Disciplined Cost Control Supports Resilient First Quarter Profitability Portfolio Optimization Initiative Expected to Improve Margin by Exiting Non-Value Added Businesses (Form[...]

Disciplined Cost Control Supports Resilient First Quarter Profitability

Portfolio Optimization Initiative Expected to Improve Margin by Exiting Non-Value Added Businesses

Nashville, TN. - May 6, 2026 - Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its first quarter ended March 29, 2026.

First Quarter Highlights vs. Prior Year Period

•Net Sales was $147.3 million compared to $153.0 million last year

•Net Income was $7.3 million, or $0.06 per diluted share, compared to $2.8 million, or $0.02 per diluted share, last year

•Net Cash Used in Operating Activities was $2.9 million compared to $7.8 million last year

•Adjusted Net Income1 was $5.7 million compared to $2.6 million last year

•Adjusted EBITDA1 was $27.3 million compared to $27.3 million last year

•Adjusted EBITDA margin1 was 18.5% compared to 17.8% last year

•Free Cash Flow1 was $(6.3) million compared to $(10.8) million last year

1See "Use and Reconciliation of Non-GAAP Financial Measures" below.

"We delivered first quarter net sales of $147.3 million and Adjusted EBITDA of $27.3 million, reflecting resilient profitability and disciplined execution," said Matthew Stevenson, President and Chief Executive Officer of Holley.

"As noted on our prior earnings call, the first quarter began with several temporary headwinds. Distributor inventory levels were elevated entering the period, and while normalization was expected through improved sell-through, severe winter weather in late January and early February 2026 disrupted retail activity.

That said, from week eight onward, we saw steady improvement in purchasing patterns and exited the quarter on improved footing. Margins remained strong in the first quarter of 2026, reflecting proactive tariff management and operating efficiency. We are maintaining that focus, prioritizing cost control and advancing our portfolio optimization initiative, which we expect to support performance over time, while continuing to invest in innovation, deepen our connection with enthusiasts, and compete to gain share.

Strategically, we continued to execute against the framework established in 2025, centered on simplifying the portfolio, strengthening core franchises, and enhancing operating discipline. The acquisition of HRX, a targeted bolt-on that expands our racewear capabilities and deepens our European motorsports presence, marks the reengagement of our M&A strategy, and we remain focused on pursuing additional opportunities that meet our criteria. We believe that the actions we have taken over the past year position us to improve execution and strengthen the business over time."

Jesse Weaver, Chief Financial Officer of Holley, added, "Early trends in the second quarter indicate healthier inventory levels at our distribution partners and improving order activity, which we believe position us better for the balance of the year. Through our portfolio optimization initiative, we are exiting non-core, low- to no-profit businesses while reinvesting in targeted M&A, as reflected in our acquisition of HRX. Although these portfolio adjustments reduce our full-year revenue outlook by $15 million, our outlook for the core business remains intact, and we expect the net impact on Adjusted EBITDA from the portfolio optimization to be slightly positive. At the same time, our portfolio adjustments are expected to reduce SKUs by more than 11,000, lower operating complexity, improve working capital efficiency, and generate more than $15 million in incremental cash. Taken together, these actions are expected to improve the quality of our portfolio and support our decision to maintain our full-year Adjusted EBITDA outlook."

Strategic Business Highlights

•Exited Q1 with momentum from week 8 as weather improved and inventory normalized.

•Growth in three of four divisions and across 12 brands across DTC and B2B channels.

•Delivered $6.5 million in Q1 cost savings from purchasing, tariffs, and operations.

•Advanced cost and complexity reduction, including site consolidation and closures.

•Expecting portfolio rebalancing to generate >$15 million to reinvest in growth

•HRX acquisition strengthens Safety and Racing and expands European presence.

•Free Cash Flow improvement of $4.5 million compared to same period last year.

Outlook

**For the year ended December 31, 2026, core business revenue guidance remains unchanged while we are updating full-year guidance to reflect an anticipated $15 million adjustment to net sales as a result of our planned portfolio optimization efforts:

Metric			Original Full Year 2026 Outlook			Current Full Year 2026 Outlook
Net Sales Core Business Growth Rate %1			$625 - $655 million ~2% to ~7%			$610 - $640 million ~2% to ~7%
Adjusted EBITDA*			$127 - $137 million			$127 - $137 million
Capital Expenditures			$15 - $20 million			$15 - $20 million
Depreciation and Amortization Expense			$24 - $26 million			$24 - $26 million
Interest Expense (excluding collar revaluation)			$42 - $47 million			$42 - $47 million

1) Core Business Growth Rate, introduced this quarter, excludes impact from Portfolio Optimization Adjusted anticipated for 2026.

* Holley is not providing reconciliations of forward-looking full year 2026 Adjusted EBITDA outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.

Holley notes that its outlook for the year-ended December 31, 2026 may vary due to changes in assumptions or market conditions and other factors described below under "Forward-Looking Statements."

Conference Call

A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company's website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13759753.

For those unable to participate, a telephone replay recording will be available until Wednesday, May 13, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13759753. A web-based archive of the conference call will also be available on the Company's website.

Additional Financial Information

The Investor Relations page of Holley's website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.

About Holley Performance Brands

Holley Performance Brands (NYSE: HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including American Performance, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.