Holley (US:HLLY)2026-03-04 12:28Financial Performance - Fourth quarter net sales increased by 10.9% to $155.4 million compared to $140.1 million last year[5] - Fourth quarter net income was $6.3 million, a significant improvement of $44.1 million year-over-year from a net loss of $(37.8) million[5] - Adjusted EBITDA for the fourth quarter was $33.2 million, up $4.1 million from $29.1 million last year[5] - Full year net sales increased by 1.9% to $613.5 million compared to $602.2 million last year[5] - Core business net sales for the full year 2025 grew by 6.6% after excluding non-core business net sales of approximately $26.8 million for the full year 2024[5] - The company achieved core business net sales growth of 13.5% in Q4 2025, marking the fourth consecutive quarter of growth[10] - Net income for the year ended December 31, 2025, was $19,175,000, compared to a net loss of $23,235,000 in 2024, marking a turnaround of $42,410,000[18] - Adjusted EBITDA for the year ended December 31, 2025, increased to $124,021, up from $110,506 in 2024, representing a growth of 12.3%[29] - The adjusted EBITDA margin for the year ended December 31, 2025, was 20.2%, compared to 18.3% in 2024, indicating an improvement of 1.9 percentage points[27] - Net income margin for the year ended December 31, 2025, was 3.1%, compared to a negative margin of (3.9%) in 2024, showing a significant turnaround[27] Cash Flow and Debt Management - Free cash flow for the full year was $34 million, with a leverage ratio of 3.75x, below the 4.0x target[6][10] - The company prepaid $10 million of debt in Q4 2025, totaling $100 million in debt prepayments since September 2023[10] - The company reported a net cash provided by operating activities of $48,598,000 for the year ended December 31, 2025, compared to $46,899,000 in 2024[22] - Free cash flow for the year ended December 31, 2025, was $34,221, down from $41,821 in 2024, a decrease of 18.5%[33] - Total debt as of December 31, 2025, was $529,557, down from $561,840 in 2024, a reduction of 5.7%[29] Cost Management and Strategic Initiatives - The strategic framework delivered approximately $20 million in cost savings for the year[10] - Full-year guidance for 2026 includes net sales of $625 - $655 million and adjusted EBITDA of $127 - $137 million[8] - Capital expenditures for the year ended December 31, 2025, were $(34,607,000), compared to $2,021,000 in 2024[22] Asset and Liability Overview - Total assets as of December 31, 2025, increased to $1,163,953,000 from $1,133,320,000 as of December 31, 2024[20] - Cash and cash equivalents decreased to $37,231,000 as of December 31, 2025, down from $56,087,000 in 2024[20] - Total liabilities as of December 31, 2025, were $715,028,000, slightly up from $712,168,000 in 2024[20] Non-GAAP Measures - The company emphasized the importance of non-GAAP financial measures such as Adjusted EBITDA to provide a clearer picture of operational performance[23]