Holley Inc (NYSE:HLLY)

Q2 2026 Holley Inc. Earnings Call Transcript

Aug 5, 2026 / 12:30 PM GMT

Release Date Price: $3.04 (+7.42%)

Transcript 8-K10-Q

Key Points

Positve

Holley Inc (HLLY) returned to net sales growth in Q2 2026, with a 3.2% increase to $172 million and a 4.9% rise in core business sales, driven by double-digit growth in three of its four divisions.
The company generated strong free cash flow of $40.9 million in the quarter, a $5.2 million increase year-over-year, supported by operational discipline and working capital management.
Holley Inc (HLLY) reduced its leverage ratio to 3.74 times, its lowest level in four years, and made an additional $15 million voluntary debt repayment after quarter-end, bringing total voluntary reductions to $115 million since September 2023.
The company completed the divestiture of its non-core restoration brands, simplifying its portfolio and focusing resources on higher-growth areas, while adjusted net income more than doubled to $24 million.
Holley Inc (HLLY) secured approximately $12 million in new national retailer placements for Q3, has a robust product launch pipeline, and its HRX acquisition continues to outperform expectations, contributing to growth and earnings.

Negative

Holley Inc (HLLY) reported a GAAP net loss of $2.4 million for Q2 2026, primarily due to one-time costs associated with the divestiture of its restoration brands.
Gross margin declined by 72 basis points to 41%, and adjusted EBITDA margin fell by 223 basis points to 19.6%, impacted by higher tariff-related costs and fixed cost deleverage.
The American Performance division, the company's largest, saw net sales decline 2.1% in Q2, reflecting elevated channel inventories and a shift in marketing calendar, though it improved sequentially.
The company faces ongoing macroeconomic headwinds, including inflationary pressures, higher fuel and transportation costs, and an evolving tariff landscape, which could impact future performance.
Holley Inc (HLLY) incurred $4.4 million in SG&A expenses related to legal costs from a securities class action settlement and portfolio rebalancing, which weighed on profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HLLY.N - Holley Inc.
Q2 2026 Holley Inc. Earnings Call
Aug 05, 2026 / 12:30PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good morning, ladies and gentlemen, and welcome to the conference call to discuss Holley's second quarter 2026 earnings results. At this time, all participants are in listen-only mode.

Later, we will conduct a question-and-answer session and instructions for asking questions will be provided at that time.

We ask that participants limit themselves to one question and one related follow-up during the Q&A period.

Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Holly.

And as a reminder, this call is being recorded and will be made available for future playback. I would now like to introduce your host for today's call, Anthony Rosmus with

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.