On Tuesday, Harley-Davidson released a new strategic plan named "Back to the Bricks" alongside its first-quarter 2026 financial results. Despite a significant profit decline, the company's stock rose over 2% during the trading session, buoyed by the new strategy.

Earnings reports revealed first-quarter revenue of $1.2 billion, a 12% decrease year-over-year. Net profit plummeted to $25 million from $133 million in the same period last year, resulting in earnings per share of 22 cents, notably below market expectations of 27 cents.

The performance downturn was primarily attributed to tariff costs, decreased demand, and expenses related to warranties and restructuring. The company incurred $45 million in tariff costs during the quarter and anticipates full-year tariff-related expenses to be between $75 million and $90 million.

Despite pressure on profits, the report contained positive signals. Retail sales in North America increased by 14% year-over-year, driving an 8% growth in global motorcycle retail sales. The company's market share for large-displacement motorcycles in the United States rose by 2 percentage points to 38%. Dealer inventory saw a significant 22% year-over-year decline, indicating a move towards healthier supply-demand dynamics.

Concurrently, the company formally launched its turnaround plan, "Back to the Bricks." Under the new strategy, the company will introduce an entry-level lightweight motorcycle named the Sprint, priced around $6,000, and revive the iconic Sportster model in 2027. It will also enhance customization options through a "blank canvas" model. Regarding financial targets, the company aims to achieve over $350 million in EBITDA for its motorcycle division by 2027, reduce fixed costs by more than $150 million, and plans to help dealers quadruple their profits by 2029.