Holley Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw flat Adjusted EBITDA despite a 3.7% revenue decline, with net income and margins up year-over-year. Portfolio optimization and the HRX acquisition are expected to drive long-term growth, while Q2 trends show improving demand and normalized inventories.
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The meeting, held virtually, covered director elections, executive compensation, and incentive plan amendments, with all proposals approved. No stockholder questions were received, and official voting results will be announced on Form 8-K.
Fiscal Year 2025
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Delivered four consecutive quarters of core growth in 2025, with net sales up 1.9% and adjusted EBITDA margin above 20%. Guidance for 2026 targets 4–4.5% revenue growth, continued margin expansion, and further deleveraging, supported by innovation and operational efficiencies.
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Q3 delivered 6.4% core business growth, margin expansion, and strong free cash flow, with broad-based gains across all divisions. Full-year guidance was raised for both revenue and adjusted EBITDA, reflecting continued operational momentum and a strengthened balance sheet.
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A major transformation has driven operational efficiency, growth, and improved distributor relationships, positioning the company for continued expansion across all segments. Strong cash generation and disciplined capital management support its path to lower leverage and future M&A.
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Core business revenue grew 3.9% in Q2 2025, with record free cash flow and strong omnichannel performance. Tariff mitigation efforts are expected to fully offset cost pressures, supporting tightened full-year guidance and continued margin stability.
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The company is leveraging its strong brand portfolio and operational improvements to drive growth in a large, passionate enthusiast market. Q1 saw core business and D2C growth, with ongoing efficiency gains and disciplined financial management. Tariff risks are being actively mitigated through pricing and sourcing strategies.
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Core business revenue grew 3.3% year-over-year in Q1 2025, with strong gains in both D2C and B2B channels, improved gross margin, and robust product innovation. Guidance for 2025 is maintained, but excludes potential tariff impacts and reflects caution amid softening consumer sentiment.
Fiscal Year 2024
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2024 saw strong operational improvements, margin expansion, and direct-to-consumer growth despite a 10% sales decline. 2025 guidance anticipates modest revenue and EBITDA growth, with most gains expected in the back half, while consumer and tariff risks remain closely monitored.
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Management highlighted a strategic transformation focused on operational efficiency, digital modernization, and disciplined product development, resulting in strong margins and free cash flow despite market headwinds. The company is targeting growth in 2025, with a focus on platform solutions, M&A opportunities, and continued margin discipline.
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Q3 2024 saw a 14.4% sales decline to $134M, but gross margin rose to 39% and cost savings initiatives drove $6.7M in YTD savings. Inventory normalization and strong DTC growth position the company for organic growth in Q1 2025, with full-year sales guidance at $595–$605M.
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Q2 2024 saw improved margins and strong free cash flow despite a 3.3% sales decline, with robust direct-to-consumer growth and significant cost reductions. Full-year guidance was lowered due to ongoing macroeconomic headwinds, but the company continues to gain market share and strengthen its balance sheet.
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The company is executing a strategic transformation, focusing on operational efficiency, SKU rationalization, and leadership upgrades to drive growth in the resilient automotive aftermarket sector. Despite an 8% revenue decline in Q1, strong free cash flow and margin discipline support a stable outlook.