# Holley Performance Brands Prepaid $25 Million of Debt and Reached Its 3.5x Leverage Goal a Quarter Early

> Holley prepaid $25 million of debt in Q3 2026 and reached its 3.5x leverage target a quarter early, with adjusted EBITDA up 8.6% and free cash flow of $8.8 million.

- Published: 2026-11-05T13:30:27+00:00
- Section: Earnings & Results
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-05/holley-repays-debt-leverage-target
- Source: [TradingView](https://www.tradingview.com/news/tradingview:cd1c9d83bc28a:0-holley-performance-brands-repays-25m-of-debt-hits-leverage-target-early/)

## Key takeaways

- Holley prepaid $25 million of debt in the third quarter of 2026, $15 million of which had been announced previously.
- Leverage reached 3.50x, a four-year low, meeting the company's 3.5x year-end target one quarter early.
- Adjusted EBITDA grew 8.6% year over year and free cash flow was $8.8 million, up $3.3 million.
- Holley narrowed its full-year revenue, Adjusted EBITDA and interest expense guidance ranges within prior ranges.

[Holley](https://akta.pro/company-profiles/00002ks/holley) Performance Brands prepaid $25 million of debt in the third quarter of 2026 and reached its 3.5x leverage target one quarter early, the company said in results published by [TradingView](https://www.tradingview.com/news/tradingview:cd1c9d83bc28a:0-holley-performance-brands-repays-25m-of-debt-hits-leverage-target-early/). Leverage stood at 3.50x, a four-year low. Holley designs, manufactures and markets aftermarket performance automotive parts through more than 22 brands, selling fuel systems, exhaust, ignition, safety equipment and chemicals to enthusiasts, racers and professional motorsports participants.

## Holley's Third-Quarter Cash and Debt Paydown

Adjusted EBITDA rose 8.6% year over year in the quarter, and free cash flow was $8.8 million, up $3.3 million from the prior-year period. Of the $25 million repaid, $15 million had been announced previously. The company narrowed its full-year revenue, Adjusted EBITDA and interest expense guidance ranges, which remain within the prior ranges, citing a cautious stance amid the consumer environment.

Holley's 2026 Adjusted EBITDA guidance is $127 million to $137 million, compared with approximately $124 million in 2025 with margins above 20%, according to [akta.pro company records](https://akta.pro/company-data). The same records show full-year 2025 net sales of $613.5 million, the first annual sales growth since 2021 with core growth of 6.6%, and net income of $19.2 million, turning profitable from a $23.2 million net loss in 2024. In May 2026 the board approved a $25 million share repurchase program with no time limit, completing a three-pronged capital allocation framework alongside debt reduction and organic investment.

## Deals and Launches Before the Quarterly Update

On October 30, 2026, Holley acquired SXTH Element, a Spartanburg, S.C.-based maker of forced-induction and airflow upgrades for late-model Toyota trucks and SUVs, expanding its Modern Truck & Off-Road vertical, GlobeNewswire reported, with terms undisclosed. On October 26, 2026, Holley and Amotiv announced a strategic collaboration to expand their brands across North America, Australia and New Zealand, starting with Flowmaster Engineered by Ryco Performance Oil Filters, Stock Titan reported. On November 2, 2026, Holley became the preferred auto parts partner for Universal Studios Hollywood's new roller coaster, Fast & Furious: Hollywood Drift, which features recreated props including Holley's NOS and Flowmaster brands, Stock Titan reported.

## Holley's Full-Year 2026 Results

The company said its next catalyst is the full-year 2026 results, which will show whether Holley delivers within its narrowed guidance ranges and sustains cash generation.

## Companies in this story

- [Holley company profile](https://akta.pro/company-profiles/00002ks/holley) · website: https://www.holley.com

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