Fox Factory Sees $50M Savings, Guides $1.33B–$1.42B 2026 Sales
Fox Factory logged FY 2025 sales of $1.47 billion (+5.3%) and Q4 revenue of $361.1 million (+2.3%), reporting adjusted EBITDA of $35 million (9.7% margin) alongside a $295.2 million goodwill impairment. For FY 2026 it forecasts $1.33 billion–$1.42 billion net sales, $174 million–$203 million adjusted EBITDA (13.7% midpoint), and $50 million in cost savings.
1. Q4 and Full-Year Financials
Fox Factory reported fourth-quarter sales of $361.1 million, up 2.3% year-over-year, and full-year 2025 net sales of $1.47 billion, up 5.3%. The quarter included a $295.2 million non-cash goodwill impairment, while adjusted EBITDA totaled $35 million (9.7% margin). The company reduced debt by $33 million, ending the year with net leverage of 3.74.
2. Phase Two Cost Savings Plan
After completing Phase One profit optimization with $25 million in savings, management launched Phase Two targeting approximately $50 million of incremental savings in 2026. Initiatives include divesting non-core operations (including Phoenix), supply-chain and material productivity measures, SG&A reductions, and cutting capital expenditures to about 2% of revenue.
3. 2026 Guidance Overview
Management forecasts fiscal 2026 net sales of $1.328 billion to $1.416 billion (a mid-point decline of roughly 6.5%) and adjusted EBITDA of $174 million to $203 million, implying a 13.7% margin at the midpoint. The company is prioritizing free cash flow generation, return on invested capital, and accelerated debt paydown.
4. Operating Segment Highlights
Powered Vehicles Group posted Q4 net sales of $116.7 million with margin gains but faced an $8 million revenue hit from an OEM supplier disruption. Aftermarket Applications Group sales rose 12.5% to $126.2 million with margin dilution from divested operations. Specialty Sports Group sales fell 5% to $118.2 million as bike demand stabilized and Marucci inventory normalized.