Harley-davidson Stock Earnings Reports

Harley-Davidson reported Q1 2026 results and launched a new strategic plan, "Back to the Bricks." Key operational and financial points: global retail unit sales were up 8% year-over-year (34k retailed), driven by a 14% increase in North America; dealer inventory was reduced ~22% year-over-year and is healthier (about two-thirds current model year in North America). Consolidated revenue fell 12% (notably HDFS revenue down 54% after the HDFS transaction), consolidated operating income fell to $23M from $160M year-over-year, and EPS was $0.22 vs. $1.07 prior year. HDMC operating income was $19M; LiveWire loss was ~$18M (in line with expectations) with revenue growth; HDFS moved to a capital-light model with operating income of $22M in Q1. Tariffs remain a headwind (Q1 tariff cost $45M; 2026 guidance for new/increased tariffs narrowed to $75M–$90M). Cash and equivalents ended Q1 at $1.8B; the company repurchased 6.6M shares ($128M) in Q1 and has repurchased $726M since Q2 2024 under the prior program. Management reaffirmed 2026 unit guidance (HDMC retail and wholesale 130k–135k units) and said shipments will be higher in Q2 and Q4, flatter in Q3 versus prior year. The strategic plan centers on (1) a rider-centric portfolio (more accessible and customizable models), (2) aligning dealer economics ("win-win" with dealers), (3) re-emphasizing parts & accessories (P&A) and apparel as growth and margin drivers, and (4) cost and restructuring to enable investment and shareholder returns. Tactical actions include bringing back the Sportster in 2027, launching the Sprint in H2 2026, reinstating ~30% of previously eliminated P&A SKUs, targeting at least $150M of annual run-rate cost savings (impacting 2027+), and targeting mid-single-digit retail unit growth and 10%–12% EBITDA margin over the medium term. Management also stated a clear line of sight to >$350M EBITDA in 2027 driven by cost reduction, better wholesale/retail alignment, Sportster/Sprint, P&A expansion, and improved promotions. LiveWire remains operationally supported but is funded under its own commitment; Harley-Davidson does not plan additional direct funding beyond prior commitments. Capital allocation priorities remain reinvestment, buybacks/dividends, and opportunistic M&A focused on strategic fit.