Holley (HLLY) Q2 FY26 earnings call: guidance and Q&A

Can you elaborate on the marketing strategy changes, the KPIs used to measure success, and any early signs of improvement?

Matthew Stevenson explained that the company moved over 20 marketing positions from outside agencies to internal divisional teams. This allows teams to be closer to enthusiasts, create content faster, and interact more effectively on forums and social media. Success is tracked through a comprehensive performance marketing funnel, from awareness to reorders, and early results are positive, especially in the Modern Truck and Off-Road division.

“So, it was over 20 positions that we then took from outside agencies. agency and put those positions internally into our division marketing team. So our division marketing teams now have full staffs.”

asked by Olivia May Witte · answered by Matthew Stevenson

What is the runway for further retail expansion, focusing on new accounts versus existing partners, and what drives these wins?

Matthew Stevenson highlighted Holley's differentiation as a 'one-stop shop performance' for national retailers, offering breadth and depth of product lines with professionalism. He noted that these partnerships involve long lead sales cycles, often over two years, and are seeing growth across all national retailers, with potential for international expansion.

“We are a one-stop shop performance for national retailers. So the breadth and depth of our product line and the professionalism that we operate as an organization, they can come to us for the majority or vast majority all their performance needs.”

asked by Olivia May Witte · answered by Matthew Stevenson

Given recent retail wins and product launches, how is the company thinking about pricing for the balance of the year?

Jesse Weaver stated that a modest price increase was recently announced to address freight headwinds, including fuel surcharges and memory chip challenges. He noted that national retailers generally understand these adjustments, and no additional pricing changes are expected for the remainder of the year.

“I know we announced just recently a modest price increase just facing the freight headwinds that we're seeing in terms of surcharges related to fuel and some of the memory chip challenges that globally everyone is experiencing.”

asked by Mitch Ingles · answered by Jesse Weaver

Can you quantify the impact of last year's one-time tariff capitalization benefit on the year-over-year EBITDA comparison?

Jesse Weaver quantified the impact at $3 million to $3.5 million. He explained that adjusting for this one-time item, the adjusted EBITDA performance would be roughly flat year-over-year, which he believes is a more accurate reflection of the underlying operating performance.

“Yes, it's about $3 to $3.5 million. So if you add that back, you're going you would see that we'd be a slight EBITDA dollar-wise better than last year with a decent pickup on the margin rate, which would be much closer to par or much closer to last year on the EBITDA margin rate.”

asked by Mitch Ingles · answered by Jesse Weaver

The annualized impact on Slide 12 for net cash changed from $15 million to $12 million, while the EBITDA benefit increased. Can you explain these changes and why EBITDA guidance remains unchanged?

Jesse Weaver clarified that the $15 million was an original estimate, and $12 million has been generated to date, with potential for more. The increased EBITDA benefit reflects additional work, such as facility closures and workforce reductions, but this is an *annualized* impact, not fully realized this year, and represents a de minimis change to overall guidance. Share buybacks are not included in these figures.

“So we've generated 12 of the 15, you know, as Matt had called out or we discussed. You know, there's some other things that we're looking at that could get us to close the gap on the 15, but we generally feel like 12 was a pretty good result relative to our results. forecast and then the difference on the EBITDA piece, that takes into account the additional work that we've done since the last call when it comes to just lowering the overall operating cost of the organization.”

asked by Michael Baker · answered by Jesse Weaver

Can you discuss the amount and continuation of tariff refunds, and the dynamic of sharing these funds with retail partners versus implementing price increases?

Jesse Weaver stated that the IEPA refund was a one-time benefit of $10 million to $11 million, not ongoing, as the program was repealed. He noted that other tariffs more than offset this refund. The price increases were necessary to offset other rising costs, and in effect, the refund helped prevent even higher price increases, thereby implicitly sharing the benefit with partners.

“The refund that we received, you can see it kind of broken out in the TIN-Q. around 10 to 11 but it's a one-time thing obviously those costs we've already borne in our P&L and so it's not anything that we're benefiting from other than the one-time cash infusion”

asked by Michael Baker · answered by Jesse Weaver