Harley-Davidson Announces "Back to the Bricks" Strategic Plan to Restore Performance and Deliver Profitable Growth

Rhea-AI Summary

Harley-Davidson (NYSE: HOG) unveiled the "Back to the Bricks" strategic plan on May 5, 2026 to restore performance and drive profitable growth. Key targets include more than $350 million of HDMC EBITDA in 2027, HDMC gross margin of 25–30%, and HDMC EBITDA margin of 10–12%.

The plan emphasizes dealer profitability improvements (aiming to double dealer profitability in 2026 and again by 2029), mid-single-digit CAGRs for retail units and parts & accessories, OpEx below 20% of sales, and actions to recapture market share.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• Target >$350M HDMC EBITDA for 2027
• HDMC gross margin goal of 25–30%
• OpEx target of less than 20% of sales
• Dealer profitability program aiming to double profitability in 2026 and again by 2029

Negative

• Plan requires execution to meet medium-term targets; outcomes are not guaranteed
• Restructuring and cost actions imply near-term disruption and potential one-time costs

News Market Reaction – HOG

+8.19% 1.7x vol

36 alerts

+8.19% News Effect

+3.5% Peak in 6 hr 26 min

+$207M Valuation Impact

$2.74B Market Cap

1.7x Rel. Volume

On the day this news was published, HOG gained 8.19%, reflecting a notable positive market reaction. Argus tracked a peak move of +3.5% during that session. Our momentum scanner triggered 36 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $207M to the company's valuation, bringing the market cap to $2.74B at that time. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

What This Means

The stock moved +8.2% in the session following this news. A strong positive reaction would align wit...

Analysis

The stock moved +8.2% in the session following this news. A strong positive reaction would align with management’s attempt to reset expectations after weak Q1 2026 results. The plan targets HDMC EBITDA above $350 million in 2027, alongside specific margin and growth goals, giving investors clearer medium‑term milestones. Past branding and strategic announcements, like the RIDE launch, coincided with gains, but execution risks and prior earnings volatility suggest outcomes could remain sensitive to quarterly delivery.

Key Figures

HDMC EBITDA target: >$350 million Q1 2026 revenue: $1.17 billion Q1 2026 net income: $24.8 million +5 more

8 metrics

HDMC EBITDA target >$350 million Target for 2027 under 'Back to the Bricks' plan

Q1 2026 revenue $1.17 billion Consolidated revenue, down 12% year-over-year

Q1 2026 net income $24.8 million Net income attributable to the company, versus $133.1M prior year

Q1 2026 EPS $0.22 Diluted EPS, versus $1.07 prior year

Global retail sales growth 8% Q1 2026 global retail motorcycle sales vs prior year

North America retail growth 14% Q1 2026 North America retail motorcycle sales vs prior year

Dealer inventory change 22% lower Global dealer inventories vs prior year end of quarter

HDMC 2026 operating outlook -$40M to +$10M Expected HDMC operating results for full-year 2026

Historical Context

5 past events · Latest: Apr 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	Apparel collaboration	Positive	-4.0%	Launch of Dickies x Harley-Davidson limited-edition apparel capsule.
Apr 21	Earnings date notice	Neutral	+1.3%	Announcement of date and webcast for Q1 2026 results and strategy.
Apr 14	HDFS webcast	Neutral	-1.3%	Planned audio webcast on HDFS business model and partnerships.
Apr 09	Brand platform launch	Positive	+6.2%	Launch of RIDE global brand platform and refreshed visual identity.
Mar 05	Debt redemption	Positive	-1.9%	Plan to fully redeem €700,000,000 5.125% guaranteed notes due 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent HOG news shows mixed reactions, with some brand and financing announcements met by selling, while marketing launches have coincided with strength.

Recent Company History

Over the past two months, Harley-Davidson has focused on brand, partnerships, and capital structure. On Mar 5, HDFS announced full redemption of €700,000,000 notes due 2026, followed by the RIDE global brand platform launch on Apr 9, which saw a 6.24% gain. Subsequent webcasts and a Dickies apparel collaboration in late April drew more muted to negative moves. Today’s strategic plan and Q1 2026 update arrive after this series of branding and financial actions.

Regulatory & Risk Context

Short Interest: 15.22%

Short Interest

15.22% of shares outstanding

as of 2026-05-29 Days to cover: 6.83

Key Terms

ebitda, cagr, gross margin, operational expenditures

4 terms

ebitda financial

"Targeting over $350 million of HDMC EBITDA in 2027"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

cagr financial

"Over the medium term, Harley-Davidson is targeting:Mid-single-digit CAGR for HDMC"

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.

gross margin financial

"HDMC gross margin of 25-30%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

operational expenditures financial

"HDMC operational expenditures of less than 20% of sales"

Operational expenditures are the routine, day-to-day costs a company incurs to keep its business running—things like wages, rent, utilities, supplies, maintenance and marketing. Think of them as the household bills of a business: necessary payments that reduce cash on hand each month. Investors watch these costs because higher or rising operational spending can squeeze profit margins and cash flow, while efficient control can boost sustainable earnings and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Strategy Leverages Harley-Davidson's Competitive Advantages to Restore Volumes and Build Platform for Value Creation; Targeting over $350 million of HDMC EBITDA in 2027

Conference Call at 8 a.m. CT to Present Strategy and Discuss First Quarter 2026 Financial Results; Presentation Available on Harley-Davidson's Investor Relations Website

MILWAUKEE, May 5, 2026 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson" or the "Company") (NYSE: HOG) today announced "Back to the Bricks," its new strategic plan designed to restore the Company's performance and deliver profitable growth.

"Having defined the motorcycle industry for more than 123 years, Harley-Davidson remains one of the world's most iconic and respected brands," said Artie Starrs, President and CEO, Harley-Davidson. "Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders. This next chapter in Harley-Davidson's evolution is already underway, and early momentum reinforces our confidence in the significant opportunities ahead. As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand - while delivering meaningful value to the Company for our riders, dealers, and shareholders alike."

Back to the Bricks is built on five key pillars:

• Deep appreciation of Harley-Davidson's competitive advantages and legacy: The Company's iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
  
  
• Renewed commitment to exclusive dealer network to drive enterprise profitability: 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.
  
  
• Immediate actions to recapture share in areas where Harley-Davidson has right to win: 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.

Financial Targets
The Company is targeting more than $350 million in EBITDA in 2027 for Harley-Davidson Motor Company (HDMC), 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%

Webcast 
Harley-Davidson will discuss the Company's strategic plan, first quarter financial results, developments in the business, and updates to the Company's outlook on an audio webcast at 8:00 a.m. CST today. Webcast participants should log-on and register at least 10 minutes prior to the start time and can access the slide presentation here: https://investor.harley-davidson.com/events-and-presentations/default.aspx. A replay of the audio webcast will be available approximately two hours after the call concludes.

First Quarter 2026 Financial Results
In a separate press release, Harley-Davidson today reported first quarter 2026 financial results and provided updates to the Company's outlook. The press release and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. 

Company Background  
Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, Parts & Accessories, experiences, riding gear and apparel. What We Make: The World's Best Motorcycles. Period. Who We Serve: Motorcycle Riders Worldwide. Why We Do It: To Protect and Grow Motorcycle Culture. What We Stand For: Life, Liberty and the Pursuit of Happiness. Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and has a controlling interest in Harley-Davidson Financial Services and LiveWire Group, Inc. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. LiveWire is committed to developing the technology of the future and investing in the capabilities needed to lead the transformation of motorsports. Learn more at harley-davidson.com. 

Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "projects," "may," "will," "estimates," "targets," "intends," "forecasts," "seeks," "sees," "should," "feels," "commits," "assumes," "envisions," or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to: (a) execute its business plans and strategies, including the Company's new strategic plan announced in the second quarter of 2026, successfully execute its approach to a full enterprise economic model, and strengthen its existing businesses while allowing for growth; (b) manage supply chain and logistics issues, including without limitation quality issues, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Iran, or natural disasters and longer shipping times and increased logistics costs; (c) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company's ability to sell products domestically and internationally, and the cost of raw materials and components, including tariffs recently imposed or that may be imposed by the U.S. on foreign goods or rebalancing or other tariffs recently imposed or that may be imposed by foreign countries on U.S. goods; (d) accurately analyze, predict and react to changing market conditions, interest rates, and geopolitical environments, and successfully adjust to shifting global consumer needs and interests, including successfully realigning its product portfolio, which encompasses re-introducing the Sportster; (e) accurately predict the margins of its segments in light of, among other things, tariffs, rebalancing trade measures, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company's complex global supply chain; (f) maintain and enhance the value of the Harley-Davidson brand, including detecting and mitigating or remediating the impact of activist collective actions, such as calls for boycotts and other brand-damaging behaviors that could harm the Company's brand or business; (g) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing domestic and international political environments, including as a result of the conflict in Iran; (h) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (i) successfully carry out its global manufacturing and assembly operations; (j) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to shift to a rider-centric portfolio that includes a focus on accessibility and customization and growing its Parts & Accessories and Motor Clothes and apparel businesses; (k) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (l) successfully manage and reduce costs throughout the business; (m) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (n) prevent, detect and remediate any issues with its motorcycles or any issues associated with the design, manufacturing, or assembly processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (o) successfully manage and reduce costs throughout the business; (p) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its  full enterprise economic model, and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (q) realize the desired business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to execute its plans to develop, produce, market and sell its electric vehicles; (ii) the demand for and consumer willingness to adopt two- and three-wheeled electric vehicles; (iii) the ability of LiveWire to obtain sufficient funding from sources other than the Company to sustain its operations; and (iv) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in Risk Factors under Item 1.A of LiveWire Group Inc.'s most recent Annual Report on Form 10-K; (r) manage the quality and regulatory non-compliance issues relating to the brake hose assemblies provided to the Company by Proterial Cable America, Inc. in a manner that avoids future quality or non-compliance issues and additional costs or recall expenses that are material; (s) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name; (t) successfully maintain or achieve a manner in which to sell motorcycles in Europe, China, and the Company's Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (u) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (v) retain and attract talented employees and leadership and qualified and experienced independent directors for its Board of Directors, eliminate personnel duplication, inefficiencies and complexity throughout the organization, and successfully complete transitions of executives, and effectively manage the return to on-site work of Milwaukee-based corporate employees at specified Company facilities; (w) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (x) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services' loan portfolio; (y) prevent a ransomware attack or cybersecurity incidents and data privacy breaches and respond to related evolving regulatory requirements; (z) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company's business; (aa) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (bb) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (cc) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations, including increased environmental, safety, emissions or other regulations; (dd) manage its exposure to product liability claims in a manner that avoids or successfully mitigates the impact of substantial jury verdicts and manage exposure in commercial or contractual disputes; (ee) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (ff) realize the desired business benefits from KKR's and PIMCO's investments in Harley-Davidson Financial Services, Inc.; (gg) manage risks related to functions the Company outsources and the use of artificial intelligence by the Company and its vendors and suppliers; (hh) achieve anticipated results with respect to the Company's preowned motorcycle program, Harley-Davidson Certified, the Company's H-D1 Marketplace, and Apparel and Licensing; (ii) optimize capital allocation in light of the Company's capital allocation priorities; (jj) manage the Company's share repurchase strategy; (kk) manage issues related to climate change and related regulations; and (ll) realize the expected effects of the anticipated increase in Harley-Davidson Financial Services, Inc.'s retail finance receivable base on Harley-Davidson Financial Services, Inc.'s operating income.

The Company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company's dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company's dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, or other factors.

Harley-Davidson Financial Services, Inc.'s retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions including the impact of inflation and Harley-Davidson Financial Services, Inc.'s efforts to increase prudently structured loan approvals to sub-prime borrowers. In addition, Harley-Davidson Financial Services, Inc.'s efforts to adjust underwriting criteria based on market and economic conditions, and actions that the Company has taken and could take that impact motorcycle values, may impact Harley-Davidson Financial Services, Inc.'s retail credit losses.

The Company's operations, demand for its products, and its liquidity could be adversely impacted by changes in tariffs, inflation, work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Iran, or other factors. Refer to "Risk Factors" under Item 1.A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

Non-GAAP Considerations
The Company has not provided a reconciliation of guidance for EBITDA margin because the Company is unable, without unreasonable efforts, to reconcile this measure to a comparable U.S. GAAP financial measure as the target is medium term and not based on a given year nor based on a specific set of U.S. GAAP financial measures and is instead a general profitability target for the HDMC segment.

### (HOG-Other)

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/harley-davidson-announces-back-to-the-bricks-strategic-plan-to-restore-performance-and-deliver-profitable-growth-302762417.html

SOURCE Harley-Davidson, Inc.

FAQ

What is Harley-Davidson's $HOG EBITDA target for 2027 under Back to the Bricks?

The company targets more than $350 million of HDMC EBITDA in 2027. According to the company, this figure is a near-term financial goal with additional upside tied to executing strategic priorities.

How does Back to the Bricks aim to improve dealer profitability for HOG shareholders?

Harley-Davidson plans to enable dealers to double profitability in 2026 and again by 2029. According to the company, actions include operational changes and initiatives designed to boost dealer margins and enterprise profitability.

What margin and growth targets did Harley-Davidson (HOG) set in the May 5, 2026 plan?

Targets include HDMC gross margin of 25–30% and HDMC EBITDA margin of 10–12%. According to the company, the plan also seeks mid-single-digit CAGRs for retail units and parts & accessories.

Will Harley-Davidson reduce operating expenses as part of Back to the Bricks (HOG)?

Yes; the company targets HDMC operational expenditures of less than 20% of sales. According to the company, cost and restructuring actions already underway support a path to stronger free cash flow and margins.

When and where did Harley-Davidson (HOG) present its Back to the Bricks strategy and Q1 2026 results?

Harley-Davidson presented the strategy and Q1 2026 results on an audio webcast at 8:00 a.m. CST on May 5, 2026. According to the company, the slide presentation and replay are available via its investor relations website.