Holley Q2 Sales Rise 3.2% to $172M; Adjusted Net Income More Than Doubles; Full-Year Guidance Reaffirmed
HLLY sits 43% above its 52-week low of $1.98.
Summary
Holley reported Q2 2026 net sales of $172.0 million, up 3.2% year-over-year, with adjusted net income more than doubling to $24.0 million. The company reiterated its full-year guidance and highlighted strong free cash flow and continued debt reduction.
Key Events · Earnings and Guidance · HLLY
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Q2 Net Sales Grow 3.2%
Net sales reached $172.0 million, up from $166.7 million last year, with core business growth of 4.9% after excluding divestitures.
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Adjusted Net Income More Than Doubles
Adjusted net income was $24.0 million, up from $10.6 million last year, driven by lower interest expense and operational improvements, despite a GAAP net loss of $(2.4) million due to a $28.3 million loss on sale of non-core assets.
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Strong Free Cash Flow and Debt Reduction
Free cash flow was $40.9 million, up from $35.7 million last year. The company made a $15.0 million voluntary debt prepayment after quarter-end, bringing total debt reduction to $115.0 million since September 2023.
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Full-Year Guidance Reiterated
Management reiterated 2026 guidance: net sales of $610-$640 million (core growth ~2% to ~7%) and Adjusted EBITDA of $127-$137 million.
Analysis · HLLY · Manufacturing
Holley returned to net sales growth in Q2 2026, with core business sales up 4.9% after excluding divestitures. While GAAP net income swung to a loss due to a $28.3 million non-cash charge from the sale of non-core Restoration brands, adjusted net income more than doubled to $24.0 million. The company generated strong free cash flow of $40.9 million, repurchased $2.0 million of stock, and made another $15 million voluntary debt prepayment, bringing total debt reduction to $115 million since September 2023. Management reiterated full-year guidance, signaling confidence in the second half. The results show improving operational momentum and disciplined capital allocation, though the headline GAAP loss and modest top-line growth may temper enthusiasm.
At the time of this filing, HLLY was trading at $2.83 on NYSE in the Manufacturing sector, with a market capitalization of approximately $340.6M. The 52-week trading range was $1.98 to $4.48. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.