Key Highlights
- Shares of HOG advanced 1.3% in early trading to $23.52 following a first-quarter revenue beat
- First quarter earnings of $0.22 per share on $1.2 billion revenue exceeded analyst revenue projections of $1 billion
- Worldwide retail motorcycle unit sales increased 8%; North American region posted 14% growth
- Management introduced “Back to the Bricks” initiative aimed at achieving mid-single-digit sales expansion and 10–12% Ebitda margins through 2027
- Expected tariff-related expenses lowered to a range of $75M–$90M from previous ceiling of $105M
Shares of Harley-Davidson moved higher by 1.3% to reach $23.52 during premarket hours Tuesday following the motorcycle manufacturer’s first-quarter performance that surpassed revenue projections and the announcement of a comprehensive strategic reset.
The Milwaukee-based company delivered quarterly earnings of $0.22 per share against revenue totaling $1.2 billion. Analyst consensus had called for earnings per share of $0.22 with sales reaching $1 billion. Compared to the same period last year when the company generated $1.07 per share on $1.3 billion in sales, the year-over-year contraction is evident.
Quarterly net income registered at $25 million, marking a significant drop from the $133 million recorded during the first quarter of 2025.
Retail motorcycle unit sales within North America climbed 14% to reach 23,803 units. On a worldwide basis, retail sales expanded 8% to total 33,507 units. Dealer inventory positions decreased 22% compared to the prior year, suggesting improved balance between supply and demand at the retail level.
Management reaffirmed its full-year 2026 outlook. The company continues to project combined retail and wholesale motorcycle shipments in the range of 130,000 to 135,000 units for the complete fiscal year.
Strategic Reset Unveiled
Chief Executive Artie Starrs, who assumed leadership in late 2025, presented the “Back to the Bricks” roadmap concurrent with the quarterly results. This strategic framework establishes targets of generating over $350 million in core profitability from motorcycle operations by 2027 while achieving cost reductions exceeding $150 million.
A central component of the initiative involves attracting younger demographics and first-time buyers through more accessible price points. The company plans to launch the Sprint, an entry-tier 440cc model carrying an approximate $6,000 price tag. Additionally, Harley intends to reintroduce the legendary Sportster nameplate alongside new customization platforms described as “blank canvas” options.
“We see the Sprint at a price point, approximately $6,000, with a size, maneuverability, features and benefits that are more consistent with what some young riders are looking for,” Starrs said.
The overarching framework additionally emphasizes enhancing dealer economics and more precisely matching inventory volumes with market demand patterns.
Tariff Pressures Persist
Harley produces the majority of its flagship products domestically and procures approximately 75% of components from suppliers based in the United States. Nevertheless, import duties on certain parts including semiconductors continue to pressure cost structures.
The manufacturer absorbed $45 million in tariff-associated expenses during the first quarter. For the complete year, management now anticipates this figure will fall within a band of $75 million to $90 million — revised downward from the previous range spanning $75 million to $105 million.
Starrs recognized that tariffs remain an obstacle but indicated the financial impact should moderate in subsequent quarters.
Heading into Tuesday’s session, HOG shares showed a year-to-date gain of 13% but carried a 2% decline over the trailing twelve months. Across a five-year horizon, the stock has depreciated more than 50%.
The “Back to the Bricks” strategic plan establishes Ebitda margin objectives of 10% to 12%. For perspective, current 2026 Ebitda margin estimates stand near 4%, according to FactSet data. The company’s average annual revenue growth over the preceding five-year period has approximated 2%.
