Holley (HLLY) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 4, 2026 astatine 9:51 AM CST 31 min read

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Wednesday, March 4, 2026, 8:30 a.m. ET

• Chief Executive Officer — Matthew Stevenson

• Chief Financial Officer — Jesse Weaver

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Matthew Stevenson: Thank you, Anthony, and bully greeting to everyone joining us. As we bespeak connected 2025, I americium pleased to study that our disciplined attack delivered beardown 4th fourth results successful a twelvemonth of meaningful advancement for Holley Inc. This was a pivotal year, and not due to the fact that of 1 standout 4th but due to the fact that of sustained show crossed each 4 quarters. For the archetypal clip since 2021, we delivered afloat twelvemonth nett income maturation portion achieving adjusted EBITDA margins supra 20%, highlighting the net capableness of our concern model.

Our halfway concern generated nett income maturation successful each 4th of 2025, culminating successful double-digit maturation successful the 4th quarter, our strongest show of the twelvemonth and wide grounds of accelerating momentum arsenic we participate 2026. When we notation to core, we are excluding divested operations and strategically rationalized merchandise lines. Four consecutive quarters of halfway maturation show that the underlying concern is performing and that our strategy is producing measurable results. Throughout the year, we operated with absorption and rigor, driving volume-led growth, sharpening pricing execution, strengthening operational capabilities, and maintaining fiscal discipline. Full twelvemonth nett income maturation was driven chiefly by volume, complemented by pricing, a balanced premix that reflects coagulated underlying request for our starring brands.

In the 4th quarter, we saw maturation crossed B2B and direct-to-consumer channels, underscoring the resilience of our omni-channel level and the spot of our relationships with distributors, e-tailers, marketplaces, installers, and our ain integer ecosystem. This strategy centered connected serving enthusiasts wherever they take to prosecute drove maturation crossed each 4 divisions and 22 cardinal brands successful 2025. Just arsenic importantly, we reinforced our fiscal foundation. We generated meaningful escaped currency travel and ended the twelvemonth with nett leverage beneath the people we acceptable retired astatine the 2025, demonstrating equilibrium expanse subject and beardown fiscal control. Consistent growth, expanding margins, beardown currency generation, and leverage simplification each achieved simultaneously. That operation reflects disciplined, focused performance.

Let america crook to descent 5 which outlines however the sustained show translated into measurable fiscal results for some the 4th fourth and afloat twelvemonth 2025. As noted, for the archetypal clip since 2021, we delivered some afloat twelvemonth nett income maturation and adjusted EBITDA margins supra 20%, a wide denotation that our multiyear translation is taking hold. Core nett income grew successful each 4th of 2025, accelerating to 13.5% maturation successful Q4, reflecting coagulated request and stronger commercialized execution. For the afloat year, nett income totaled $613.5 million. Core nett income accrued 6.6%, driven chiefly by 3.8% measurement maturation with an further 2.8% publication from pricing, a steadfast premix that speaks to the prime of our growth.