Delivered four consecutive quarters of core net sales growth for the first time since 2021, signaling a successful multi-year strategic transformation.

Achieved full-year adjusted EBITDA margins above 20% by balancing volume-led growth with disciplined pricing execution and operational rigor.

Attributed 2025 performance to a diversified omnichannel platform that captured demand across B2B and direct-to-consumer channels.

Realized approximately $20 million in structural cost savings through purchasing discipline, tariff mitigation, and productivity efforts.

Maintained high product availability with a 91% in-stock rate for top SKUs, ensuring the company could meet enthusiast demand reliably.

Strengthened the financial foundation by reducing net leverage to 3.75x, meeting the year-end target through $100 million in total debt prepayments since 2023.

Guidance for 2026 assumes a range of 4% to 4.5% revenue growth, navigating an uneven 'K-shaped' economy where higher-income consumers remain resilient.

Anticipates $5 million to $7 million in incremental operational savings through continued network optimization and facility consolidation.

Plans for temporarily elevated capital expenditures of $15 million to $20 million to fund high-return ERP and warehouse management system implementations.

Targets a further inventory reduction of $10 million to $15 million by year-end 2026 through enhanced forecasting and tighter safety stock management.

Aims to exit 2026 with leverage below 3.5x, maintaining a trajectory toward a long-term goal of approximately 3.0x by 2027.

Significant winter weather events in early 2026 impacted consumer spending and distribution, leading to a projected 51/49 revenue split favoring the second half of the year.

Management noted that the market currently lacks the 'stomach' for large-scale price increases similar to 2025, shifting focus toward surgical pricing and volume gains.

The Safety and Racing division successfully navigated a transition to Snell 2025 certification, which initially acted as a headwind before accelerating growth in Q4.

Strategic product rationalization and divestitures in 2024 created a cleaner core business, though they impacted year-over-year reported growth comparisons.

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Management estimates 2025 market growth was 3% to 4%, meaning Holley's 6.6% core growth represents significant market share gains.

For 2026, the company expects continued share gains but at a more moderate pace, with minimal reliance on mid-year price increases.

Affluent consumers are driving robust growth in premium segments like Euro/Import and luxury motorsports helmets (Stilo brand).

Lower-income households face pressure from inflation and tight credit, though overall spending trends appear to be gradually stabilizing.

The 2026 focus is on preparation and alignment, with the actual 'go-live' for the new ERP and WMS systems scheduled for early 2027.

Management intends to use the new system to integrate AI and API plug-ins to improve demand visibility and design competencies.

Chemicals are viewed as high-margin products with natural expansion opportunities among the existing enthusiast base.

A new car care line is planned for the second half of 2026, targeting national retailers, third-party marketplaces, and direct e-commerce.

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