Holley Performance Brands reduces debt by $15 million

NEW YORK - Holley Performance Brands (NYSE:HLLY), currently trading near its 52-week high with a market capitalization of $461.5 million, has paid down an additional $15 million in debt, bringing its total debt reduction to $90 million since September 2023, the automotive aftermarket performance solutions provider announced Wednesday.

The company executed the most recent payment through opportunistic repurchases of its first lien term loan facility at a discount, using free cash flow to fund the transaction. Holley estimates that its cumulative debt reductions since 2023 will generate up to $3.7 million in annualized net interest savings. According to InvestingPro data, the company maintains a healthy current ratio of 2.93, indicating strong short-term liquidity position.

"This milestone reflects more than just deleveraging. It highlights the operational excellence and disciplined execution across our teams that have fueled strong free cash flow generation," said Jesse Weaver, Chief Financial Officer of Holley Performance Brands, in the press release.

The company expects to achieve a leverage ratio at or below 4.0x by year-end, which would represent its lowest level in more than three years, according to the announcement.

Holley Performance Brands, which specializes in designing, manufacturing, and marketing high-performance automotive aftermarket products, has reported momentum in core business growth for two consecutive quarters.

The debt reduction initiative is part of the company’s broader transformation strategy implemented over the past two years, focused on strengthening its balance sheet and enhancing financial flexibility.

Holley Performance Brands operates across multiple automotive enthusiast segments, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing.

In other recent news, Holley Inc. reported its second-quarter 2025 earnings, revealing that revenue exceeded expectations at $166.7 million, surpassing the forecast of $163.05 million. However, earnings per share (EPS) fell short, reaching $0.09 compared to the anticipated $0.10. The company also demonstrated strong performance with sales and adjusted EBITDA coming in approximately 3% and 5% above consensus estimates, respectively, showing a 3.9% organic sales growth for the quarter. Following these results, Canaccord Genuity raised its price target for Holley to $6.00 from $5.00, maintaining a Buy rating. Telsey Advisory Group also increased its price target to $3.50 from $2.75, while keeping an Outperform rating, as Holley’s adjusted EBITDA of $36.4 million exceeded both their forecast and the FactSet consensus.

Additionally, Holley Inc. announced one-time grants of restricted stock units (RSUs) to three executive officers, including CEO Matthew Stevenson, CFO Jesse Weaver, and Executive Vice President Carly Kennedy. These RSUs will vest in three equal annual installments, contingent upon continued employment, with provisions for immediate vesting in the event of a change in control. These developments reflect recent strategic decisions and financial performance updates concerning Holley Inc.

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