A stern drive for a boat is provided, which comprises an outer structure that is attachable to the stern of a boat, a housing supported in the outer structure, a gear set and reversing clutch inside the housing, said gear set including a pinion that is rotatable about a transverse axis and an output shaft that extends downwardly within a fairing. The housing is rotatable within the outer structure for steering purposes and the fairing and output shaft are rotatable about the transverse axis of said pinion thereby to permit raising, lowering and trimming of the fairing. The clutch includes a selector rod extending along a central passage defined within a transverse shaft, with selector pins extending radially outwardly into a clutch element.
