Harley-Davidson (HOG) Stock Climbs After Q1 Beat and Bold New Turnaround Strategy

TLDR

• HOG stock rose 1.3% in premarket to $23.52 after Q1 earnings beat sales expectations
• Q1 EPS came in at $0.22 on $1.2 billion in revenue; revenue topped the $1 billion Wall Street estimate
• Global retail motorcycle sales grew 8%, with North American sales up 14%
• New “Back to the Bricks” strategy targets mid-single-digit sales growth and 10–12% Ebitda margins by 2027
• Tariff impact forecast trimmed to $75M–$90M, down from a prior high of $105M

Harley-Davidson stock edged up 1.3% to $23.52 in premarket trading on Tuesday after the company posted Q1 results that beat revenue expectations and rolled out a new growth strategy.

Harley-Davidson, Inc., HOG

The company reported earnings per share of $0.22 on revenue of $1.2 billion. Wall Street had expected EPS of $0.22 on sales of $1 billion. A year ago, Harley earned $1.07 per share on $1.3 billion in revenue, so the year-over-year decline is hard to miss.

Net income came in at $25 million, down from $133 million in Q1 2025.

North American retail motorcycle sales grew 14% to 23,803 units. Global retail sales rose 8% to 33,507 units. Dealer inventory levels fell 22% year over year, which points to better demand-supply alignment at dealerships.

The company held its 2026 guidance steady. It still expects retail and wholesale motorcycle sales of 130,000 to 135,000 units for the full year.

Back to the Bricks

CEO Artie Starrs, who took over in late 2025, unveiled the “Back to the Bricks” plan alongside the earnings release. The strategy targets over $350 million in core profit from the motorcycle business by 2027 and over $150 million in cost reductions.

Part of the plan involves going after younger and newer riders with more affordable models. Harley will introduce the Sprint, an entry-level 440cc motorcycle priced at around $6,000. The iconic Sportster will also be revived, along with new “blank canvas” customization options.

The broader strategy also focuses on improving dealer profitability and aligning inventory more closely with actual demand.

Tariffs Still a Factor

Harley manufactures most of its core products in the U.S. and sources about 75% of its components from American suppliers. Even so, tariffs on imported parts like semiconductors continue to weigh on costs.

The company paid $45 million in tariff-related costs in Q1. For the full year, it now expects that figure to land between $75 million and $90 million — down from a prior range of $75 million to $105 million.

Starrs acknowledged tariffs remain a headwind but said the impact is expected to ease in coming quarters.

Coming into Tuesday, HOG stock was up 13% for the year but down 2% over the past 12 months. Over five years, the stock is down more than 50%.

The “Back to the Bricks” strategy targets Ebitda margins of 10% to 12%. For context, 2026 Ebitda margins are currently expected to come in around 4%, per FactSet. Harley’s average annual sales growth over the past five years has been roughly 2%.

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