Harley-Davidson Q1 Revenue Beats Estimates While Profit Plunges 81% on Tariffs
Harley-Davidson delivered Q1 revenue of $1.1B, surpassing the $1.01B estimate, while EPS of $0.22 missed the $0.23 consensus and net income plunged 81% to $25M. Motorcycle shipments fell 3% to 37,295 units and operating income plunged 84% to $19M as tariff costs and restructuring weighed on margins.
1. Q1 Financial Results
Harley-Davidson reported first-quarter revenue of $1.1B, a 12% year-over-year decline but $90M above estimates, while adjusted EPS of $0.22 missed the $0.23 forecast, driving net income down 81% to $25M. Shares rose roughly 1.5% in pre-market trading on the mixed report.
2. Segment Performance and Shipments
The motorcycle division saw revenue slip 2% to $1.06B as global shipments fell 3% to 37,295 units, though retail sales grew 8% to 33,507 units led by a 14% increase in North America. Harley-Davidson Financial Services revenue dropped 54% following the offloading of loan assets in late 2025.
3. Profitability Pressures
Operating income for the motorcycle segment plunged 84% to $19M, with gross margins contracting by 3.9 percentage points due to $45M in tariff costs, higher incentives and $15M in restructuring charges. Overall operating income fell 85% to $23M, reflecting continued profitability headwinds.
4. Turnaround Plan and Outlook
Management reaffirmed full-year guidance, targeting motorcycle segment operating outcomes between a $40M loss and $10M profit, and narrowed tariff cost estimates to $75M–$90M. The company unveiled the Back to the Bricks plan featuring an entry-level $6,000 Sprint model, a revived $10,000 Sportster and aims for $350M core profit and $150M in cost savings by 2027.