Did mercury make a 260 hp outboard?

yes Mercury made a 260hp engine. it is a 2.5 ltr v6 2 stroke, the early carby models made 245hp, then went efi which made 260hp at the prop, 7500rpm redline. then they bought out the same block with different porting and electrics around 1999ish.

this engine made 280hp @ the prop. these engine are race engines. not your normal fishing outboard