Holley (HLLY) Stock Forecast & Price Target

Holley Inc. reported a sales increase of 3.2% to $138.4 million in the third quarter of 2025, exceeding internal forecasts and market expectations, driven by both volume and pricing gains. The company's year-to-date sales have demonstrated a solid performance, with a 4% increase in volume and a 1% rise in pricing, contributing to a total projected sales growth of 5.0% for 2026, reaching approximately $632 million. Adjusted EBITDA also surpassed estimates, reaching $27.2 million, indicating strong operational efficiency and a positive trajectory in the company's financial health.

Holley Inc. is experiencing a contraction in its financial outlook, with projected total sales declining by 1.2% to $595.2 million and adjusted EBITDA margin falling by approximately 50 basis points to 20.4%. Additionally, the company's ability to manage rising commodity and transportation costs poses significant risks, which may lead to compression of profit margins if price increases cannot be effectively passed through to consumers. Compounding these challenges, Holley's increasing focus on direct-to-consumer sales raises concerns regarding potential conflicts with reseller relationships, which could further hinder revenue growth and operational stability.