Holley Inc. reported a strong fourth quarter and full year 2025, driven by a 10.9% increase in net sales for the quarter and a return to positive net income. The company highlighted operational rigor, cost savings, and strategic initiative execution as key drivers, leading to improved Adjusted EBITDA and a strengthened balance sheet with a reduced leverage ratio.
Net Sales increased 10.9% to $155.4 million in Q4 2025 compared to $140.1 million in Q4 2024.
positiveCore business net sales grew 13.5% in Q4 2025 compared to Q4 2024, marking the fourth consecutive quarter of core business growth.
positiveAdjusted EBITDA increased to $33.2 million in Q4 2025 from $29.1 million in Q4 2024.
positiveFull year 2025 Net Sales increased 1.9% to $613.5 million compared to $602.2 million last year.
positiveFull year 2025 Adjusted EBITDA increased to $124.0 million compared to $110.5 million last year.
positiveLeverage ratio improved to 3.75x at year-end 2025, below the 4.0x target and the strongest position in several years.
positiveInventory increased to $205.7 million as of December 31, 2025, from $192.5 million as of December 31, 2024, an increase of $13.1 million or 6.8%.
attentionSelling, General, and Administrative expenses increased by 24.8% to $43.0 million in Q4 2025 compared to $34.5 million in Q4 2024.
attentionFree Cash Flow for the full year 2025 was $34.2 million, a decrease from $41.8 million in the prior year.
attentionAdjusted Net Income decreased to $4.6 million in Q4 2025, or $0.04 per diluted share, compared to $12.6 million, or $0.11 per diluted share, in Q4 2024.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Delivered a strong year in 2025, achieving the results we set out to accomplish through the execution of our strategic initiatives.
Our focus on operational rigor drove meaningful performance improvements and measurable cost savings across the organization.
Our financial discipline remained a cornerstone of our performance in 2025. For the full year, we generated roughly $34 million of Free Cash Flow.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.