Holley rebounds to profitability as aftermarket demand drives sales surge

Holley (NYSE:HLLY), the definitive market leader in the high-performance automotive aftermarket, reported a robust finish to fiscal year 2025, swinging to a net profit following a challenging prior year.

The Bowling Green, Kentucky-based company saw fourth-quarter net sales climb 10.9% to $155.4 million, outperforming analyst expectations for the holiday period.

For the full year, Holley recorded net sales of $613.5 million, a 1.9% increase over 2024.

More significantly, the company's bottom line saw a major recovery.

Holley posted a net income of $6.3 million for the quarter—compared to a loss in the same period last year—bringing its full-year net income to $19.2 million.

A primary focus for Holley leadership throughout 2025 was the aggressive reduction of corporate debt.

The company prepaid $10 million of its debt in the fourth quarter alone, marking a total of $100 million in voluntary prepayments since September 2023.

The company concluded the year with a net debt-to-EBITDA leverage ratio of 3.75x.

Operational efficiency also showed marked improvement, with adjusted EBITDA for the fourth quarter reaching $33.2 million, contributing to a full-year adjusted EBITDA total of $124 million.

Looking ahead, Holley issued optimistic guidance for fiscal year 2026, suggesting that the enthusiast consumer remains resilient despite broader macroeconomic fluctuations.

The company projects net sales in the range of $625 million to $655 million.