Colt CZ Group SE (Group, Colt CZ) is reporting that Group revenues for the first half (H1) of 2026 reached CZK 15.9 billion ($756.8 mm), up 44.2 percent year-over-year (y/y), said to be driven by organic growth in traditional segments serving M&LE (Military and Law Enforcement) customers, and by the consolidation of revenues from the energetics segment following the acquisition of Synthesia Nitrocellulose and Synthesia Power.

Adjusted EBITDA in the first half of 2026 amounted to CZK 4.6 billion ($290.0 mm), which is up by 95.1 percent y/y compared with the adjusted EBITDA for the first six months in 2025, due to higher margins, particularly in the ammunition and energetics segments.

Net profit for six months ended June 30, 2026, increased 72.7 percent to CZK 1.6 billion ($90.4 mm), compared to the H1 period in 2025, reportedly driven by stronger operating profitability and the consolidation of the energetics segment as of January 1, 2026.

“We delivered very strong results in the first half of 2026, validating our long-term strategy of building a vertically integrated and geographically diversified Group, while also demonstrating the significant progress we are making in enhancing our competitiveness. All our segments performed well – we delivered very good results in the Firearms segment, significantly improved profitability in the Ammunition segment, and our new energetics segment also made a substantial contribution. We enter the second half of the year with a high level of expected revenues already covered by confirmed orders and are therefore raising our full-year revenue and adjusted EBITDA guidance,” said Radek Musil, CEO of Colt CZ Group.

H1 Segment Summary
Firearms segment revenues increased 37.4 percent y/y in the first half of 2026, to a total of CZK 8.0 billion ($380.8 mm). The number of firearms sold rose slightly by 0.6 percent to 291,724 units, primarily due to a favorable sales mix, new M&LE contracts, and the growing performance of Colt Canada and Colt. Sales of Long Firearms increased 10.0 percent y/y to 126,276 units, while sales of Short Guns recorded a 5.5 percent decrease, or 165,448 units, due to changes in the sales mix.

Ammunition segment revenues declined 5.0 percent y/y in the first half of 2026 and amounted to CZK 4.9 billion ($233.2 mm) due to a decrease in sales under the Czech ammunition initiative. Despite a decline in revenues, the Ammunition segment was said to be highly profitable, with an adjusted EBITDA margin of 33.2 percent of revenue, compared with a margin of 26.5 percent in the first half of 2025.

Energetics segment revenues reached CZK 3.0 billion ($142.8 mm), up 14.3 percent compared to the same period in 2025 (on a pro forma basis). The company said that, as expected, the Energetics segment reported strong profitability. Adjusted EBITDA amounted to CZK 1.6 billion ($76.2 mm), with an adjusted EBITDA margin of 54.5 percent in the first half of 2026.

Revenues by Region
Czech Republic revenue expanded 94.6 percent y/y to CZK 2.7 billion ($128.5 mm), said to be mainly due to the consolidation of the new Energetics segment as of January 1, 2026.

Europe revenues (excluding the Czech Republic) were up 52.8 percent y/y to CZK 6.0 billion ($285.6 mm), again mainly driven by the consolidation of the new Energetics segment.

United States revenues decreased 12.7 percent y/y to CZK 3.5 billion ($166.6 mm), mainly due to the seasonality of M&LE contracts, as well as a decline in Ammunition segment revenues resulting from the imposition of U.S. tariffs and the subsequent shift of part of deliveries to European markets. At the same time, there was a slight recovery in the Commercial market, where the Colt brand performed particularly well.

Canada revenues totaled CZK 1.9 billion ($90.4 mm) in the first half, an increase of 271 percent y/y, which was attributed to a new contract to supply rifles to the Canadian Army and an increase in rifle deliveries to the Danish Ministry of Defense.

Africa revenues fell 8.6 percent y/y to CZK 120.9 million ($5.8 mm), reportedly due to the seasonality of supplies.

Asia revenues jumped 87.3 percent y/y, reaching CZK 1.2 billion ($57.1 mm) for the first half. This growth was said to be driven primarily by increased shipments from Colt, which had been postponed to 2025 due to the U.S. government shutdown.

Latin America region revenues grew 2.7 percent y/y to CZK 281.7 million ($13.4 mm) in the H1 period.

Other Regions even use reached CZK 46.1 million ($2.19 mm), down 16.4 percent y/y.

Closing of Synthesia Nitrocellulose Acquisition
Based on the SPA from August 2025, Colt CZ acquired on January 6, 2026 a 51 percent stake in Synthesia Nitrocellulose, a.s. and Synthesia Power, a.s. The remaining 49 percent of both companies may be acquired under the agreed put and call option terms within a period starting two years after the completion of the acquisition of the 51 percent stake.

Synthesia Nitrocellulose, a.s. is said to be one of the largest energetic nitrocellulose manufacturers in Europe and North America. Energetic nitrocellulose is a basic raw material to produce single and multi-component powders and propellants, and is essential for the production of small-, medium-, and large-caliber ammunition.

Synthesia Nitrocellulose is also a major manufacturer of industrial nitrocellulose and oxycellulose for healthcare use. By integrating Synthesia Nitrocellulose, the Group said it is strengthening its control over a key raw material for ammunition production, increasing the resilience of its supply chain, and at the same time creating opportunities for further technological and product development in the medium- and large-caliber Ammunition segment.

Dual Listing on Euronext Amsterdam
On April 13, 2026, the company announced the admission of its ordinary shares to trading on the regulated market of Euronext Amsterdam, operated by Euronext Amsterdam N.V. The dual listing on Euronext Amsterdam complements the existing trading of Colt CZ shares on the Prime Market of the Prague Stock Exchange, where the Company has been listed since June 1, 2020.

Trading in Colt CZ shares on Euronext Amsterdam commenced on April 15 under the ticker symbol “COLT”. The shares are fully fungible between Euronext Amsterdam and the Prague Stock Exchange.

Depending on market conditions, the company may pursue a capital increase while retaining full flexibility regarding timing, including the possibility of postponing the transaction to a later date. The company said the net proceeds from the planned capital increase may be used for further strategic investments, acquisitions, and development including: i) strategic investments in continued technological modernization and production capacity increases, ii) strengthening innovation capacity and research and development, iii) personnel and organizational strengthening, iv) targeted and disciplined acquisition of manufacturers of products complementary to Colt CZ Group’s product portfolio, as well as v) partial reduction of the Company’s existing debt.

Selected New M&LE Contracts
In March, Colt Canada received a significant contract from the Canadian government under the Canadian Modular Assault Rifle Project (CMAR) to modernize the C7/C8 rifles, which have been in service with the Canadian Armed Forces for more than 35 years. As part of the contract, Colt Canada is to supply 30,000 assault rifles between 2026 and 2029, with provisions for additional quantities. Colt Canada also continues to fulfill its contract with the Danish Ministry of Defense.

In the first half of 2026, Colt secured a new contract, awarded through the U.S. government, for M4 rifles intended for foreign customers under the Foreign Military Sales (FMS) program.

Sellier & Bellot also gained new orders, strengthening its position in several European countries, including Spain, Poland, Romania, Croatia, and Estonia, as well as through NSPA (NATO Support and Procurement Agency).

Outlook for the Second Half of 2026
For the remainder of 2026, the Group said it will continue to pursue significant contracts in the M&LE segment, particularly in NATO and EU member states and in cooperation with the NSPA. At the same time, the Group continues to strengthen its position in other markets, particularly in Asia. The key factors for achieving the outlook will be success in new tenders, the timely execution of contracts, and the pace of recovery in the U.S. commercial market, where the company is focused on mitigating the impact of weaker demand and import tariffs through cost control and the launch of new products.

Consistent with its previous communications, Colt CZ said it continues to view the new Energetics segment as a key growth driver for 2026. Owing to its high profitability, the company said it expects the segment to account for approximately 16 percent of the Group’s total revenues and around one-third of adjusted EBITDA.

In light of the above, the Group is raising its guidance for 2026 and now expects revenues of CZK 31.0 billion to CZK 33.0 billion and adjusted EBITDA of CZK 8.0 billion to CZK 8.5 billion. The increased guidance is reportedly supported by the high level of expected revenues through already confirmed orders in the M&LE segment.

Image courtesy Colt Canada