Holley (NYSE:HLLY) Releases Earnings Results, Beats Expectations By $0.08 EPS

Holley (NYSE:HLLY) announced its earnings results on Wednesday. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.12 by $0.08, FiscalAI reports. The business had revenue of $172.01 million for the quarter, compared to the consensus estimate 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 Down 1.2%

HLLY traded down $0.04 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 stock has a market cap of $364.99 million, a price-to-earnings ratio of 37.56 and a beta of 1.31. Holley has a 1 year low of $2.33 and a 1 year high of $4.48. The company has a debt-to-equity ratio of 1.16, a current ratio of 3.17 and a quick ratio of 1.07. The business’s 50 day moving average is $2.59 and its 200 day moving average is $3.12.

Holley declared that its board has approved a stock buyback program on Tuesday, May 26th that allows the company to repurchase $25.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 8.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Holley

Several hedge funds and other institutional investors have recently bought and sold shares of HLLY. Boston Partners boosted its stake in Holley by 59.2% during the 3rd quarter. Boston Partners now owns 7,652,545 shares of the company’s stock valued at $24,028,000 after acquiring an additional 2,845,009 shares during the last quarter. Wasatch Advisors LP bought a new position in Holley during the 3rd quarter worth approximately $18,762,000. Vanguard Group Inc. lifted its holdings in Holley by 3.1% during the 3rd quarter. Vanguard Group Inc. now owns 3,677,058 shares of the company’s stock worth $11,546,000 after buying an additional 110,170 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Holley by 43.9% in the 3rd quarter. Bank of America Corp DE now owns 2,156,742 shares of the company’s stock valued at $6,772,000 after acquiring an additional 658,405 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Holley by 9.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,951,343 shares of the company’s stock valued at $8,061,000 after acquiring an additional 162,140 shares in the last quarter. 39.70% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have weighed in on HLLY. Raymond James Financial set a $4.00 price target on Holley in a report on Thursday, May 7th. Freedom Capital upgraded shares of Holley to a “strong-buy” rating in a research note on Tuesday, July 7th. Wall Street Zen cut shares of Holley from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Benchmark decreased their target price on shares of Holley from $4.50 to $4.00 and set a “buy” rating for the company in a research note on Friday, May 8th. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and set a $7.00 price target on shares of Holley in a report on Monday, June 29th. 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 assigned a Sell rating to the stock. According to MarketBeat, Holley currently has a consensus 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.