Good morning, ladies and gentlemen, and welcome to the conference call to discuss Holley Inc.'s fourth quarter and full year 2025 earnings results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session; instructions for asking questions will be provided at that time. We ask that participants limit themselves to one question and one related follow-up during the Q&A period. Please be advised reproduction of this call in whole or in part is not permitted without written authorization of Holley Inc. And as a reminder, this call is being recorded and will be made available for future playback. I would now like to turn the call over to your host, Anthony Rozmus with Investor Relations. Anthony, please go ahead.

Good morning and welcome to Holley Inc.'s fourth quarter and full year 2025 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. 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 will review our financial results for the fourth quarter and full year 2025 and discuss guidance for the full year 2026. At the conclusion of the prepared remarks, we will open the line for questions. I will now turn the call over to our CEO, Matthew Stevenson.

Thank you, Anthony, and good morning to everyone joining us. As we reflect on 2025, I am pleased to report that our disciplined approach delivered strong fourth quarter results in a year of meaningful progress for Holley Inc. This was a pivotal year, and not because of one standout quarter but because of sustained performance across all four quarters. For the first time since 2021, we delivered full year net sales growth while achieving adjusted EBITDA margins above 20%, highlighting the earnings capability of our business model. Our core business generated net sales growth in every quarter of 2025, culminating in double-digit growth in the fourth quarter, our strongest performance of the year and clear evidence of accelerating momentum as we enter 2026. When we refer to core, we are excluding divested operations and strategically rationalized product lines. Four straight quarters of core growth demonstrate that the underlying business is performing and that our strategy is producing measurable results. Throughout the year, we operated with focus and rigor, driving volume-led growth, sharpening pricing execution, strengthening operational capabilities, and maintaining financial discipline. Full year net sales growth was driven primarily by volume, complemented by pricing, a balanced mix that reflects solid underlying demand for our leading brands. In the fourth quarter, we saw growth across B2B and direct-to-consumer channels, underscoring the resilience of our omni-channel platform and the strength of our relationships with distributors, e-tailers, marketplaces, installers, and our own digital ecosystem. This strategy centered on serving enthusiasts wherever they choose to engage drove growth across all four divisions and 22 key brands in 2025. Just as importantly, we reinforced our financial foundation. We generated meaningful free cash flow and ended the year with net leverage below the target we set out in 2025, demonstrating balance sheet discipline and strong financial control. Consistent growth, expanding margins, strong cash generation, and leverage reduction all achieved simultaneously. That combination reflects disciplined, focused performance. Let us turn to slide five, which outlines how the sustained performance translated into measurable financial results for both the fourth quarter and full year 2025. As noted, for the first time since 2021, we delivered both full year net sales growth and adjusted EBITDA margins above 20%, a clear indication that our multiyear transformation is taking hold. Core net sales grew in every quarter of 2025, accelerating to 13.5% growth in Q4, reflecting solid demand and stronger commercial execution. For the full year, net sales totaled $613.5 million. Core net sales increased 6.6%, driven primarily by 3.8% volume growth with an additional 2.8% contribution from pricing, a healthy mix that speaks to the quality of our growth. Performance was broad-based, with growth across all divisions, 22 key brands, and in both the B2B and direct-to-consumer channels, demonstrating the strength and diversification of our portfolio. Our strategic initiatives continue to drive tangible results. Revenue programs contributed meaningfully in 2025, while cost and efficiency actions delivered approximately $20 million in savings through purchasing discipline, tariff mitigation, operational improvements, and productivity efforts. We generated $34.2 million of free cash flow for the year, including $3.9 million in the fourth quarter, an improvement year over year even as we continue investing in the business. We also prepaid an additional $10 million of debt in Q4, bringing total prepayments to $100 million since September 2023. We ended the year below 3.8 times leverage, achieving our stated target and enhancing our financial flexibility. The takeaway from this slide is alignment. Revenue growth, margin expansion, cost discipline, cash generation, and leverage reduction all progressed together, reinforcing the durability of our operating model. Turning to slide six, let us take a closer look at the fourth quarter results. Net sales were $155.4 million, increasing 10.9% year over year with 13.5% core growth, our strongest core growth performance of 2025. Gross margin expanded to 46.8%, up 120 basis points versus the prior year, driven by pricing discipline, favorable mix, and continued operational improvements across sourcing and manufacturing. Adjusted EBITDA margin improved to 21.4%, up 56 basis points year over year, with adjusted EBITDA increasing to $33.2 million from $29.1 million last year. We delivered net income of $6.3 million in the fourth quarter, representing a meaningful year over year improvement. Innovation remains central to our strategy. During the quarter, we launched new products from all four divisions, including multiple Snell 2025-certified motorsports helmets such as the popular Stilo ST6, new APR power packages for Volkswagen, Audi, and Porsche platforms, and plug-and-play Edge modules for late model GM trucks and SUVs enabling consistent full-time V8 performance. New product launches contributed approximately $23 million in new product sales for the full year, underscoring the ongoing vitality of our portfolio. Operationally, we maintained an average in-stock rate of approximately 91% across our top 2,500 SKUs, supporting performance through disciplined inventory management and strong product availability. In addition, we completed approximately $20 million in combined purchasing savings, tariff mitigation, and operational improvements during 2025, structural actions that strengthen the business for the long term. The fourth quarter is also an important engagement period for our brands. We participated in both SEMA and PRI, two of the industry's most significant events, further deepening relationships with enthusiasts, installers, and distribution partners. Taken together, our fourth quarter results reflect strong commercial performance, expanding margins, operational discipline, and continued investment in innovation and brand engagement. Turning to slide seven, you can see how fourth quarter core growth translated across each division. American Performance increased 10% year over year, with several lifestyle and power brands delivering double-digit growth. Truck and Off-Road grew 5.4%, led by Baer Brakes as new truck-focused offerings gained traction, 21.5%, and capped a solid year for the division. Safety and Racing faced earlier headwinds as we navigated the October transition to Snell 2025 Motorsport Helmet Certification. Following the launch, performance accelerated, driven by new helmets and continued strength in motorcycle safety. The division closed the quarter up 13.3%. Importantly, every division contributed to fourth quarter growth, underscoring the breadth of our portfolio. We have structured the organization around focused divisional leadership with clear accountability, supported by shared capabilities across multiple centers of excellence. Fourth quarter results demonstrate the model is working as intended, driving divisional performance while maintaining enterprise alignment. Let us move next to slide eight, where we revisit the strategic framework that continues to guide our execution and support long-term growth. At the foundation of our approach are three clear priorities: fueling our teammates, strengthening customer relationships, and accelerating profitable growth. These are not abstract concepts. They shape how we allocate capital, how we measure performance, and how we prioritize initiatives across the organization. Throughout 2025, this framework provided clarity and consistency in decision making; it aligned our teams, sharpened our focus, and ensured the progress you have seen across revenue, margins, cash flow, and leverage was intentional, not incidental. As we walk through the strategic initiative tracker, you will see how these priorities translate into measurable actions and tangible results. Turning to slide nine, the strategic initiative tracker quantifies the impact of our execution in the fourth quarter and across the full year 2025. Under Trailblazing Trusted Partner, we generated revenue of $14.7 million in Q4 and $43.9 million for the year, driven by improvements in product data quality and deeper collaboration with key customers. Under Premier Consumer Journey, Q4 contributed $4.1 million, bringing the full year total to $12.5 million. Third-party marketplaces grew 24% in 2025, led by strong Amazon performance. Under Product Innovation and Portfolio Management, we delivered $10.8 million in Q4 and $40.3 million for the full year. Approximately $23 million came from our new product launches, with an additional $16 million driven by focused portfolio management across our B2B network. Under Global Expansion and New Markets, we contributed $1.2 million in Q4 and $3.7 million for the year, reflecting continued progress in Mexico and expansion within powersports. Under Fund the Growth, we generated $7 million in Q4 and approximately $20 million for the full year through purchasing savings, tariff mitigation, and operational efficiencies. On I am in a great place to work, employee engagement improved by four points while revenue per employee reached approximately $460,000, exceeding our 2025 objective and reinforcing our focus on culture and productivity. Collectively, these initiatives delivered meaningful revenue contribution and significant structural cost savings in 2025, clear evidence that our strategic framework is translating into measurable financial results. Turning to slide 10, our strategic framework and eight key focus areas continue to guide execution and long-term value creation. This slide outlines several of the priority initiatives that will drive performance in 2026. Under Premier Consumer Journey, we are continuing to optimize our product launch process to accelerate adoption and improve speed to market. At the same time, we are enhancing digital merchandising and expanding our presence across key third-party marketplaces, ensuring we meet enthusiasts wherever they choose to shop. Within Trailblazing Trusted Partner, we are deepening relationships with our largest B2B customers while applying the same structured data-driven approach to mid-sized accounts. We are also expanding the reach of our direct sales organization and advancing meaningful growth initiatives with national retailers to further strengthen our brick-and-mortar presence. Product innovation remains central to our strategy. In 2026, we will expand our Performance Chemicals portfolio, including new vehicle care products while continuing to grow packaged solutions and modern truck through partnerships serving both OEM dealers and consumers. We are applying a similar approach in Euro and Import, working closely with leading dealers alongside our direct-to-consumer efforts. International expansion continues to represent opportunity as we introduce more of our portfolio to enthusiasts globally. Powersports also remains a growth priority, supported by deeper collaboration with major distributors to increase awareness and adoption of our UTV and safety offerings. While remaining committed to our deleveraging objectives, we will selectively evaluate strategic M&A opportunities that strengthen priority growth categories and unlock operational synergies. Supporting these growth initiatives are focused operational actions eliminating non-value-added costs, reducing tariff exposure, driving strategic sourcing savings, improving facility efficiency, and optimizing our manufacturing footprint. In 2026, we will also begin the early stages of implementing a new ERP and warehouse management systems to support scalable, long-term operational excellence. Collectively, these initiatives position us to deliver over 4% revenue growth and more than $15 million in cost synergies this year. Now with that, I will turn it over to Jesse to review our fourth quarter and full year 2025 financial results in more detail and provide additional perspective on our outlook for 2026.

Thank you, Matt, and good morning, everyone. Before diving into the details, I want to reinforce Matt's earlier comments that we closed 2025 having achieved several meaningful financial milestones. We delivered four consecutive quarters of core business growth and returned to full year reported net sales growth for the first time since 2021, driven by the focused execution of our strategy across both our D2C and B2B commercial engines. Importantly, the quality of this growth reflects the transformation of our company across virtually every department, creating a durable growth engine and a level of operational excellence that simply did not exist before. We also strengthened the balance sheet, completing $25 million of debt prepayments in 2025 and surpassing $100 million in total prepayments since September 2023. And importantly, we achieved full year adjusted EBITDA margins above 20% for the first time since 2021. Taken together, these milestones reflect tangible progress against the strategy. And with that context, I would like to walk through our progress in more detail, starting with an update on progress against our 2025 financial priorities on slide 12. Our efforts in 2025 remained centered on reinforcing the core strengths of our business, restoring historical profitability, improving working capital management, and deleveraging the balance sheet. On profitability, the team delivered $10 million in operational savings during the year, achieving the top end of our stated target. These results were driven by optimized staffing models and sustained efficiency gains across our manufacturing and distribution network. We also advanced facility consolidation and disciplined network-wide cost actions that further strengthened the structural profitability of the business and enhanced our operating foundation. Turning to working capital, excluding tariff impacts on product costs, we closed the year with a $9 million improvement, including $4.5 million realized in the fourth quarter alone. While inventory levels did not fully reach our original reduction targets for the year, the outcome reflects deliberate operational decisions aimed at improving supply chain efficiency. These actions temporarily elevated inventory that represents important steps towards building a more resilient and consistent operating model. We also made meaningful progress in strengthening the balance sheet. During the fourth quarter, we prepaid $10 million of debt, bringing total payments for the year to $25 million and over $100 million since 2023. As a result of our transformation focused on restoring profitability, improving working capital discipline, and executing targeted debt reduction, we reduced leverage from a peak of 5.67 times in 2023 to 3.75 times at year end in 2025, a significant improvement in the strength and flexibility of our capital structure. On slide 13, I will review our key financial metrics for the fourth quarter. Net sales for the fourth quarter increased 10.9% to $155.4 million compared to $140.1 million in the prior year period. Growth was driven by a healthy balance of price and volume, contributing approximately 5.6% and 5.4%, respectively. It is worth noting that the way the Christmas and New Year holidays fell this year provided an estimated two to three percentage points of benefit from incremental in-off days from our major partners. Even adjusting for that timing impact, growth was solid and reflects continued underlying momentum in the business. This marks our second consecutive quarter of reported net sales growth, which is the first sustained growth we have delivered since 2023. Excluding approximately $3 million of prior year sales related to divestitures and strategic product rationalization, core sales increased approximately 13.5%, representing our fourth consecutive quarter of consistent growth in the business coming from a combination of price and volume, contributing approximately 5.7% and 7.8%, respectively, in the quarter. We are particularly encouraged that this growth was broad-based across both B2C and B2B channels and throughout all divisions, reflecting the continued impact of our commercial transformation initiatives. Gross profit for the quarter was $72.8 million, an increase of 14% versus the prior year. Gross margin reached 46.8%, expanding 120 basis points year over year. Margin improvement was supported by the flow-through of pricing actions as well as operational gains across our facilities, lower excess inventory write-downs, and continued enhancements in product quality reflected in reduced warranty claims. SG&A, inclusive of R&D, was $47.9 million compared to $39.4 million in the same period last year. The year-over-year change reflects the comparison against reduced payroll expense in the prior year due to furlough actions, lower incentive compensation accruals in 2024, and increased 2025 investment in SOX readiness, cybersecurity, and tariff mitigation initiatives. Net income for the quarter was $6.3 million, representing an improvement of $44.1 million versus the prior year period when we had a combined goodwill and trademark impairment of approximately $49 million. Adjusted net income was $4.6 million compared to $12.6 million last year. Adjusted EBITDA for the fourth quarter was $33.2 million, up from $29.1 million in the prior year. Adjusted EBITDA margin reached 21.4%, expanding 56 basis points year over year. On slide 14, I highlight continued positive cash generation with fourth quarter free cash flow of $3.9 million compared to $1.8 million in the prior year period. For fiscal 2025, free cash flow totaled $34.2 million, marking our third consecutive year of positive cash generation, and this performance reflects strong execution and disciplined financial management across the organization. On slide 15, we continue to reduce our covenant net leverage at the end of the fourth quarter to 3.75 times, versus 3.91 times in Q3 and 4.17 times a year ago. Our leverage continued to decline as a result of stronger operating performance and disciplined cash management. We achieved our goal of being below 4.0 times by year end, which reflects continued progress in strengthening our capital structure. We ended the quarter with $37 million of cash on hand and no outstanding balance on our revolver. Our liquidity position remains solid, and we remain committed to maintaining a conservative balance sheet posture as we continue to execute on our broader financial priorities. Now turning to financial results for full year 2025. Net sales for fiscal 2025 were $613.5 million, representing 1.9% growth compared to fiscal 2024, making this the first full year of reported top line growth since 2021 and a testament to the organization’s focused execution against the strategic initiatives targeted at driving the commercial engine of the business. Excluding approximately $26.8 million of divestiture-related and strategic product rationalization sales from the prior year period, underlying core growth was approximately 6.6%, coming through a combination of price and volume, contributing 2.8% and 3.8%, respectively. Once again, business momentum was broad-based across divisions and channels, reflecting continued traction from our commercial transformation in both B2B and D2C. Gross profit for the year was $266.2 million, an increase of $27.7 million versus the prior year. Gross margin reached 43.4%, an expansion of 378 basis points year over year. Margin performance reflects a combination of pricing benefits and ongoing operational progress, specifically facility-level efficiencies, lower excess inventory adjustments, and improved product quality evidenced by reduced warranty claims. Year-over-year improvement also reflects the absence of the $8.2 million in strategic product rationalization charge recorded in 2024, which had negatively impacted gross margin and EBITDA in the prior year. SG&A, inclusive of R&D, was $165 million for the year compared to $150.9 million last year. Year-over-year changes largely reflected comparison against lower payroll expense in 2024 related to furlough actions, reduced 2024 incentive compensation accruals, increased investment in external sales support, and higher 2025 investment in SOX compliance, cybersecurity, and tariff mitigation initiatives. Net income for the year was $19.2 million, representing an improvement of $42.4 million versus the year end of 2024. Adjusted net income was $21.2 million compared to $24.8 million last year. Adjusted EBITDA for the year ended 2025 was $124 million, up $13.5 million from 2024. Adjusted EBITDA margin was 20.2%, an increase of 191 basis points year over year, delivering on our commitment of achieving at least 20% EBITDA on an annual basis since the transformation began upon Matt’s appointment in June 2023. Turning to slide 17, where we will walk through guidance for 2026. As we enter the year, the consumer backdrop remains uneven in this increasingly K-shaped economy. Middle- and lower-income households continue to face pressure from elevated prices and tighter credit, while higher-income consumers remain willing to spend. While overall sentiment is still subdued, recent improvements and stable spending trends suggest conditions are gradually stabilizing as we move into the year. We are incorporating these dynamics into our 2026 guidance and outlook, while also recognizing that significant winter weather events impacted consumer spending as we began the year. For 2026 revenue, we are expecting a range of $625 million to $655 million, which implies approximately 4% to 4.5% growth at the midpoint of the range. Our adjusted EBITDA guidance is $127 million to $137 million, representing approximately 6.5% growth at the midpoint. As it relates to capital expenditures, we expect to invest between $15 million and $20 million this year, modestly above our historical range. This increase reflects targeted investments in facility consolidations to drive structural efficiencies, ERP implementation to enhance operational scalability, and incremental product development to support our next-generation EFI platform. We view this as a temporarily elevated level of investment tied to high-return initiatives that strengthen the operating model and support long-term growth, not a structural shift in the capital intensity of the business. In support of this outlook, the financial priorities that have underpinned our transformation remain firmly in place for 2026. On slide 18, you will see the specific objectives aligned to each of these priorities. First, as it relates to profitability through operational efficiency, we are targeting an incremental $5 million to $7 million in savings through continued network optimization, facility consolidation, and disciplined cost actions. Second, improving working capital remains a key focus area. Through enhanced forecasting, tighter safety stock management, supplier negotiation on minimum order quantities, and continued refinement of our SIOP processes, we are targeting $10 million to $15 million in inventory reduction by year end. And third, the combination of earnings growth, working capital improvement, and disciplined capital allocation is expected to further strengthen the balance sheet, positioning us to exit the year below 3.5 times leverage and continue progressing toward our longer-term objective of approximately three times in 2027. Taken together, these priorities reflect a continued commitment to profitable growth, stronger cash generation, and a more resilient capital structure. As we conclude fiscal 2025, we are encouraged by the progress we have made and the foundation we have built for the year ahead. Our focus remains centered on reinforcing our balance sheet, driving sustainable free cash flow, and allocating capital with discipline, all of which support our long-term growth trajectory heading into 2026 and beyond. We are proud of the team for closing the year on a strong note and continuing progress in 2026. This concludes our prepared remarks. We will now open for questions.

Certainly. We will now be conducting a question-and-answer session. As a reminder, a confirmation tone will indicate your line is in the question queue. Our first question is coming from Brian McNamara from Canaccord Genuity. Your line is now live.

Hey, good morning, guys. Congrats on the strong year and the progress on your initiatives here. So market growth in 2025, can you guys quantify that and what your expectation is for 2026? I know I see a plus 4.3 at the midpoint for guidance versus your historical kind of mid single-digit market growth number? Just trying to assess relative conservatism here relative to market growth. Great. And then secondly, on pricing, 2025 volumes were better than we would have thought. Can you remind us of the timing and frequency of pricing you take in a typical year and how much pricing growth is contemplated in guidance? And is that 8.5 pricing you took last June kind of still working through the P&L? Thanks, guys. Yes, I will see.

Yes. I would say market growth last year, I mean, obviously we did pretty strong. And core growth of 6.6%. I want to say based on our intel from the market, out-the-door sales were probably in the 3% to 4% range. So we continued to take share throughout the year and I think that partnership with distribution partners is really paying off there. I would say for next year, Brian, our plan would indicate that the share gains continue, maybe not to the pace that we saw last year, but it is implicit in what we have guided to right now. That. Typically, the pricing cadence is middle of year. We did, obviously, in Q4, sorry, the end of Q2, take some price in the 8.75%, and then the Q3 call, we talked about how it was not all completely flowing through. Obviously, we picked up more of that flow-through in Q4. And this year, we are recognizing the market probably does not have a stomach for the level of pricing that we took last year to kind of support the tariff impacts that we are all experiencing. We did take a modest price increase at the very beginning of the year, but I would suspect that is going to be slightly offset with continued sort of partnership with distribution partners and selective channel margin enhancements to continue to drive growth. So not a lot anticipated there. Or price increase middle of the year at least at this point.

Thanks, Brian.

Thank you. Next question today is coming from Christian Carlino from JPMorgan. Your line is now live.

Hi, good morning. Thanks for taking our question and congrats on a strong year. Could you talk about how you are thinking about elasticity as you annualize the impact of tariffs into the second half? Less apparent right now seeing that eight to nine points part because of B2B growing faster. But compared to your typical low single-digit price increases, as that normalizes over the year, to what extent are you assuming an improvement in unit trends to offset this as maybe real wages theoretically tick up later in the year? And just any broader comments on maybe cadence of the year would be helpful.

Yes, I would say, Christian, obviously, we talked about the strategy around the pricing increase to make sure we were able to maintain margin and free cash flow. And you can see in our guide, that is playing out. To your question around volume impacts, continuing to see on the out-the-door sales continued growth. I would say there has been in some select areas some volume implications there. But the team is maniacally focused on taking surgical pricing actions to address those things as they come up. You take a shot here and then you kind of refine along the way. I think as we talked about just in the previous question, we do anticipate some volume increases here to achieve our guidance. In terms of the actual cadence of the sales throughout the year, I think as we have talked about in the past, in a perfectly normal year, which no years we all know is perfectly normal, it would be about 52%, 48%. I think that is what we hit last year. Then just depending on inventory levels and how the weather is doing in a particular period, that could shift a bit. And I think you probably heard in my remarks Q1, with the January weather event and then a double whammy with early February weather event in the Northeast, I would say this year is probably going to shape up more like a 51/49 with more of the sales kind of shifting to the back half, but not to veer too far off from that.

Got it. That is really helpful. And I guess, could you, to the extent you can, quantify the impact from the weather so far this year? And then my question was going to be about are distributors ordering any more aggressively in anticipation of stronger demand during tax refund season, or would you expect them to chase if they need to? And, I guess, what is your assessment of both channel inventory levels in terms of their need to potentially chase and then your own inventory levels in terms of your ability to fulfill that if they end up needing to chase inventory? Thanks.

Yeah. Sheila. You want to go for it? Yes. Christian, generally speaking, what we are seeing, to Jesse's point, is the out-the-doors are pretty healthy. With that said though, there were some weeks there in late January and early February that impacted all of us, including our distribution partners, quite significantly as people were bearing out from either ice or snow. And so if you take those out of the equation, like I said, the out-the-doors are pretty healthy. And then the month of March, just for the seasonality of the business, the month of March is a big month, and at the same time we run a promotional event or marketing calendar to capture that demand as the season starts to pick up. Now in terms of any out of the ordinary stock-ups or anything for tax refund season or anything, we are not seeing anything out of the ordinary there. And then generally speaking, inventory levels, taking into consideration those weeks that were quite slow due to the weather conditions, they are a little heavier. But that would be the only real indication of impact on the inventory levels.

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

Thank you. Next question is coming from Bret Jordan from Jefferies. Your line is now live.

Hey, good morning, guys. Hey, Brett. Good morning. You commented on seeing some recent consumer improvement. I guess when you think about the four segments of the business, are any of those more cyclical than others? Is Euro and Import more of a luxury buyer who is less sensitive? I guess, when you look across the portfolio, are there areas that are brighter than others? And then within chemicals, I guess it looks like a sort of an expansion year for that. Could you talk about the TAM and sort of maybe the margin profile of that category, and has it become a fifth segment? Or is this sort of just overlaid across the existing business lines?

Yes, Bret. And, you know, I think in Jesse's prepared remarks, she talked about that K economy. We see it in our portfolio. In the Euro business, you saw the robust growth there that we had in 2025, significant double digits there on the core up over 20%. And so those buyers of Euro cars tend to be more affluent. We are also seeing some of those patterns in our safety business around our Stilo brand, which is ultra-premium. You almost consider them luxury helmets in the motorsports segment. We are seeing phenomenal growth on that segment as well. But generally speaking, things are still generally healthy across the portfolio per numbers that we provided there for 2025, but you are definitely seeing some spikes driven by more of that K economy phenomenon with a more affluent customer. Yes, we have actually bucketed it in our American Performance vertical under our accessories group, just because the kind of the legacy nature of some of our existing portfolio focuses there. But on chemicals, they are great margin products for us. And we just saw natural expansion opportunities based on our enthusiast consumer base. So we recently introduced the NOS Octane Booster, which is now getting placement in retailers, which is very exciting. And then as we get into 2026, in the back half of the year, we will introduce a new car care line, which with the reach we have with millions and millions of enthusiasts just makes complete sense. So we are really excited about that. And eventually, we will have a strategy; it takes a little longer to get into national retailers and such, but eventually that is the goal to get that on shelves as well as third-party marketplaces and our own e-commerce platform.

Okay. Great. Thank you.

Yes. Thanks, Bret.

Thank you. Our next question is coming from Joe Feldman from Telsey Advisory Group. Your line is now live.

Hey, guys. Good morning and congrats on the quarter and the year. Wanted to ask, can you share a little more color on the ERP and the WMS system? Maybe just remind us what is the plan for that this year, like, how that gets implemented, because, you know, occasionally, that can be a little bumpy and I know you guys said you have more work to do there. Just curious if you could share more thought on that. Okay. That is helpful. Thanks. And then with that, I know everybody asks about AI these days, so I figured I will ask too. But are you incorporating or will the new systems allow you to incorporate AI to maybe for better design or better, you know, demand visibility, things like that. Got it. Thank you. And then maybe just one quick one for Jesse. Well, I do not know it is quick, but can you share a little more color? You talked about, I guess, some operating expense savings. Presumably, does that mean we will see that line versus gross margin? Like, maybe you can share a little color on the collection for 2026, how those should shape up?

Yes, appreciate the question. Joe, this year, it is mostly just preparation alignment that also drives some capital expense in Jesse's outlook. Really for the implementation go-live more in early 2027. But right now, the team, of course, has a lot of work to be done prior to going live, and that investment will happen. But in terms of any potential business impact, our job, of course, is to make sure that does not happen, but that would not even be on the table here for 2026 regardless. Yes. I mean, the team is already using AI in various facets. But, yes, the more modern ERP will allow other API plug-ins and AI to continue to evolve our competencies around that. So that is one of the many benefits that we see in the new ERP implementation.

You are asking, Joe, where will the $5 million to $7 million in operation savings come in and the timing of that? Yeah. I mean, obviously, we do not break those out in our guidance, but it would be pretty much like the operating savings line is also kind of helping with mitigating some of any pressure that would be residual from tariff mitigation actions as well. So you will see most of that just flow through the gross margin line. And then on the SG&A side, it is just more the margin expansion there is just through leverage on fixed cost.

Got it. Okay. Thank you, guys. Good luck with this quarter and year.

Thank you. We have reached the end of our question-and-answer session. I would like to turn the floor back over for any further or closing comments.

All right. Thank you, Kevin. Slide 20 underscores a compelling investment narrative for Holley Inc. We operate in a nearly $40 billion passion-driven market where loyalty runs deep and performance matters. With a portfolio of iconic, innovation-led brands, Holley Inc. holds a clear leadership position. In addition, we have a proven track record of disciplined M&A and value creation through integration. Looking ahead, we see meaningful opportunity to expand our digital ecosystem, enhancing how enthusiasts and distribution partners engage with our brands and further strengthening our competitive advantage. Our long-term commitments are clear: deliver mid-single-digit organic top line growth, maintain 40% gross margins, maintain at least 20% adjusted EBITDA margins, generate sustainable free cash flow, and pursue disciplined, value-creating acquisitions. In closing, 2025 was defined by consistency and discipline. We delivered core growth every quarter, expanded margins, generated meaningful free cash flow, and reduced leverage below our target, all while continuing to invest in innovation, customer relationships, and operational excellence. We enter 2026 with a stronger foundation, greater financial flexibility, and a clear focus on disciplined, profitable growth. Thank you to our team members, our passionate enthusiasts, and our longstanding distribution partners for the commitment that drives our collective success. We thank you for your participation today and have a great day. Thank you.

Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.