Overview

• Automotive aftermarket firm's Q4 revenue grew 10.9%, beating analyst expectations

• Net income for Q4 improved significantly from a loss last year

• Adjusted EBITDA for Q4 rose to $33.2 mln, up $4.1 mln yr/yr

Outlook

• Holley expects 2026 net sales between $625 mln and $655 mln

• Company projects 2026 adjusted EBITDA of $127 mln to $137 mln

• Holley forecasts 2026 capital expenditures of $15 mln to $20 mln

Result Drivers

• CORE BUSINESS GROWTH - Holley reported a 13.5% increase in core business net sales for Q4, excluding non-core sales

• CHANNEL EXPANSION - Strong Q4 results in B2B and DTC channels, with growth of 10.8% and 7.0% respectively

• COST SAVINGS - Strategic framework delivered meaningful revenue growth and ~$20M cost savings for the year

Company press release: ID:nGNX8xP3bX

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 is $4.50, about 13.9% above its March 3 closing price of $3.95

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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