Harley-Davidson Shares Surge as Heavyweight Investors Back Its Financing Arm

Revving up investor confidence—Harley-Davidson’s stock just got a turbocharged boost.

Wall Street’s latest love affair? A financing arm getting cozy with deep-pocketed partners. Because nothing says ‘trust’ like institutional money chasing yield.

No surprises here—when capital talks, stocks walk. Even legacy brands can dance when the right partners cut checks.

Cynical take: Another day, another financial engineering win. At least this one comes with a side of leather jackets.

Key Takeaways

• Harley-Davidson shares popped Wednesday after the company agreed to sell stakes in its financing division, HDFS.
• The moves are expected to unlock $1.25 billion in cash, which Harley-Davidson plans to use to reduce debt, return money to shareholders, and reinvest in the company.
• The motorcycle retailer also reported second-quarter results, which included a nearly 20% decline in sales year-over-year.

Harley-Davidson (HOG) expects to have $1.25 billion in new discretionary cash at its disposal thanks to the sale of nearly 10% of its financing division. Shares of the motorcycle retailer are up about 12% late Wednesday. 

Harley-Davidson agreed to sell a pair of nearly 5% stakes in Harley-Davidson Financial Services (HDFS), which extends financing options, including retail loans to customers, to private equity firms KKR and PIMCO. Those partnerships create “a long-term stable funding mechanism” for HDFS, CEO Jochen Zeitz said.

The company said it plans to reinvest up to $300 million into the company, while using $450 million to reduce its debt and returning about $500 million to shareholders in a continuing share buyback.

Meanwhile, Harley-Davidson on Wednesday also reported weaker-than-expected second-quarter results before the opening bell. Revenue dropped 19% year-over-year to $1.31 billion as global motorcycle shipments decreased by 28% amid what Zeitz called “a challenging commercial environment.”

Shares of Harley-Davidson are down about 14% for 2025, despite Wednesday's rally.