Holley (NYSE:HLLY) Announces Quarterly Earnings Results

Holley (NYSE:HLLY) released its earnings results on Wednesday. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.08, FiscalAI reports. The company had revenue of $172.01 million for the quarter, compared to analysts’ expectations of $172.63 million. Holley had a return on equity of 8.42% and a net margin of 1.68%.

Here are the key takeaways from Holley’s conference call:

• Holley returned to growth in Q2, with net sales up 3.2% to $172 million and core sales up 4.9%; three of four divisions delivered double-digit core growth. Modern Truck & Off-Road, Euro & Import, and Safety & Racing grew 15.7%, 13.1%, and 13.8%, respectively.
• Reported profitability was pressured by tariffs and lower volume, with gross margin down 72 basis points to 41% and adjusted EBITDA margin down 223 basis points to 19.6%. Management said adjusted EBITDA would have been roughly flat year over year excluding a prior-year, non-cash tariff capitalization benefit of approximately $3 million-$3.5 million.
• Free cash flow rose to $40.9 million, leverage fell to 3.74 times, and Holley made an additional $15 million debt repayment after quarter-end, keeping it on track to finish 2026 below 3.5 times leverage. The company also repurchased approximately $2 million of shares during the quarter.
• Management reaffirmed full-year guidance and cited approximately $12 million of new national retailer placements scheduled for Q3, a strong second-half product pipeline, normalized channel inventories, improved marketing execution, and continued contributions from HRX as support for stronger momentum.
• Holley completed the divestiture of its non-core Restoration brands and has now divested four of five targeted businesses, eliminated two facilities, reduced its warehouse footprint by about 95,000 square feet, and removed roughly 7,000 low-margin SKUs. These actions are intended to simplify operations and generate annualized margin and cash-flow benefits, but the divestiture produced a GAAP net loss in Q2.

Holley Stock Performance

Shares of Holley stock traded down $0.04 during trading on Thursday, reaching $3.00. The company’s stock had a trading volume of 926,456 shares, compared to its average volume of 772,520. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.07 and a current ratio of 3.17. The business’s fifty day moving average price is $2.59 and its 200-day moving average price is $3.12. The firm has a market cap of $364.99 million, a price-to-earnings ratio of 9.50 and a beta of 1.31. Holley has a one year low of $2.33 and a one year high of $4.48.

Hedge Funds Weigh In On Holley

Large investors have recently bought and sold shares of the stock. Deutsche Bank AG boosted its stake in shares of Holley by 7.2% in the 4th quarter. Deutsche Bank AG now owns 48,294 shares of the company’s stock valued at $199,000 after purchasing an additional 3,251 shares in the last quarter. State Street Corp lifted its holdings in Holley by 0.3% during the 4th quarter. State Street Corp now owns 1,141,534 shares of the company’s stock valued at $4,715,000 after purchasing an additional 3,788 shares during the last quarter. Verition Fund Management LLC lifted its holdings in Holley by 10.7% during the 4th quarter. Verition Fund Management LLC now owns 47,831 shares of the company’s stock valued at $198,000 after purchasing an additional 4,638 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Holley by 16.7% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,542 shares of the company’s stock valued at $65,000 after purchasing an additional 4,661 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its position in Holley by 16.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 34,615 shares of the company’s stock valued at $143,000 after buying an additional 4,767 shares in the last quarter. 39.70% of the stock is currently owned by institutional investors and hedge funds.

Holley announced that its board has initiated a share buyback plan on Tuesday, May 26th that permits the company to buyback $25.00 million in shares. This buyback authorization permits the company to purchase up to 8.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

HLLY has been the topic of several research analyst reports. Canaccord Genuity Group restated a “buy” rating and set a $7.00 price target on shares of Holley in a report on Monday, June 29th. Freedom Capital raised Holley to a “strong-buy” rating in a research report on Tuesday, July 7th. Benchmark lowered their target price on Holley from $4.50 to $4.00 and set a “buy” rating on the stock in a research note on Friday, May 8th. Weiss Ratings lowered Holley from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, June 17th. Finally, Wall Street Zen downgraded Holley from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Holley currently has an average rating of “Moderate Buy” and an average target price of $4.90.

Holley Company Profile

Holley Inc is a designer, manufacturer and marketer of high?performance automotive products for the enthusiast market. Through its portfolio of well?known brands, the company develops fuel delivery systems, intake manifolds, ignition components, nitrous oxide systems, digital controls and other engine?dress accessories tailored to both street and competition applications. Holley’s products are sold through a network of domestic and international distributors, retailers and directly to professional race teams and hobbyists.

The company’s product offerings span mechanical and electronic fuel injection, carburetion, engine management, add?on power systems and calibration tools.