Holley Inc. Reports Q2 2025 Financial Results with Decreased Net Income and Sales

Holley Inc. reported its financial results for the second quarter of 2025, revealing a net income of $10.9 million, a decrease of 36.5% from $17.1 million in the same period last year. The company's net sales for the quarter were $166.7 million, down 1.7% from $169.5 million in the prior year. The decline in sales was attributed to lower sales volume, which decreased by approximately $4.2 million, partially offset by improved pricing that contributed an additional $1.4 million. For the first half of 2025, Holley’s net sales totaled $319.7 million, a 2.6% decrease from $328.1 million in the first half of 2024.

The company's cost of goods sold (COGS) also saw a reduction, decreasing by 2.1% to $97.1 million for the quarter, and by 9.6% to $186.1 million for the first half. This reduction in COGS was primarily due to lower inbound freight costs and the impact of a strategic product rationalization initiative that eliminated unprofitable stock-keeping units (SKUs). Gross profit for the quarter was $69.6 million, reflecting a gross margin of 41.7%, slightly up from 41.5% in the previous year. For the first half, gross profit increased by 9.2% to $133.6 million, with a gross margin of 41.8%, compared to 37.3% in the prior year.

In terms of operational developments, Holley has been focusing on strategic initiatives to mitigate the impact of inflation and supply chain disruptions. The company has implemented cost-saving measures, including price increases and maintaining appropriate inventory levels. Additionally, Holley has made significant investments in research and development, with costs rising to $5.1 million for the quarter, up 18% from the previous year, as the company realigned employee roles to enhance innovation.

Holley also announced the acquisition of a perpetual license agreement with Cataclean Global Limited for $23.8 million, which is expected to enhance its product offerings in the North American market. The company’s total assets increased to $1.16 billion as of June 29, 2025, compared to $1.13 billion at the end of 2024, driven by an increase in cash and cash equivalents and accounts receivable. The company’s employee headcount has also seen a slight increase, reflecting its ongoing commitment to growth and innovation.

Looking ahead, Holley remains cautious about the macroeconomic environment, including the impact of geopolitical events and inflationary pressures on consumer demand. The company is focused on executing its business strategy, which includes potential acquisitions and product line expansions, while continuing to monitor international trade developments and their implications for its operations. Holley’s management believes that its current cash position and available credit will be sufficient to meet its liquidity needs and capital expenditure requirements for the foreseeable future.