Holley Inc. Reports $7.3 Million Net Income, Acquires HRX S.r.l. in Latest Quarter

Holley Inc. reported a net income of $7.3 million for the 13-week period ending March 29, 2026, a significant increase from $2.8 million in the same period last year. The company's revenue for the quarter was $147.3 million, down 3.7% from $153.0 million in the prior year. The decrease in sales was attributed to lower sales volume, which accounted for a $14.2 million decline, partially offset by improved pricing that contributed approximately $8.1 million. Gross profit also fell to $60.7 million, a 5.2% decrease from the previous year, resulting in a gross margin of 41.2%, down from 41.9%.

In terms of operational efficiency, Holley managed to reduce its cost of goods sold by 2.7% to $86.6 million, despite the decline in sales. Selling, general, and administrative expenses decreased by 3.5% to $35.4 million, reflecting improved efficiency in legal and marketing expenditures. The company also reported a notable reduction in interest expenses, which fell by 36.9% to $9.9 million, primarily due to changes in the fair value of its interest rate collar and a decrease in outstanding debt.

Strategically, Holley completed the acquisition of HRX S.r.l., an Italian motorsports racewear brand, on March 18, 2026. This acquisition is expected to enhance Holley’s Safety & Racing portfolio and expand its presence in European motorsports. The purchase was funded through cash on hand and borrowings from the company's revolving credit facility. Additionally, Holley divested its Arizona Desert Shocks business on April 18, 2026, as part of its strategy to optimize its brand portfolio and focus on core operations.

The company’s balance sheet showed total assets of $1.18 billion as of March 29, 2026, with total liabilities of $722.8 million, resulting in stockholders' equity of $456.0 million. Holley reported a cash balance of $33.1 million and had $87.5 million available under its revolving credit facility. Looking ahead, Holley anticipates that its existing cash balances, along with available credit, will be sufficient to meet its operating requirements and capital expenditures for the foreseeable future, despite ongoing challenges related to inflation and supply chain disruptions.