Wed, May 7, 11:48 AM (15 days ago)
**Holley Inc. (HLLY) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $153.044 million, a 3.5% decrease from Q1 2024 due to lower sales volume, partially offset by improved price realization. - **Gross Profit:** $64.088 million, a 23.1% increase from Q1 2024, driven by inventory charges in 2024 and improvements in freight costs. - **Operating Income:** $19.343 million, an 89.5% increase from Q1 2024, reflecting improved gross profit and controlled operating expenses. - **Net Income:** $2.817 million, a 24.5% decrease from Q1 2024, primarily due to increased interest expense and changes in fair value of warrant and earn-out liabilities. - **Cash Flow:** Negative $7.850 million from operations, primarily due to changes in working capital, including accounts receivable and payable fluctuations. **Profit Margins & Cash Flow:** - **Gross Margin:** 41.9%, up from 32.8% in Q1 2024, driven by inventory charges and freight cost improvements. - **Operating Margin:** 12.6%, up from 6.4% in Q1 2024, reflecting improved operating income. - **Net Margin:** 1.8%, down from 2.4% in Q1 2024, due to increased interest expense and changes in fair value of liabilities. **Earnings Changes & Trends:** - **Earnings per Share (EPS):** Basic $0.02, Diluted $0.02, unchanged from Q1 2024. - **Trends:** Holley is focusing on cost savings initiatives, price increases, and inventory management to mitigate supply chain disruptions and inflationary impacts. **Future Operations & Uncertainties:** - **Liquidity:** $39.1 million in cash and $97.4 million available under the revolving credit facility. - **Debt:** $559.3 million outstanding under the Credit Agreement, with a weighted average interest rate of 8.2%. - **Uncertainties:** Geopolitical events, tariffs, supply chain disruptions, and economic conditions pose risks to future operations and financial performance. **Management Discussion:** - Holley is positioned for organic growth and strategic acquisitions to expand its addressable market. - The company is managing through supply chain disruptions and inflationary pressures with cost savings initiatives and price increases. - Holley's diversified product portfolio and U.S.-based manufacturing help mitigate the impact of tariffs and international trade policies.