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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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HARLEY-DAVIDSON EUROPE LIMITED
COMPANY INFORMATION
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HARLEY-DAVIDSON EUROPE LIMITED
CONTENTS
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HARLEY-DAVIDSON EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The principal activity of the Company continues to be the importation, distribution and marketing of motorcycles, together with the associated parts, accessories and other products under the Harley Davidson brand and other marks registered by the parent undertaking. For the full year, the area of operation included the UK and Republic of Ireland, most major European markets and parts of the Middle East and Africa.
Harley-Davidson Europe Limited continues to operate directly in the UK and Ireland, and through six Limited Risk Distributors appointed to cover markets of France, Germany and Austria, Italy, Benelux, Switzerland and Spain. These Limited Risk Distributors are sister companies of Harley Davidson Europe Limited, with the ultimate parent undertaking being Harley Davidson Inc.
Except for the above markets, sales to other markets in Europe, the Middle East and Africa are arranged through a network of independent distributors and dealers which are supported from the UK head office. The directors consider the results to be satisfactory, recognising the continuing volatile economic and political environment and its impact upon retail behaviour of discretionary spend on premium products. The directors continue to be committed to profitable and stable operations within our markets in Europe, the Middle East and Africa, through the development of the dealer network and investment in other sales and marketing activities. The Company's key performance indicators during the year were as follows:- 2025 2024 Change €’000 €’000 % Turnover 416,578 523,369 -20 Gross Profit 28,202 33,737 -16 Profit before tax 1,899 3,987 -52 The year on year decrease in turnover was primarily driven by a 20% reduction in motorcycle wholesale volume. The mix of motorcycle sales was slightly stronger compared to 2024 following an increase in relative mix of the higher priced Softail and Touring segments and a decrease in sales of the lower priced Revolution Max segment. The decrease in turnover was also impacted by a decrease in sales of parts and accessories and general merchandise of 6% year-on-year. Gross profit decreased by 16% year-on-year mainly due to the reduction in the volume of motorcycle wholesales in 2025. The decrease in profit before tax is driven mostly by the decrease in turnover and gross profit discussed above, offset partially by a €2m reduction in administration costs, primarily due to lower employee numbers, office related costs and contractor expenses.
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HARLEY-DAVIDSON EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's directors monitor risks and uncertainties facing the Company. The main risks are considered to be:
Competitive risk The heavyweight motorcycle market is highly competitive. Competition in the heavyweight motorcycle market is based upon a number of factors, including price, quality, reliability, styling, product features, consumer preference and warranties. The Company emphasises quality, reliability and styling in its products and offers a two-year warranty for its motorcycles. The Company sells its products at wholesale and must rely on a network of independent dealers and distributors to manage the retail distribution of its products. Credit risk The Company's financial operations are exposed to credit risk on its trade debtors. Credit risk is the risk of loss arising from a failure by a customer to meet the terms of any contract with the Company. Credit losses are influenced by general business and economic conditions, as well as contract terms, customer credit profiles and the new and used motorcycle market. Policies are aimed at minimising such losses through credit monitoring procedures. Exchange risk The Company is exposed to movements in the Sterling/Euro and USD/Euro exchange rates given that many of the administrative and payroll costs and UK dealer revenues are denominated in Sterling. Political risk Tariffs and other developments with respect to trade policies, trade agreements, and government regulations could have a material adverse impact on the Company's business. The ongoing conflicts in Ukraine and the Middle East could adversely affect the Company's business, financial condition and operating results. While the Company has not experienced any material interruptions to its infrastructure, supplies, technology systems or networks needed to support its operations or significant costs due to the conflict, the Company cannot provide assurance that will remain the case. The Company has suspended its business in Russia. Global economy Changes in general economic and business conditions, tightening of credit and retail markets or other factors may adversely impact dealers’ retail sales. The motorcycle industry is impacted by general economic conditions over which the Company has little control. These factors can weaken the retail environment and lead to weaker demand for discretionary purchases, such as the Company's motorcycles. Weakened economic conditions in certain business sectors and geographic areas can also result in reduced demand for the Company's products. Environmental and legislative risk Many of the Company's products are subject to statutory and regulatory requirements governing emissions, noise and other matters in the countries where the Company’s products are sold. Any significant change to the regulatory requirements governing emissions and noise may substantially increase the cost of the Company’s products. If the Company fails to meet existing or new requirements, then the Company may be unable to produce and sell certain products or may be subject to fines or penalties.
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HARLEY-DAVIDSON EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board and signed on its behalf.
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HARLEY-DAVIDSON EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The profit for the year, after taxation, amounted to €1,411K (2024 - €3,004K).
There were no dividends payments in 2025 (2024: €Nil).
The directors who served during the year were:
The Company’s business activities, together with the factors likely to affect its future development and principal risks and uncertainties are described in the Strategic Report.
The Company is dependent upon its ultimate parent company, Harley Davidson Inc., for both product supply and cash resources. In view of this, the Directors have confirmed that Harley Davidson Inc. intends to make funds available to the Company to enable it to meet its liabilities as they fall due for a period at least until 31st December 2027. After considering these factors, including the financial and operational ability of the ultimate parent company to continue as a going concern, the Directors confirm that the Company has adequate resources to continue in operational existence for the foreseeable future. No material uncertainties that could cast significant doubt about the ability of the company to continue as a going concern have been identified. Accordingly, they continue to adopt the going concern basis in preparing the annual Report and accounts. The financial statements of Harley-Davidson Inc. are publicly available, see note 24. Payment to suppliers The Company views that disclosure of average creditor days is not meaningful, since 85% of purchases are made from intercompany suppliers. The Company agrees terms and conditions for its business transactions with third party suppliers. Payment is then made on these terms, subject to the terms and conditions being met by the supplier.
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HARLEY-DAVIDSON EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Engagement with suppliers, customers and others
Section 172(1) statement The Company directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider would be most likely to promote the success of the Company for the benefit of its members as a whole. They consider the impact that any material decision will have on all relevant stakeholders to ensure that it is making a decision that promotes the long-term success of the Company. The directors are members of the Company’s EMEA Leadership Team which meets weekly and is collectively responsible for ensuring that the Company’s operations are aligned to our internal values and to focus on the short and long term strategically important decisions and activities of the Company. This includes how the Company will act fairly and engage with all key stakeholders. Stakeholder’s Engagement The directors have considered which parties should be deemed to be stakeholders of the Company. The key stakeholders are our dealers, riders, employees, community and service providers. The section below discusses why these stakeholders are considered of importance to the Company and the actions taken to ensure that their interests are considered. Dealers Working with our dealers is a crucial part of our stakeholder engagement across EMEA. We conduct regular meetings with our Dealer Advisory Council (DAC) where we share ideas and listen to feedback. Meetings are chaired by the Vice President and Managing Director of EMEA and selected meetings are attended by board members from Harley Davidson Inc., including the CEO. Members’ views and feedback from the meeting are taken and shared via detailed minutes. Riders Supporting and nurturing our existing and new riding communities is vital to the ongoing engagement of our riders. This work focuses on the entertainment of this riding community from the country level up to international events such as the ‘European rally’ which occurs each year in a different European location and is open to all members of the public. We also host the open rider event ‘European Bike Week’, in the Corinthian region of Austria which can attract over 70,000 riders per year. The feedback of our existing and prospective riders is important to us and collected through a variety of methods including through the dealer network, customer experience surveys and events detailed above. Employees We are committed to building an inclusive, engaging work environment. Our goal is to encourage, value and leverage differences in people and perspectives to maximise business outcomes. Diversity and inclusion is a business imperative that aligns with our mission and values. The Company and directors use a diverse range of methods for communicating with employees to provide them with relevant information and to obtain their views, which are then considered when making decisions which are likely to affect their interests. Such methods include informal meetings, email communications, surveys, management team meetings and regular “town halls.” These help to ensure that employees are kept fully informed about developments in the Company which directly affect employees, including the Company’s financial and operating performance. The Company introduced hybrid working for all previously office-based employees following the COVID-19 pandemic. The hybrid working arrangement allows for a flexible way of working, with a blend of working on-site and remotely, that suits the needs of both the employee and the company. Community We are committed to giving back to our community and provide financial support to Trax, a charity which aims to divert young people away from anti-social behaviour, crime and negative activities and encourage personal, social and educational development, and to Maggie’s cancer support charity.
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HARLEY-DAVIDSON EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Service providers
We ensure that the impact on our service suppliers is fully considered and understood before any business decision is made. Our key suppliers are important to enable us to deliver a high quality service to our customers. Maintaining a close and constructive working relationship with our key suppliers is crucial and we aim to treat our suppliers fairly, including paying them within agreed timelines.
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HARLEY-DAVIDSON EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company has made qualifying third party indemnity provisions for the benefit of its directors which were
made during the year and remain in force at the date of this report.
Post balance sheet events
On 26 August 2025, the Brussels Court of First Instance ruled in favour of the Company in relation to its application for extended reliance on certain Binding Origin Information decisions. At 31 December 2025, the resulting customs duty reimbursement remained subject to the Belgian Customs administrative reimbursement process and review by the European Commission as required under the Union Customs Code and was not considered virtually certain. Subsequent to the reporting date, the Company completed the relevant administrative process and received approval from the European Commission and received €34.7 million of the original claim amount from the Belgian Customs authorities in February 2026 in respect of the extended reliance claim. The receipt of the refund does not result in an adjustment to the amounts recognised in these financial statements, as, at 31 December 2025, the administrative reimbursement process and approval from the European Commission remained outstanding and the conditions for recognition of the related asset had not been met.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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HARLEY-DAVIDSON EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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HARLEY-DAVIDSON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARLEY-DAVIDSON EUROPE LIMITED
We have audited the financial statements of Harley-Davidson Europe Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work have performed, have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If identify such material inconsistencies or apparent material misstatements, are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work have performed, conclude that there is a material misstatement of this other information, are required to report that fact.
We have nothing to report in this regard.
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HARLEY-DAVIDSON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARLEY-DAVIDSON EUROPE LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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HARLEY-DAVIDSON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARLEY-DAVIDSON EUROPE LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management around actual and potential litigation and claims; • Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
• Performing audit work over the recognition of revenue on deliveries of goods/income/services occurring at the year end to provide assurance over cut-off. • Enquiry of the Company’s legal department and solicitors around actual and potential litigation and claims. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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HARLEY-DAVIDSON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARLEY-DAVIDSON EUROPE LIMITED (CONTINUED)
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Milton Keynes, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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HARLEY-DAVIDSON EUROPE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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HARLEY-DAVIDSON EUROPE LIMITED
REGISTERED NUMBER: 02358344
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 34 form part of these financial statements.
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HARLEY-DAVIDSON EUROPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Harley-Davidson Europe Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page.
The principal activity of the Company continues to be the importation, distribution and marketing of motorcycles, together with the associated parts, accessories and other products under the Harley Davidson brand and other marks registered by the parent undertaking.
2.Accounting policies
Harley-Davidson Europe Limited is a company incorporated in the United Kingdom under the Companies Act.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Euros, the functional currency of the Company, and rounded to the nearest thousand Euro. As explained in the Directors' Report, the directors believe it appropriate to continue to adopt the going concern basis in preparing the financial statements.
Monetary amounts in these financial statements are rounded to the nearest €000.
The Company’s business activities, together with the factors likely to affect its future development and principal risks and uncertainties are described in the Strategic Report.
The Company is dependent upon its ultimate parent company, Harley Davidson Inc., for both product supply and cash resources. In view of this, the Directors have confirmed that Harley Davidson Inc. intends to make funds available to the Company to enable it to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements. After considering these factors, including the financial and operational ability of the ultimate parent company to continue as a going concern, the Directors confirm that the Company has adequate resources to continue in operational existence for the foreseeable future. No material uncertainties that could cast significant doubt about the ability of the company to continue as a going concern have been identified. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and accounts. The financial statements of Harley-Davidson Inc. are publicly available, see note 26.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows; • the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); • the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); • the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; • the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Harley-Davidson Inc. as at 31 December 2025 and these financial statements may be obtained from 3700 W Juneau Avenue, PO Box 653, Milwaukee, WI 53210, USA.
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost comprises the aggregate amount paid and the fair value of any other consideration given to acquire the asset and includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight line basis over its estimated useful life, as follows: Short leasehold improvements Shorter of 5 years or remaining useful life Fixtures, fittings and equipment 5 years Computer equipment and software 3 to 5 years The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Subscription revenue for either a one year membership or lifetime memberships are recognised in revenue over the life of the membership. Lifetime memberships are recognised over 11 years, revenue is recognised rateably over the time the customer is expected to require the services of the membership.
The Company assessed at each reporting date whether an asset may be impaired. If any indication arises the relevant asset is assessed. If the carrying amount is greater than the recoverable amount, the amount is impaired to profit or loss.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. Cost is based on the cost of purchase on a first in, first out basis. The title and risk of stock transfers to Harley-Davidson Europe Limited outside of the United States, the risk is transferred to Harley-Davidson Europe Limited at the time the goods are on board the ship.
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised as other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Up until 1 January 2024 product warranty costs were provided for, based upon the estimated warranty cost per unit sold. Warranty costs for Limited Risk Distributors are also funded by the Company. From 1 January 2024 Harley Davidson Inc will bear the cost of product warranty. The impact of the time value of money on warranty provisions is not material and therefore the provision is not discounted.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The cost of cash-settled transactions is measured at fair value using an appropriate option pricing model. Fair value is established initially at the grant date and at each year end date thereafter until the awards are settled. During the vesting period a liability is recognised representing the product of the fair value of the award and the portion of the vesting period expired as at the year end date. From the end of the vesting period until settlement, the liability represents the full fair value of the award as at the year end date. Changes in the carrying amount for the liability are recognised in the Statement of Comprehensive Income for the period.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at the present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the year end date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from these estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements. Stock provisions Inventories are values at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculations of these provisions require judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends. Property, plant and equipment The company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available to use. The estimated useful lives of property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets. Provisions Management assesses the carrying value of debtors, stock and warranty balances based on past losses, current trading patterns and anticipated future events. Furthermore, management assess the need of providing for ongoing legal disputes on a case by case basis, also incorporating assessments of legal counsel. Contingent assets Contingent assets are probable assets of the Company for which the timing and amount are subject to significant uncertainty. Contingent assets are not recognised in the consolidated balance sheet but are disclosed when an inflow of economic benefits is considered probable. A contingent asset is recognised in the financial statements when the inflow of economic benefits is virtually certain.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 24
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 25
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 26
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
9.Taxation (continued)
Page 27
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 28
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 29
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 30
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Other reserves
Profit and loss account
Page 31
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions charged to the Statement of Comprehensive Income amounted to €434k (2024: €536k). As at 31 December 2025 €92k (2024: €98k) was payable to the fund and included in accruals.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company has several claims for the reimbursement of customs duties paid in Belgium.
Following the revocation of five Binding Origin Information rulings in April 2021, the Company applied for an extended reliance claim. The application was rejected by the Belgian authorities on 30 July 2021 and, on 29 October 2021, the Company commenced court proceedings challenging that decision. On 26 August 2025, the Brussels Court of First Instance ruled in the Company’s favour, annulling the Belgian authorities’ decision to reject the claim. At 31 December 2025, the Company considered recovery of the resulting claim of approximately €34.7 million to be probable. However, reimbursement remained subject to an administrative process with Belgian Customs, including verification of customs declarations and the relevant motorcycle population. In addition, as required under the Union Customs Code, the claim was subject to further review by the European Commission. Accordingly, recovery was not considered virtually certain at the reporting date as these processes and reviews had not been completed. The Company also had a further claim of approximately €1.1 million relating to motorcycles excluded by Belgian Customs during the verification process and €5.0 million relating to customs duties subject to ongoing court proceedings. As at 31 December 2025, recovery of these amounts was considered probable but not virtually certain.
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HARLEY-DAVIDSON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Subsequent to the reporting date, the Company completed the relevant administrative process and received approval from the European Commission and received €34.7 million of the original claim amount from the Belgian Customs authorities in February 2026 in respect of the extended reliance claim. The receipt of the refund does not result in an adjustment to the amounts recognised in these financial statements, as, at 31 December 2025, the administrative reimbursement process and approval from the European Commission remained outstanding and the conditions for recognition of the related asset had not been met.
The immediate parent company is
Harley-Davidson Inc is listed on the New York Stock Exchange. In the opinion of the directors there is no ultimate controlling party.
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