Holley Accelerates Deleveraging With Another Proactive Prepayment of Debt, Totaling $115 Million Since 2023

Rhea-AI Summary

Holley Performance Brands (NYSE: HLLY) announced a new $15 million voluntary debt prepayment on July 14, 2026, as part of its deleveraging strategy. This brings total debt repaid since September 2023 to $115 million, all funded with free cash flow and expected to generate over $4.5 million in annualized interest savings.

According to Holley, management aims to reduce net leverage from a peak of 5.67x to below 3.5x by year-end, within a capital allocation framework focused on lowering leverage, pursuing value-creating M&A, and opportunistically returning capital to shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• $15 million additional voluntary debt prepayment funded by free cash flow
• Total debt repaid since September 2023 reaches $115 million
• Debt reduction expected to deliver over $4.5 million in annualized interest savings
• Targeting net leverage reduction from 5.67x peak to below 3.5x by year-end

Negative

• None.

Market Context

Set against a history where some capital allocation headlines aligned with moves of 10.76% while oth...

Analysis

Set against a history where some capital allocation headlines aligned with moves of 10.76% while others diverged, this debt reduction step comes with relatively low reported short positioning, limiting squeeze dynamics but leaving execution on balance-sheet goals as the key variable to monitor.

Key Figures

Debt prepayment: $15 million Debt repaid since 2023: $115 million Interest savings: more than $4.5 million +2 more

5 metrics

Debt prepayment $15 million Additional voluntary prepayment of debt

Debt repaid since 2023 $115 million Total debt repaid since September 2023

Interest savings more than $4.5 million Expected annualized interest savings from cumulative debt reduction

Peak net leverage 5.67x Historical peak net leverage level

Target net leverage below 3.5x Year-end net leverage target

Historical Context

5 past events · Latest: May 28 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 28	Investor conference update	Neutral	-5.9%	Announcement of participation in William Blair Growth Stock Conference.
May 26	Motorsports win highlight	Positive	+10.8%	HRX driver Felix Rosenqvist wins Indianapolis 500 in record finish.
May 26	Motorsports branding win	Positive	+10.8%	Indianapolis 500 victory supports HRX acquisition and Safety & Racing strategy.
May 26	Share repurchase authorization	Positive	+10.8%	Authorization of share repurchase program of up to $25 million.
May 15	Leadership appointment	Neutral	-2.9%	Appointment of Sarah Apple as SVP, General Counsel & Corporate Secretary.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has produced a mix of strong positive and negative moves, with price reactions evenly split between alignment and divergence.

Key Terms

free cash flow, net leverage, capital allocation, forward-looking statements, +1 more

5 terms

free cash flow financial

"funded entirely with free cash flow"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

net leverage financial

"reduce net leverage from a peak of 5.67x to a targeted level below 3.5x"

Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.

capital allocation financial

"a disciplined, three-pronged capital allocation framework"

Capital allocation is the process of deciding how a company or individual uses their money to grow, pay bills, save, or invest. It matters because good decisions can help build wealth and ensure resources are used wisely, while poor choices can limit growth or cause financial problems. Think of it like managing your allowance—deciding whether to spend, save, or invest to meet your goals.

View in glossary

forward-looking statements regulatory

"Certain statements in this press release may be considered “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

safe harbor regulatory

"within the meaning of the “safe harbor” provisions of the United States"

Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Holley Performance Brands continues balance sheet transformation with additional debt reduction, reinforcing financial flexibility and long-term value creation

NASHVILLE, Tenn., July 14, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY), home to a portfolio of iconic automotive brands serving enthusiasts across the high-performance aftermarket, today announced that it has made an additional $15 million voluntary prepayment of debt, further advancing its ongoing deleveraging strategy. With this incremental prepayment, the Company has now repaid $115 million of debt since September 2023, funded entirely with free cash flow. Cumulatively, the Company's debt reduction actions are expected to generate more than $4.5 million in annualized interest savings.

“Since Matthew Stevenson, President & CEO of Holley Performance Brands, and I joined in 2023, we are taking action to reduce net leverage from a peak of 5.67x to a targeted level below 3.5x by year-end, driven by significant operational improvements and consistent free cash flow generation,” said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. “That progress reflects a disciplined, three-pronged capital allocation framework: reducing leverage, pursuing value-creating M&A, and returning capital to shareholders opportunistically. Today's prepayment advances the first of those priorities, and we remain committed to creating long-term value for shareholders through operational execution, prudent financial management, and continued deleveraging.”

The repayment was funded entirely through free cash flow and further reduces outstanding borrowings under the Company's debt facilities. As the Company continues to execute its strategic priorities, Holley expects ongoing debt reduction to support enhanced profitability, stronger cash flow conversion, and greater financial flexibility over time.

For more Holley company news, click here.

Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to Holley’s ability to opportunistically reduce debt, complete accretive acquisitions of complementary brands at attractive valuations and opportunistically repurchase its own shares and the other risks and uncertainties set forth in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 16, 2026, and in any subsequent filings with the SEC.

About Holley Performance Brands
Holley Performance Brands (NYSE: HLLY) is home to a portfolio of iconic brands that serve enthusiasts across the high-performance aftermarket. The company designs, engineers, manufactures and markets category-leading products and solutions for automotive enthusiasts through a focused portfolio spanning four consumer vertical groupings: American Performance, Modern Truck & Off-Road, Euro & Import, and Safety & Racing. For more than a century, Holley has built its reputation through innovation, technical expertise and a deep understanding of enthusiast culture. For more information, visit holley.com.

Investor Relations Contact(s):
Anthony Rozmus / Jenna Kozlowski
Solebury Strategic Communications
203-428-3224
Holley@soleburystrat.com

Media Relations Contact(s):
Nathan Espinosa/Michael Murray
Kahn Media
818-881-5246
Holley@KahnMedia.com

FAQ

What debt repayment did Holley (NYSE: HLLY) announce on July 14, 2026?

Holley announced a new $15 million voluntary debt prepayment. According to Holley Performance Brands, this payment advances its deleveraging strategy and was fully funded with free cash flow, further reducing outstanding borrowings under the company’s debt facilities.

How much total debt has Holley Performance Brands (HLLY) repaid since 2023?

Holley has repaid $115 million of debt since September 2023. According to Holley Performance Brands, all repayments were funded entirely with free cash flow and are expected to generate more than $4.5 million in annualized interest savings.

What interest savings does Holley (HLLY) expect from its recent debt reductions?

Holley expects more than $4.5 million in annualized interest savings from its cumulative debt reduction. According to Holley Performance Brands, these savings result from repaying $115 million of debt with free cash flow since September 2023.

What is Holley Performance Brands’ leverage target after its latest $15 million prepayment?

Holley is targeting net leverage below 3.5x by year-end. According to Holley Performance Brands, this goal follows a peak net leverage of 5.67x and is supported by operational improvements, consistent free cash flow, and ongoing debt reduction.

How is Holley (NYSE: HLLY) funding its debt reduction strategy?

Holley is funding its debt reduction entirely through free cash flow. According to Holley Performance Brands, the company has used internally generated cash to prepay $115 million of debt since September 2023, reducing borrowings under its debt facilities.

What are the key capital allocation priorities for Holley Performance Brands (HLLY)?

Holley’s framework focuses on three priorities: reducing leverage, pursuing value-creating M&A, and returning capital to shareholders opportunistically. According to Holley Performance Brands, the latest $15 million prepayment directly supports the first priority of lowering net leverage.