Overview

* Holley Q2 net sales fell 1.7% yr/yr, but core sales grew 3.9%

* Adjusted EPS missed analyst expectations, per LSEG data

* Co achieved highest free cash flow in company history

Outlook

* Holley forecasts full-year 2025 net sales of $580 - $595 mln

* Company expects full-year 2025 adjusted EBITDA of $116 - $127 mln

* Holley anticipates negligible tariff impact due to strategic sourcing

* Company projects full-year 2025 capital expenditures of $10 - $14 mln

Result Drivers

* CORE SALES GROWTH - Core business net sales increased by 3.9% due to strategic initiatives and product innovation

* TARIFF MITIGATION - Successful tariff mitigation through strategic sourcing and pricing actions, providing better guidance visibility

* CHANNEL EXPANSION - Strengthened B2B and direct-to-consumer channels, contributing to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $166.66 $162.70

mln mln (8

Analysts

)

Q2 Miss $0.09 $0.1 (7

Adjusted Analysts

EPS )

Q2 EPS $0.09

Q2 Net $10.86

Income mln

Q2 Basic $0.09

EPS

Q2 Gross $69.56

Profit mln

Q2 $27.51

Operatin mln

g Income

Q2 $14.37

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

* Wall Street's median 12-month price target for Holley Inc ( HLLY ) is $3.00, about 32% above its August 5 closing price of $2.04

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)