EXEC: Colt CZ Group Provides Insight of Tariffs Impact

Colt CZ Group SE reported it is closely monitoring the situation regarding introducing 20 percent tariffs by the U.S. administration on imports from the European Union and is taking proactive steps to maintain its competitiveness in the key U.S. market.

The Group said it remains committed to fulfilling its obligations to its partners and customers in the United States.

“The introduction of tariffs will have a material impact on the Group’s financial performance,” the company said in a media release. “However, the Group already carries out part of its production directly in the United States through its subsidiary Colt.”

The Group said it anticipates impacts in the firearms and ammunition segments, particularly in subsidiaries that export a portion of production to the U.S., namely Česká zbrojovka and Sellier & Bellot. The Group does not expect a significant impact on its planned total revenues; however, it does foresee a potential effect on its operating profitability, particularly EBITDA.

Colt CZ said it is taking steps to mitigate the impact on profitability, whether through price adjustments, changes to its product mix or redirecting exports to other territories.

“For the time being, the company will not revise its guidance for 2025 until it evaluates potential scenarios, including developments in the commercial market in the USA,” the Group noted.

Colt CZ plans to respond to the tariff situation as follows:

• In the short term, the Group is prepared to partially absorb the tariff impact while it may increase prices for selected products.
• In the medium and long term, depending on further developments, the company may redirect part of its exports to other markets. At the same time, the Group is actively working on optimizing costs, strict cost control, and diversifying risks to protect its operating margins.

Colt CZ Group stated, “It remains committed to delivering high-quality products to its customers and creating long-term value for its shareholders, regardless of evolving market conditions.”

Image courtesy Colt CZ