Holley Reports Fourth Quarter and Full Year 2025 Results

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]