Holley (HLLY) delivered record revenue and adjusted EBITDA in Q4 2025, driven by robust demand in defense and industrial energy markets. The company raised full-year 2026 guidance, signaling sustained momentum across both sectors.
- Holley reported Q4 2025 revenue of $287 million, 14% above prior year
- Adjusted EBITDA rose to $92 million, a 19% year-over-year increase
- Defense segment revenue grew 22% on expanded government contracts
- Energy segment sales up 12%, supported by infrastructure investments
- Holley raised 2026 revenue guidance to $1.18B–$1.22B and EBITDA to $375M–$390M
- Company announced $25M share repurchase and maintained dividend
- HLLY stock rose 6.2% post-earnings, reflecting sector confidence
Holley (HLLY) reported Q4 2025 revenue of $287 million, surpassing consensus estimates by 7.3% and marking a 14% year-over-year increase. Adjusted EBITDA reached $92 million, a 19% improvement from the prior-year quarter, reflecting strong operational execution and margin expansion. The company attributed the performance to elevated demand for mission-critical components in defense systems and increased energy infrastructure projects, particularly in North America. The results were underpinned by a 22% rise in defense segment revenue, fueled by long-term contracts with U.S. government agencies and international allies. Energy segment sales grew 12%, supported by ongoing investments in pipeline integrity and offshore drilling equipment. Holley also reported a 4.8 percentage point improvement in gross margin, reaching 38.7%, driven by supply chain optimization and favorable input pricing. Holley raised its 2026 full-year guidance, projecting revenue between $1.18 billion and $1.22 billion, up from $1.15 billion previously. Adjusted EBITDA is now expected to range from $375 million to $390 million, reflecting confidence in sustained demand. The company also announced a $25 million share repurchase program and maintained its dividend policy. The stock reacted positively, with HLLY rising 6.2% in after-hours trading. Market participants highlighted the company’s expanding footprint in defense and energy as key drivers for sector re-rating. The move follows broader strength in industrial and defense equities, with energy benchmarks like CL=F and XOM reinforcing broader sector momentum.