Holley (HLLY) Stock Forecast & Price Target

Holley Inc. demonstrated a solid sales performance in the third quarter of 2025, with total sales increasing by 3.2% to reach $138.4 million, surpassing both internal forecasts and financial expectations. The company's year-to-date volume growth of 4% and pricing increase of 1% indicate strong underlying demand, while the adjusted EBITDA of $27.2 million also exceeded projections, reflecting improved operational efficiency. Looking ahead, Holley is modeling a sales growth of 5.0% for 2026, with expectations for continued market share gains and robust growth in both B2B and direct-to-consumer segments, suggesting a positive trajectory for the company.

Holley Inc. exhibited a concerning financial outlook due to a projected sales decline of 1.2%, with total sales expected to reach approximately $595.2 million, falling short of previous forecasts. The anticipated adjusted EBITDA margin contraction of around 50 basis points to 20.4% further underscores potential profitability challenges, particularly as rising commodity and transportation costs continue to exert pressure on margins. Additionally, the company's shift towards a direct-to-consumer model may create channel conflicts, jeopardizing relationships with existing resellers and complicating future revenue growth.