PRAGUE – Czech firearms manufacturer Colt CZ Group reported a rise in nine-month earnings but lowered its full-year 2025 outlook, citing revenue delays caused by the recent U.S. government shutdown. The United States is one of Colt CZ’s largest markets, alongside European firearms and ammunition sales.

The company stated that some revenue expected in the fourth quarter of 2025 will now be partially realized in 2026, although production-related costs have already been incurred. Chief Executive Radek Musil explained during an analyst call that this shift is expected to raise the company’s projected revenue growth for 2026 to 14-15%, up from the previously anticipated 9-10%.

Revised Financial Outlook for 2025

Colt CZ Group now forecasts full-year revenue in the range of 23.0 billion to 24.5 billion Czech crowns ($1.10 billion–$1.17 billion), compared to 22.4 billion crowns recorded in 2024. EBITDA is expected to reach 4.5 billion to 4.8 billion crowns, slightly down from the initially projected 5.5 billion crowns, which had represented a plus-or-minus 10% margin.

The company reported a 7.3% year-on-year increase in revenue for the first nine months of 2025, reaching 16.07 billion crowns, primarily driven by ammunition sales, including contributions from a previously acquired subsidiary now fully consolidated. Adjusted EBITDA rose 13.6% to 3.43 billion crowns.

Despite the positive earnings performance, Colt CZ’s stock fell more than 2%, hitting a two-month low of 721 crowns, although it remains up 15% over the past year. Firearm sales were down 10.4% during the same nine-month period.

Market Challenges and Strategic Outlook

Musil noted that the U.S. market slowdown affected not only Colt CZ but also competitors, emphasizing the broader impact of the shutdown on the global firearms industry. “However, we believe that the measures implemented during the year will help us gradually improve our market position,” he said, signaling optimism for 2026 and beyond.

Colt CZ Group remains focused on consolidating its market position in Europe and the United States, leveraging strong ammunition sales and operational adjustments to navigate near-term challenges.