Key Highlights
- HOG shares advanced 1.3% in premarket trading to $23.52 following first-quarter results that surpassed revenue forecasts
- First-quarter earnings reached $0.22 per share on $1.2 billion in revenue; sales exceeded analyst estimates of $1 billion
- Worldwide retail motorcycle sales increased 8%, while North American sales surged 14%
- Fresh “Back to the Bricks” initiative aims for mid-single-digit sales expansion and 10–12% Ebitda margins through 2027
- Expected tariff burden reduced to $75M–$90M, lowered from previous estimate of up to $105M
Shares of Harley-Davidson moved higher by 1.3% to $23.52 during premarket hours on Tuesday following the company’s first-quarter earnings announcement that exceeded revenue projections and introduced a comprehensive growth initiative.
The Milwaukee-based motorcycle manufacturer delivered earnings of $0.22 per share on $1.2 billion in quarterly revenue. Analysts surveyed by Wall Street had anticipated earnings of $0.22 per share on revenue of $1 billion. During the same period last year, the company generated $1.07 per share on revenue of $1.3 billion, representing a notable year-over-year contraction.
Quarterly net income totaled $25 million, a decline from $133 million recorded in the first quarter of 2025.
Retail motorcycle sales in North America expanded 14% to reach 23,803 units. Worldwide retail sales climbed 8% to 33,507 units. Year-over-year dealer inventory dropped 22%, suggesting improved balance between supply and demand across the dealer network.
Management maintained its full-year 2026 outlook, continuing to project retail and wholesale motorcycle sales between 130,000 and 135,000 units.
Strategic Reset
CEO Artie Starrs, who assumed leadership in late 2025, presented the “Back to the Bricks” strategic framework alongside quarterly results. This plan sets objectives to generate over $350 million in core motorcycle segment profits by 2027 while achieving more than $150 million in cost savings.
A central element involves attracting younger and first-time riders through more accessible pricing. The company plans to launch the Sprint, an entry-level 440cc model carrying an approximate $6,000 price tag. The legendary Sportster nameplate will return to the lineup, accompanied by expanded “blank canvas” customization capabilities.
“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 comprehensive approach also emphasizes strengthening dealer economics and synchronizing inventory levels with market demand patterns.
Trade Policy Challenges
Harley-Davidson produces the majority of its primary products domestically and procures approximately 75% of components from U.S. suppliers. Despite this domestic footprint, import duties on components such as semiconductors continue to pressure operating costs.
The manufacturer incurred $45 million in tariff-related expenses during the first quarter. Management now forecasts full-year tariff costs between $75 million and $90 million — a reduction from the previous range of $75 million to $105 million.
Starrs recognized that tariffs continue to present challenges while noting that the financial impact should moderate in subsequent quarters.
Heading into Tuesday’s session, HOG shares had gained 13% year-to-date while declining 2% over the trailing 12 months. The five-year performance shows shares down more than 50%.
The “Back to the Bricks” blueprint establishes Ebitda margin targets of 10% to 12%. Current FactSet estimates place 2026 Ebitda margins near 4%. Over the past five years, Harley-Davidson has averaged approximately 2% annual sales growth.
