Key Highlights
- Harley-Davidson shares advanced 1.3% to $23.52 in early trading following a first-quarter revenue beat
- First-quarter earnings of $0.22 per share matched estimates, while $1.2 billion in revenue exceeded the $1 billion consensus
- Worldwide retail motorcycle sales increased 8%, with North America posting a 14% jump
- Company’s ‘Back to the Bricks’ turnaround plan aims for mid-single-digit sales gains and Ebitda margins of 10ā12% through 2027
- Revised tariff cost estimate now stands at $75Mā$90M, lowered from previous peak of $105M
Shares of Harley-Davidson moved higher by 1.3% to reach $23.52 during Tuesday’s premarket session following the motorcycle manufacturer’s first-quarter performance that exceeded revenue forecasts and introduced a comprehensive strategic pivot.
The Milwaukee-based icon delivered first-quarter earnings of $0.22 per share against revenue totaling $1.2 billion. Analyst projections had called for matching EPS of $0.22 but lower sales of $1 billion. Compared to the prior year’s period when the company posted $1.07 per share on $1.3 billion in sales, the annual comparison reveals notable weakness.
Quarterly net income registered $25 million, representing a sharp pullback from the $133 million reported during Q1 2025.
Retail motorcycle deliveries in North America climbed 14% to reach 23,803 units. Across all markets, retail sales advanced 8% to 33,507 units. Dealer inventory contracted 22% on a year-over-year basis, suggesting improved balance between supply and demand at retail locations.
Management reaffirmed its full-year 2026 outlook, maintaining expectations for combined retail and wholesale motorcycle volume between 130,000 and 135,000 units.
Strategic Reset: Back to the Bricks
CEO Artie Starrs, who assumed the top role in late 2025, presented the company’s ‘Back to the Bricks’ initiative in conjunction with the quarterly report. The multi-year plan sets targets for more than $350 million in core motorcycle segment profit by 2027 and identifies over $150 million in potential cost savings.
A central pillar of the approach involves attracting younger demographics and first-time buyers through more accessible pricing. The company plans to launch the Sprint, a 440cc entry-level model carrying an approximate retail price of $6,000. Additionally, Harley intends to bring back the Sportster nameplate and introduce expanded customization programs described as ‘blank canvas’ offerings.
“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 revitalization blueprint also emphasizes strengthening dealer economics and tightening the connection between production volumes and market demand.
Tariff Pressures Persist But Moderate
While Harley produces the majority of its flagship products domestically and procures approximately 75% of components from U.S.-based suppliers, trade tariffs on imported elements such as semiconductors continue applying pressure to the cost structure.
The manufacturer absorbed $45 million in tariff-linked expenses during the first quarter. For the complete fiscal year, updated projections place the total impact between $75 million and $90 millionāa reduction from the earlier estimated range of $75 million to $105 million.
Starrs recognized that tariffs remain an obstacle but indicated the financial drag should diminish in subsequent quarters.
Prior to Tuesday’s session, HOG shares had appreciated 13% year-to-date but remained down 2% over the trailing twelve months. The five-year performance shows a decline exceeding 50%.
The ‘Back to the Bricks’ framework establishes Ebitda margin objectives of 10% to 12%. Current FactSet projections place 2026 Ebitda margins near 4%. Over the preceding five years, Harley’s average annual revenue growth has registered approximately 2%.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
