Holley (HLLY) Stock Forecast & Price Target

Holley Inc. demonstrated a positive financial performance in 3Q25 with total sales increasing by 3.2% to $138.4 million, surpassing both internal forecasts and industry expectations, while adjusted EBITDA reached $27.2 million, also exceeding estimates. Year-to-date, volume sales rose by 4% and prices increased by 1%, contributing to a steady sales growth trajectory, particularly notable in B2B channels, which grew by 7.3%. Looking ahead, projections indicate a sales growth of 5.0% for 2026, anticipating continued market share gains and solid underlying growth in both B2B and online direct-to-consumer segments.

Holley Inc. has faced a decline in total sales forecasted to decrease by 1.2% to $595.2 million, indicating a slowdown in core growth of 4.4% year-to-date. Additionally, the company's adjusted EBITDA margin is expected to contract by approximately 50 basis points to 20.4%, while net debt remains significant at a ratio of 3.9x, despite recent debt repayments. Compounding these issues are rising commodity and transportation costs, which may not be fully mitigated by price increases, along with potential risks related to channel conflict as Holley expands its direct-to-consumer operations.