Key Highlights
- Shares of HOG advanced 1.3% in premarket action to $23.52 following first quarter results that exceeded revenue forecasts
- First quarter delivered EPS of $0.22 with revenue reaching $1.2 billion; sales surpassed Wall Street’s $1 billion consensus
- Worldwide retail motorcycle shipments increased 8%, while North American deliveries jumped 14%
- Management unveiled ‘Back to the Bricks’ roadmap aiming for mid-single-digit revenue growth and Ebitda margins between 10% and 12% through 2027
- Updated tariff expense projection now ranges from $75M to $90M, reduced from previous upper estimate of $105M
Shares of Harley-Davidson moved higher by 1.3% to reach $23.52 during Tuesday’s premarket session after the motorcycle manufacturer delivered first quarter financial results exceeding revenue projections while introducing a comprehensive new growth initiative.
The Milwaukee-based company posted quarterly earnings of $0.22 per share against revenue totaling $1.2 billion. Analyst consensus had projected EPS of $0.22 with sales of $1 billion. In comparison, the prior year period saw earnings of $1.07 per share on $1.3 billion in revenue, highlighting a notable year-over-year contraction.
Quarterly net income registered at $25 million, representing a significant decline from the $133 million reported during the first quarter of 2025.
North American retail motorcycle deliveries expanded 14% to reach 23,803 units. Worldwide retail shipments climbed 8% to 33,507 units. Dealer inventory declined 22% compared to the prior year, suggesting improved balance between supply and demand across the dealership network.
Management reaffirmed its fiscal 2026 outlook. The company continues to project retail and wholesale motorcycle volumes between 130,000 and 135,000 units for the complete fiscal year.
Back to the Bricks Initiative
Chief Executive Officer Artie Starrs, who assumed leadership in late 2025, introduced the ‘Back to the Bricks’ framework concurrent with the quarterly report. This strategic plan sets targets exceeding $350 million in core operating profit from motorcycle operations by 2027 while achieving cost reductions surpassing $150 million.
A central component involves attracting younger demographics and first-time buyers through more accessible pricing. The company will launch the Sprint, an entry-tier 440cc model carrying an approximate $6,000 price tag. The legendary Sportster nameplate will return to the lineup, accompanied by new customizable ‘blank canvas’ configurations.
“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 additionally emphasizes enhancing dealer economics and synchronizing inventory management with genuine market demand.
Trade Policy Remains a Challenge
The company produces the majority of its primary products domestically and procures approximately 75% of components from U.S.-based suppliers. Nevertheless, import duties on foreign-sourced parts including semiconductors continue pressuring the cost structure.
Tariff-related expenses totaled $45 million during the first quarter. For the complete fiscal year, management currently anticipates this figure will settle between $75 million and $90 million—representing a reduction from the earlier projection ranging from $75 million to $105 million.
Starrs recognized that trade policies remain challenging but indicated the financial burden should moderate in subsequent quarters.
Prior to Tuesday’s session, HOG stock had appreciated 13% year-to-date while declining 2% over the trailing twelve months. Across the five-year horizon, shares have depreciated more than 50%.
The ‘Back to the Bricks’ framework establishes Ebitda margin objectives between 10% and 12%. Currently, fiscal 2026 Ebitda margins are anticipated around 4%, according to FactSet data. The company’s average annual revenue expansion over the past five years has approximated 2%.
