Core Business Growth
Holley's core business delivered strong growth of 6.4% in the third quarter, marking the third consecutive quarter of year-over-year growth.
B2B Channel Expansion
B2B channel saw a 7.3% growth, with strategic initiatives generating about $26 million of revenue, including $11.3 million from new product innovation and portfolio management.
Gross Margin Improvement
Gross margins improved to 43.2%, up more than 400 basis points from last year, reflecting strong pricing discipline and operational improvements.
Debt Reduction Milestone
Net debt-to-EBITDA leverage reduced to 3.9x, below the year-end target of 4x for the first time since 2022. After the quarter ended, another $10 million in debt was prepaid.
Adjusted EBITDA Growth
Adjusted EBITDA margin rose to 19.6%, an increase of over 300 basis points year-over-year, highlighting operating leverage and cost discipline.
Free Cash Flow Generation
Generated $5.5 million of free cash flow, a $7.6 million improvement from last year, driven by higher margins and disciplined capital management.