Holley (HLLY) Stock Forecast & Price Target

Holley Inc. experienced a solid sales performance with a 3.2% increase to $138.4 million in the third quarter of 2025, surpassing forecasts due to both volume and pricing improvements, and overall year-to-date volume growth of 4% alongside a pricing increase of 1%. The company's adjusted EBITDA also exceeded expectations, coming in at $27.2 million, demonstrating strong operational efficiency and profitability. Looking ahead, Holley is projected to achieve a 5.0% sales growth in 2026, signaling continued market share gains and robust growth prospects in both B2B and direct-to-consumer segments.

Holley Inc. reported a decrease in total sales to $595 million, representing a decline of 1.2%, coupled with an adjusted EBITDA margin contraction of approximately 50 basis points to 20.4%. The company is also experiencing potential risks from rising commodity and material costs, which may negatively impact margins, as well as the challenge of integrating acquisitions that could disrupt expected EBITDA gains. Furthermore, the outlook for core growth reflects a slowdown, projecting a decline of 3.5% year-to-date, indicating underlying struggles within the company's current operational strategy.