Czech-based firearms maker Colt CZ Group SE posted a gain in its nine-month earnings on 7 percent revenue growth but lowered its annual outlook, citing revenue delays caused by the U.S. government shutdown.

9M 2025 Financial Highlights

  • The Group’s revenues reached CZK 16,070.6 million ($766 mm) for the first nine months of 2025, representing an increase of 7.3 percent y-o-y. The results were driven by a strong performance of the ammunition segment, including the impact of the full consolidation of Sellier & Bellot in the reported period.
  • Adjusted EBITDA net of extraordinary items reached CZK 3,432.1 million, up by 13.6 percent y-o-y. The increase was mainly driven by higher sales and attractive margins in the ammunition segment, resulting from organic growth and the full consolidation of Sellier & Bellot in 2025.
  • Adjusted net profit after tax for 9M 2025 reached CZK 1,445.2 million, an increase of 11.8 percent compared to the same period in 2024. The increase was driven by higher reported net profit, thanks to the ammunition segment’s rising profitability, which generated better margins than the firearms business.
  • The number of firearms sold in 9M 2025 decreased by 10.4 percent y-o-y, reaching 415,146 units sold, with CZ-branded products performing better than Colt-branded products.

“We are satisfied with the results achieved in the first nine months of the year, having recorded growth across all financial indicators. We are particularly pleased with the improvement in overall margins driven by the strong profitability of our ammunition segment and continued growth in our key markets, especially in Europe. The unfavorable developments in the U.S. market have affected not only our company but also our competitors. However, we believe that the measures implemented during the year will help us gradually improve our market position. The six-week shutdown in the United States adversely affected accrued revenues in the final quarter of 2025. As a result, we have made a minor revision to our full-year 2025 guidance,” said Radek Musil, CEO of Colt CZ Group.

Revenues
Compared with the results as of September 30, 2024, the Group’s revenues for the first nine months of 2025 increased by 7.3 percent to CZK 16.1 billion. The strong performance was driven by organic growth in the ammunition segment, which also benefited from the consolidation of Sellier & Bellot, but this affected the annual revenue comparison. The increase in sales was recorded especially in the military and law enforcement segment.

Regional Performance
Revenues generated in the Czech Republic in 9M 2025 declined by 28.8 percent y-o-y to CZK 2.1 billion, yet they represented 13 percent of total Group sales. This decline reflects a high comparative base, driven by significant deliveries to the Czech Ministry of Defense last year that were not repeated this year. Revenues generated in the United States decreased y-o-y by 15.9 percent to CZK 5.3 billion, affected primarily by the weakness of the U.S. commercial market in the firearms segment. Revenues in Canada reached CZK 1.1 billion, up by 45.7 percent y/y, thanks to major contracts in the M/LE segment. Revenues generated in Europe (excluding the Czech Republic) increased y/y by 58.2 percent to CZK 5.8 billion, thanks to the consolidation of Sellier & Bellot from May 16, 2024, and the strong performance of the ammunition segment in the European market.

Revenues generated in Africa increased by 49.4 percent to CZK 177.0 million in the first nine months of 2025 due to new orders from both firearms and ammunition segments. Revenues generated in Asia increased by 75.9 percent y/y to CZK 1 billion in 9M 2025, primarily due to the consolidation of Sellier & Bellot. Revenues for the Latin America region amounted to CZK 422.5 million, which is 10.5 percent y-o-y less. Revenues from sales to other parts of the world reached CZK 98.7 million in 9M 2025, up by 92.4 percent y/y.

Firearms Segment
In the first nine months of 2025, the number of firearms sold declined by 10.4 percent to 415,146 units. Handgun sales outpaced long-gun sales, driven by CZ-branded products. Sales of Colt-branded products declined on an annual basis due to weakness in the U.S. commercial market. Revenue from the firearms segment reached CZK 8.4 billion in the first nine months of 2025, down by 24.0 percent y/y.

Ammunition Segment
In the ammunition segment, the Group achieved revenues of CZK 7.7 billion, up 94.2 percent y/y in the first nine months of 2025.

EBITDA and Adjusted EBITDA
In the first nine months of 2025, EBITDA (including extraordinary items) increased by 52.5 percent to CZK 3,423.7 million compared with the same period last year. The increase was primarily due to organic growth in the ammunition segment, which generated higher margins, and the full-year consolidation of Sellier & Bellot (in 2024, the consolidation of Sellier & Bellot took place from 16 May 2024).

The adjusted EBITDA amounted to CZK 3,432.1 million for the first nine months of 2025, up by 13.6 percent y/y. The most significant one-off items were expenses related to the employee stock option plan, one-off expenses connected with the commodity hedging of Sellier & Bellot, M&A costs, and legacy costs. The company recorded an adjusted EBITDA margin of 21.4 percent, up from 20.2 percent in the same period last year, driven by strong profitability in the ammunition segment.

Profit (Loss) Before Tax
The Group profit (loss) before tax increased by 85.2 percent y/y in the first nine months of 2025 to CZK 1,705.3 million, driven by strong operating profitability.

Net profit / Adjusted Net Profit
In the first nine months of 2025, net profit went up by 87.3 percent to CZK 1,327.1 million compared with the same period of last year, driven by strong profitability.

In the first nine months of 2025, net profit adjusted for extraordinary items increased by 11.8 percent to CZK 1,445.2 million compared with the same period in 2025.

Investments
The Group’s capital expenditures were CZK 586 million for the first nine months of 2025, down by 10.6 percent y-o-y. This represents a 3.6 percent share of total revenues, slightly below the full-year guidance due to a shift in planned expenditures.

2025 Guidance Revision
The six-week shutdown of the U.S. federal government negatively impacted the Group’s planned sales in the United States during the final quarter of this year. The paralysis of federal firearms licenses and permits halted firearms sales and delayed the realization of planned revenues.

Revenues that the company had expected to recognize in the fourth quarter of 2025 will instead be partially realized in 2026, while the production-related costs have already been incurred. This timing mismatch has adversely affected the expected operating profitability and EBITDA.

Given this development and based on the company’s latest estimates, revenues for 2025 are highly likely to be at the lower end of the previously communicated guidance in March this year, with adjusted EBITDA expected to fall below the lower range of the initial full-year guidance.

In light of the above-mentioned circumstances, the Group revises its outlook for 2025 as follows:

Previously, Colt CZ anticipated revenues of CZK 25 billion and adjusted EBITDA of approximately CZK 5.5 billion (+/- 10 percent)

The Group confirms that its 2025 capital expenditures could reach CZK 1.1 – 1.3 billion, which corresponds to a roughly 5 percent share of the expected 2025 revenues, which is in line with the medium-term target of the company.

Key Business Contracts in Q3 2025
In September 2025, Česká zbrojovka a.s. and the Czech Ministry of Defence signed a new framework agreement for the supply of small arms and accessories worth up to CZK 4.26 billion, excluding VAT. Under the new framework agreement, the Army will continue to purchase CZ BREN 2 rifles, CZ P-10 C pistols, and CZ GL underbarrel grenade launchers. The deliveries will also include extensive accessories – optoelectronic sights (day and night optics, laser sights), spare part kits, armourer kits, holsters, and cases. The firearms will be gradually purchased in accordance with the Army’s current needs, and the total amount of CZK 4.26 billion, excluding VAT, may not be fully utilized.

In August 2025, the Group’s subsidiary, Colt Canada, signed a major contract with the Danish Defence Acquisition and Logistics Organization (DALO) to supply 26,000 C8 MRR (Modular Rail Rifle) carbines.

Successful Completion of Bond Issue
On November 7, 2025, Colt CZ issued 600,000 bonds with a nominal value of CZK 10,000 each, for a total nominal value of CZK 6,000,000,000. The bonds bear a 6.10 percent p.a. fixed rate interest paid semi-annually in arrears. The issue price of each bond was 100 percent of its nominal value. The company initially intended to issue bonds for a total nominal amount of CZK 3,000,000,000 but subsequently increased it due to strong investor demand.

Colt CZ’s brands include Colt, CZ (Česká zbrojovka), Colt Canada, Dan Wesson, Sellier & Bellot, Spuhr, SwissAA, and 4M Tactical.

Image courtesy Colt CZ