Holley Inc. Announces Q4 and Full Year 2025 Financial Results, Introduces 2026 Outlook

Key Financial Highlights and Strategic Updates for Investors

Holley Inc. (NYSE: HLLY), a leader in automotive aftermarket performance brands, released its financial results for the fourth quarter and full year ended December 31, 2025, and provided its initial outlook and guidance for the full year 2026. The company also highlighted significant operational and financial achievements, as well as strategic initiatives that are likely to interest shareholders and could be price sensitive.

Q4 2025 Financial Highlights

• Net Income: \$6.3 million, or \$0.05 per diluted share, compared to a net loss of \$(37.8) million, or \$(0.32) per diluted share, in the prior year.
• Net Cash Provided by Operating Activities: \$8.5 million, an increase from \$4.1 million in Q4 2024.
• Adjusted Net Income: \$4.6 million, or \$0.04 per diluted share, compared to \$12.6 million, or \$0.11 per diluted share, in Q4 2024.
• Adjusted EBITDA: \$33.2 million, up from \$29.1 million last year.
• Free Cash Flow: \$3.9 million, versus \$1.8 million in the prior year.

Full Year 2025 Financial Highlights

• Net Sales: Rose 1.9% to \$613.5 million compared to \$602.2 million in 2024.
• Core Business Net Sales: Grew by 6.6% year-over-year after excluding approximately \$26.8 million in non-core business net sales from 2024.
• Net Income: \$19.2 million, or \$0.16 per diluted share, compared to a net loss of \$(23.2) million, or \$(0.20) per diluted share, in 2024.
• Net Cash Provided by Operating Activities: \$48.6 million, up from \$46.9 million last year.
• Adjusted Net Income: \$21.2 million, or \$0.18 per diluted share, versus \$24.8 million, or \$0.20 per diluted share, in 2024.
• Adjusted EBITDA: \$124.0 million, compared to \$110.5 million in 2024.
• Free Cash Flow: \$19.1 million, up from \$14.0 million last year.
• Significant Debt Reduction: Prepaid \$10 million of debt in Q4 2025, totaling \$100 million in prepayments since September 2023. Net debt to EBITDA leverage was reduced to 3.75x at year-end.

2026 Full-Year Guidance

Holley Inc. introduced its guidance for 2026, inclusive of the expected net impact of tariffs:

• Net Sales: \$625 – \$655 million
• Adjusted EBITDA: \$127 – \$137 million
• Capital Expenditures: \$15 – \$20 million
• Depreciation and Amortization: \$24 – \$26 million
• Interest Expense (excluding collar revaluation): \$42 – \$47 million

The company’s outlook may vary based on market conditions and other factors, including tariffs and macroeconomic trends.

Strategic and Operational Updates

• Holley continued its focus on its core performance aftermarket business, delivering growth in its primary product lines.
• Debt reduction efforts have strengthened the company’s balance sheet and improved leverage ratios, which may be positively viewed by credit markets and investors.
• The company is actively managing the impact of tariffs, inflation, and supply chain pressures, and has adjusted its guidance accordingly.

Investor and Shareholder Considerations

• Return to Profitability: Holley has returned to profitability after a challenging 2024, which could be a significant catalyst for the share price.
• Improved Cash Flow and EBITDA: These improvements provide greater flexibility for future investments and debt repayments.
• Guidance Above Prior Year Results: The 2026 guidance for sales and adjusted EBITDA is above 2025 actuals, indicating management’s confidence in ongoing growth.
• Debt Management: Substantial debt prepayments and improved leverage could enhance the company’s valuation and reduce risk premiums.
• Risks: The company notes several risks, including macroeconomic uncertainty, geopolitical tensions, inflation, tariffs, and supply chain disruptions. Any adverse developments in these areas could affect performance and share value.

Conference Call and Additional Information

Holley will host a conference call and webcast to discuss the results. Details and the earnings presentation are available on the company’s investor relations website. Management encourages investors to review all posted materials and updates regularly.

Contact Information

• Investor Relations: Anthony Rozmus / Neel Sukka / Jenna Kozlowski, Solebury Strategic Communications, 203-428-3324, [email protected]
• Media Relations: Nathan Espinosa / Patrick Curtin, Kahn Media, 818-881-5246, [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Investors should review the company’s filings with the SEC, including the “Risk Factors” section, and consider their own investment objectives and risk tolerance before making investment decisions.

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