FIRST QUARTER NET INCOME OF $7.3 MILLION, UP $4.4 MILLION YEAR-OVER-YEAR
FIRST QUARTER ADJUSTED EBITDA MARGIN EXPANSION TO 18.5%, UP 71 BPS YEAR-OVER-YEAR
Disciplined Cost Control Supports Resilient First Quarter Profitability Portfolio Optimization Initiative Expected to Improve Margin by Exiting Non-Value Added Businesses
NASHVILLE, Tenn., May 06, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE:HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its first quarter ended March 29, 2026.
First Quarter Highlights vs. Prior Year Period
Net Sales was $147.3 million compared to $153.0 million last year
Net Income was $7.3 million, or $0.06 per diluted share, compared to $2.8 million, or $0.02 per diluted share, last year
Net Cash Used in Operating Activities was $2.9 million compared to $7.8 million last year
Adjusted Net Income1 was $5.7 million compared to $2.6 million last year
Adjusted EBITDA1 was $27.3 million compared to $27.3 million last year
Adjusted EBITDA margin1 was 18.5% compared to 17.8% last year
Free Cash Flow1 was $(6.3) million compared to $(10.8) million last year
1 See "Use and Reconciliation of Non-GAAP Financial Measures" below.
"We delivered first quarter net sales of $147.3 million and Adjusted EBITDA of $27.3 million, reflecting resilient profitability and disciplined execution," said Matthew Stevenson, President and Chief Executive Officer of Holley.
"As noted on our prior earnings call, the first quarter began with several temporary headwinds. Distributor inventory levels were elevated entering the period, and while normalization was expected through improved sell-through, severe winter weather in late January and early February 2026 disrupted retail activity.
That said, from week eight onward, we saw steady improvement in purchasing patterns and exited the quarter on improved footing. Margins remained strong in the first quarter of 2026, reflecting proactive tariff management and operating efficiency. We are maintaining that focus, prioritizing cost control and advancing our portfolio optimization initiative, which we expect to support performance over time, while continuing to invest in innovation, deepen our connection with enthusiasts, and compete to gain share.
Strategically, we continued to execute against the framework established in 2025, centered on simplifying the portfolio, strengthening core franchises, and enhancing operating discipline. The acquisition of HRX, a targeted bolt-on that expands our racewear capabilities and deepens our European motorsports presence, marks the reengagement of our M&A strategy, and we remain focused on pursuing additional opportunities that meet our criteria. We believe that the actions we have taken over the past year position us to improve execution and strengthen the business over time."
Jesse Weaver, Chief Financial Officer of Holley, added, "Early trends in the second quarter indicate healthier inventory levels at our distribution partners and improving order activity, which we believe position us better for the balance of the year. Through our portfolio optimization initiative, we are exiting non-core, low- to no-profit businesses while reinvesting in targeted M&A, as reflected in our acquisition of HRX. Although these portfolio adjustments reduce our full-year revenue outlook by $15 million, our outlook for the core business remains intact, and we expect the net impact on Adjusted EBITDA from the portfolio optimization to be slightly positive. At the same time, our portfolio adjustments are expected to reduce SKUs by more than 11,000, lower operating complexity, improve working capital efficiency, and generate more than $15 million in incremental cash. Taken together, these actions are expected to improve the quality of our portfolio and support our decision to maintain our full-year Adjusted EBITDA outlook."
Strategic Business Highlights
Exited Q1 with momentum from week 8 as weather improved and inventory normalized.
Growth in three of four divisions and across 12 brands across DTC and B2B channels.
Delivered $6.5 million in Q1 cost savings from purchasing, tariffs, and operations.
Advanced cost and complexity reduction, including site consolidation and closures.
Expecting portfolio rebalancing to generate >$15 million to reinvest in growth
HRX acquisition strengthens Safety and Racing and expands European presence.
Free Cash Flow improvement of $4.5 million compared to same period last year.
Outlook
**For the year ended December 31, 2026, core business revenue guidance remains unchanged while we are updating full-year guidance to reflect an anticipated $15 million adjustment to net sales as a result of our planned portfolio optimization efforts:
Metric
Original Full Year 2026 Outlook
Current Full Year 2026 Outlook
Net Sales
$625 - $655 million
$610 - $640 million
Core Business Growth Rate %1
~2% to ~7%
~2% to ~7%
Adjusted EBITDA*
$127 - $137 million
$127 - $137 million
Capital Expenditures
$15 - $20 million
$15 - $20 million
Depreciation and Amortization Expense
$24 - $26 million
$24 - $26 million
Interest Expense (excluding collar revaluation)
$42 - $47 million
$42 - $47 million
1) Core Business Growth Rate, introduced this quarter, excludes impact from Portfolio Optimization Adjusted anticipated for 2026.
* 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 13759753.
For those unable to participate, a telephone replay recording will be available until Wednesday, May 13, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13759753. 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 American Performance, 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, along with statements regarding the impact of portfolio optimization efforts and organizational changes, 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) Holley's ability to anticipate, manage, and mitigate the impact of changing trade policies, including tariffs; 20) disruptions and costs associated with doing business in certain countries; 21) Holley's ability to adopt and react to risks posed by new technology; 22) inability to predict how products will ultimately be used; 23) 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 24) 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, 2025 filed with the U.S. Securities and Exchange Commission ("SEC") on March 16, 2026, 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 / Jenna KozlowskiSolebury Strategic Communications203-428-3324[email protected]
Media Relations Contacts:Jordan Moore, [email protected]/ Sydney Goggans, [email protected]Tiny Mighty Communications615-454-2913
[Financial Tables to Follow]
HOLLEY INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In thousands)(Unaudited)
For the thirteen weeks ended
March 29,
March 30,
Variance
Variance
2026
2025
($)
(%)
Net sales
$
147,330
$
153,044
$
(5,714
)
-3.7
%
Cost of goods sold
86,594
88,956
(2,362
)
-2.7
%
Gross profit
60,736
64,088
(3,352
)
-5.2
%
Selling, general, and administrative
35,402
36,699
(1,297
)
-3.5
%
Research and development costs
3,996
4,093
(97
)
-2.4
%
Amortization of intangible assets
3,427
3,532
(105
)
-3.0
%
Restructuring costs
875
463
412
89.0
%
Other operating income
(472
)
(42
)
(430
)
nm
Total operating expense
43,228
44,745
(1,517
)
-3.4
%
Operating income
17,508
19,343
(1,835
)
-9.5
%
Change in fair value of warrant liability
(1,031
)
(73
)
(958
)
nm
Change in fair value of earn-out liability
(514
)
(185
)
(329
)
nm
Interest expense, net
9,917
15,708
(5,791
)
-36.9
%
Total non-operating expense
8,372
15,450
(7,078
)
-45.8
%
Income before income taxes
9,136
3,893
5,243
134.7
%
Income tax expense
1,879
1,076
803
nm
Net income
