Holley (HLLY) Stock Forecast & Price Target

Holley Inc. demonstrated strong financial performance in the third quarter of 2025, with a 3.2% increase in sales to $138.4 million, surpassing both internal and external forecasts, while adjusted EBITDA reached $27.2 million, also exceeding expectations. The company's year-to-date sales growth is supported by a 4% increase in volume and a 1% rise in pricing, indicating effective market strategies and consumer demand. Looking ahead to 2026, Holley is projected to achieve sales growth of 5% to $632 million, alongside an anticipated adjusted EBITDA of $133 million, reflecting confidence in its ability to gain market share and sustain growth momentum.

Holley Inc. experienced a decline in total sales projected for 2025, estimated to drop by 1.2% to $595.2 million, while adjusted EBITDA margin is anticipated to contract by approximately 50 basis points to 20.4%. The company faces potential risks, such as rising commodity costs impacting margins, and challenges in integrating acquisitions, which could hinder expected EBITDA growth. Furthermore, the shift toward a direct-to-consumer model may lead to channel conflicts, negatively affecting relationships with resellers and further complicating revenue generation.