What guidance did Holley's management provide for the next earnings period?

Did Holley beat or miss consensus estimates last quarter?

What does Holley do and what are its main business segments?

What were the key takeaways from Holley’s earnings call?

What factors drove the changes in Holley's revenue and profit?

What is the market's earnings forecast for Holley next quarter?

What is the revenue and EPS growth rate for Holley year over year?

What is Holley's latest dividend and current dividend yield?

- **Core Growth Accelerates**: 6.4% Q3 core revenue growth, driven by volume and pricing, with all divisions contributing.
- **Margin Expansion**: Gross margin up to 43.2%, adjusted EBITDA margin 19.6%, reflecting pricing discipline and operational improvements.
- **Debt Reduction Milestone**: Leverage below 4x for the first time since 2022, with $100 million debt prepayment.
- **Strategic Initiatives Pay Off**: $26 million from new products and margin optimization, supporting long-term growth.
- **Consumer Resilience**: Enthusiast demand remains strong, with no signs of slowdown despite macro challenges.

**【Management Opening Remarks】**
- Anthony Rozmus introduced the call, highlighting the review of Q3 2025 financial results and guidance for the full year. He emphasized the company's focus on disciplined execution and strategic initiatives.

**【CEO Commentary】**
- **Core Business Growth**: 6.4% year-over-year, driven by volume (4%) and pricing (1%), with growth across all divisions and channels.
- **Strategic Initiatives**: Generated $26 million in revenue, including $11.3 million from new products and $7.7 million from margin optimization.
- **Financial Milestones**: Net debt-to-EBITDA leverage dropped to 3.9x (first below 4x since 2022), with $100 million debt prepayment since September 2023.
- **Operational Improvements**: In-stock rates for top 2,500 products near 93%, past due orders down 20.7%, and $3 million efficiency gains.
- **Event Engagement**: Record merchandise sales despite lower attendance at LS Fest East, with digital audience growth supporting sales.

**【CFO Commentary】**
- **Net Sales**: $138.4 million (+3.2% YoY), first GAAP net sales growth in 2 years, with core business up 6.4%.
- **Gross Margin**: 43.2% (+422 bps YoY), driven by pricing and operational efficiency.
- **Adjusted EBITDA**: $27.1 million (+22.6% YoY), margin 19.6% (+309 bps YoY).
- **Free Cash Flow**: $5.5 million (vs. -$2.1 million YoY), year-to-date $30.3 million.
- **Debt Reduction**: $15 million prepayment in Q3, total $100 million since Q3 2023, leverage at 3.9x.
- **Updated Guidance**: Revenue $590-605 million (+3.8% YoY), adjusted EBITDA $120-127 million.

**【Q&A Highlights】**
- **Pricing Realization**: Lower than expected due to B2B sales mix and contractual delays, but no trade-down observed.
- **Inventory Management**: Increased visibility through consignment and bonded warehouse adjustments, temporarily higher on-hand.
- **SEMA Impact**: Strong booth engagement and product launches, with events supporting D2C and B2B sales.
- **Consumer Resilience**: Enthusiast passion driving share gains despite macro challenges, with no signs of spending slowdown.
- **Future Growth**: Focus on B2B partnerships, data sharing, and operational efficiency to sustain margin expansion.


Holley Inc. (HLLY) Q3 2025 Earnings Call Transcript

- **Record Free Cash Flow**: $35.7 million Q2, highest in company history, driven by working capital efficiency.
- **Tariff Mitigation Success**: $15 million savings through 2026, no projected margin impact.
- **Core Growth Momentum**: 3.9% YoY core revenue growth, with D2C sales up 8.6% and third-party platforms +28%.
- **Product Innovation Impact**: $10.8 million incremental revenue from new products like Terminator X module.
- **Mexico Expansion**: Long-term target of 5% U.S. market share, with early-stage distributor network build.


**【CEO Summary Section】**
- **Core Business Growth**: 3.9% year-over-year, driven by strong execution across all divisions. Free cash flow reached $35.7 million, a record high.
- **Tariff Mitigation Success**: $15 million in mitigation efforts offset tariff impacts, with no projected margin or cash flow impact in 2025-2026.
- **Product Innovation**: $10.8 million incremental revenue from new products like Terminator X Bluetooth module and expanded Arizona Desert Shocks line.
- **Channel Growth**: D2C sales up 8.6%, with third-party platforms (e.g., Amazon) growing 28%.
- **Operational Efficiency**: Inventory reduced by $9 million YTD, in-stock rates for top 2,500 products improved 2.2%.

**【CFO Financial Commentary】**
- **Net Sales**: $166.7 million (Q2 2025), down 1.7% YoY due to strategic rationalizations, but core business grew 3.9%.
- **Gross Margin**: 41.7% (up 26 bps YoY), driven by pricing and supply chain improvements.
- **Adjusted EBITDA**: $36.4 million (down 5% YoY), margin 21.9% (down 74 bps YoY) due to product mix shifts.
- **Free Cash Flow**: $35.7 million (up 46% YoY), highest on record, fueled by working capital optimization.
- **Leverage**: Covenant net leverage 4.22x (down from 4.32x Q1), well below 5x covenant.

**【Q&A Highlights】**
- **Pricing Response**: Distributors and consumers accepted price increases, with Holley outperforming competitors in key categories.
- **Market Sentiment**: July sales held steady despite macro uncertainty, with no meaningful tariff impact on margins.
- **Mexico Expansion**: Targeting 5% of U.S. market long-term, with distributor network and product localization underway.
- **Tariff Mitigation**: $15 million savings through 2026 via supplier relocations, new sourcing, and in-sourcing.
- **H2 Guidance**: Flat to low-single-digit core growth, conservative due to macroeconomic headwinds.


Holley (HLLY)-6 Aug 25-2025 Q2 Earnings call transcript

- **Revenue Resilience**: 3.3% core growth despite macro challenges, driven by D2C (10%+) and B2B (2.5%) gains.
- **Profitability Boost**: 41.9% gross margin (vs. 32.8% YoY), with $1M+ operational savings.
- **Tariff Mitigation Success**: 8.75% price increase offsetting tariffs, while 90%+ production in US limits exposure.
- **Innovation Payoff**: $8.1M from new products, including EFI bundles and safety gear.
- **2025 Outlook**: Guided for $580M-$600M revenue, excluding tariffs, with EBITDA $113M-$130M.

**【CEO Summary Section】**
- **Revenue Growth**: Core business grew 3.3% YoY, driven by 10%+ D2C growth and 2.5% B2B expansion. Third-party platforms (e.g., Amazon) saw over 50% growth.
- **Gross Margin Improvement**: 41.9% gross margin (up 910 bps YoY), with 200 bps from operational efficiencies.
- **Strategic Initiatives**: Holley Pros program added $2.5M in B2B revenue; third-party strategy contributed $3.3M.
- **Tariff Mitigation**: 8.75% price increase effective June 9, with $3.1M cost savings in Q1.
- **Product Innovation**: $8.1M revenue from new products, including EFI bundles and safety gear.

**【CFO Financial Commentary】**
- **Net Sales**: $153M (down 3.6% YoY, but +3.3% ex-divestitures).
- **Adjusted EBITDA**: $27.3M (up 30% YoY), margin 17.8% (vs. 13.2% YoY).
- **Free Cash Flow**: -$10.8M (vs. +$17.8M YoY), due to delayed collections and inventory shifts.
- **2025 Guidance**: Revenue $580M-$600M (2.5% growth), EBITDA $113M-$130M. Excludes tariff impacts.
- **Financial Priorities**: Free cash flow generation, $5M-$10M cost savings, $10M-$15M inventory reduction.

**【Q&A Highlights】**
- **Tariff Strategy**: 8.75% price increase vs. competitors' 30%+ hikes; 90%+ production in US limits exposure.
- **Demand Trends**: March sales strong post-weather; no pre-buying observed in Q2.
- **Third-Party Growth**: 50%+ platform growth seen as incremental, with MAP compliance maintained.
- **Consumer Sentiment**: University of Michigan Index at 5-month low, but Holley's D2C growth outpaces industry.
- **Event Revenue**: LS Fest West attendance up 15%, merchandise sales +20% YoY.

Holley Inc. (HLLY) Q1 2025 Earnings Call Transcript

- **Direct-to-Consumer Growth**: 8% YoY expansion, 17 brand expansions across channels.
- **Mexico Market Potential**: $3-5B enthusiast market with older car parks favoring Holley's carburetor and off-road products.
- **2025 Financial Targets**: +2.5% revenue growth (midpoint), 40%+ gross margin, 20%+ EBITDA margin.
- **Cost Efficiency**: $7.8M cost-to-serve savings in FY2024, $8-10M savings expected in FY2025.
- **B2B Momentum**: 80% B2B sales coverage, 12% growth in national retailer channel.


**【CEO Summary Section】**
- **Market Transformation Progress**: Holley achieved 8% YoY growth in direct-to-consumer sales and 17 brand expansions across all channels, driven by enhanced digital capabilities and distribution partnerships.
- **Demand Trends**: Consumer hesitation due to high household costs and policy uncertainty, with Q1 2025 sales trending flat but expected mid-single-digit growth in H2.
- **Mexico Expansion**: Launched direct-to-distributor relationships, targeting a $3-5B enthusiast market with older car parks favoring carburetor and off-road products.
- **2025 Growth Strategy**: Focus on B2B sales support (80% coverage), SKU expansion in retail channels, and solutions-based product bundles for simplicity.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Net sales $140.1M (-10% YoY), gross margin 45.6% (+690bps YoY), adjusted EBITDA $29.1M (+250bps margin YoY).
- **Free Cash Flow**: $42M for FY2024, driven by cost-to-serve savings ($7.8M) and inventory optimization, with $25M debt prepayment.
- **2025 Guidance**: Revenue $580-600M (+2.5% midpoint), adjusted EBITDA $113-130M, targeting 40%+ gross margin and 20%+ EBITDA margin.
- **Key Initiatives**: $8-10M cost-to-serve savings offset by $4-5M inflation, $7M incremental expenses (SOX, furlough reversals).

**【Q&A Key Takeaways】**
- **Channel Health**: Distributor inventory aligned with sell-through, 80% B2B sales coverage, and AutoZone partnerships in US/Mexico.
- **Consumer Sentiment**: Higher-income ($100K+) enthusiasts show hesitancy, with modern trucks/off-road (+80% market share) outperforming discretionary upgrades.
- **New Product Impact**: 75% increase in new product revenue/SKU, 6 SKUs >$1M run rate in FY2024, with chemical line (NOS Octane Booster) gaining strong retail traction.
- **Tariff Mitigation**: Proactive sourcing and pricing strategies to offset potential impacts, with majority of costs US-based.


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