Harley-Davidson Launches New Strategic Plan, Targets Over $350M EBITDA by 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy HOG?
Harley-Davidson announced "Back to the Bricks," its new strategic plan designed to restore the Company's performance and deliver profitable growth. Back to the Bricks is built on five key pillars: The Company's iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth; Harley-Davidson's dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029; Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company's new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection. Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time. Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths. The Company is targeting more than $350M in EBITDA in 2027 for Harley-Davidson Motor Company, with additional future upside through execution against Harley-Davidson's strategic priorities. Over the medium term, Harley-Davidson is targeting Mid-single-digit CAGR for HDMC retail unit growth; HDMC gross margin of 25-30% Mid-single-digit CAGR for HDMC Parts & Accessories and Apparel & Licensing growth. HDMC operational expenditures of less than 20% of sales. HDMC EBITDA margin of 10%-12%.
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Analyst Views on HOG
Wall Street analysts forecast HOG stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 23.640
Low
32.00
Averages
32.67
High
34.00
Current: 23.640
Low
32.00
Averages
32.67
High
34.00
About HOG
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. The Company's segments include Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). HDMC segment designs, manufactures and sells Harley-Davidson motorcycles. The HDMC also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. The HDMC conducts business on a global basis, with sales in the United States, Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America. The LiveWire segment sells electric motorcycles, electric balance bikes for kids, electric bikes, parts and accessories and apparel in the United States and certain international markets. The HDFS segment is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson and LiveWire motorcycles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinson Value Management Acquires Stake in Harley-Davidson
- New Investment Position: Robinson Value Management initiated a new stake in Harley-Davidson by purchasing 158,986 shares in Q1 2026 for approximately $3.12 million, indicating bullish sentiment towards the company following its recent 52-week low.
- Position Value Increase: By quarter-end, the value of Harley-Davidson's position rose to $3.21 million, reflecting positive trading activity and price movements, which suggests investor confidence in the company's future performance.
- Financial Performance Overview: Harley-Davidson reported trailing twelve months revenue of $4.47 billion and net income of $338.74 million, with a dividend yield of 2.96%, demonstrating a solid financial foundation despite a slight decline in revenue.
- Market Reaction Analysis: Although Harley-Davidson's Q1 revenue fell 12% year-over-year, the 8% growth in global retail sales indicates effective measures taken to drive demand and improve inventory, enhancing investor confidence in its future growth prospects.
See More
Harley-Davidson Q1 2026 Earnings Call Insights
- North America Growth: Harley-Davidson achieved a 14% year-over-year increase in North America, contributing to an 8% global retail sales growth, indicating the company's resilience in a challenging consumer environment.
- Inventory Management Optimization: The company reduced global inventory by 22% year-over-year during the quarter, prioritizing dealer inventory sell-through and aligning wholesale shipments with retail demand, significantly enhancing operational efficiency and market competitiveness.
- Financial Performance Decline: Consolidated revenue in Q1 fell by 12%, primarily driven by a 54% drop in Harley Financial Services (HDFS) revenue as it transitioned to a new capital-light model, highlighting challenges faced during the transformation.
- Future Outlook and Targets: Despite facing tariff costs estimated between $75 million and $90 million, the company reaffirmed its 2026 retail and wholesale unit targets of 130,000 to 135,000, demonstrating confidence in future growth.
See More
Harley-Davidson Reports Q1 2026 Financial Results with Mixed Performance
- Retail Sales Growth: Harley-Davidson experienced a 14% increase in retail performance in North America, driving an 8% global retail sales growth, indicating positive progress in market demand recovery despite an overall revenue decline.
- Financial Performance Decline: The company reported Q1 2026 revenue of $1.173 billion, down 12% year-over-year, primarily due to a 54% drop in Harley Financial Services (HDFS) revenue, reflecting challenges in financial management and market conditions.
- Inventory Management Optimization: A 22% reduction in global dealer inventories indicates effective strategies in aligning wholesale with retail demand, aimed at improving dealer health and enhancing market competitiveness.
- Electric Motorcycle Growth: The LiveWire segment saw an 87% year-over-year revenue increase, showcasing strong sales momentum in electric motorcycles, although overall operating losses persist, highlighting the potential in the company's electrification transition.
See More
Harley-Davidson Unveils New Strategic Plan to Drive Growth
- Strategic Plan Launch: Harley-Davidson has introduced the 'Back to the Bricks' strategy aimed at achieving over $350 million in EBITDA by 2027, reflecting the company's confidence in future growth and focus on core competencies.
- Clear Financial Targets: This plan not only aims to restore volumes but also enhances overall profitability through strengthened partnerships with dealers, which is expected to create substantial value for shareholders.
- Market Positioning Enhancement: Harley-Davidson emphasizes its leadership in motorcycle culture and plans to attract global riders through innovative and customizable products, further solidifying its brand influence.
- Transparent Investor Communication: The company will discuss its strategic plan and first-quarter 2026 financial results via a webcast at 8 a.m. CST today, ensuring investors are kept informed of company developments and future outlook.
See More
Harley-Davidson Unveils New Strategy to Boost Sales
- Strategic Overview: Under new CEO Artie Starrs, Harley-Davidson has launched the 'Back to the Bricks' plan, targeting over $350 million in core profit and $150 million in cost reductions by 2027, aiming to enhance performance through higher-margin parts sales.
- New Model Launch: The company plans to introduce the entry-level 440cc motorcycle, Sprint, priced around $6,000, and revive the iconic Sportster model while expanding customization options through 'blank canvas' models to attract younger riders and meet market demand.
- Dealer Network Optimization: The new strategy emphasizes leveraging Harley's dealer network to improve dealer profitability and better align inventory with demand, particularly as inflation and high borrowing costs pressure household budgets and motorcycle demand.
- Tariff Impact: Although Harley expects tariff-related costs to decrease to $75 million to $90 million in 2026, it still faces pressure from U.S. tariffs on imported components, reporting $45 million in tariff costs in Q1, with net income dropping 81% year-over-year to $25 million, highlighting significant market challenges.
See More
Harley-Davidson Q1 2026 Earnings Report
- Earnings Performance: Harley-Davidson reported Q1 GAAP EPS of $0.22, missing expectations by $0.01, although revenue of $1.17 billion, down 12% year-over-year, exceeded forecasts by $173.38 million, demonstrating resilience amid challenges.
- Sales Growth: North American retail motorcycle sales reached 23,803 units, up 14% year-over-year, while global retail motorcycle sales totaled 33,507 units, an 8% increase, indicating strong market demand that could support future performance.
- Inventory and Shipments: Global dealer inventory of new motorcycles decreased by 22% compared to Q1 2025, while global motorcycle shipments were 37,295 units, down 3% year-over-year, reflecting proactive adjustments in inventory management.
- Strategic Investments and Costs: The company incurred $15 million in costs related to strategic changes, including termination benefits and restructuring charges, while planning capital investments of $175 to $200 million in 2026, showcasing a continued commitment to future growth.
See More
Robinson Value Management Acquires Stake in Harley-Davidson
- New Investment Position: Robinson Value Management initiated a new stake in Harley-Davidson by purchasing 158,986 shares in Q1 2026 for approximately $3.12 million, indicating bullish sentiment towards the company following its recent 52-week low.
- Position Value Increase: By quarter-end, the value of Harley-Davidson's position rose to $3.21 million, reflecting positive trading activity and price movements, which suggests investor confidence in the company's future performance.
- Financial Performance Overview: Harley-Davidson reported trailing twelve months revenue of $4.47 billion and net income of $338.74 million, with a dividend yield of 2.96%, demonstrating a solid financial foundation despite a slight decline in revenue.
- Market Reaction Analysis: Although Harley-Davidson's Q1 revenue fell 12% year-over-year, the 8% growth in global retail sales indicates effective measures taken to drive demand and improve inventory, enhancing investor confidence in its future growth prospects.
See More
Harley-Davidson Q1 2026 Earnings Call Insights
- North America Growth: Harley-Davidson achieved a 14% year-over-year increase in North America, contributing to an 8% global retail sales growth, indicating the company's resilience in a challenging consumer environment.
- Inventory Management Optimization: The company reduced global inventory by 22% year-over-year during the quarter, prioritizing dealer inventory sell-through and aligning wholesale shipments with retail demand, significantly enhancing operational efficiency and market competitiveness.
- Financial Performance Decline: Consolidated revenue in Q1 fell by 12%, primarily driven by a 54% drop in Harley Financial Services (HDFS) revenue as it transitioned to a new capital-light model, highlighting challenges faced during the transformation.
- Future Outlook and Targets: Despite facing tariff costs estimated between $75 million and $90 million, the company reaffirmed its 2026 retail and wholesale unit targets of 130,000 to 135,000, demonstrating confidence in future growth.
See More
Harley-Davidson Reports Q1 2026 Financial Results with Mixed Performance
- Retail Sales Growth: Harley-Davidson experienced a 14% increase in retail performance in North America, driving an 8% global retail sales growth, indicating positive progress in market demand recovery despite an overall revenue decline.
- Financial Performance Decline: The company reported Q1 2026 revenue of $1.173 billion, down 12% year-over-year, primarily due to a 54% drop in Harley Financial Services (HDFS) revenue, reflecting challenges in financial management and market conditions.
- Inventory Management Optimization: A 22% reduction in global dealer inventories indicates effective strategies in aligning wholesale with retail demand, aimed at improving dealer health and enhancing market competitiveness.
- Electric Motorcycle Growth: The LiveWire segment saw an 87% year-over-year revenue increase, showcasing strong sales momentum in electric motorcycles, although overall operating losses persist, highlighting the potential in the company's electrification transition.
See More
Harley-Davidson Unveils New Strategic Plan to Drive Growth
- Strategic Plan Launch: Harley-Davidson has introduced the 'Back to the Bricks' strategy aimed at achieving over $350 million in EBITDA by 2027, reflecting the company's confidence in future growth and focus on core competencies.
- Clear Financial Targets: This plan not only aims to restore volumes but also enhances overall profitability through strengthened partnerships with dealers, which is expected to create substantial value for shareholders.
- Market Positioning Enhancement: Harley-Davidson emphasizes its leadership in motorcycle culture and plans to attract global riders through innovative and customizable products, further solidifying its brand influence.
- Transparent Investor Communication: The company will discuss its strategic plan and first-quarter 2026 financial results via a webcast at 8 a.m. CST today, ensuring investors are kept informed of company developments and future outlook.
See More
Harley-Davidson Unveils New Strategy to Boost Sales
- Strategic Overview: Under new CEO Artie Starrs, Harley-Davidson has launched the 'Back to the Bricks' plan, targeting over $350 million in core profit and $150 million in cost reductions by 2027, aiming to enhance performance through higher-margin parts sales.
- New Model Launch: The company plans to introduce the entry-level 440cc motorcycle, Sprint, priced around $6,000, and revive the iconic Sportster model while expanding customization options through 'blank canvas' models to attract younger riders and meet market demand.
- Dealer Network Optimization: The new strategy emphasizes leveraging Harley's dealer network to improve dealer profitability and better align inventory with demand, particularly as inflation and high borrowing costs pressure household budgets and motorcycle demand.
- Tariff Impact: Although Harley expects tariff-related costs to decrease to $75 million to $90 million in 2026, it still faces pressure from U.S. tariffs on imported components, reporting $45 million in tariff costs in Q1, with net income dropping 81% year-over-year to $25 million, highlighting significant market challenges.
See More
Harley-Davidson Q1 2026 Earnings Report
- Earnings Performance: Harley-Davidson reported Q1 GAAP EPS of $0.22, missing expectations by $0.01, although revenue of $1.17 billion, down 12% year-over-year, exceeded forecasts by $173.38 million, demonstrating resilience amid challenges.
- Sales Growth: North American retail motorcycle sales reached 23,803 units, up 14% year-over-year, while global retail motorcycle sales totaled 33,507 units, an 8% increase, indicating strong market demand that could support future performance.
- Inventory and Shipments: Global dealer inventory of new motorcycles decreased by 22% compared to Q1 2025, while global motorcycle shipments were 37,295 units, down 3% year-over-year, reflecting proactive adjustments in inventory management.
- Strategic Investments and Costs: The company incurred $15 million in costs related to strategic changes, including termination benefits and restructuring charges, while planning capital investments of $175 to $200 million in 2026, showcasing a continued commitment to future growth.
See More
