Holley Inc Q3 net sales rise 2.3% but miss estimates

Overview

• U.S. auto aftermarket supplier's Q3 net sales rose 2.3% but missed analyst expectations

• Company expanded margins, generated strong cash flow, and reduced debt by $25 mln in Q3

Outlook

• Holley sees 2026 net sales between $610 mln and $625 mln

• Company expects 2026 adjusted EBITDA of $127 mln to $132 mln

• Holley forecasts 2026 interest expense of $40 mln to $44 mln

Result Drivers

• CORE BUSINESS GROWTH - Co said core business net sales grew 6.7% after excluding divested businesses, despite a moderating macroeconomic environment

• RETAILER PROGRAM - Co said new national retailer program expanded shelf presence and brand visibility

• PORTFOLIO REBALANCING - Co said exiting non-core businesses reduced complexity and contributed to margin expansion

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Holley Inc. is $4.25, about 46.6% above its November 4 closing price of $2.90

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Nov 3 - Aptiv Q3 revenue rises on regional sales growth

• Nov 4 - Cooper Standard Q3 sales rise, slightly beat estimates

• Nov 3 - Schaeffler to cut 3,460 jobs, shut five European plants as auto slump bites

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)