Harley-Davidson Announces Plan to Repurchase $1 Billion of Its Shares Through 2026
Harley-Davidson (NYSE: HOG) has announced a new $1 billion share repurchase plan through 2026, replacing existing plans. This initiative follows the company's successful completion of $875 million in share repurchases since 2022. The plan will be funded using cash flow from operations and aims to return value to shareholders.
CEO Jochen Zeitz highlighted the company's focus on cost efficiency and profitable growth, noting that unit profitability has more than doubled since 2019. The company's strategy, implemented through the Rewire and Hardwire initiatives, has positioned Harley-Davidson for future success and continued shareholder returns.
Harley-Davidson (NYSE: HOG) ha annunciato un nuovo programma di riacquisto di azioni da 1 miliardo di dollari che si estenderà fino al 2026, sostituendo i piani esistenti. Questa iniziativa segue il completamento con successo di 875 milioni di dollari in riacquisti di azioni dal 2022. Il piano sarà finanziato attraverso il flusso di cassa dalle operazioni e mira a restituire valore agli azionisti.
Il CEO Jochen Zeitz ha sottolineato l'attenzione dell'azienda su efficienza dei costi e crescita redditizia, osservando che la redditività per unità è più che raddoppiata dal 2019. La strategia dell'azienda, attuata attraverso le iniziative Rewire e Hardwire, ha posizionato Harley-Davidson per il successo futuro e per continui ritorni agli azionisti.
Harley-Davidson (NYSE: HOG) ha anunciado un nuevo plan de recompra de acciones de 1.000 millones de dólares que se extenderá hasta 2026, reemplazando los planes existentes. Esta iniciativa sigue a la exitosa finalización de 875 millones de dólares en recompras de acciones desde 2022. El plan se financiará con el flujo de efectivo de las operaciones y tiene como objetivo devolver valor a los accionistas.
El CEO Jochen Zeitz destacó el enfoque de la empresa en eficiencia de costos y crecimiento rentable, señalando que la rentabilidad por unidad se ha más que duplicado desde 2019. La estrategia de la empresa, implementada a través de las iniciativas Rewire y Hardwire, ha posicionado a Harley-Davidson para el éxito futuro y para retornos continuos a los accionistas.
하늘이 캐드슨 (NYSE: HOG)는 2026년까지의 10억 달러 규모의 자사주 매입 계획을 발표하며 기존 계획을 대체했습니다. 이 이니셔티브는 2022년 이후 자사주 매입에서 8억 7500만 달러를 성공적으로 완료한 것을 따릅니다. 이 계획은 운영 현금 흐름을 통해 자금을 조달하며 주주에게 가치를 돌려주는 것을 목표로 합니다.
CEO 요헨 자이츠는 비용 효율성과 수익성 성장에 대한 회사의 초점을 강조하며, 단위당 수익성이 2019년 이후 두 배 이상 증가했다고 언급했습니다. Rewire 및 Hardwire 이니셔티브를 통해 수행된 회사의 전략은 하늘이 캐드슨을 미래의 성공과 지속적인 주주 수익으로 자리매김하게 했습니다.
Harley-Davidson (NYSE: HOG) a annoncé un nouveau plan de rachat d'actions de 1 milliard de dollars jusqu'en 2026, remplaçant les plans existants. Cette initiative fait suite à l'achèvement réussi de 875 millions de dollars de rachats d'actions depuis 2022. Le plan sera financé par les flux de trésorerie d'exploitation et vise à restituer de la valeur aux actionnaires.
Le PDG Jochen Zeitz a souligné l'accent mis par l'entreprise sur l'efficacité des coûts et la croissance rentable, notant que la rentabilité unitaire a plus que doublé depuis 2019. La stratégie de l'entreprise, mise en œuvre par les initiatives Rewire et Hardwire, a positionné Harley-Davidson pour réussir à l'avenir et continuer à offrir des rendements aux actionnaires.
Harley-Davidson (NYSE: HOG) hat einen neuen Aktienrückkaufplan über 1 Milliarde US-Dollar bis 2026 angekündigt, der bestehende Pläne ersetzt. Diese Initiative folgt auf den erfolgreichen Abschluss von 875 Millionen US-Dollar an Aktienrückkäufen seit 2022. Der Plan wird mit dem operativen Cashflow finanziert und zielt darauf ab, den Aktionären Wert zurückzugeben.
CEO Jochen Zeitz hob den Fokus des Unternehmens auf Kosteneffizienz und profitables Wachstum hervor und stellte fest, dass die Rentabilität pro Einheit seit 2019 mehr als doppelt so hoch ist. Die Strategie des Unternehmens, die durch die Initiativen Rewire und Hardwire umgesetzt wird, hat Harley-Davidson für zukünftigen Erfolg und kontinuierliche Rückflüsse an die Aktionäre positioniert.
- $1 billion share repurchase plan announced through 2026
- Completed $875 million in share repurchases since 2022
- Unit profitability more than doubled since 2019
- Focus on cost efficiency and profitable growth
- None.
Insights
Harley-Davidson's announcement of a
The decision to fund these repurchases through operational cash flow is particularly noteworthy. It suggests that Harley-Davidson expects robust cash generation in the coming years, likely driven by the success of its 'Rewire' and 'Hardwire' strategies. These initiatives have apparently been effective, with the company reporting that unit profitability has more than doubled since 2019.
However, investors should consider the following points:
- Share repurchases can boost earnings per share by reducing the number of outstanding shares, but they don't necessarily create long-term value if the stock is overvalued.
- The
$1 billion commitment over three years represents a significant portion of Harley-Davidson's market capitalization, which could impact the company's financial flexibility for other investments or acquisitions. - While the focus on profitability is commendable, it's important to monitor whether this comes at the expense of market share or innovation in the rapidly evolving motorcycle industry.
Overall, this announcement reflects management's confidence in Harley-Davidson's financial health and future cash flows. However, investors should closely watch how this capital allocation strategy balances short-term shareholder returns with long-term growth investments.
Harley-Davidson's share repurchase plan is a strategic move that warrants careful analysis in the context of the broader motorcycle market and consumer trends. The company's focus on 'profitable growth' suggests a shift from pure volume to value creation, which aligns with the challenges facing the traditional motorcycle industry.
Key considerations for investors include:
- Market Dynamics: The motorcycle industry is undergoing significant changes, with increasing competition from electric vehicle manufacturers and changing consumer preferences, especially among younger riders.
- Brand Positioning: Harley-Davidson's ability to maintain its iconic status while adapting to new market realities will be crucial. The success of initiatives like the LiveWire electric motorcycle brand could be indicative of future performance.
- Global Economic Factors: Luxury goods like high-end motorcycles can be sensitive to economic cycles. The company's performance across different geographic markets and economic conditions should be monitored.
The doubling of unit profitability since 2019 is impressive, but it's essential to understand whether this is primarily driven by cost-cutting measures or by successful product innovations and market expansion. Sustainable growth will depend on Harley-Davidson's ability to attract new customer segments while retaining its core base.
Investors should also consider how this share repurchase plan compares to industry peers' capital allocation strategies and whether it positions Harley-Davidson competitively for the future of mobility.
"Through both the Rewire and the Hardwire, we have focused on cost efficiency and profitable growth to set the Company up for future success, as demonstrated by more than doubling unit profitability since 2019. As we look ahead, we remain focused on the profitability of our business and deploying our capital efficiently. We expect this will allow us to continue to return cash to shareholders," said Jochen Zeitz, Chairman, President, and CEO, Harley-Davidson.
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," "may," "will," "estimates," "targets," "intends," "forecasts," "sees," "feels," 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. Such risks and uncertainties include the following, among other factors: (i) unfavorable market and economic conditions, (ii) the trading price of its common stock, (iii) the nature and magnitude of other investment opportunities available to the Company from time to time, (iv) legal constraints on trading at certain times; and (v) the availability of cash. Delaying, limiting or suspending the Company's stock repurchase program may negatively affect performance versus earnings per share targets, and ultimately its stock price. 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.
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SOURCE Harley-Davidson, Inc.
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