Holley Delivers Strong Q3 2026 Results, Driven by Growth Across All Divisions
Holmes-based company Holley has reported impressive third-quarter 2026 earnings results, solidifying its position as a leader in the industry. In an investor call on November 5th, CEO Matthew Stevenson and CFO Jesse Weaver outlined the key drivers behind the company's strong performance.
The company's core business grew for the sixth time in seven quarters, with American Performance returning to growth after working through elevated channel inventory earlier in the year. Net sales increased by 2.3% to $141.6 million, while core net sales grew approximately 6.7%, up from 4.9% in the second quarter.
The company's profitability also improved, with adjusted EBITDA margin expanding 120 basis points to 20.8%, above its long-term target of more than 20%. On a GAAP basis, Holley reported net income of $7.8 million compared to a net loss in the prior period, and generated $8.8 million of free cash flow, a roughly 60% improvement over the third quarter of last year.
"Our growth broadened, our profitability improved, and we've strengthened both our balance sheet and platform," said CEO Matthew Stevenson during the investor call. "We're pleased with the progress we've made in delivering on our strategic initiatives, particularly with the acquisition of SXTH Element and a new strategic collaboration with Amotiv."
The company's strategic initiatives generated $18.6 million in revenue, up from the $13.4 million in the second quarter, and delivered $6.1 million in cost savings. Holley's balance sheet was also strengthened, with the company repaying an additional $10 million during the quarter, bringing total debt reduction since September 2023 to $125 million.
With its growth broadening, profitability improving, and balance sheet strengthening, Holley is well-positioned for future success. The company's commitment to disciplined spending and cost savings has also helped improve gross margin, reaching 44%, up 73 basis points from last year.
"Reducing debt remains our top capital allocation priority," said CEO Matthew Stevenson during the investor call. "The progress we've made gives us more flexibility as we evaluate the opportunities in front of us."
