Holley Inc

Holley reported second quarter 2026 net sales of $172 million, up 3.2% from $166.7 million a year earlier, with core business net sales growing 4.9% after excluding portfolio rebalancing and divestitures. Adjusted net income more than doubled to $24 million from $10.6 million, while adjusted EBITDA fell to $33.8 million from $36.4 million, reflecting tariff costs and fixed cost deleverage. Free cash flow rose $5.2 million to $40.9 million, and the company's leverage ratio improved to 3.74x, its lowest in four years. Management reaffirmed full-year core revenue guidance of $610 million to $640 million and adjusted EBITDA of $127 million to $137 million, citing $12 million in new national retailer placements and a strong product pipeline for the second half.

Holley reported second quarter 2026 net sales of $172 million, up 3.2% year-over-year, with core sales growing 4.9% and three of its four divisions delivering double-digit core growth. The company completed the divestiture of its non-core restoration brands, including Brothers Trucks and Scott Drake, resulting in a GAAP net loss of $2.4 million for the quarter, but adjusted net income more than doubled to $24 million from $10.6 million a year earlier. Holley generated $40.9 million in free cash flow, reduced leverage to 3.74x, its lowest level in four years, and repurchased approximately $2 million of common stock. Management reaffirmed full-year 2026 guidance, citing normalized channel inventories, $12 million in new national retailer placements for the third quarter, and a robust product pipeline.

Holley Performance Brands announced an expanded retail partnership with a major national retail partner that will broaden placement of its leading performance brands across the partner’s store and distribution network beginning in the third quarter of 2026. The partner is refreshing its in-store performance planogram and increasing supporting inventory within its distribution network, creating broader access to Holley products for performance enthusiasts across the partner's stores and online. The rollout will feature products from Holley’s portfolio including Holley, MSD, Flowmaster, Baer Brakes, DiabloSport and Mr. Gasket. John Nelligan, Senior Vice President of B2B Sales at Holley Performance Brands, said the expanded placement reflects the strength of the brand portfolio and continued execution of the company’s omnichannel growth strategy. The partnership is expected to support meaningful incremental annual business opportunities across a broad national retail footprint.

Holley Performance Brands has made an additional $15 million voluntary prepayment of debt, bringing total debt repaid since September 2023 to $115 million, all funded by free cash flow. The company expects these cumulative debt reduction actions to generate more than $4.5 million in annualized interest savings. Chief Financial Officer Jesse Weaver stated that the company is targeting a net leverage ratio below 3.5x by year-end, down from a peak of 5.67x, driven by operational improvements and consistent free cash flow generation. The prepayment further reduces outstanding borrowings under the company's debt facilities and supports enhanced profitability and financial flexibility.