Key Takeaways:
Harley-Davidson Inc. (NYSE: HOG) reported an 8% increase in global retail motorcycle sales for the first quarter of 2026, as the company beat revenue forecasts and unveiled a new turnaround plan aimed at reviving growth.
“We’re pleased with our first quarter results, which reflect actions we’ve taken to drive demand and improve dealer health,” CEO Artie Starrs said in a statement. “We are energized by the positive early reception to our new RIDE marketing platform, and excited to activate against our new growth strategy, Back to the Bricks.”
The Milwaukee-based manufacturer reported total revenue of $1.17 billion, a 12% decline year-over-year but ahead of the $1.01 billion analysts expected. Net income fell to $25 million, or 22 cents per share, missing Wall Street estimates of 27 cents. The revenue beat was overshadowed by a 54% drop in financial services revenue after the company sold a large portion of its loan portfolio.
Shares of Harley-Davidson rose approximately 2.5% in early trading following the announcement. The company’s new “Back to the Bricks” strategy will focus on making its motorcycles more accessible, improving dealer profitability, and driving efficiency to achieve over $350 million in core profit by 2027.
The new strategy marks a significant pivot for Harley-Davidson, moving away from a high-price, low-volume approach. The plan centers on a “rider-centric” portfolio that includes the introduction of the entry-level Sprint motorcycle in late 2026, priced around $6,000, and the return of the iconic Sportster model in 2027. Management is targeting mid-single-digit retail unit growth over the medium term (three to five years).
Retail sales showed early positive signs, with North American sales increasing 14% to 23,803 units, driven by targeted incentives. Global dealer inventory fell 22% from the prior year, a move the company said was a deliberate effort to align wholesale shipments with retail demand.
Despite the drop in net income, Harley-Davidson maintained its full-year 2026 guidance, projecting between 130,000 and 135,000 global motorcycle sales. The company narrowed its full-year tariff cost forecast to a range of $75 million to $90 million, an improvement from a previous ceiling of $105 million.
Operating income from the motorcycle division is expected to range from a $40 million loss to a $10 million profit for the full year. The company also recorded $15 million in restructuring charges during the quarter as part of a plan to generate over $150 million in annual cost savings.
The guidance reaffirmation and the clear strategic direction signal management's confidence in its ability to navigate headwinds from tariffs and a shifting consumer landscape. Investors will be watching for execution on the new model launches and progress toward the company's 2027 profitability targets.
This article is for informational purposes only and does not constitute investment advice.
