 units in the region, the brand's strength in the high-end segments like Touring, Trike, and CVO was still a bright spot.

Core Values as a Financial Anchor

A company's core values-Tell the Truth, Be Fair, Keep Your Promises, Respect the Individual, Encourage Intellectual Curiosity-might seem like HR-speak, but they're actually a risk management framework. 'Keep Your Promises' is especially relevant when you look at the major financial maneuver in 2025: the partial sale of Harley-Davidson Financial Services (HDFS).

The deal with KKR and PIMCO, where Harley-Davidson sold a 9.8% common equity interest in HDFS, was a massive move to transform HDFS into a capital-light, de-risked business. This transaction unlocked over $1.2 billion in discretionary cash, which can be used for debt reduction and share repurchases. This move, while complex, allows the core company to keep its promise to shareholders to maximize value and reduce risk, all while retaining majority control of the financial services arm to support its dealers and customers.

• Tell the Truth: Essential for investor transparency.
• Be Fair: Guides dealer relationships and pricing.
• Keep Your Promises: Underpins the $1.2 billion HDFS transaction.

Harley-Davidson, Inc. (HOG) Core Values

You're looking for the foundational principles that drive Harley-Davidson, Inc.'s (HOG) strategy and financial performance, and you need to see how they translate into real-world results, especially in a challenging 2025 market. The company's core values, which underpin its five-year 'Hardwire' strategic plan (2021-2025), are less about abstract ideals and more about concrete, measurable actions that build the brand's future while honoring its past. They are the engine behind the mission: 'More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul.'

For a deeper dive into the company's financial standing, check out Harley-Davidson, Inc. (HOG): History, Ownership, Mission, How It Works & Makes Money. The core values guide decisions on everything from product development to capital allocation, which is why we saw the HDMC operating income margin at 5.0% in the third quarter of 2025, reflecting the intense focus on profitable segments despite market headwinds.

Innovation and Evolution

This value is central to the company's vision: 'Building our legend and leading our industry through innovation, evolution and emotion.' You can't lead a century-old industry without defintely pushing the envelope. Harley-Davidson demonstrates this through significant investments in new technology and product lines that appeal to a broader, more diverse customer base.

The most visible example is the LiveWire electric motorcycle division. While still in its growth phase, the commitment is clear: they are doubling down on this segment. The operating loss for LiveWire was projected to be between $59 million and $69 million for the full year 2025, which is a planned investment to lead the future of electric motorcycles. They are also expanding into new segments like Adventure Touring with the Pan America, a crucial move for selective expansion to unlock untapped volume and margin.

• Invest in LiveWire to lead electric segment.
• Launch new models in Adventure Touring and Cruiser segments.
• Prioritize R&D for product performance and sustainability.

Customer Desirability and Experience

Harley-Davidson knows it sells a lifestyle, not just a vehicle. The focus here is on creating a premium, integrated experience that deepens loyalty and attracts new riders. This value is measured by engagement and retail sales performance, which is a critical metric in 2025 as global retail sales were down 6% year-over-year through the third quarter.

To counter soft demand, the company is investing heavily in enhancing the digital customer journey. Digital investments in 2024 led to a 177% increase in engagements with motorcycle pages for the 2025 model year launch, showing a clear return on the digital experience. Furthermore, the Harley-Davidson Riding Academy reached a milestone of one million riders trained in 2024, proving their commitment to bringing new people into the riding community and strengthening the core experience.

Profit Focus and Shareholder Value

As a seasoned financial analyst, you know that brand desirability must ultimately translate into profit. The 'Profit Focus' pillar of The Hardwire strategy is about prioritizing the most profitable segments-Touring, large Cruiser, and Trike-and driving margin.

The financial actions in 2025 clearly map to this value: The strategic partnership for Harley-Davidson Financial Services (HDFS) with KKR and PIMCO is expected to unlock $1.25 billion in discretionary cash. Management immediately used this to reduce debt by $450 million and accelerate the share buyback program with a plan to purchase $500 million in the second half of 2025. This is a clear, decisive action to maximize shareholder return, even as the company navigated an uncertain outlook and reported a diluted EPS of $3.10 through Q3 2025.

Inclusive Stakeholder Management

This value is the unifying theme for how Harley-Davidson thinks about its role beyond financial performance, encompassing employees, dealers, customers, suppliers, and investors. The company recognized that success requires aligning the interests of everyone involved in the brand experience.

In 2021, as part of The Hardwire plan, Harley-Davidson extended employee ownership to all employees, offering an equity grant to approximately 4,500 employees. This move directly links the financial success of the company to the personal wealth of its workforce. For its dealer network, the company launched the Harley-Davidson Certified™ pre-owned motorcycle program, which supports growth across complementary businesses and strengthens the dealer channel, which is crucial given that global motorcycle shipments decreased 28% in Q2 2025 due to planned dealer inventory reduction and soft demand. This is a pragmatic way to manage inventory while supporting the dealer's used-bike business.