Fox Factory Narrows 2026 EBITDA Outlook as Costs Largely Offset Savings

Fox Factory Holding Corp. narrowed its 2026 adjusted EBITDA outlook on Nov. 5 as higher freight, commodity and fuel costs largely offset savings, trimming the range despite about $14 million in tariff refunds.

The company projects full-year net sales of $1.35 billion to $1.38 billion and adjusted EBITDA of $143 million to $148 million excluding the refunds. Including the refunds, which Fox Factory received in the second and third quarters, the adjusted EBITDA range is $157 million to $162 million. The full-year outlook includes Marucci results through the Sept. 25 sale closing; fourth-quarter guidance excludes Marucci.

The new adjusted EBITDA range is narrower than the Oct. 16 forecast of $140 million to $150 million excluding refunds, or $154 million to $164 million including them. Its low end rose by $3 million, while the high end fell by $2 million. The update follows Fox Factory’s outlook change after preliminary third-quarter results.

Fox Factory has a fiscal 2026 target of about $50 million in gross realized savings and had captured about $41 million during the first nine months. Higher freight, commodity and fuel costs largely offset those savings, and the company expects external costs to remain elevated in the fourth quarter. Its Phase 2 plan includes exiting operations that are not margin-accretive, lowering supply-chain and materials costs, and reducing sales, marketing and general and administrative expenses.

“As ‘One FOX’, we are working business-by-business and plant-by-plant to address the issues within our control, streamline our processes and hold ourselves accountable for results,” interim CEO Doug Grimm said.

For the fourth quarter, Fox Factory expects net sales of $287 million to $313 million and adjusted EBITDA of $25 million to $30 million. The forecast assumes input costs, including aluminum, steel and freight, stay at current levels without further increases, and excludes additional tariff refunds.

Third-quarter net sales fell 10.1% year over year to $338.4 million for the quarter ended Oct. 2. Adjusted EBITDA was $50.4 million, including about $12 million in tariff refunds, compared with $44.4 million a year earlier. The company recorded a $109.6 million net loss attributable to FOX stockholders, including a $121.3 million loss on divestitures.