Holley Inc. (HLLY) 2026 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the conference call to discuss Holley's first-quarter 2026 earnings results. (Operator Instructions) Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Holley. And as a reminder, this call is being recorded and will be made available for future playback.

各位女士、先生，早安。歡迎參加本次電話會議，討論 Holley 2026 會計年度第一季財報結果。(接線員指示) 請注意，未經 Holley 書面授權，不得全部或部分複製本次電話會議內容。並提醒各位，本次電話會議將被錄音，並將提供日後回放。

I would now like to introduce your host for today's call, Anthony Rozmus with Investor Relations. Please go ahead.

現在我想介紹今天電話會議的主持人：投資人關係部的 Anthony Rozmus。請開始。

Good morning, and welcome to Holley's first-quarter 2026 earnings conference call. On the call with me today are President and Chief Executive Officer, Matthew Stevenson; and Chief Financial Officer, Jesse Weaver. This webcast and the presentation materials, including non-GAAP reconciliations, are available on our investor relations website.

各位早安，歡迎參加 Holley 2026 會計年度第一季財報電話會議。今天與我一同出席的有總裁暨執行長 Matthew Stevenson，以及財務長 Jesse Weaver。本次網路直播與簡報資料（包含非 GAAP 調節表）已公布於我們的投資人關係網站。

Our discussion today includes forward-looking statements that are based on our best view of the world and our businesses as we see them today and are subject to risks and uncertainties, including the ones described in our SEC filings. This morning, we'll review our financial results for the first-quarter 2026. At the conclusion of the prepared remarks, we will open the call up for questions.

我們今天的討論包含前瞻性陳述，係基於我們對當前世界情勢與自身業務的最佳判斷，並可能受到風險與不確定性影響，包括我們在 SEC 申報文件中所述者。今天上午，我們將回顧 2026 會計年度第一季的財務結果。在預先準備的發言結束後，我們將開放提問。

With that, I'll turn the call over to our CEO, Matthew Stevenson.

接下來，我把電話交給我們的執行長 Matthew Stevenson。

Thank you, Anthony, and good morning to everyone joining us today. Before we get into the first-quarter details, I wanted to provide some context for the quarter. As discussed on our last earnings call, Q1 began with a couple of temporary headwinds. Distributor inventories were elevated coming into the year as partners worked towards their year-end rebate targets and stocked up in advance of our January first price increase.

謝謝你，Anthony，也向今天加入我們的各位道早安。在進入第一季細節之前，我想先提供一些本季的背景脈絡。如同我們在上一季財報電話會議中提到的，第一季一開始面臨幾項暫時性的逆風。由於合作夥伴為達成年終回饋（rebate）目標而提前備貨，並在我們 1 月 1 日調漲價格前先行囤貨，經銷商庫存於年初時偏高。

We expected this inventory to normalize through January and February, but more severe winter weather slowed retail activity and delayed that process, shifting some demand out of the quarter. That said, here's the key takeaway for Q1. Beginning in week eight, as weather conditions improved and channel dynamics normalized, we saw steady improvement in purchasing patterns. We exited the quarter with momentum and early Q2 trends are encouraging, with healthier inventory levels across the channel and improving order activity.

我們原本預期這些庫存會在 1 月與 2 月間回到正常水位，但更嚴峻的冬季天候拖慢了零售活動，也延後了去化進程，使部分需求遞延至本季之外。不過，第一季的關鍵重點如下：自第 8 週起，隨著天候改善且通路動態回歸正常，我們看到採購型態穩定改善。我們在季末帶著動能結束本季，而第二季初期趨勢令人鼓舞；通路整體庫存水位更健康，訂單活動也在改善。

The spring selling season is building. More importantly, the underlying business performed solidly. Adjusted EBITDA remained essentially flat year over year at $27.3 million, despite the revenue decrease, reflecting disciplined execution. Net income increased, margins expanded, and free cash flow improved. We are also making progress on key strategic initiatives, including advancing our new portfolio rebalancing efforts and closing the acquisition of HRX.

春季銷售旺季正在升溫。更重要的是，基本面表現穩健。儘管營收下滑，調整後 EBITDA 仍幾乎與去年同期持平，為 2,730 萬美元，反映我們執行上的紀律。淨利增加、利潤率擴張，自由現金流也改善。我們在關鍵策略性計畫上亦持續推進，包括推動新的產品組合再平衡工作，以及完成 HRX 的收購。

While we're investing in innovation, deepening our connection with enthusiasts, and competing to gain share, we're also prioritizing cost control and portfolio optimization. We believe that this combination positions us well for the balance of the year.

在我們投資創新、深化與愛好者社群的連結並競爭以提升市占的同時，我們也優先聚焦成本控管與產品組合優化。我們相信，這樣的組合將使我們在今年剩餘期間具備良好定位。

Let's please turn to slide 5. Net sales were $147.3 million, down 3.7% versus the prior year, reflecting the elevated partner inventory levels and weather impacts we just discussed. Adjusted EBITDA was $27.3 million, in line with the prior year period. Holding EBITDA flat on lower revenue reflects the progress we've made in our continuous improvement efforts as adjusted EBITDA expanded 71 basis points year over year to 18.5%.

請翻到第 5 頁投影片。淨銷售額為 1.473 億美元，較去年同期下降 3.7%，反映我們剛才提到的合作夥伴庫存偏高與天候影響。調整後 EBITDA 為 2,730 萬美元，與去年同期相當。在營收較低的情況下仍能維持 EBITDA 持平，反映我們在持續改善上的進展；調整後 EBITDA 利潤率年增 71 個基點至 18.5%。

Free cash flow was negative $6.3 million, an improvement of approximately $4.5 million year over year. Still negative for the quarter, BUT trending in the right direction, and we expect meaningful improvement through the remainder of the year.

自由現金流為負 630 萬美元，較去年同期改善約 450 萬美元。本季仍為負值，但趨勢朝正確方向發展，我們預期在今年剩餘期間將有顯著改善。

We delivered $6.5 million in cost savings in Q1 through purchasing discipline, tariff mitigation, and operational improvements. Three of the four divisions grew, and 12 brands performed positively across B2B and D2C. That reflects the breadth of the portfolio working as intended. Strategically, we closed HRX, and we expect to generate more than $15 million of proceeds to reinvest in higher growth areas of the business.

第一季我們透過採購紀律、關稅因應與營運改善，實現 650 萬美元的成本節省。四個事業部中有三個成長，且有 12 個品牌在 B2B 與 D2C 通路表現為正成長。這反映產品組合的廣度正如預期般發揮作用。在策略面，我們完成 HRX 交易，並預期可取得超過 1,500 萬美元的處分收益，用於再投資於業務中更高成長的領域。

Slide 6 provides additional insight into recent highlights across the business. Since our last earnings call, we've introduced several new products, including our engine swap solution packages and the Holley High-Performance Car Care line, both of which have been well-received by our enthusiast customer base.

第 6 頁投影片提供近期業務亮點的更多洞見。自上次財報電話會議以來，我們推出多項新產品，包括引擎置換（engine swap）解決方案套件，以及 Holley 高性能汽車護理（Car Care）產品線；兩者皆獲得我們愛好者客群的良好回響。

On the operational front, we continue to make solid progress. We maintained approximately a 92% in-stock rate on our top 2,500 SKUs and delivered $3.8 million in purchasing and tariff savings and $2.7 million in operational improvements during the quarter. We also re-engaged our M&A efforts with the closing of HRX. In further slides, I'll provide more detail on its strategic importance and the broader approach we're taking to rebalance our portfolio.

在營運面，我們持續取得扎實進展。本季我們在前 2,500 個 SKU 維持約 92% 的現貨供應率（in-stock rate），並實現 380 萬美元的採購與關稅節省，以及 270 萬美元的營運改善效益。隨著 HRX 完成交割，我們也重新啟動併購（M&A）推進。在後續投影片中，我將更詳細說明其策略重要性，以及我們為再平衡產品組合所採取的更廣泛作法。

Slide 7 breaks out the Q1 divisional performance, and I think the story here is clear once you understand the context. American Performance declined 9.7% in the quarter. This segment saw the most impact from weather and some temporary inventory dynamics at a small number of key partners. As conditions improved over the course of the quarter, demand trends strengthened and we expect the business to return to growth.

第 7 頁投影片拆解第一季各事業部表現；在理解背景後，我認為這裡的脈絡相當清楚。American Performance 本季下滑 9.7%。此事業部受到天候影響最大，且少數關鍵合作夥伴出現一些暫時性的庫存動態。隨著本季期間條件逐步改善，需求趨勢轉強，我們預期該業務將回到成長軌道。

Truck & Off-Road was up 3.8%, a solid result given the market dynamics. The truck category continues to have real momentum and the product introductions we've been building out over the past year are gaining commercial traction. Euro & Import was up 1%. This business would have been stronger, some product availability constraints earlier in the quarter, which have since been addressed, limited performance. Safety & Racing grew 10.2%, driven by the Snell 2025 helmet certification cycle, strong demand for our Stilo brand, and continued strength in motorcycle safety.

Truck & Off-Road 成長 3.8%，在目前市場動態下屬於穩健成果。卡車品類持續具備實質動能，而我們過去一年逐步推出的新產品也正在取得商業上的牽引力。Euro & Import 成長 1%。若非本季前段部分產品供應可得性受限（目前已解決）而壓抑表現，該業務原本可更強。Safety & Racing 成長 10.2%，主要受 Snell 2025 安全帽認證週期帶動、Stilo 品牌需求強勁，以及機車安全產品持續走強所驅動。

There is a solid foundation here as we move through the year. Three of our four divisions delivered growth, with the fourth impacted by a defined set of weather and inventory-related factors that are normalizing and are actively improving. Our divisional operating model anchored in clear prioritization, accountability, and resource alignment continues to support consistent progress across the company.

隨著我們推進今年的營運，這裡具備穩固的基礎。四個事業部中有三個實現成長；另一個則受到一組明確的天候與庫存相關因素影響，而這些因素正在正常化並持續改善。我們以清楚的優先順序、責任歸屬與資源配置為核心的事業部營運模式，持續支持公司各面向的穩定進展。

Slide 8, which we have shared in the past, outlines our long-term strategic framework, which continues to guide how we operate and allocate resources. It's built around eight pillars, starting with making Holley a great place to work. Then premier consumer journey, trailblazing trusted partner, product innovation and portfolio management, global expansion in new markets, transformational M&A, funding the growth, our operational improvements, all culminating with delivering results.

第 8 頁投影片（我們過去也分享過）概述我們的長期策略架構，並持續指引我們的營運方式與資源配置。該架構建立在八大支柱之上，首先是讓 Holley 成為一個優秀的工作場所。接著是卓越的消費者旅程、開創性的可信賴合作夥伴、產品創新與產品組合管理、在新市場的全球擴張、變革性的併購（M&A）、為成長提供資金、營運改善，最終以交付成果作結。

The value of a framework like this is how it keeps the organization aligned and focused, particularly in a more dynamic environment. Through the first quarter, our teams remained disciplined, stayed focused on execution, and continued to deliver against our priorities. You'll see that reflected in our initiative progress.

這類架構的價值在於能讓組織保持一致並聚焦，特別是在更具動態變化的環境中。截至第一季，我們的團隊維持紀律、專注執行，並持續依照優先事項交付成果。你們將在我們各項計畫的進度中看到這點。

Slide 9 outlines some of the highlights for each of these initiatives within the strategic framework for 2026, which we introduced on our last call. There was solid underlying progress across these initiatives in the first quarter. This includes innovative new products such as our packaged engine swap solutions and the new car care line, along with continued momentum in national retail accounts and international markets.

第 9 頁投影片概述我們在 2026 年策略架構下各項倡議的部分亮點，這些內容我們在上次電話會議中已介紹。第一季在這些倡議上都有扎實的基本面進展。其中包括創新新產品，例如我們的套裝式引擎置換解決方案與新的汽車護理產品線，以及全國性零售客戶與國際市場的持續動能。

On the operations side, the team is tracking ahead of our 2026 targets, delivering meaningful material cost savings, mitigating tariff exposure, and driving improved efficiency and productivity across our manufacturing facilities. Overall, these efforts position us well to continue execution against our plan and delivering on our objectives for 2026.

在營運方面，團隊的進度已超前我們 2026 年的目標，實現具意義的材料成本節省、降低關稅曝險，並在各製造據點推動效率與生產力提升。整體而言，這些努力使我們具備良好條件，得以持續依計畫推進並達成 2026 年的目標。

With that, let's turn to the detailed initiative tracker on slide 10. The Strategic Initiative Tracker provides a clear view of our Q1 performance, highlighting both areas of progress and those impacted by temporary external factors.

接下來，讓我們看第 10 頁投影片的詳細倡議追蹤表。策略倡議追蹤表清楚呈現我們第一季的表現，突顯進展領域以及受短期外部因素影響的部分。

Trailblazing trusted partner was down $7.9 million versus the prior year, reflecting elevated inventory levels at a handful of larger accounts and slower seasonal sell-through due to weather. Encouragingly, roughly half of the B2B portfolio delivered positive momentum, and our national retailer channel grew approximately 10%, supported by improved SKU penetration, enhanced product data, expanded e-commerce presence, and enhanced in-store placement. As inventory levels are normalizing and seasonal demand builds, we are seeing growth in the B2B channel.

「開創值得信賴的合作夥伴」較去年同期減少 790 萬美元，反映少數大型客戶的庫存水位偏高，以及受天候影響導致季節性銷售去化較慢。令人鼓舞的是，約有一半的 B2B 組合展現正向動能，而我們的全國零售商通路約成長 10%，受惠於 SKU 滲透率提升、產品資料強化、電商能見度擴大，以及門市陳列改善。隨著庫存水位逐步正常化、季節性需求回升，我們正看到 B2B 通路的成長。

Premier consumer journey was essentially flat to the prior year. Direct-to-consumer performance was impacted by weather early in the quarter, but improved as conditions normalized, returning to year-over-year growth in March. Third-party marketplaces, led by Amazon, delivered growth of approximately 3%. The improvement in March is a positive indicator as we move into the next quarter.

「卓越消費者旅程」與去年同期大致持平。直面消費者（DTC）表現於季度初受天候影響，但隨著狀況恢復正常而改善，並在 3 月回到年對年成長。以 Amazon 為首的第三方市集帶來約 3% 的成長。3 月的改善是我們邁入下一季時的一項正面指標。

Product innovation contributed approximately $3.6 million, driven by solid performance in Safety with new motorcycle helmets in the Snell 2025 motorsports offerings, as well as in modern Truck & Off-Road with new tuning solutions.

產品創新貢獻約 360 萬美元，主要由 Safety 的穩健表現帶動，包括 Snell 2025 賽車運動產品中的新款機車安全帽，以及現代 Truck & Off-Road 類別的新調校解決方案。

Global expansion and new markets contributed approximately $2 million, including $1.4 million from international distributor growth, with continued expansion planned in Q2, and approximately $0.6 million from the globalization of powersports and safety categories, led by the Simpson brand of motorcycle helmets.

全球擴張與新市場貢獻約 200 萬美元，其中包含國際經銷商成長帶來的 140 萬美元，且第二季仍規劃持續擴張；另約 60 萬美元來自動力運動與安全類別的全球化推進，主要由 Simpson 機車安全帽品牌帶動。

Fund the growth delivered approximately $6.5 million in savings, including $3.8 million from purchasing initiatives and tariff mitigations, and $2.7 million from operational improvements. Our focus on managing input costs and tariffs continues to contribute positively to results.

「為成長提供資金」帶來約 650 萬美元的節省，其中包含採購倡議與關稅因應帶來的 380 萬美元，以及營運改善帶來的 270 萬美元。我們在管理投入成本與關稅方面的聚焦，持續對成果帶來正面貢獻。

Overall, the tracker highlights our disciplined execution and strategic progress, effectively navigating near-term external pressures while delivering strong performance across new product innovations, expansion into new markets, and cost reduction initiatives, all progressing as expected.

整體而言，追蹤表凸顯我們紀律性的執行與策略進展：在有效因應短期外部壓力的同時，於新產品創新、新市場擴張與降本倡議等面向皆交出強勁表現，且進度符合預期。

Now, slide 11 outlines our new portfolio rebalancing initiative, which we view as an important driver of long-term value creation. The first step is to exit brands that are not meeting our growth, profitability, or strategic criteria. These businesses tend to consume a disproportionate amount of time and capital relative to their returns. Second, these actions, along with facility consolidations, help simplify the portfolio, reduce complexity, and improve free cash flow and cost structure.

接著，第 11 頁投影片說明我們新的投資組合再平衡倡議，我們視其為長期價值創造的重要驅動力。第一步是退出未達成我們成長、獲利或策略標準的品牌。這些業務相較其回報，往往耗用不成比例的時間與資本。第二，這些行動連同據點整併，有助於簡化投資組合、降低複雜度，並改善自由現金流與成本結構。

Third, we redeploy that capital into disciplined bolt-on acquisitions. Our focus is on businesses with attractive growth profiles, strong margins, and positive cash flow characteristics. The recent HRX acquisition is a great example of this approach in action. Finally, over time, we anticipate these higher growth additions will contribute to improved earnings and cash generation, supporting further reinvestment and balance sheet strength.

第三，我們將該資本重新部署至具紀律的補強型併購。我們聚焦於具吸引力的成長輪廓、強勁毛利/利潤率，以及正向現金流特性的企業。近期的 HRX 收購就是此一方法落地執行的絕佳例證。最後，隨著時間推進，我們預期這些較高成長的新增業務將有助於提升獲利與現金創造能力，支持進一步再投資並強化資產負債表。

We are targeting 5 to 10 bolt-on acquisitions over the next 24 months. While this is a focus goal, we believe we have the pipeline and processes in place to execute effectively. Overall, portfolio rebalancing is a key component of how we are positioning the business for sustained long-term growth.

我們的目標是在未來 24 個月內完成 5 到 10 件補強型併購。雖然這是一項聚焦目標，但我們相信已具備足夠的案源管線與流程，可有效執行。整體而言，投資組合再平衡是我們為企業定位以實現可持續長期成長的關鍵組成。

Slide 12 outlines our site and brand optimization program, which represents the operational component of our broader portfolio rebalancing efforts. As part of this initiative, we are in the process of exiting five brands and consolidating five facilities, and we are approximately halfway through this work. This includes reducing our warehouse footprint by approximately 100,000 square feet and streamlining our workforce by about 9%. We are also rationalizing roughly 11,000 SKUs, about 25% of our portfolio by count, reflecting a focus on reducing complexity while maintaining core capabilities.

第 12 頁投影片說明我們的據點與品牌最佳化計畫，這是更廣泛投資組合再平衡工作的營運面向。作為此倡議的一部分，我們正進行退出五個品牌並整併五處設施，目前約完成一半。其中包括將倉儲面積縮減約 100,000 平方英尺，並將人力精簡約 9%。我們也正精簡約 11,000 個 SKU，約占我們產品組合數量的 25%，反映在維持核心能力的同時，聚焦降低複雜度。

From a financial standpoint, we expect our portfolio rebalancing efforts to generate more than $15 million in one-time net cash, along with adjusted EBITDA margin expansion of approximately 75 to 150 basis points, including at least $1 million in annualized benefits. We also expect a modest improvement in leverage of around 0.15 times and approximately a 5% improvement in inventory terms.

從財務角度來看，我們預期投資組合再平衡將帶來超過 1,500 萬美元的一次性淨現金，並帶動調整後 EBITDA 利潤率擴張約 75 至 150 個基點，其中包含至少 100 萬美元的年度化效益。我們也預期槓桿倍數將小幅改善約 0.15 倍，且庫存條件約改善 5%。

Overall, we are creating a more streamlined and focused operating model, enhancing efficiency, strengthening margins, and improving cash generation while positioning the business around its strongest opportunities for growth. Slide 13 outlines our M&A acquisition profile, reflecting a disciplined and thoughtful approach to bolt-on acquisitions, as well as how these efforts connect to our broader portfolio optimization work.

整體而言，我們正在打造更精簡且更聚焦的營運模式，提升效率、強化利潤率並改善現金創造，同時讓企業圍繞最強的成長機會進行布局。第 13 頁投影片說明我們的併購（M&A）收購輪廓，反映我們對補強型併購採取紀律且審慎的方法，以及這些努力如何與更廣泛的投資組合最佳化工作相連結。

As we streamline the business through our site and brand optimization initiatives, reducing complexity, and generating incremental cash, we are focused on redeploying that capital into higher growth opportunities that we can scale over time. Within M&A, we are primarily targeting founder-led businesses. These companies often bring strong brand equity, deep customer relationships, and a proven operating capability.

當我們透過據點與品牌最佳化倡議來精簡業務、降低複雜度並創造增量現金時，我們聚焦將該資本重新部署至可隨時間擴大規模的更高成長機會。在併購方面，我們主要鎖定由創辦人主導的企業。這些公司通常具備強大的品牌資產、深厚的客戶關係，以及經驗證的營運能力。

Our role is to support and accelerate that foundation through our distribution network, commercial infrastructure, and broader customer reach. We structure transactions with alignment in mind, including shared business plans and incentives that encourage continued growth post-close. Our financial criteria is consistent and disciplined.

我們的角色是透過我們的配銷網路、商業基礎設施與更廣泛的客戶觸及，來支持並加速其既有基礎。我們在交易架構上強調一致性，包括共享的事業計畫與激勵機制，以鼓勵交割後持續成長。我們的財務標準一貫且具紀律。

Typically, $5 million to $10 million in revenue at acquisition, established double-digit revenue growth, and the ability to achieve EBITDA margins of 20% or greater post synergies with positive free cash flow. These are not turnaround situations, but rather businesses with solid fundamentals where we believe that we can help unlock additional value.

通常而言，收購時營收為 500 萬至 1,000 萬美元，已建立雙位數營收成長，且在綜效後能達成 20% 或以上的 EBITDA 利潤率並具正向自由現金流。這些並非重整（turnaround）案件，而是基本面穩健、我們相信能協助釋放額外價值的企業。

Strategic fit is equally important. We prioritize businesses that align well with our existing portfolio, where we can leverage shared customers, channels, and capabilities to drive incremental growth. Overall, we believe that this approach allows us to take the benefits of our optimization efforts and reinvest them in scalable, higher growth brands.

策略契合度同樣重要。我們優先考量與既有投資組合高度契合的企業，能運用共享客戶、通路與能力來帶動增量成長。整體而言，我們相信此一方法能讓我們把最佳化所帶來的效益，重新投資於可擴張、成長性更高的品牌。

Slide 14 provides additional detail on the HRX acquisition, which is a strong example of the M&A framework I just outlined in action. HRX is based in Turin, Italy, and specializes in premium racing apparel and safety equipment, including suits, gloves, shoes, and team wear. The product line is FIA homologated, and the business has developed a proprietary digital platform that enables scalable customization, an important differentiator in a category where fit, performance, and certification are critical to the customer.

第 14 頁投影片提供 HRX 收購案的更多細節，這是我剛才所概述之併購框架在實務中的有力例證。HRX 總部位於義大利杜林（Turin），專精於高端賽車服飾與安全裝備，包括賽車服、手套、鞋款與車隊服飾。其產品線通過 FIA 認證（homologated），且公司開發了自有的數位平台，可實現可擴展的客製化；在一個合身度、性能與認證對客戶至關重要的品類中，這是重要的差異化優勢。

The company is founder-led with established double-digit revenue growth, strong EBITDA margin characteristics, and positive free cash flow. It also has a growing international presence, particularly in Europe, with additional opportunities as we leverage Holley's broader distribution and commercial capabilities.

該公司由創辦人主導，具備已建立的雙位數營收成長、強勁的 EBITDA 利潤率特性，以及正向自由現金流。其國際布局亦持續擴大，尤其在歐洲；隨著我們運用 Holley 更廣泛的配銷與商業能力，仍有進一步機會。

From a strategic standpoint, HRX is a strong fit within our Safety division. It enhances our position in motorsport safety, adds premium manufacturing capabilities, and expands our presence in the European market, an area we see meaningful opportunity for growth. More broadly, HRX reflects the type of disciplined, strategically aligned acquisition we are targeting. It demonstrates how we can deploy capital generated through our optimization efforts into higher growth opportunities, and we expect to continue pursuing similar transactions over time.

從策略角度來看，HRX 與我們的 Safety 事業部高度契合。它強化我們在賽車運動安全領域的地位，增加高端製造能力，並擴大我們在歐洲市場的布局；我們在該區域看見具意義的成長機會。更廣泛而言，HRX 反映我們所鎖定的那類具紀律、策略一致的收購案。它展示我們如何將最佳化工作所產生的資本，部署到更高成長的機會上；我們也預期未來將持續尋求類似交易。

So stepping back, while Q1 was impacted by temporary external factors, primarily weather and channel inventory, the underlying business performed well. We expanded margins, improved cash flow, and made meaningful progress on our strategic priorities. And as conditions normalized, demand improved, and we exited the quarter with momentum that's carrying into Q2.

因此退一步看，雖然第一季受到暫時性的外部因素影響，主要是天氣與通路庫存，但基本面業務表現良好。我們擴大了利潤率、改善了現金流，並在策略重點上取得實質進展。隨著環境恢復正常、需求改善，我們在季末帶著動能收官，並延續到第二季。

With that, I'll turn it over to Jesse to walk through the full financials and provide additional perspective on the 2026 outlook. Jesse?

接下來我把時間交給 Jesse，請他帶大家走過完整財務數字，並就 2026 年展望提供更多觀點。Jesse？

Thank you, Matt. Picking up on Matt's comments, the weather and channel inventory dynamics played out as he previously described. Even with those factors, we delivered strong financial performance in the quarter. This result reflects our consistent commitment as an organization to our financial priorities. Let's take a look at these on slide 16.

謝謝你，Matt。延續 Matt 的評論，天氣與通路庫存的動態如他先前所述地發展。即便有這些因素，我們本季仍交出強勁的財務表現。這項結果反映了我們作為一個組織，對財務優先事項一貫的承諾。讓我們看一下第 16 頁投影片。

Our financial priorities for 2026 remain consistent. Restore historical profitability, improve working capital discipline, and continue to deleverage. On profitability, we continue to see tangible progress from disciplined operational execution. In the first quarter, continuous improvement initiatives delivered $2.7 million of benefit, supporting continued year-over-year adjusted EBITDA margin expansion for the quarter.

我們 2026 年的財務優先事項維持一致。恢復歷史獲利水準、提升營運資金紀律，並持續去槓桿。在獲利能力方面，我們持續看到來自嚴謹營運執行的具體進展。第一季，持續改善計畫帶來 270 萬美元的效益，支撐本季調整後 EBITDA 利潤率持續年增擴張。

These efforts are centered on optimized staffing, manufacturing and distribution efficiencies, and targeted facility and network cost actions. For full-year '26, we continue to expect $5 million to 7 million of additional operational improvements, reinforcing structural margin expansion.

這些努力聚焦於人力配置最佳化、製造與配送效率，以及針對性的廠房與網路成本措施。就 2026 全年而言，我們仍預期可再帶來 500 萬至 700 萬美元的額外營運改善，強化結構性利潤率擴張。

Turning to working capital. Inventory was up modestly in Q1, primarily reflecting Q1 sales performance. The actions we put in place starting in January around improved forecasting, right-size safety stock, and a more just-in-time approach on high-velocity SKUs are starting to pay off in Q2, and we continue to target $10 million to 15 million in inventory reduction for the year.

接著談營運資金。第一季庫存小幅上升，主要反映第一季銷售表現。我們自 1 月起推動的改善預測、適度調整安全庫存，以及對高周轉 SKU 採取更即時（just-in-time）的方式，已開始在第二季見到成效；我們仍以全年庫存降低 1,000 萬至 1,500 萬美元為目標。

On the balance sheet, deleveraging remains a core focus. We ended the first quarter at 3.84 times net leverage, down 0.48 times from a year ago. Based on current trends, we expect steady progress toward our year-end target of below 3.5 times. Our actions across operations, working capital, and the balance sheet are strengthening the fundamentals of the business. We believe this positions us well to drive sustained profitability, generate free cash flow, and further enhance balance sheet flexibility over the course of 2026.

在資產負債表方面，去槓桿仍是核心重點。第一季末我們的淨槓桿倍數為 3.84 倍，較一年前下降 0.48 倍。依目前趨勢，我們預期將穩步朝向年底低於 3.5 倍的目標前進。我們在營運、營運資金與資產負債表上的行動，正在強化業務基本面。我們相信這使我們在 2026 年期間能夠推動可持續的獲利、創造自由現金流，並進一步提升資產負債表的彈性。

On slide 17, we'll walk through our key financial metrics for the first quarter. Net sales for the first quarter were $147.3 million versus $153 million in the same period a year ago. Gross profit was $60.7 million in the quarter compared to $64.1 million in the same period last year. Gross margin for the quarter was 41.2%, a decrease of 65 basis points versus 41.9% in the prior year.

在第 17 頁投影片，我們將說明第一季的關鍵財務指標。第一季淨銷售額為 1.473 億美元，去年同期為 1.53 億美元。本季毛利為 6,070 萬美元，去年同期為 6,410 萬美元。本季毛利率為 41.2%，較去年同期的 41.9% 下降 65 個基點。

Margin compression was driven by fixed cost deleverage, partially offset by operational efficiency gains. SG&A, including R&D for the first quarter, was $39.4 million versus $40.8 million in the same period last year. The decrease reflects improved efficiency in legal and marketing spend, as well as reduced outbound freight from lower sales volumes.

利潤率收縮主要由固定成本去槓桿所致，部分被營運效率提升所抵銷。第一季 SG&A（含研發）為 3,940 萬美元，去年同期為 4,080 萬美元。下降反映法務與行銷支出效率提升，以及因銷售量較低而降低的出貨運費。

Net income for the first quarter was $7.3 million, a $4.4 million improvement compared to $2.8 million in the first quarter of 2025. Adjusted net income in the first quarter was $5.7 million versus $2.6 million in the same period last year. Adjusted EBITDA for the first quarter was $27.3 million, in line with the prior year. Adjusted EBITDA margin was 18.5%, a 71-basis point improvement versus 17.8% in the first quarter of 2025.

第一季淨利為 730 萬美元，較 2025 年第一季的 280 萬美元改善 440 萬美元。第一季調整後淨利為 570 萬美元，去年同期為 260 萬美元。第一季調整後 EBITDA 為 2,730 萬美元，與去年同期持平。調整後 EBITDA 利潤率為 18.5%，較 2025 年第一季的 17.8% 提升 71 個基點。

On slide 18, we improved our free cash flow in the first quarter year over year by $4.5 million. Similar to last year, first-quarter free cash flow is expected to be the low point in the year. With the elevated inventory levels in the quarter anticipated to come back in line in the second quarter, we expect Q2 free cash flow to meaningfully improve quarter over quarter, furthering our progress on leverage, which I'll walk you through on slide 19.

在第 18 頁投影片，我們第一季自由現金流較去年同期改善 450 萬美元。與去年類似，第一季自由現金流預期會是全年低點。由於本季偏高的庫存水準預計在第二季回到正常，我們預期第二季自由現金流將較第一季顯著改善，並推進我們在槓桿方面的進展；我將在第 19 頁投影片帶大家看。

Covenant net leverage ended the first quarter at 3.84 times, down from 4.32 times a year ago. We exited 2025 below the 4-turn target we set during the year. We expect to be below 3.5 turns at the end of 2026. This progress reflects a sustained commitment to margin improvement, working capital discipline, and disciplined capital allocation rather than reliance on any one-time actions. Note that leverage moved up modestly from year end, reflecting the seasonal working capital build and the HRX acquisition.

契約口徑的淨槓桿在第一季末為 3.84 倍，較一年前的 4.32 倍下降。我們在 2025 年底已低於當年設定的 4 倍目標。我們預期在 2026 年底將低於 3.5 倍。這項進展反映我們對利潤率改善、營運資金紀律與嚴謹資本配置的長期承諾，而非依賴任何一次性措施。請注意，槓桿較年底小幅上升，反映季節性的營運資金增加以及 HRX 收購。

We expect the trajectory to resume downward through the balance of the year as the team's initiatives on working capital are expected to begin generating incremental free cash flow. We ended the quarter with $33.1 million of cash on hand and $10 million drawn on the revolving credit facility. The revolver drawn was taken proactively to fund the final CataClean payment and the HRX acquisition.

我們預期隨著團隊在營運資金方面的計畫開始帶來增量自由現金流，槓桿走勢將在今年剩餘期間恢復下行。本季末我們持有現金 3,310 萬美元，並在循環信用額度下動用 1,000 萬美元。此次動用循環額度是為了主動籌資，用於支付 CataClean 的最後一筆款項以及 HRX 收購。

We retained substantial availability under the facility and ample liquidity to run the business, and we plan to fully repay the revolver in the coming weeks with cash on hand. Overall, we have come a long way in strengthening the balance sheet with continued progress expected during the remainder of the year. We remain committed to a conservative financial position using free cash flow to continue deleveraging while preserving flexibility to support disciplined bolt-on acquisitions.

我們在該融資額度下仍保有充足可用額度與充裕流動性以支應營運，並計畫在未來幾週以手上現金全額償還循環額度借款。整體而言，我們在強化資產負債表方面已走了很長一段路，且預期今年剩餘期間仍將持續取得進展。我們仍致力於維持保守的財務立場，運用自由現金流持續去槓桿，同時保留彈性以支持嚴謹的補強型併購。

Turning to our 2026 outlook. Our core business revenue range is unchanged. We are updating full-year net sales guidance to $610 million to $640 million, which reflects the net $15 million revenue reduction tied to the portfolio optimization actions Matt previously discussed. Importantly, our 2026 adjusted EBITDA guidance is unchanged at $127 million to $137 million.

接著談 2026 年展望。我們核心業務的營收區間維持不變。我們更新全年淨銷售額指引至 6.10 億至 6.40 億美元，反映與 Matt 先前提到的產品組合最佳化行動相關的淨 1,500 萬美元營收減少。重要的是，我們 2026 年調整後 EBITDA 指引維持不變，仍為 1.27 億至 1.37 億美元。

The portfolio optimization is expected to be slightly accreted to adjusted EBITDA on a net basis, while generating more than $15 million of incremental cash and reducing operational complexity through the SKU rationalization Matt outlined.

產品組合最佳化預期在淨額基礎上對調整後 EBITDA 略具增益，同時可帶來超過 1,500 萬美元的增量現金，並透過 Matt 所概述的 SKU 精簡降低營運複雜度。

Capital expenditures, depreciation and amortization, and interest expense ranges are also unchanged. Q2 is starting out on a positive note with mid-single-digit growth in April, supported by winter being behind us and normalizing inventory at our distribution partners. We view that as a constructive signal for the balance of the quarter.

資本支出、折舊與攤銷，以及利息費用的區間也維持不變。第二季開局正面，4 月呈現中個位數成長，受惠於冬季已過，以及我們的經銷夥伴庫存水位正常化。我們將此視為對本季剩餘期間具建設性的訊號。

With that, we will open the lineup for questions.

接下來我們開放提問。

(Operator Instructions) Brian McNamara, Canaccord Genuity.

(接線員指示) Brian McNamara，Canaccord Genuity。

Thanks for taking our questions. Apologies if I missed this in the prepared remarks, but what was the gap in Q1 sell-in versus out-the-door sales, and what was the actual Q1 core sales growth?

謝謝讓我們提問。如果我在事先準備的講稿中漏聽了，先致歉；第一季 sell-in 與 out-the-door 銷售之間的差距是多少？以及第一季核心銷售的實際成長是多少？

Brian, we didn't talk about the core because in this particular quarter all the sales were core. We weren't rolling over anything in Q1. So what you're seeing reported in the down 3.7 is all core. I would say versus out the door sales out the door sales were very strong within the quarter for our distribution partners.

Brian，我們沒有談核心，是因為在這一季所有銷售都是核心。我們在第一季沒有任何項目需要結轉。所以你看到所揭露的下滑 3.7 全部都是核心。我會說，相較於 out-the-door 銷售，我們的通路夥伴在本季的 out-the-door 銷售表現非常強勁。

And we -- probably in the plus 4% range. And I think that kind of gets to some of the remarks Matt and I had on the call, which is between the combination of weather, which we're estimating was probably accounts for 3, and then the inventory kind of coming into the quarter a little strong or heavier than we would have liked. That gets you to another 4. That kind of bridges the gap there.

而我們——大概會在正成長 4% 左右的區間。我認為這也呼應了我和 Matt 在電話會議上的一些評論，也就是天氣因素（我們估計大概占了 3 個百分點），再加上本季初的庫存水位偏強、或比我們希望的更偏高一些。這又帶來另外 4 個百分點。這樣就把中間的落差銜接起來了。

Great. That's helpful. And on the portfolio optimization, I'm sure you guys consistently review the portfolio, but I guess what drove this decision in terms of the next set of brand and SKU exits, and what brands are you calling if you care to opine?

很好。這很有幫助。關於投資組合最佳化，我確定你們一直都會持續檢視投資組合，但我想問的是，這次決定下一波退出哪些品牌與 SKU，背後的驅動因素是什麼？如果方便的話，你們會點名哪些品牌？

Yeah, Brian, thanks. This is Matt. We constantly look at the portfolio just to see where business is taking a disproportionate amount of resources compared to the contribution they offer. And there were some things on the bubble and just the changing environment relative to freight rates, tariffs, we monitored that closely.

好的，Brian，謝謝。我是 Matt。我們會持續檢視投資組合，主要是看哪些業務相對於其貢獻度，消耗了不成比例的資源。也有一些項目處在臨界點上，且在運費費率、關稅等相關的環境變化下，我們一直密切監控。

These businesses do not fall in the bucket or performance or offer that true competitive differentiation and scalability that we look for in the market. So we've been looking at these. There was nothing previously that really stood out. But I'd say over the last six months, these businesses came more into focus, as well as the growth opportunities on the other end to reinvest those proceeds into these higher growth businesses.

這些業務不符合我們所期待的那種績效表現，也沒有提供我們在市場上尋求的真正競爭差異化與可擴展性。所以我們一直在觀察這些。先前其實沒有什麼特別突出的。但我會說在過去六個月，這些業務變得更清晰，同時也看到另一端的成長機會，可以把這些處分所得再投入到更高成長的業務上。

And then just finally on M&A, your new commitment there is pretty noteworthy. I think HRX was your first deal in, like, three and a half years. I'm assuming that doesn't happen unless you have confidence in your base business. Is the sales contribution from HRX this year material? And I'm done there.

最後再問一下併購（M&A），你們新的承諾相當值得注意。我想 HRX 是你們大概三年半來的第一筆交易。我猜如果對本業沒有信心，應該不會做這件事。HRX 今年的營收貢獻會是重大的嗎？我就問到這裡。

Yeah. On HRX, we're really excited. It's a great business and it fills an opportunity in our portfolio. For competitive dynamics, we're not giving specifics into this the size of that business. But generally speaking, Brian McNamara, in the prepared remarks that that those types of businesses that are in that range the $5 million to 10 million in top-line revenue, double-digit EBITDA high growth rates, et cetera, that it squarely fits in that bucket.

是的。談到 HRX，我們非常興奮。這是一門很棒的業務，也補上了我們投資組合中的一個機會。基於競爭動態，我們不會提供該業務規模的具體細節。但一般而言，Brian McNamara 在事先準備的發言中提到，那類型的業務通常落在年營收 500 萬到 1,000 萬美元區間、EBITDA 為雙位數且成長率很高等等；它完全符合那個範疇。

Great. Thanks, guys. Pass it on.

很好。謝謝各位。我把問題交給下一位。

Christian Carlino, JPMorgan Chase & Company.

JPMorgan Chase & Company 的 Christian Carlino。

Thanks for taking our question. You had talked about the difficult channel inventory position and the storms pressuring some of the orders from the distribution partners when you reported in early March. I guess, could you talk through more I guess what drove the miss versus your expectations? Did you expect a more healthy ramp of orders into March that didn't materialize maybe due to the headline shock of gas prices and consumer sentiment? Just any further color on that.

謝謝讓我們提問。你們在三月初公布時提到，通路端庫存位置偏困難，以及暴風雨對部分經銷夥伴的訂單造成壓力。我想請你們更詳細說明一下，實際表現不如預期的原因是什麼？你們原本是否預期三月的訂單會更健康地爬升，但沒有發生，可能是因為油價上漲的新聞衝擊與消費者信心？想請再補充一些顏色。

Yeah. Thanks for the question, Christian. Yeah. As Jesse just mentioned on Brian's question there, I think it was the Q&A on the last call, we talked about we think about 2% to 3% of the growth in Q4 normally would have fell into Q1 due to more working days and some of our distribution partners leaning out to hit their rebate targets. That ended up being the, from what we surmise here, probably north of 4%.

好的。謝謝你的問題，Christian。是的。如同 Jesse 剛才在回答 Brian 的問題時提到的，我想是在上次電話會議的 Q&A，我們談到通常第四季約有 2% 到 3% 的成長會因為工作天數較多，以及部分經銷夥伴為了達成返利目標而去化庫存，而落到第一季。但從我們目前的推估來看，最後可能超過 4%。

Although, as Jesse just commented, the out the doors were healthy, those weeks really impacted the sellout rates in late January and early February at some of our key partners based on the weather. You got to remember, there's a bit of a seasonality effect in our business. People start working on their cars a lot more earlier in the South. It really had unprecedented weather conditions, and we saw that by state in our D2C business, as well, and of course impacted our D2C business in those weeks.

另外，如同 Jesse 剛才評論的，雖然終端出貨（out the doors）表現健康，但天氣因素確實在一月下旬與二月上旬的那幾週，影響了我們一些主要合作夥伴的終端銷售（sellout）速度。你要記得，我們的業務有一些季節性效應。南方地區的人會更早開始動手修車、改車。當時出現了前所未見的天候狀況；我們在 D2C 業務也按州別看到了這點，當然也在那些週期影響了我們的 D2C 業務。

Got it. That's really helpful. And I know it's small, but one of the businesses you sold was Arizona Desert Shocks, and I think that's been a priority growth vertical in the past couple of years. Is it that maybe the vertical simply isn't growing what it was in the post-COVID days, or is it still a priority, but there was something specific about that business that didn't make sense?

了解。這非常有幫助。我知道規模不大，但你們出售的其中一項業務是 Arizona Desert Shocks，而我記得過去幾年這一直是你們優先的成長垂直領域。是因為這個垂直領域在後疫情時期不如以往成長，還是它仍然是優先項目，只是那家業務本身有特定原因而不合理？

And I guess more broadly, it seems like with the bolt-ons that you're planning, it's more about maybe filling in gaps in the portfolio versus expanding the TAM and growing into new verticals. So I guess, could you just talk a bit more about the broader M&A philosophy and sort of what multiples are you looking to pay for these bolt-ons?

再更廣泛一點看，從你們規劃的補強型併購（bolt-ons）來看，似乎更像是在補投資組合的缺口，而不是擴大 TAM、進入新的垂直領域來成長。所以想請你們多談談整體的併購理念，以及這些補強案你們大概希望支付什麼樣的倍數？

Yeah. On Arizona Desert Shocks, I mean, great brand, great team, but effectively what we found is the scalability of that business, where they concentrated on really high-end racing shocks was just not something that was not scalable. And so when we looked at that business and the great team down there, it just made sense to return that business back to its former owner.

好的。談到 Arizona Desert Shocks，我的意思是，這是很棒的品牌、很棒的團隊，但我們實際發現該業務的可擴展性——他們聚焦在非常高端的賽車避震器——並不是一個可擴展的模式。因此當我們檢視那項業務以及那邊優秀的團隊時，把這項業務交還給原先的所有者是合理的。

But that is a segment that the core more of OE replacement plus, that you see in Fox and King and Bilstein and other things. It is a nice growing segment. We were just at the very upper end of that and missing the meat of what that market truly is.

不過那個細分市場——更偏向 OE 替換件加值（OE replacement plus）——你會在 Fox、King、Bilstein 等品牌以及其他產品中看到。那是一個不錯且正在成長的細分市場。只是我們當時位在非常高端的最上層，反而錯過了那個市場真正的主流核心。

Now when you take a look at HRX, I mean, you saw it in the numbers here and you saw it in the fourth quarter '25, our Safety business is growing really nicely. And when you look at our portfolio one of the things that was really an extension of it here was getting into more European kind of fit design racing suits that really are the preferred cut and look of racers around the world.

再看 HRX，你從這次的數字也看到了，而且在 2025 年第四季也看到了，我們的 Safety（安全防護）業務成長得很不錯。而當你看我們的投資組合，其中一個延伸方向是切入更多偏歐系版型設計的賽車服，那種剪裁與外觀其實是全球賽車手偏好的風格。

We have, of course, racing suits with Simpson, and those are more of the Americana, NHRA, NASCAR type suits. HRX filled an opportunity for us for FIA suits in that aesthetic around the world. So we're very excited about the business. It's growing really nicely. Got a great team over there. We're happy to have part of the family.

當然，我們透過 Simpson 也有賽車服，但那更偏美式風格，像是 NHRA、NASCAR 類型的賽車服。HRX 為我們補上了 FIA 賽車服在全球審美風格上的機會。所以我們對這門業務非常興奮。它成長得很不錯。那邊也有很棒的團隊。我們很高興他們成為我們大家庭的一員。

Got it. Thank you very much. Best of luck.

了解。非常感謝。祝你們一切順利。

Phillip Blee, William Blair.

William Blair 的 Phillip Blee。

This is [Olivia Whitty] on for Phillip. First I wanted to ask, could you talk about your exposure to rising transportation costs as well as changes in tariff policy? Do you have any concerns there? And are you embedding any price increases into your guide to help offset?

我是代替 Phillip 的 [Olivia Whitty]。首先我想問，你們能否談談對運輸成本上升以及關稅政策變動的曝險程度？你們對此有任何擔憂嗎？另外，你們在財測指引中是否已納入任何漲價，以協助抵銷這些影響？

Olivia, thanks for the question here. Just based on what's going on the kind of the macro environment, we're seeing some increases relative to freight and some other PPV coming through on resins and other components driven by some of the increases in oil prices. So we'll be looking to take a moderate price increase. We're still finalizing the exact number, somewhere around the mid-June time frame, and give our distributors ample notice in advance.

Olivia，謝謝你的問題。就目前宏觀環境的情況來看，我們看到運費以及其他一些 PPV（採購價格差異）有上升，樹脂與其他零組件也受到油價上漲的帶動而出現一些成本增加。因此我們會考慮進行適度的價格調整。我們仍在敲定確切幅度，預計在 6 月中旬左右定案，並會提前給經銷商充分的通知時間。

We look at the tariff landscape. Of course, there's been a lot of puts and takes over time on there. Some of the (inaudible) were reduced, of course, but that really was the minority of our tariff costs on the annual basis. Those got reduced. Other tariffs came in, ended up being somewhat of a wash overall when you looked at our overall tariff exposure on an annual run rate.

我們會檢視關稅環境。當然，這段時間以來在這方面一直有很多拉鋸。有些（聽不清）當然被調降了，但就年度基礎來看，那其實只占我們關稅成本的一小部分。那些被調降了。其他關稅也進來了，整體而言，當你以年度運行率來看我們整體的關稅曝險時，最後大致上相互抵銷、影響不大。

Okay, great. That's helpful. And then could you also talk about, obviously, the first quarter was choppy across the board broader retail environment with weather and whatnot. But curious how you view your performance versus the industry during the quarter. Do you think you maintained the level of share gains that you saw during the fourth quarter?

好的，很好。這很有幫助。另外也想請你談談，顯然第一季整體零售環境普遍都比較波動，受到天氣等等因素影響。但我好奇你怎麼看你們本季相對於產業的表現。你覺得你們是否維持了第四季看到的市占提升幅度？

Yeah, I mean, ultimately, the out the door is the true testament. Our consumers preferring our brands and buying our products. And as Jesse commented there a few minutes ago the out the doors, generally speaking, were pretty healthy when you take out the weather effect. So as we continue to maintain share in our key categories, we're seeing growth in other categories.

是的，我的意思是，最終，真正的驗證在於終端銷售（out the door）。我們的消費者偏好我們的品牌並購買我們的產品。而且如同 Jesse 幾分鐘前提到的，一般來說，若排除天氣影響，終端銷售表現相當健康。因此，當我們持續在核心品類維持市占時，我們也看到其他品類的成長。

Overall, we think that momentum we've built over the last 12 to 18 months is continuing. And Jesse -- we had this temporary effect of the weather that, as you just commented was seen in a lot of consumer businesses in the first quarter.

整體而言，我們認為過去 12 到 18 個月建立的動能仍在延續。而且 Jesse——我們確實受到天氣的短期影響，正如你剛剛提到的，第一季很多消費型企業都看到了這種情況。

Okay, great. Thank you. I'll pass it on.

好的，很好。謝謝。我把問題交給下一位。

Joseph Altobello, Raymond James.

Joseph Altobello，Raymond James。

This is Martin on for Joe. I just want to really quickly touch on the weather impact. You've quantified around $3 million. I'm wondering if you view that as completely lost, or could we see some recovery of it sort of in the second quarter?

我是 Martin，代 Joe 提問。我想很快地談一下天氣影響。你們量化大約是 300 萬美元。我想知道你們是否認為那是完全流失的，還是我們可能在第二季看到某種程度的回補？

I think ultimately, Martin we got to see how the quarter continues to play out. As we sit here early May, April was over 6% growth, right? So it was a nice recovery going to the month of April, and we're seeing those demand trends stay consistent into May. So ultimately, we got to see if that demand washed out of the quarter completely or is recoverable here as we go through the remainder of the year.

我想最終，Martin，我們得看本季接下來的走勢。以我們現在在 5 月初的時間點來看，4 月成長超過 6%，對吧？所以 4 月有不錯的回升，而且我們看到這些需求趨勢在 5 月仍維持一致。因此最終，我們得觀察這些需求是否在本季完全被沖淡掉，或是隨著今年剩餘時間推進仍有機會回補。

All right. Thank you. Just really quickly touching on the guidance you've taken down, the sales guidance of it, is that entirely the product optimization? And just sort of have you seen any kind of retailer concern on consumer confidence because of the Iran war and the increased energy pricing?

了解。謝謝。再很快追問一下你們下修的指引，尤其是銷售指引部分，是否完全是產品優化所致？另外，你們是否看到零售商因為伊朗戰爭與能源價格上升而對消費者信心有所擔憂？

Yeah, this is Jesse. Good question. On the guide adjustment, that's purely the net impact of the portfolio optimization. That includes both the businesses that we've identified that we need to find new homes for, offset by what we're picking up in HRX. On the question around retailers, can you restate that one?

我是 Jesse。好問題。關於指引調整，那純粹是投資組合優化的淨影響。這包含我們已辨識需要為其尋找新歸宿的業務，同時也扣抵我們在 HRX 併入所增加的部分。至於你問零售商那題，可以再重述一次嗎？

Yeah, just have you heard any concern from retailers about consumer confidence? I think you've said at least ordering patterns have normalized, but are you hearing anything about consumer confidence concerns?

好的，就是你們是否聽到零售商對消費者信心有任何擔憂？我想你們至少提到訂貨模式已正常化，但你們是否聽到任何關於消費者信心疑慮的聲音？

Yeah, I think our large customers and partners, they read the headlines and knows, like, University of Michigan Consumer Sentiment Index and such. At the same time they're reporting to us the sell-outs, generally speaking, are good. The enthusiast customer base, this is a passion for them, right? This isn't something they do every 5 to 10 years or like some of these other consumer durables. Like, this is their thing.

是的，我認為我們的大型客戶與合作夥伴也會看新聞標題，也知道像密西根大學消費者信心指數之類的數據。同時，他們回報給我們的終端銷售（sell-outs）一般來說是好的。我們的愛好者客群，這對他們來說是一種熱情與嗜好，對吧？這不是像某些其他耐久財那樣每 5 到 10 年才做一次的事情。這就是他們的生活重心。

This is what they go and do in the evenings and the weekends. This is what they do with family and friends. They work on car modifications, or they go race on the track or they go ride motorcycles. Parts of our business. We're cautiously optimistic. Of course, with the extended conflict in the Middle East we got to see how that plays out. As of right now our large partners aren't reporting outside of the weather impact, any negative impact so far.

這是他們晚上和週末會去做的事。這是他們和家人朋友一起做的事。他們會改裝車輛，或去賽道跑，或去騎摩托車。這些都是我們業務的一部分。我們審慎樂觀。當然，中東衝突若延長，我們得看後續如何發展。截至目前，我們的大型合作夥伴除了天氣影響之外，尚未回報任何負面影響。

Great. Thank you, and best of luck.

很好。謝謝，祝你們順利。

Joe Feldman, Telsey Advisory Group.

Joe Feldman，Telsey Advisory Group。

Thanks, guys, for taking the questions. With regard to the portfolio rebalancing, did any of that happen already in the first quarter? Did that impact any sales in the first quarter? And how should it impact I guess, each of the next few quarters? Is it ratable? Is it all at once in the second quarter? How should we think about it?

謝謝各位回答問題。關於投資組合再平衡，第一季是否已經發生任何動作？第一季的銷售是否受到影響？另外它應該如何影響接下來幾季？是按季平均分攤嗎？還是會在第二季一次反映？我們應該怎麼理解？

Joe, it's a great question. For Q1, no impact really in Q1. I would say for Q2, 3, and 4, to kind of foot to the $15 million on the top and bottom end of the guidance that was adjusted specifically for this activity, you probably see about $1 million in Q2 and about $7 million in Q3 and $7 million in Q4. The one caveat to that is obviously this is current estimate of timing of when these transactions would take place.

Joe，這是個好問題。Q1 其實沒有什麼影響。我會說 Q2、Q3 和 Q4，為了對應這次活動而在指引上、在上下限各調整的 1,500 萬美元，你大概會看到 Q2 約 100 萬美元、Q3 約 700 萬美元、Q4 約 700 萬美元。但有一點要注意，這顯然是基於目前對這些交易發生時點的估計。

But right now, that's our current pacing, and we'll obviously update as we go forward throughout this year on an apples-to-apples comparison, which as you can see in our guide, that hasn't changed at this point. The range is still the 2% to 7% on the core business, which would exclude the impacts of those pieces.

但就目前而言，這是我們現在的節奏；而且我們會在今年接下來的時間持續更新，以同口徑（apples-to-apples）的方式比較。如你在我們的指引中所見，這部分目前沒有改變；核心業務的區間仍是 2% 到 7%，也就是排除那些項目影響後的表現。

Excellent. Thanks for that. That's helpful. And then with regard to the bolt-on acquisitions that you guys are talking about, is that contemplated in the CapEx guidance that you gave, or is that going to be incremental or, I guess, how do we think of that portion of it?

非常好。謝謝你的說明。很有幫助。另外，關於你們提到的補強型併購（bolt-on acquisitions），這是否已包含在你們給出的資本支出（CapEx）指引中？還是會是額外增加？也就是說，我們該如何看待這一塊？

Yeah, the CapEx guidance would not account for any bolt-on acquisition activity as it currently is laid out. I would say to Matt's earlier comments, these are businesses that we feel like have sustained long-term double-digit growth trajectory, and they're in the relatively small range. I mean, we're talking $5 million to 10 million with huge upside and things that we feel very confident we could fund with free cash flow. So they're not in the guide at the moment, but as they come along, we will absolutely be funding those with free cash flow.

是的，目前所列的資本支出指引並未納入任何補強型併購活動。我會呼應 Matt 先前的評論：這些是我們認為具備長期、可持續的雙位數成長軌跡的業務，而且規模相對小。我的意思是，我們談的是 500 萬到 1,000 萬美元的規模，但上行空間很大，而且我們非常有信心可以用自由現金流來支應。所以目前不在指引裡，但隨著機會出現，我們絕對會用自由現金流來為這些交易提供資金。

Got it. That's helpful. Thanks, guys. Good luck with this quarter.

了解。很有幫助。謝謝各位。祝本季順利。

Bret Jordan, Jefferies.

Bret Jordan，Jefferies。

What was the contribution year over year in same SKU price?

同一 SKU 的價格年增貢獻是多少？

Pricing was in the mid-single digits, Bret, from a price realization, similar to kind of how we were pacing more and more throughout the end of last year, so mid-single digits.

Bret，定價（價格實現）在中個位數百分比，和我們去年年底越來越多的節奏差不多，所以是中個位數。

Okay. Then I guess the 12 brands that you saw growth, could you sort of give us just as perspective how many brands in total you are running, I guess, post the SKU call here?

好的。那我想你們提到有 12 個品牌成長，能否提供一些背景：在這次 SKU 精簡之後，你們總共在運營多少個品牌？

The ones when we're talking about the SKU rationalization, Bret, there are only about 5, relatively speaking, in that bucket. When we talk about our lifestyle and power brands, it's roughly about 20 that we really concentrate across our four divisions and through our organization. You saw nice growth in some of the brands. In my prepared comments, I commented Euro was a bit behind just for some product availability because Q4 demand was quite strong, so that limited some of their growth.

Bret，談到 SKU 精簡化時，相對而言，那一類大概只有約 5 個。當我們談到生活風格與動力品牌時，我們真正聚焦的約有 20 個，橫跨我們四個事業部並貫穿整個組織。你也看到部分品牌有不錯的成長。在我事先準備的發言中我提到，歐洲那邊因為部分產品供應可得性，表現稍微落後一些，因為第四季需求相當強勁，因而限制了部分成長。

You saw nice growth in Safety and growth in Truck & Off-Road, and the decline there on American Performance was really just a concentration of inventory at some key partners that primarily focus on American Performance. So that's where you saw the differences across those four divisions.

你看到 Safety 有不錯的成長，Truck & Off-Road 也有成長；而 American Performance 的下滑，主要只是因為在幾個關鍵合作夥伴那裡的庫存較為集中，而這些夥伴主要聚焦在 American Performance。所以你才會看到這四個事業部之間的差異。

Okay. And I guess a quick question on HRX. I guess international distribution, are there other brands that you have in your portfolio that you can lever into the HRX distribution?

好的。我想再快速問一下關於 HRX。就國際通路而言，你們的產品組合裡還有其他品牌可以用來帶動（槓桿）HRX 的通路佈建嗎？

I'd say I'd look at it, Bret, in a broader context. International opportunity for our organization, we believe is quite extensive. We're under-penetrated in Asia Pacific, Europe, South America, Mexico, a number of these areas that we're developing strategies for or executing on like we are in Mexico and Latin America. So we include HRX in our lifestyle and power brands, and they'll be part of this larger global expansion effort that we will coordinate.

Bret，我會把它放在更宏觀的脈絡來看。我們認為，對我們組織而言，國際機會相當廣泛。我們在亞太、歐洲、南美、墨西哥等多個地區的滲透率仍偏低；我們正為其中不少地區制定策略或正在執行，就像我們在墨西哥與拉丁美洲所做的一樣。因此我們把 HRX 納入生活風格與動力品牌之中，它也會成為我們協同推進的更大型全球擴張計畫的一部分。

Great. Thank you.

很好。謝謝。

Mike Baker, D.A. Davidson.

Mike Baker，D.A. Davidson。

I guess just to follow up on a previous question, because it seems like your sales guidance is just in line with the portfolio rebalancing, both the positive and addition and the subtraction. Doesn't that necessarily mean that you expect the lost sales from the first quarter to come back? Am I misinterpreting that? I know that was already asked, but I just wanted a clarification on that.

我想跟進前面一個問題，因為看起來你們的銷售指引只是與產品組合再平衡一致，包含正向的新增以及負向的剔除。那是否必然表示你們預期第一季流失的銷售會回來？我是不是誤解了？我知道這已經有人問過，但我想再釐清一下。

Yeah, no, it's a good clarification, Mike. I mean, I think that is exactly what that would imply. I mean, we're seeing pretty strong in April, what that would imply for the balance of the year is six to seven on each of the subsequent quarters. It may not phase out exactly that way, but based on what we're seeing in April, we still feel like there's a lot of year left and reason to believe.

是的，Mike，這個釐清很好。我的意思是，我認為那確實就是它所隱含的意思。我們在 4 月看到相當強勁的表現；若推論到全年其餘期間，意味著後續每一季大約是 6% 到 7%。不一定會完全照那樣的節奏分布，但基於我們在 4 月看到的情況，我們仍覺得今年還有很長一段時間，且有理由相信。

I mean, some of the things that we've spoken to in the past were pretty significant new product development that's rolling out in Q3 and Q4. I mean, I think this -- we hadn't spoken as much until this quarter about the new Car Care line, but we've seen really positive feedback from consumers as we started to introduce that at LS Fest West.

我的意思是，我們過去談過的一些事情，包括相當重要的新產品開發，會在第三季與第四季陸續推出。我想這——直到這一季我們才比較多談到新的 Car Care 產品線，但我們在 LS Fest West 開始導入時，已經看到消費者非常正面的回饋。

That's just a really big TAM, something that we always knew could be big, but we feel really good about. In addition to that, you've got our CTS4, which is one of our top products. We also have the continued growth in the Snell cycle, growth in Safety and new products coming out within the EFI product line. So that is what's implied.

那是一個非常大的 TAM（總可服務市場）；我們一直知道它可能很大，而我們對此感覺非常好。除此之外，還有我們的 CTS4，這是我們的主力產品之一。我們也有 Snell 週期的持續成長、Safety 的成長，以及 EFI 產品線內即將推出的新產品。所以這就是所隱含的內容。

Okay. That's helpful. And maybe two quick related follow ups. One, I guess with all the moving pieces of this the weather shift and the exits and acquisitions, et cetera, last quarter you had said, expect the year to be 51% in the first half, 49% in the second half, versus typically 52%, 48%.

好的。這很有幫助。再問兩個相關的快速追問。第一，考量這些變動因素——天氣的轉變、退出與併購等等——上一季你們曾說，預期全年上半年占 51%、下半年占 49%，相較於通常的 52%、48%。

Can you help us sort of adjust that with all these moving parts? Then a related follow up, the rebound in April and continuing into May, is that primarily on the American business? Has that improved from, I think, the minus 10% in the first quarter?

你能否協助我們在這些變動因素下調整一下這個分布？第二個相關追問，4 月的反彈並延續到 5 月，主要是來自美國業務嗎？是否已從第一季約 -10% 的狀況改善？

Yeah. Mike, I'll take the back half of that question, and I'll defer to Jess for the first half. No, we're seeing a nice recovery across the portfolio here as we get into April into May. Like I commented, a lot of that concentration of that inventory is in American Performance in Q1, and we're seeing that turn around as that inventory is normalized in the weather and continuing to see nice growth across the board in all four divisions.

是的。Mike，我先回答你問題的後半段，前半段我交給 Jess。不是的，我們在 4 月到 5 月期間看到整個產品組合都有不錯的復甦。如我所評論的，第一季那個庫存集中的情況主要在 American Performance，而隨著庫存正常化、天氣因素改善，我們看到那邊正在回轉，同時四個事業部整體都持續呈現不錯的成長。

Yeah. And Mike, to answer your question, after all the changes with the portfolio rebalancing, just on the first half, second half, it probably is going to be a bit more of the closer to 50% to 51% in the first half versus the 51-point guide that we gave before. A little bit less in the first half as a result of these.

是的。Mike，回答你的問題，在產品組合再平衡的所有變動之後，就上半年、下半年的分布而言，上半年可能會更接近 50% 到 51%，而不是我們先前給的 51% 指引。由於這些因素，上半年會稍微少一點。

Understood. Thank you.

了解。謝謝。

Thanks, Mike.

謝謝，Mike。

Thank you. Ladies and gentlemen, as there are no further questions, with that, we conclude the question-and-answer session. I will now hand the conference over to Matthew Stevenson for his closing comments.

謝謝。各位女士先生，由於沒有進一步的提問，我們的問答環節到此結束。接下來我將把會議交給 Matthew Stevenson 進行結語。

All right. Thank you, Ryan. Let's turn to slide 22. First quarter reinforced what we believe about this business. The fundamentals are durable. Despite temporary headwinds early in the quarter, we held adjusted EBITDA essentially flat year over year, a reflection of disciplined execution by our team and the resilience of our brand portfolio. With April showing mid-single-digit growth and channel inventory normalizing, we are entering Q2 with genuine momentum.

好的。謝謝你，Ryan。我們來看第 22 頁投影片。第一季強化了我們對這門業務的看法。基本面具備韌性。儘管本季初期有短期逆風，我們仍將調整後 EBITDA 基本維持年對年持平，這反映了團隊有紀律的執行力以及我們品牌組合的韌性。隨著 4 月呈現中個位數成長且通路庫存回歸正常，我們帶著真正的動能進入第二季。

We are managing the portfolio with intention, streamlining where it creates value, investing where we see competitive advantage. Adjusted for our planned portfolio optimization actions, our full-year outlook for our core business is unchanged. We remain committed to the long-term financial targets we set out, at least 6% organic top-line growth, 40% gross margins, and greater than 20% adjusted EBITDA margin. That conviction hasn't wavered.

我們以明確意圖管理產品組合：在能創造價值之處進行精簡，在看見競爭優勢之處加大投資。在扣除我們規劃中的產品組合優化行動影響後，我們對核心業務的全年展望維持不變。我們仍致力於先前設定的長期財務目標：至少 6% 的有機營收成長、40% 的毛利率，以及高於 20% 的調整後 EBITDA 利潤率。這份信念沒有動搖。

The automotive enthusiast market is a near $40 billion space driven by passion, loyal, and a culture that extends generations. Holley's portfolio of story brands sits at the center of it. We believe we are better positioned than anyone to serve that market and to grow in it through a combination of our brand heritage and the digital platform we are building. The path forward is clear. Disciplined growth, margin expansion, and sustainable free cash flow while continuing to invest in the innovation and experiences that keep our consumers at the heart of everything we do.

汽車改裝／愛好者市場規模接近 400 億美元，由熱情、忠誠以及跨世代延續的文化所驅動。Holley 的故事型品牌組合正位於其中的核心。我們相信，憑藉品牌傳承與我們正在打造的數位平台，我們比任何人都更有利於服務這個市場並在其中成長。前進的道路很清晰。在持續投資創新與體驗、讓消費者始終成為我們一切作為核心的同時，推動有紀律的成長、擴大利潤率，並創造可持續的自由現金流。

In closing, I want to thank our team members for their dedication and hard work every single day, our consumers whose passion for performance drives everything we build, our distribution partners whose longstanding commitment has been essential to our success, and all of you on this call for your continued interest in Holley. We look forward to updating you on our progress throughout the year.

最後，我要感謝我們的團隊成員每天的投入與辛勤工作；感謝我們的消費者，對性能的熱情驅動我們打造的一切；感謝我們的通路夥伴，長期以來的承諾對我們的成功至關重要；也感謝各位參與本次電話會議並持續關注 Holley。我們期待在今年持續向各位更新我們的進展。

Thank you, and have a great rest of the day.

謝謝，祝各位今天剩下的時間一切順利。

Thank you. Ladies and gentlemen, the conference of Holley has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。各位女士先生，Holley 的電話會議到此結束。感謝各位的參與。您現在可以掛線。