MILWAUKEE, May 5, 2026, 08:08 (CDT)
- Harley-Davidson rolled out its “Back to the Bricks” strategy, centering on lower-priced motorcycles, dealer expansion and tighter cost controls.
- Net income for the first quarter tumbled 81% to $25 million. Still, global retail motorcycle sales climbed 8%.
- Harley-Davidson is aiming at younger buyers, rolling out a Sprint model expected to cost about $6,000, plus a reworked Sportster.
Harley-Davidson on Tuesday outlined a move toward cheaper bikes and a heavier reliance on dealerships—a pronounced shift as new CEO Artie Starrs steps in, responding to an 81% plunge in first-quarter profit. The Milwaukee brand, usually synonymous with heavyweight touring models and lofty price tags, is now steering back toward affordability.
This shift comes at a critical time for Harley, which is working to boost sales volume while protecting margins. Big-ticket buyers remain cautious, squeezed by higher borrowing costs and household bills. Profits have also taken a hit from tariffs and incentives.
Harley posted net income of $25 million, or 22 cents per share—down sharply from $133 million, or $1.07 a share, this time last year. Revenue slid 12% to $1.17 billion. Operating income took a steeper dive, tumbling 85% to $23 million.
Retail sales managed to climb. Harley reported a 14% boost in North American retail motorcycle sales, hitting 23,803 units. Globally, retail sales were up 8% to 33,507 units. The company ended the quarter with global dealer inventory for new motorcycles sitting 22% lower than a year ago—evidence Harley is tightening production to better align with real demand.
Starrs flagged a 14% jump in North American retail performance in the company’s earnings release, crediting both stronger demand and leaner dealer inventories. Harley, he added, is “excited to activate” its new Back to the Bricks strategy. investor.harley-davidson.com
The plan is shooting for over $350 million in EBITDA at Harley-Davidson Motor Company by 2027. EBITDA—earnings before interest, taxes, depreciation and amortization—offers a look at profit before those financing and accounting items hit the books. Harley’s other medium-term benchmarks: mid-single-digit retail unit growth each year and an EBITDA margin of 10% to 12% for the motorcycle segment.
The Sprint, an entry-level 440cc bike with a price tag near $6,000, is central to the plan. Starrs described the model’s size and handling as closer to what younger riders want, telling Reuters its features hit the mark for that crowd.
Harley is set to revive the Sportster, according to the Wall Street Journal, rolling out a fresh 883cc model at about $10,000 and putting U.S. assembly back in York, Pennsylvania. That’s a departure from Jochen Zeitz’s earlier push toward high-end touring bikes, some of which carried much steeper price tags.
Harley’s move toward more affordable bikes narrows the gap with entry and midweight competitors. Honda’s 2026 Rebel 500 comes in with a starting MSRP of $6,799. Yamaha’s 2026 MT-03 is listed from $4,999, and Royal Enfield’s U.S. Classic 350 kicks off at $4,599.
Dealers are pivotal to the overhaul. Harley has outlined plans aimed at doubling dealer profitability in 2026, and then doing it again by 2029. The company is also targeting a rebound in market share across new and used bikes, parts, accessories, apparel, and licensing.
Still, the margin for missteps is slim. Harley reported that gross margin in its motorcycle division dropped by 3.9 percentage points in the first quarter, pressured by tariffs, pricing moves, sales incentives, and shifts in product mix. On top of that, the company logged $15 million in expenses related to its strategic overhaul—this covers both restructuring charges and termination benefits.
Tariffs are still weighing on Harley. The company now sees tariff-related expenses landing between $75 million and $90 million for 2026—lower than its previous high-end estimate of $105 million. For the first quarter, Harley booked $45 million in these costs, according to Reuters.
The company stuck to its 2026 forecast, calling for global motorcycle retail sales and wholesale shipments in the 130,000 to 135,000 range. For this year, it’s still projecting operating income for the motorcycle segment anywhere from a $40 million loss to a $10 million gain—signaling that the turnaround isn’t yet making itself felt in the bottom line.
