Holley(NYSE) HLLY

Holley makes parts that help cars go faster and stay safer. It helps car lovers upgrade their trucks and classic cars. These products serve drivers in several global markets.

Fueling the Enthusiast Market

• American Performance: Carburetors, which mix air and fuel, and electronic fuel injection systems for classic engines; represents 59% of net sales.
• Truck & Off-Road: Exhaust systems, lighting, and suspension parts for larger vehicles and SUVs; makes up 22% of net sales.
• Safety & Racing: Fire suits, helmets, and seat belts designed for competitive drivers; accounts for 14% of net sales.
• Euro & Import: Performance upgrades and engine tuning software for imported vehicles; contributes 5% of net sales.

New Brands and Licenses

• Acquired HRX, an Italian motorsports brand, in March 2026 to grow its safety and racing business.
• Purchased an exclusive license for Cataclean products in North America starting January 2025.
• Sold the ADS shock absorber business in April 2026 to focus on more profitable brands.
• Opened a new research and distribution facility in Glendale, Arizona, in early 2026.

Reaching the Global Driver

The company reaches enthusiasts through direct online sales and a network of retailers and distributors. It maintains manufacturing and distribution facilities across the United States, Canada, Italy, and China.

How the Money Moves

• Net sales were $147.3 million in Q1 2026, down 3.7% year-over-year.
• Net income grew to $7.3 million in Q1 2026, up 157.6% from $2.8 million in Q1 2025.
• Operating cash flow improved to negative $2.9 million in Q1 2026 from negative $7.8 million in 2025.
• Free cash flow hit negative $9.9 million in Q1 2026, a 36.5% improvement from the previous year.

Bottom Line

Holley has transformed from a traditional parts maker into a platform for diverse automotive brands. Its shift toward segments like safety equipment and fuel injection reflects its focus on enthusiast needs.