FOURTH QUARTER NET INCOME OF $6.3 MILLION UP $44.1 MILLION YEAR-OVER-YEAR
FOURTH QUARTER ADJUSTED EBITDA OF $33.2 MILLION UP $4.1 MILLION YEAR-OVER-YEAR
Exceeded top‑line expectations in 2025, positioning Holley for continued momentum in 2026.
BOWLING GREEN, Ky., March 04, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE:HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its fourth quarter and full year ended December 31, 2025.
Fourth Quarter Highlights vs. Prior Year Period
Net Sales increased 10.9% to $155.4 million compared to $140.1 million last year
Core business net sales1 for the fourth quarter of 2025 grew by 13.5% compared to the fourth quarter of 2024 after excluding non-core business net sales1 of approximately $3.2 million for the fourth quarter of 2024
Net Income was $6.3 million, or $0.05 per diluted share, compared to a Net Loss of $(37.8) million, or $(0.32) per diluted share, last year
Net Cash Provided by Operating Activities was $8.5 million compared to $4.1 million last year
Adjusted Net Income2 was $4.6 million, or $0.04 per diluted share compared to $12.6 million, or $0.11 per diluted share, last year
Adjusted EBITDA2 was $33.2 million compared to $29.1 million last year
Free Cash Flow2 was $3.9 million compared to $1.8 million last year
Full Year 2025 Highlights vs. Prior Year Period
Net Sales increased 1.9% to $613.5 million compared to $602.2 million last year
Core business net sales1 for the full year 2025 grew by 6.6% compared to the full year 2024 after excluding non-core business net sales1 of approximately $26.8 million for full year 2024
Net Income was $19.2 million, or $0.16 per diluted share, compared to a Net Loss of $(23.2) million, or $(0.20) per diluted share, last year
Net Cash Provided by Operating Activities was $48.6 million compared to $46.9 million last year
Adjusted Net Income2 was $21.2 million, or $0.18 per diluted share, compared to $24.8 million, or $0.20 per diluted share, last year
Adjusted EBITDA2 was $124.0 million compared to $110.5 million last year
Free Cash Flow2 was $34.2 million compared to $41.8 million last year
1
Core business net sales represents Net Sales after excluding non-core business net sales. Non-core business net sales are comprised of divestiture sales and strategic product rationalization sales. Divestitures sales relate to divested businesses (Detroit Speed Engineering, Gear FX and Proforged) prior to the divestiture date, and strategic product rationalization sales relate to discontinued stock keeping units ("SKUs") prior to the SKU discontinuance. Divestiture sales were $2.9 million for the fourth quarter of 2024, and strategic product rationalization sales were $0.3 million for the fourth quarter of 2024.
2
See "Use and Reconciliation of Non-GAAP Financial Measures" below.
"We delivered a strong year in 2025, achieving the results we set out to accomplish through the execution of our strategic initiatives," said Matthew Stevenson, President and Chief Executive Officer of Holley. "Our focus on operational rigor drove meaningful performance improvements and measurable cost savings across the organization. We remain committed to advancing the priorities within our strategic framework, reflected in the continued growth of our B2B and DTC channels, successful new product launches across divisions, and further expansion of our footprint."
Stevenson continued, "Our financial discipline remained a cornerstone of our performance in 2025. For the full year, we generated roughly $34 million of Free Cash Flow. We also continued to strengthen our balance sheet, ending the year with a leverage ratio of 3.75x, well below the 4.0x target we established for 2025 and marking our strongest leverage position in several years."
"2025 has been an important year of progress for Holley, and we are entering 2026 with momentum and a balanced outlook. While we expect continued growth next year, we remain sharply focused on advancing our strategic initiatives, driving operational efficiency, and strengthening our financial position. Our strategic framework will continue to guide our actions as we build on this year's success and position Holley for sustained long‑term performance."
Strategic Business Highlights
Delivered the first annual net sales growth and >20% Adjusted EBITDA margin since 2021.
Achieved core business net sales growth for the fourth quarter of 2025 of 13.5% compared to the fourth quarter of 2024. Fourth consecutive quarter of core business net sales growth.
Expanded growth across 22 brands and all divisions within the quarter.
Strong Q4 results across B2B, achieving ~10.8% growth in the channel, and DTC, growing 7.0% year-over-year.
Strategic framework delivered meaningful revenue growth and ~$20M cost savings for the year.
Prepaid $10M of debt in the fourth quarter of 2025 bringing total debt prepayment of $100 million since September 2023; Achieved Net debt to EBITDA leverage of 3.75x at year-end.
Outlook
For the year ended December 31, 2026, we are introducing full-year guidance, inclusive of the expected net impact of tariffs:
Metric
Full Year 2026 Outlook
Net Sales
$625 - $655 million
Adjusted EBITDA*
$127 - $137 million
Capital Expenditures
$15 - $20 million
Depreciation and Amortization Expense
$24 - $26 million
Interest Expense (excluding collar revaluation)
$42 - $47 million
* Holley is not providing reconciliations of forward-looking full year 2026 Adjusted EBITDA outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.
Holley notes that its outlook for the year-ended December 31, 2026 may vary due to changes in assumptions or market conditions and other factors described below under "Forward-Looking Statements."
Conference Call
A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company's website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13757916.
For those unable to participate, a telephone replay recording will be available until Wednesday, March 11, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13757916. A web-based archive of the conference call will also be available on the Company's website.
Additional Financial Information
The Investor Relations page of Holley's website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.
About Holley Performance Brands
Holley Performance Brands (NYSE:HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.
Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley's future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "or" or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Holley and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) Holley's ability to execute our business strategy, including monetization of services provided and expansions in and into existing and new lines of business; 2) Holley's ability to compete effectively in our market; 3) Holley's ability to successfully design, develop, and market new, effective, and safe products and platforms; 4) Holley's ability to respond to changes in vehicle ownership and type; 5) Holley's ability to maintain and strengthen demand for our products; 6) Holley's ability to grow and effectively manage our growth; 7) Holley's ability to attract new customers in a cost-effective manner and to expand into additional consumer markets; 8) Holley's ability to successfully integrate acquisitions or achieve the expected synergies from such acquisitions; 9) Holley's ability to maintain relationships with customers and suppliers; 10) Holley's ability to retain our management and key employees; 11) costs related to Holley being a public company; 12) disruptions to Holley's operations, including as a result of cybersecurity incidents; 13) changes in applicable laws or regulations; 14) the outcome of any legal proceedings that have been or may be instituted against Holley; 15) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); 16) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); 17) Holley's estimates of its financial performance (e.g., the successful execution of cost saving initiatives); 18) Holley's ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; 19) disruptions and costs associated with doing business in certain countries; 20) Holley's ability to adopt and react to risks posed by new technology; 21) inability to predict how products will ultimately be used; 22) Holley's ability to anticipate and manage through the impact of elevated interest rate levels, which cause the cost of capital to increase, as well as respond to inflationary pressures and trade restrictions, including tariffs; and 23) other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2025, and disclosed in any subsequent filings with the SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.
Investor Relations Contacts:Anthony Rozmus / Neel Sikka / Jenna KozlowskiSolebury Strategic Communications203-428-3324[email protected]
Media Relations Contacts:Nathan Espinosa/Patrick CurtinKahn Media818-881-5246[email protected]
[Financial Tables to Follow]
HOLLEY INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(In thousands)(Unaudited)
For the thirteen weeks ended
For the year ended
December 31,
December 31,
Variance
Variance
December 31,
December 31,
Variance
Variance
2025
2024
($)
(%)
2025
2024
($)
(%)
Net Sales
$
155,436
$
140,054
$
15,382
10.9
%
$
613,514
$
602,224
$
11,290
1.9
%
Cost of Goods Sold
82,686
76,168
6,518
8.6
%
347,279
363,680
(16,401
)
-4.5
%
Gross Profit
72,750
63,886
8,864
13.9
%
266,235
238,544
27,691
11.6
%
Selling, General, and Administrative
43,013
34,474
8,539
24.8
%
146,132
132,149
13,983
10.6
%
Research and Development Costs
4,937
4,967
(30
)
-0.6
%
18,831
18,710
121
0.6
%
Amortization of Intangible Assets
3,440
3,577
(137
)
-3.8
%
13,778
13,884
(106
)
-0.8
%
Impairment of Indefinite-Lived Intangible Assets
-
7,695
(7,695
)
-100.0
%
-
7,695
(7,695
)
-100.0
%
Impairment of Goodwill
-
40,906
(40,906
)
-100.0
%
-
40,906
(40,906
)
-100.0
%
Restructuring Costs
725
-
725
100.0
%
2,903
1,566
1,337
85.4
%
Loss on sale of assets
-
1,729
(1,729
)
-100.0
%
-
9,234
(9,234
)
-100.0
%
Other Operating Expense (Income)
878
(481
)
1,359
-282.5
%
2,110
(268
)
2,378
-887.3
%
Operating Expense
52,993
92,867
(39,874
)
-42.9
%
183,754
223,876
(40,122
)
-17.9
%
Operating Income (Expense)
19,757
(28,981
)
48,738
-168.2
%
82,481
14,668
67,813
462.3
%
Change in Fair Value of Warrant Liability
(1,728
)
-
(1,728
)
-100.0
%
1,211
(7,570
)
8,781
-116.0
%
Change in Fair Value of Earn-Out Liability
175
8
167
2087.5
%
897
(2,333
)
3,230
-138.4
%
Loss (Gain) on Early Extinguishment of Debt
(93
)
-
(93
)
100.0
%
(93
)
141
(234
)
-166.0
%
Interest Expense, Net
11,492
11,498
(6
)
-0.1
%
51,833
50,690
1,143
2.3
%
Non-Operating Expense
9,846
11,506
(1,660
)
-14.4
%
53,848
40,928
12,920
31.6
%
Income (Loss) Before Income Taxes
9,911
(40,487
)
50,398
-124.5
%
28,633
(26,260
)
54,893
