Included in this Presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") that are designed to supplement, and not substitute Holley's financial information presented in accordance with GAAP, including, but not limited to, EBITDA, Adjusted EBITDA, Adjusted EDBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow. T ...

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Performance - Core business net sales increased by 6.4% to $138.4 million for Q3 2025 compared to $134.0 million in Q3 2024[6] - Net Loss narrowed to $(0.8) million, or $(0.01) per diluted share, compared to $(6.3) million, or $(0.05) per diluted share, in the prior year[6] - Adjusted EBITDA rose to $27.1 million, up from $22.1 million in Q3 2024[6] - Net sales for the thirteen weeks ended September 28, 2025, were $138,373,000, an increase of 3.2% compared to $134,038,000 for the same period in 2024[18] - Gross profit for the thirteen weeks ended September 28, 2025, was $59,839,000, reflecting a 14.4% increase from $52,306,000 in the prior year[18] - Operating income surged to $15,867,000 for the thirteen weeks ended September 28, 2025, a significant increase of 185.2% compared to $5,563,000 in the same period of 2024[18] - Net income for the thirteen weeks ended September 28, 2025, was a loss of $806,000, an improvement of 87.2% from a loss of $6,288,000 in the prior year[18] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $27,106 million, representing a 22.5% increase from $22,114 million in the prior year[27] - The net income margin improved to (0.6%) for the thirteen weeks ended September 28, 2025, compared to (4.7%) in the prior year[27] Cash Flow and Debt Management - Free Cash Flow improved to $5.5 million in Q3 2025, a $7 million increase from the previous year[6] - The company reported a net cash provided by operating activities of $7,430,000 for the thirteen weeks ended September 28, 2025, compared to a net cash used of $1,748,000 in the same period of 2024[22] - Total debt repayment reached $100 million since September 2023, lowering the leverage ratio to 3.9x, the lowest since 2022[5] - Total debt as of September 28, 2025, was $542,938 million, a decrease from $561,840 million at December 31, 2024[29] - The Bank-adjusted EBITDA leverage ratio was 3.91x as of September 28, 2025, compared to 4.17x at December 31, 2024[29] Guidance and Future Outlook - Full-year 2025 net sales guidance is set between $590 million and $605 million, reflecting a year-over-year growth of 2.5% to 5.1%[8] - Adjusted EBITDA guidance for the full year 2025 is projected between $120 million and $127 million[8] - The company plans to continue executing its strategic framework to drive long-term growth and operational efficiency[7] Asset and Liability Overview - Total assets increased to $1,165,114,000 as of September 28, 2025, compared to $1,133,320,000 as of December 31, 2024[20] - Cash and cash equivalents decreased to $50,723,000 as of September 28, 2025, down from $56,087,000 at the end of 2024[20] - Total liabilities rose to $725,377,000 as of September 28, 2025, compared to $712,168,000 as of December 31, 2024[20] Capital Expenditures - Capital expenditures for the thirty-nine weeks ended September 28, 2025, were $26,408,000, significantly higher than $2,727,000 in the prior year[22] Product and Market Performance - The company achieved approximately 7.3% growth in B2B channels and 4.2% growth in DTC orders in Q3 2025 compared to the same period last year[12] - Product innovation and strategic pricing initiatives contributed $11.3 million in revenue for Q3 2025 and $30.1 million year-to-date[12] - Free cash flow for the thirty-nine weeks ended September 28, 2025, was $30,319 million, down from $40,046 million in the same period of 2024[33] - Adjusted net income for the thirty-nine weeks ended September 28, 2025, was $16,535 million, compared to $12,282 million in the same period of 2024[31] - The adjusted diluted EPS for the thirty-nine weeks ended September 28, 2025, was $0.14, up from $0.10 in the same period of 2024[31]

Core Business Growth - Holley Performance Brands reported its third consecutive quarter of core business net sales growth, achieving a 6.4% increase compared to the same period last year [5][7][8] - The overall net sales for the third quarter of 2025 increased by 3.2% to $138.4 million from $134.0 million in the prior year [7][8] Financial Performance - The company generated a net loss of $(0.8) million, or $(0.01) per diluted share, significantly improved from a net loss of $(6.3) million, or $(0.05) per diluted share, in the previous year [7][19] - Adjusted EBITDA rose to $27.1 million, up from $22.1 million year-over-year, reflecting strong operational performance [7][19] - Free Cash Flow for the quarter was $5.5 million, a notable improvement of over $7 million compared to the previous year [5][7] Debt Management - Holley prepaid an additional $15 million of debt in the third quarter, bringing total repayments to $100 million since September 2023, resulting in a leverage ratio of 3.9x, the lowest since 2022 [5][7] Strategic Initiatives - The company’s strategic framework contributed approximately $27.8 million in revenue from key initiatives during the third quarter [8] - Holley experienced growth across 17 brands and all divisions, with a 7.3% increase in B2B channel sales and a 4.2% growth in direct-to-consumer (DTC) orders [13][8] Outlook - Holley has refined its full-year guidance for 2025, projecting net sales between $590 million and $605 million, representing a year-over-year growth of 2.5% to 5.1% [9][10] - Adjusted EBITDA guidance for the full year is set between $120 million and $127 million [9]

Core Insights - Holley Performance Brands will showcase its latest automotive aftermarket performance solutions at SEMA 2025 in Las Vegas, representing its four consumer product verticals: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing [1][4] Group 1: Company Overview - Holley Performance Brands has over 50 years of presence at the SEMA Show, highlighting its commitment to the automotive aftermarket and innovation [4] - The company aims to become the global leader in aftermarket automotive performance solutions, driven by a passionate team [2][8] Group 2: Product Highlights - Domestic Muscle will feature an expanded EFI ecosystem with the HyperSpark ignition system, showcased through a 1995 Camaro build [5] - Modern Truck & Off-Road will present a 2026 Callaway Silverado Super Charged 1500 build, emphasizing turnkey Performance Packages [5] - Euro & Import will debut an expanded APR Ultralink for at-home tuning and showcase a 2024 Audi RS3 [5] - Safety & Racing will highlight new product launches, including the RaceQuip NX25 helmet, and preview innovations for the PRI Show [5] Group 3: Event Details - Holley Performance Brands will be located in Central Hall (22463) at SEMA 2025, featuring unique builds, product demonstrations, and engagement with influencers [3] - The company will also have a significant presence at PRI 2025 in Indianapolis, showcasing various brands and innovations [6]

Core Insights - Holley Performance Brands has made a proactive debt repayment of $10 million, increasing total repayments to $100 million since September 2023, indicating a strong commitment to reducing leverage and enhancing financial stability [1][2] Financial Performance - The recent debt repayment was funded entirely through free cash flow and involved opportunistic repurchases of its first lien term loan facility at a discount [2] - Cumulatively, these prepayments are expected to generate up to $4 million in annualized net interest savings [2] Strategic Focus - The company emphasizes its disciplined operations and strong cash flow generation as key factors in its ongoing transformation and momentum [2] - Holley Performance Brands aims to strengthen its balance sheet and reinforce investor confidence while focusing on creating shareholder value [2] Industry Position - Holley Performance Brands is recognized as a leader in the automotive aftermarket performance solutions sector, catering to a diverse community of automotive enthusiasts [4] - The company operates under a strategic focus on four consumer verticals: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, which enhances its impact across the industry [4]

Core Insights - Holley Performance Brands will release its third quarter 2025 financial results on November 7, 2025, before the market opens [1][2] - A conference call and live webcast will be held on the same day at 8:30 am Eastern Time to discuss the financial results [2][3] Company Overview - Holley Performance Brands is a leader in the design, manufacturing, and marketing of high-performance automotive products [4] - The company manages a portfolio of iconic brands and focuses on four consumer verticals: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing [4] - Holley is known for its innovative approach and strategic acquisitions aimed at enhancing the enthusiast experience and driving growth [4]

Core Insights - Holley Performance Brands has launched a new line of helmets compliant with the Snell SA2025 safety standards, marking a significant step in motorsports safety innovation and brand differentiation [1][2][9] - The new helmet line includes products from three iconic brands: Stilo, Simpson, and RaceQuip, each offering advanced safety features and designs tailored for both professional and grassroots racers [4][8] Product Details - Stilo's new models (ST6, WRX, and Venti) are designed with advanced composites and improved airflow, achieving both FIA and SA2025 approvals [4] - Simpson's refreshed lineup includes the Kingsnake, known for its premium impact absorption and lightweight comfort, along with the upgraded Bandit and redesigned Vudo models [4] - RaceQuip introduces the NX25 as its flagship model, featuring advanced features at an affordable price, alongside updated designs for the PRO25 and OF25 [4] Market Dynamics - The transition to SA2025-certified helmets is expected to drive a surge in demand across various motorsport disciplines, as drivers will need to upgrade from older SA2015-certified helmets to maintain compliance [7] - Holley's comprehensive helmet line positions the company to meet this replacement demand effectively, leveraging its strong dealer networks and established credibility in motorsports safety [8]

Core Viewpoint - Holley Inc. (HLLY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates, which significantly impacts stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system focuses on changes in earnings estimates as a key determinant of stock ratings, with the consensus estimate for Holley showing a 18.9% increase over the past three months [8][4]. - For the fiscal year ending December 2025, Holley is expected to earn $0.23 per share, which remains unchanged from the previous year [8]. Investment Implications - The upgrade reflects an improvement in Holley's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][3]. - The Zacks Rank system, which categorizes stocks based on earnings estimate revisions, has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7][6]. Market Positioning - Holley's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][9].

Core Insights - Holley Performance Brands is expanding its Simpson Motorcycle division into the global motorcycle helmet and safety gear market, which is valued at approximately $7 billion annually [1][2] Group 1: Strategic Growth Initiatives - Simpson Motorcycle is implementing a focused global growth strategy targeting high-growth regions such as the European Union (EU), Asia-Pacific (APAC), and Latin America (LATAM) [2] - Key initiatives include regional product variants, certification alignment, and co-marketing activations to enhance market presence [2][3] Group 2: Dealer Engagement and Activations - The inaugural Saddle Up™ Global Dealer Summit was held in New Braunfels, Texas, showcasing new product launches and strengthening dealer relationships [4] - Simpson made a significant impact at the 85th annual Sturgis Rally, engaging thousands of riders through live activations and product showcases [5] Group 3: Product Innovation and Partnerships - At the Sturgis Rally, Simpson introduced the Simpson x Buell Mod Bandit helmet, a product of a new partnership with Buell Motorcycle Co., emphasizing the blend of motorsports heritage and street relevance [6][7] - The Mod Bandit helmet is available for preorder, with shipping set to begin on November 1 [8] Group 4: Future Product Launches - Simpson Motorcycle plans to unveil its latest 2026 products at the EICMA show in Milan, Italy, in November [9]