The motorcycle maker beat first-quarter sales expectations and launched a new strategy called Back to the Bricks, targeting mid-single-digit growth and stronger margins
Harley-Davidson’s new growth plan is here, and investors are responding positively. The motorcycle maker reported first-quarter earnings on Tuesday and simultaneously unveiled a fresh strategy called Back to the Bricks. The Harley-Davidson growth plan aims to deliver mid-single-digit sales increases in the motorcycle division and push Ebitda margins to between 10% and 12%. For a company whose stock has fallen more than 50% over the past five years, the timing of the announcement matters.
What the first-quarter numbers show
Harley-Davidson posted earnings per share of 22 cents on sales of $1.2 billion for the first quarter. Wall Street had expected the same earnings per share but projected sales of only $1 billion, according to FactSet. The company therefore cleared the sales bar by a wide margin. A year ago, Harley reported earnings per share of $1.07 on sales of $1.3 billion, reflecting the ongoing pressure the brand has faced.
Retail motorcycle sales offered more encouraging signs. North American sales grew 14% to 23,803 units. Global retail sales rose 8% to 33,507 units. Additionally, global dealer inventory of new motorcycles ended the quarter down 22% year over year. Lower dealer inventory generally signals healthier demand and less discounting pressure across the network.
What Back to the Bricks involves
The Harley-Davidson growth plan centers on four priorities. First, the company wants to introduce more affordable models to attract a broader range of buyers. Second, it aims to improve dealer health across its network. Third, it wants to win additional market share in key segments. Fourth, it plans to improve operational efficiency throughout the business.
CEO Artie Starrs, who took over in late 2025, is driving the initiative. He described the early reception to the company’s new RIDE marketing platform as positive and expressed enthusiasm about activating the broader strategy. Harley’s total sales have grown at roughly 2% annually on average over the past five years. The new targets represent a meaningful step up from that baseline. Current 2026 Ebitda margins sit at around 4%, according to FactSet, making the 10% to 12% target an ambitious one.
Guidance and tariff outlook
Harley maintained its full-year 2026 guidance. The company still expects retail and wholesale motorcycle sales of between 130,000 and 135,000 units. Operating profit in the motorcycle division is projected to fall between negative $40 million and positive $10 million. Financial services income is expected to land between $45 million and $60 million. The LiveWire electric motorcycle division is forecast to post a loss of between $70 million and $80 million.
On the tariff front, the outlook improved slightly. Harley now expects full-year tariff impacts of between $75 million and $90 million. That range is narrower than the previous estimate of $75 million to $105 million. The reduction reflects some easing in the company’s international cost exposure.
How the stock is responding
Shares rose 1.3% to $23.52 in premarket trading on Tuesday. Coming into the session, Harley stock was up 13% for the year but down 2% over the past 12 months. The longer-term picture remains a challenge. Over five years, the stock has lost more than half its value. The Harley-Davidson growth plan represents the company’s clearest attempt yet to change that trajectory under new leadership.
Source: Barron’s / Dow Jones
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