Core Insights - The company has demonstrated the benefits of its diversified business model over the past six months, achieving several one-year targets outlined in its refreshed strategic framework [1] Group Expansion - The company opened its first office in Cape Town, increasing its global presence to 19 offices across 13 countries [2] - Strong senior hires were made globally, including a new Head of Dry Cargo in Singapore and a Global Head of Tanker Operations [2] - The company is actively identifying and evaluating complementary acquisitions to enhance its operations [2] Security Business Development - The company launched its U.K. Organized Trading Facility (OTF) in May, marking a significant step in strengthening its Security business [3] - Progress is being made on the application for an EU OTF and to operate within the Dubai International Financial Center [3] - The company aims to leverage its established positions in coal, natural gas, and freight derivatives to capitalize on growth opportunities [3]

Core Business Performance - Holley Performance Brands reported a core business net sales growth of 3.9% in the second quarter of 2025 compared to the same period in 2024, marking the second consecutive quarter of growth [9][8] - The company's net sales decreased by 1.7% to $166.7 million from $169.5 million year-over-year [8][19] - New product launches contributed approximately $8 million in revenue during the second quarter [5] Financial Highlights - Net income for the second quarter was $10.9 million, or $0.09 per diluted share, down from $17.1 million, or $0.14 per diluted share, in the prior year [8][20] - Adjusted EBITDA for the quarter was $36.4 million, compared to $38.3 million in the previous year [8] - Free cash flow reached $35.7 million, the highest level in the company's history, compared to $24.4 million last year [8][15] Strategic Initiatives - The company successfully mitigated tariff impacts through strategic sourcing and pricing actions, leading to increased guidance visibility [6][15] - Holley has refined its full-year guidance for 2025, projecting net sales between $580 million and $595 million, reflecting a year-over-year growth of 0.8% to 3.4% [10] - The company achieved approximately 6.5% growth in its B2B channel and over 8.6% growth in direct-to-consumer orders during the second quarter [15] Operational Efficiency - Net cash provided by operating activities was $40.5 million, significantly higher than $25.7 million in the prior year [8][25] - The company reported a gross profit of $69.6 million, a slight decrease from $70.3 million year-over-year, but an increase in gross profit margin was noted [19] - Operating income for the second quarter was $27.5 million, compared to $27.9 million in the previous year [19]