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Core Insights - Holley Performance Brands has acquired HRX, an Italian motorsports racewear brand, enhancing its capabilities in the European motorsports market [1][2][3] Group 1: Acquisition Details - The acquisition of HRX adds complementary racewear capabilities to Holley's Safety & Racing portfolio [2] - The financial terms of the transaction were not disclosed [1] Group 2: Strategic Importance - HRX has a strong presence in European racing circuits and focuses on technical racewear and customer relationships [2] - The acquisition aligns HRX's product offerings with Holley's existing safety brands, including Simpson, Stilo, HANS, and RaceQuip [2] Group 3: Leadership Statements - Holley’s CEO, Matthew Stevenson, emphasized that HRX is a strategic addition that supports the company's vision of being a leader in automotive performance solutions [3] - HRX's Managing Director, Ago Alberghino, noted that joining Holley will allow HRX to scale its capabilities and reach a broader global customer base [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission file number: 001-39599 HOLLEY INC. (Exact name of registrant as specified in its charter) Delaware 87-1727560 (State or other jurisdic ...

Core Insights - The company reported a net income of $6.3 million for the quarter, an improvement of $44.1 million compared to the prior year, which included significant goodwill and trademark impairment charges [1] - Adjusted net income decreased to $4.6 million from $12.6 million year-over-year [1] - Gross margin expanded to 46.8%, up 120 basis points year-over-year, attributed to pricing discipline and operational improvements [2] - Fourth-quarter net sales reached $155.4 million, a 10.9% increase year-over-year, with core net sales growth of 13.5% [3] - The company achieved full-year sales growth for the first time since 2021, with fiscal 2025 net sales of $613.5 million, up 1.9% from 2024 [8] Financial Performance - Adjusted EBITDA for the quarter rose to $33.2 million from $29.1 million a year earlier, with an adjusted EBITDA margin of 21.4% [2] - For fiscal 2025, adjusted EBITDA totaled $124 million, an increase of $13.5 million from 2024, marking the first time since 2021 that adjusted EBITDA margins exceeded 20% [9] - The company generated positive free cash flow of $34.2 million for the year, marking its third consecutive year of positive cash flow [13] 2026 Outlook - The company projects revenue for 2026 to be between $625 million and $655 million, with adjusted EBITDA expected to be between $127 million and $137 million [5][16] - Capital expenditures are anticipated to be elevated at $15 million to $20 million, primarily for ERP and facility work [5][17] - Management aims for incremental savings of $5 million to $7 million and inventory reduction of $10 million to $15 million by year-end 2026 [19] Operational Highlights - The company emphasized growth across all four divisions in the fourth quarter, with new product launches contributing approximately $23 million in sales for the full year [10] - The balance sheet showed progress with total debt prepayments exceeding $100 million since September 2023, and covenant net leverage reduced to 3.75x [6][14] - The company is preparing for a significant ERP implementation in 2026, with a go-live expected in early 2027 [18]

分组1 - Holley Inc. reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.11 per share a year ago, representing an earnings surprise of -52.94% [1] - The company posted revenues of $155.44 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.99%, compared to year-ago revenues of $140.05 million [2] - Holley shares have declined about 4.4% since the beginning of the year, while the S&P 500 has seen a decline of 0.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.08 on revenues of $161.85 million, and for the current fiscal year, it is $0.37 on revenues of $629.95 million [7] - The Automotive - Original Equipment industry, to which Holley belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - For the first time since 2021, the company achieved full year net sales growth of $613.5 million, representing a 1.9% increase compared to fiscal 2024, with core net sales growth of 6.6% driven by 3.8% volume growth and 2.8% from pricing [7][30] - Adjusted EBITDA margins exceeded 20% for the first time since 2021, with adjusted EBITDA for the year reaching $124 million, up $13.5 million from 2024 [21][32] - Fourth quarter net sales increased by 10.9% year-over-year to $155.4 million, with core growth of 13.5%, marking the strongest core growth performance of 2025 [8][23] Business Line Data and Key Metrics Changes - American Performance division saw a 10% year-over-year increase, while Truck & Off-Road grew by 5.4%, Euro & Import maintained strong momentum with a 21.5% increase, and Safety & Racing closed the quarter up 13.3% [11] - New product launches contributed approximately $23 million in sales for the year, highlighting the ongoing vitality of the company's portfolio [9] Market Data and Key Metrics Changes - The company reported broad-based growth across both B2B and direct-to-consumer channels, reflecting the strength and diversification of its portfolio [5][30] - The market growth for 2025 was estimated at 3%-4%, with the company continuing to gain market share [40] Company Strategy and Development Direction - The strategic framework focuses on three priorities: fueling teammates, strengthening customer relationships, and accelerating profitable growth, which guided decision-making throughout 2025 [12][36] - The company plans to expand its performance chemicals portfolio and enhance digital merchandising while continuing to optimize product launch processes [17][34] Management's Comments on Operating Environment and Future Outlook - The management noted that the consumer backdrop remains uneven, with middle and lower-income households facing pressure, while higher-income consumers are more willing to spend [33] - For 2026, the company expects revenue in the range of $625 million to $655 million, implying approximately 4%-4.5% growth at the midpoint [33] Other Important Information - The company generated $34.2 million of free cash flow for the year, marking its third consecutive year of positive cash generation [27] - Total debt prepayments reached $100 million since September 2023, with leverage reduced to below 3.8x [8][20] Q&A Session Summary Question: Can you quantify market growth in 2025 and expectations for 2026? - Management indicated that market growth last year was in the 3%-4% range, with expectations for continued share gains in 2026, albeit at a slower pace [40] Question: What is the timing and frequency of pricing increases? - The company typically implements pricing increases mid-year, with a modest price increase taken at the beginning of the year, but no significant increases anticipated for 2026 [42][43] Question: How does the company view elasticity and unit trends in relation to tariffs? - Management acknowledged some volume implications due to tariffs but emphasized a focus on surgical pricing actions to maintain margins and free cash flow [48] Question: Are any business segments more cyclical than others? - The Euro & Import segment showed robust growth, indicating that affluent buyers are less sensitive to economic pressures, while overall health across the portfolio was noted [60] Question: Can you provide details on the ERP and WMS system implementation? - The implementation is primarily focused on preparation in 2026, with a go-live expected in early 2027, and the company aims to avoid any business impact during this transition [69]

Financial Data and Key Metrics Changes - For the first time since 2021, the company achieved full-year net sales growth of $613.5 million, representing a 1.9% increase compared to fiscal 2024, with core net sales growth of 6.6% driven by 3.8% volume growth and 2.8% from pricing [7][30] - Adjusted EBITDA margins exceeded 20% for the first time since 2021, with adjusted EBITDA for the year reaching $124 million, up $13.5 million from 2024 [21][32] - The fourth quarter net sales were $155.4 million, a 10.9% year-over-year increase, with core growth of 13.5%, marking the strongest core growth performance of 2025 [8][24] Business Line Data and Key Metrics Changes - American Performance division saw a 10% year-over-year increase, while Truck & Off-Road grew by 5.4%, Euro & Import maintained strong momentum with a 21.5% increase, and Safety & Racing closed the quarter up 13.3% [11] - New product launches contributed approximately $23 million in sales for the full year, indicating ongoing vitality in the product portfolio [9] Market Data and Key Metrics Changes - The company reported broad-based growth across both B2B and direct-to-consumer channels, reflecting the strength and diversification of its portfolio [5][30] - The market growth for 2025 was estimated at 3%-4%, with expectations for continued share gains in 2026, albeit at a slower pace [40] Company Strategy and Development Direction - The strategic framework focuses on three priorities: fueling teammates, strengthening customer relationships, and accelerating profitable growth, which guided decision-making throughout 2025 [12][36] - The company plans to expand its performance chemicals portfolio and enhance digital merchandising while continuing to pursue strategic M&A opportunities to strengthen growth categories [18][34] Management's Comments on Operating Environment and Future Outlook - The management noted that the consumer backdrop remains uneven, with middle and lower-income households facing pressure, while higher-income consumers are more willing to spend [33] - For 2026, the company expects revenue in the range of $625 million to $655 million, implying approximately 4%-4.5% growth at the midpoint [33] Other Important Information - The company generated $34.2 million of free cash flow for the year, marking its third consecutive year of positive cash generation [27] - Total debt prepayments reached $100 million since September 2023, with leverage reduced to below 3.8x [8][20] Q&A Session Summary Question: Can you quantify market growth in 2025 and expectations for 2026? - Management indicated that market growth was in the 3%-4% range, with expectations for continued share gains in 2026, though at a slower pace [40] Question: What is the timing and frequency of pricing increases? - Pricing increases typically occur mid-year, with a modest increase at the beginning of the year anticipated, but not at the same level as the previous year [41][42] Question: How are you thinking about elasticity and unit trends? - Management noted that while there have been some volume implications, they are focused on surgical pricing actions to maintain margins and free cash flow [49] Question: Are any business segments more cyclical than others? - The Euro & Import segment showed robust growth, indicating that affluent buyers are less sensitive to economic pressures [60] Question: Can you share more about the ERP and WMS system implementation? - The implementation is primarily preparation in 2026, with a go-live expected in early 2027, and efforts are being made to minimize business impact [68] Question: Will the new systems allow for AI incorporation? - The new ERP will facilitate AI integration for better design and demand visibility [70]

Financial Data and Key Metrics Changes - For the first time since 2021, the company achieved full-year net sales growth of $613.5 million, representing a 1.9% increase compared to fiscal 2024, with core net sales growth of 6.6% driven by 3.8% volume growth and 2.8% from pricing [29][30] - Adjusted EBITDA margins exceeded 20% for the first time since 2021, with adjusted EBITDA for the year reaching $124 million, up $13.5 million from 2024 [20][31] - Fourth quarter net sales increased by 10.9% year-over-year to $155.4 million, with core growth of 13.5%, marking the strongest core growth performance of 2025 [9][24] Business Line Data and Key Metrics Changes - The American Performance division saw a 10% year-over-year increase, while Truck & Off-Road grew by 5.4%, Euro & Import increased by 21.5%, and Safety & Racing rose by 13.3% [12] - New product launches contributed approximately $23 million in sales for the full year, highlighting the ongoing vitality of the company's portfolio [10] Market Data and Key Metrics Changes - The company reported that market growth in 2025 was approximately 3%-4%, with the company continuing to gain market share [38] - The Euro & Import segment, which caters to more affluent consumers, experienced significant double-digit growth, indicating a trend where higher-income consumers are less sensitive to economic pressures [58] Company Strategy and Development Direction - The company is focused on three strategic priorities: fueling teammates, strengthening customer relationships, and accelerating profitable growth, which guide capital allocation and performance measurement [13] - Plans for 2026 include expanding the performance chemicals portfolio, enhancing digital merchandising, and pursuing strategic M&A opportunities to strengthen growth categories [18][33] Management's Comments on Operating Environment and Future Outlook - The management noted that the consumer backdrop remains uneven, with middle and lower-income households facing pressure, while higher-income consumers are willing to spend [32] - The company expects revenue growth in 2026 to be in the range of $625 million to $655 million, implying approximately 4%-4.5% growth at the midpoint [32] Other Important Information - The company generated $34.2 million in free cash flow for the year, marking the third consecutive year of positive cash generation [27] - The company prepaid an additional $10 million of debt in Q4, bringing total prepayments to $100 million since September 2023, ending the year with leverage below 3.8x [9][20] Q&A Session Summary Question: Can you quantify market growth in 2025 and expectations for 2026? - Management indicated that market growth was around 3%-4% in 2025, with expectations for continued share gains in 2026, albeit at a slower pace [38] Question: What is the timing and frequency of pricing increases? - Management noted that pricing increases typically occur mid-year, with a modest price increase taken at the beginning of the year, but no significant increases anticipated for 2026 [40][41] Question: How does the company view elasticity and unit trends in relation to tariffs? - Management acknowledged some volume implications due to tariffs but emphasized a focus on surgical pricing actions to maintain margins and free cash flow [47] Question: Are any segments of the business more cyclical than others? - Management highlighted that the Euro & Import segment, catering to affluent consumers, showed robust growth, while overall health across the portfolio was noted [58] Question: Can you provide details on the ERP and WMS system implementation? - Management stated that 2026 will primarily focus on preparation for the ERP and WMS systems, with a go-live expected in early 2027 [67]

Fourth Quarter and Full Year 2025 Financial Results Call 1 1 Disclaimer Certain statements in this presentation 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 ...

Core Financial Performance - Fourth quarter net sales increased by 10.9% to $155.4 million compared to $140.1 million in the prior year [7] - Fourth quarter net income was $6.3 million, a significant improvement of $44.1 million from a net loss of $(37.8) million in the previous year [7] - Adjusted EBITDA for the fourth quarter reached $33.2 million, up $4.1 million year-over-year [7] - Full year net sales increased by 1.9% to $613.5 million compared to $602.2 million in the prior year [7] - Full year net income was $19.2 million, compared to a net loss of $(23.2) million in the previous year [7] Strategic Initiatives and Growth - The company achieved core business net sales growth of 13.5% in the fourth quarter of 2025 compared to the same period in 2024 [14] - The strategic framework led to approximately $20 million in cost savings for the year [14] - The company expanded growth across 22 brands and all divisions, with B2B channel growth of approximately 10.8% and DTC growth of 7.0% year-over-year [14] Financial Discipline and Cash Flow - The company generated approximately $34 million in free cash flow for the full year [6] - Net cash provided by operating activities was $48.6 million, compared to $46.9 million in the previous year [7] - The company ended the year with a leverage ratio of 3.75x, below the 4.0x target established for 2025 [8] Outlook for 2026 - The company provided full-year guidance for 2026, projecting net sales between $625 million and $655 million [10] - Adjusted EBITDA for 2026 is expected to be between $127 million and $137 million [10] - Capital expenditures are anticipated to be between $15 million and $20 million [10]