Holley (HLLY) Stock Forecast & Price Target

Holley Inc. has demonstrated strong financial performance, with total sales increasing by 3.2% to $138.4 million in Q3 2025, exceeding both internal forecasts and external estimates, driven by improved volume and pricing. Year-to-date, the company has recorded volume growth of 4% and a moderate pricing increase of 1%, contributing to overall sales growth, while adjusted EBITDA of $27.2 million also surpassed expectations. Looking ahead, Holley is projected to continue its positive trajectory with anticipated sales growth of 5.0% to $632 million for 2026, alongside solid underlying growth in both B2B and direct-to-consumer segments.

Holley Inc. is experiencing a challenging financial outlook, with adjusted EBITDA projected to decrease to $124MM, reflecting a decline in core revenue growth of approximately 4.4% year to date. The company faces risks such as rising commodity and transportation costs that could pressure profit margins, along with potential issues related to the integration of acquisitions that may hinder expected EBITDA accretion. Additionally, Holley's increasing direct-to-consumer approach may lead to channel conflicts, negatively impacting its relationships with resellers.