Holley Inc. Reports 8.7% Decline in Net Sales and $23.2 Million Net Loss for Fiscal Year 2024

Holley Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales decreasing by 8.7% to $602.2 million, down from $659.7 million in 2023. The decrease in sales volume was attributed to a drop in demand across several product categories, including electronic systems, mechanical systems, and accessories. Despite a slight improvement in pricing, the overall sales decline was significant, leading to a gross profit of $238.5 million, which was a 6.9% decrease from the previous year. The company's gross margin improved slightly to 39.6%, up from 38.8% in 2023, primarily due to cost-saving measures and improved warranty performance.

In terms of profitability, Holley experienced a substantial operating income drop of 84.4%, resulting in $14.7 million compared to $94.0 million in 2023. This decline was largely driven by $48.6 million in impairment charges related to goodwill and indefinite-lived intangible assets. The company reported a net loss of $23.2 million for the year, a stark contrast to the net income of $19.2 million recorded in the prior year. The loss was compounded by a significant increase in selling, general, and administrative expenses, which rose by 9.9% to $132.2 million, reflecting higher marketing and litigation costs.

Strategically, Holley has focused on innovation and product development, investing approximately $24.7 million annually in research and development since 2020. The company has also pursued acquisitions to enhance its market position, although the impact of these acquisitions on financial performance has been mixed. In 2024, Holley recognized a $9.2 million loss on the sale of Detroit Speed Engineering, indicating challenges in integrating acquired businesses effectively.

Operationally, Holley employed 1,467 full-time employees as of December 31, 2024, with a significant portion based in its Bowling Green, Kentucky headquarters. The company has seen a notable increase in event attendance, with participation in enthusiast events growing from 14,000 in 2015 to 114,000 in 2024, reflecting a strong community engagement strategy. However, the company faces ongoing challenges related to supply chain disruptions, inflationary pressures, and geopolitical uncertainties, which could impact future performance.

Looking ahead, Holley aims to enhance its market share and profitability through strategic initiatives, including expanding its direct-to-consumer sales channel and optimizing its product portfolio. The company remains cautious about the economic environment, acknowledging that ongoing inflation and supply chain issues could hinder recovery. Holley plans to continue its focus on innovation and customer engagement while navigating the complexities of the current market landscape.