Holley Inc. ( (HLLY) ) has released its Q1 earnings. Here is a breakdown of the information Holley Inc. presented to its investors.
Holley Performance Brands, a leader in the automotive aftermarket performance solutions sector, specializes in designing, manufacturing, and marketing high-performance products for automotive enthusiasts, with a strategic focus on diverse consumer verticals such as Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing.
In the first quarter of 2025, Holley Inc. reported a net income of $2.8 million, a decrease from $3.7 million in the previous year, while adjusted EBITDA showed a significant increase to $27.3 million from $21.0 million year-over-year. Despite a 3.5% decline in net sales to $153.0 million, the company maintained robust growth in its core business, excluding non-core divestitures and strategic product rationalizations.
Key highlights from the quarter include a 3.3% growth in core business net sales, a notable improvement in gross margin due to labor and overhead efficiencies, and a successful expansion in both direct-to-consumer and business-to-business channels. Holley also achieved approximately $4 million in new product revenue and implemented cost reductions of $3.0 million, contributing to its strategic framework execution.
Looking ahead, Holley remains committed to its full-year 2025 guidance, excluding potential impacts from tariffs. The company is focused on mitigating tariff effects through strategic sourcing and pricing actions, while continuing to strengthen its leadership and adaptability to navigate near-term challenges and ensure long-term growth.