What Happened to Harley-Davidson, Inc.?

Harley-Davidson, Inc. has been grappling with a complex set of challenges in recent years, leading to a period of significant strategic recalibration. The company's 'Hardwire' five-year strategic plan, initiated in 2021 by then-CEO Jochen Zeitz, aimed to prioritize profitable core segments like Touring, Large Cruiser, and Trike, while also selectively expanding into new areas and leading in electric motorcycle development through its LiveWire brand. However, the conclusion of this plan in 2025 saw the company facing continued headwinds, including declining global retail motorcycle sales, which were down 12% to 132,535 units in 2025 compared to the prior year.

The financial performance in 2025 reflected these difficulties, with Harley-Davidson Motor Company (HDMC) reporting an operating loss of $29 million for the full year, a stark contrast to the $278 million operating income in 2024. Consolidated revenue for 2025 decreased by 14% to $4.47 billion. The company also incurred $67 million in tariffs during 2025, adding to cost pressures. Despite these challenges, the LiveWire electric motorcycle segment saw its operating loss decrease to $75 million in 2025, a 32% improvement from the previous year, with 653 EV motorcycles sold compared to 612 in 2024, indicating some progress in the electric vehicle space.

A significant leadership transition occurred in 2025, with Jochen Zeitz announcing his retirement in April and Artie Starrs, former CEO of Topgolf, being appointed as the new President and CEO, effective October 1, 2025. Zeitz remained as a senior advisor through February 2026 to ensure a smooth handover. Starrs inherits a company in a crucial 'reset' year for 2026, with a focus on stabilizing the business, restoring dealer confidence, and aligning wholesale activity with retail demand. The company's outlook for full-year 2026 projects HDMC global retail sales between 130,000 and 135,000 units and an HDMC operating income ranging from a $40 million loss to a $10 million profit.

As of May 5, 2026, Harley-Davidson reported its Q1 2026 earnings, with net income at $24.8 million (22 cents per share) on revenue of $1.17 billion, which was down 12% year-over-year. This fell short of Wall Street's average EPS estimate of 34 cents per share. Consolidated operating income saw a significant 85% decline to $23 million. The company also faced two major product recalls in April and May 2026. One recall, impacting nearly 17,000 Softail models from 2025-2026, addressed a rear brake line issue. Another, larger recall affecting over 88,000 motorcycles from 2024-2026 models, was due to a blocked airbox breather port that could lead to oil ejection and potential injury.

Despite these operational challenges, Harley-Davidson continues to refresh its product lineup. In January 2026, the company unveiled 13 new models across its Grand American Touring, Trike, Adventure Touring, and CVO categories, including new Street Glide Limited, Road Glide Limited, and Pan America 1250 Limited models. The company also introduced 'Liberty Edition' models to celebrate America's 250th anniversary. The ongoing challenge remains attracting younger riders and adapting to evolving market preferences, while maintaining its loyal customer base and navigating a volatile global economic landscape. Artie Starrs is expected to present his new strategic plan, potentially dubbed 'WireForward,' in May 2026, which will be critical for the company's future direction.