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MILWAUKEE - Harley-Davidson Inc. (NYSE: HOG) has publicly disagreed with the recommendations of proxy advisory firms Glass Lewis and Egan-Jones against its Director nominees. The motorcycle manufacturer is advocating for shareholders to vote "FOR ALL" of its Director nominees at the upcoming Annual Meeting on May 14, 2025. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.56x and has consistently maintained dividend payments for 33 consecutive years, demonstrating long-term stability despite recent challenges.
The company’s statement comes after Institutional Shareholder Services Inc. (ISS), another proxy advisory firm, advised shareholders to support all of Harley-Davidson’s Director nominees. Glass Lewis, however, has raised concerns about the uncertainty introduced by H Partners’ campaign, which lacks a "substantive course of action."
Harley-Davidson’s Presiding Director of the Board, Tom Linebarger, emphasized the company’s progress under the Hardwire strategic plan and strong governance. He warned that the removal of two independent Directors could pose significant risks to the company and jeopardize shareholder value. Linebarger also criticized H Partners for not presenting constructive solutions during their three-year representation on the board.
The company highlighted the accomplishments of Jochen Zeitz, Tom Linebarger, and Sara Levinson, who have played pivotal roles in the company’s strategy and CEO transition process. Under Zeitz’s leadership as CEO, Harley-Davidson has reportedly outperformed its peers in terms of total shareholder return and operating margins. InvestingPro analysis shows the company trading at an attractive P/E ratio of 8.5x, with a notable free cash flow yield of 32%. Get access to 12 more exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In the face of a challenging macroeconomic environment, Harley-Davidson has maintained a performance above its peer median, with operating margins around 4 percentage points higher and free cash flow as a percent of EBITDA at 70%, more than double its peer median.
The Board of Directors is urging shareholders to protect their investment by voting for the company’s nominees using the WHITE proxy card and to disregard any BLUE proxy card received from H Partners. With the stock currently trading near its InvestingPro Fair Value and showing a gross profit margin of 26%, investors seeking deeper insights can access comprehensive Pro Research Reports covering 1,400+ top stocks, including Harley-Davidson’s detailed financial health analysis and future prospects.
This call to action is based on a press release statement by Harley-Davidson, as the company prepares for its Annual Meeting and continues to navigate through a pivotal phase of leadership transition and strategic execution.
In other recent news, Harley-Davidson Inc. reported first-quarter 2025 financial results that exceeded analysts’ expectations, with an earnings per share (EPS) of $1.07, surpassing the forecasted $0.81 by 32%. The company’s revenue reached $1.33 billion, exceeding the anticipated $1.11 billion, despite a 23% year-over-year decline in consolidated revenue. This performance reflects strong operational management amid a challenging retail environment. In response to these results, Citi analysts raised their price target for Harley-Davidson to $24.00 from $23.00, maintaining a Neutral rating on the stock.
The company’s management has withdrawn its 2025 financial guidance, citing uncertainties related to tariffs and consumer demand. Meanwhile, Institutional Shareholder Services Inc. (ISS) endorsed all of Harley-Davidson’s board nominees, supporting the company’s current leadership and strategic direction. ISS acknowledged the positive impact of CEO Jochen Zeitz and the Hardwire Strategic Plan on Harley-Davidson’s trajectory. Additionally, the company is navigating complex business conditions, including geopolitical shifts and changes in its executive and board structures.
Harley-Davidson remains focused on reducing dealer inventory and enhancing its product lineup, with plans to introduce new entry-level products and expand its cruiser offerings. The company also holds a controlling interest in LiveWire Group, Inc., an electric motorcycle company, which is evaluating its business model amid slower-than-anticipated EV adoption.
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