Prague-based Colt CZ Group reported revenues for the first half climbed 13.7 percent to CZK 11 billion ($535 mm), driven by the integration of Sellier & Bellot and substantially higher revenues in the ammunition segment. Gains in most other regions offset a slight decline in the U.S. region due to continued weakness in the U.S. commercial market for the Colt firearms brand.

Adjusted EBITDA in the first half ended June 30 amounted to CZK 2.36 billion, up 19.2 percent year over year (y/y).

Net profit surged 50.8 percent to CZK 919.3 million, driven by stronger operating profitability and supported by growth in the ammunition segment and consolidation of Sellier & Bellot for the full six months of 2025.

The firm stated that it expects minimal impact from U.S. tariffs, while reiterating its outlook for the year. Colt CZ’s brands include Colt, CZ (Česká zbrojovka), Colt Canada, Dan Wesson, Sellier & Bellot, Spuhr, SwissAA, and 4M Tactical.

“We are operating in a period of dramatic geopolitical and economic change, which brings not only challenges but also opportunities for the Group,” said Jan Drahota, chairman of the Board of Directors of Colt CZ Group. “We remain a reliable partner to both our long-term and new customers from Allied countries. We have taken several decisive steps that significantly reinforce our role in the defense industry and elevate our Group to a new level. The acquisitions of Synthesia Nitrocellulose and Valley Steel Stamp have substantially enhanced our vertical integration in both the ammunition and firearms segments.”

“New contracts with the armed forces of Denmark and the Czech Republic further underscore our credibility with key NATO partners,” added Drahota.

Revenues by Segment

  • Revenues from the Ammunition segment increased by 183.6 percent y/y in the first half of 2025 and amounted to CZK 5.2 billion due to the consolidation of Sellier & Bellot for the full six months in the first half of 2025 and organic growth in the ammunition segment in general.
  • Revenues from the Firearms segment decreased by 26.0 percent y/y in the first half of 2025, to a total of CZK 5.8 billion. The number of firearms sold also decreased by 10.3 percent y/y, amounting to 289,984 units.
  • Sales of Long Firearms decreased by 16.7 percent y/y to 114,845 units.
  • Sales of Short Guns recorded a slight decrease of 5.6 percent y/y to 175,139 units.

This Firearms decrease was said to be primarily attributable to continued weakness in the U.S. commercial market for the Colt brand and a shift of several planned M&LE contracts of Colt and Česká zbrojovka to Q3 and Q4 2025. On the contrary, products of Česká zbrojovka, especially Pistols, recorded an increase in sales in the U.S. commercial market. Colt Canada was the only entity within the Firearms segment to achieve year-on-year growth, delivering historical growth.

Revenues by Regions

  • Czech Republic revenues declined by 38.4 percent y/y to CZK 1.38 billion, reflecting a high comparative base due to significant deliveries to the Czech Ministry of Defense in the previous year that were not repeated this year.
  • Europe revenues, excluding the Czech Republic, increased year-on-year by 103.3 percent y/y to CZK 3,962.8 million, driven by the full consolidation of Sellier & Bellot.
  • U.S. revenues declined 3.9 percent y/y to CZK 4,028.2 million, affected primarily by the weakness of the U.S. commercial market in the firearms segment.
  • Canada revenues for the first half totaled CZK 527.9 million, representing an 8.0 percent y/y increase.
  • Africa revenues increased 136.1 percent y/y to CZK 132.2 million, driven by new orders from both the firearms and ammunition segments.
  • Asia revenues increased 82.5 percent y/y to CZK 656.8 million, primarily due to the consolidation of Sellier & Bellot and the performance of the ammunition segment.
  • Latin America region revenues totaled CZK 274.2 million, a 30.2 percent y/y decline.
  • Sales to other regions reached CZK 55.1 million, a 245.2 percent y/y increase, driven by new orders in both segments.

Acquisition of VSS
On June 16, 2025, Colt CZ acquired Valley Steel Stamp, Inc., a Massachusetts corporation. The purchase price, fully paid at closing, was USD 59.5 million, before adjustments for working capital and cash. The transaction was financed with the company’s existing cash resources. VSS is a manufacturer of firearm components and has been a long-term supplier to Colt CZ Group in the United States. Headquartered in Greenfield, MA, the company employs approximately 150 people. In 2024, VSS generated U.S. $44.3 million in revenue from its firearm manufacturing operations.

Acquisition of Synthesia Nitrocellulose
On August 28, 2025, Colt CZ Group entered into a share purchase and sale agreement with Synthesia, a.s., 100 percent owned by Kaprain Chemical Limited, for the purchase of Synthesia Nitrocellulose, a.s. Colt CZ will acquire a 51 percent stake now, with the remaining 49 percent to follow under already agreed terms in the medium term.

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

The total transaction price is CZK 22 billion based on enterprise value, corresponding to approximately an 8.2x multiple of the expected 2025 EBITDA. The purchase price will be paid through a combination of cash and the issuance of new common shares of Colt CZ, representing approximately 40 percent of the purchase price. Upon completion of the transaction, Kaprain will become the third largest shareholder of Colt CZ. Synthesia, a.s. remain the owner of the remaining shares of SNC. The transaction will be settled after the condition’s precedent are met, in particular, regulatory approvals from authorities in various countries, which are expected by no later than the first quarter of 2026.

Selected New Major M&LE Contracts
In August, Colt Canada signed a major contract with the Danish Defense Acquisition and Logistics Organization (DALO) for the supply of 26,000 C8 MRR (Modular Rail Rifle) carbines. This agreement marks a significant expansion of the longstanding partnership between Denmark and Canada in the field of small arms.

In September, Česká zbrojovka and the Czech Ministry of Defense signed a new framework agreement for the supply of small arms (CZ BREN 2 rifles, CZ P-10 C pistols, and CZ GL underbarrel grenade launchers) and related accessories, valued at up to CZK 4.26 billion, excluding VAT. The framework agreement covers the period from 2025 to 2031 and builds on successful cooperation that began in 2011, under which the Ministry of Defense implemented several contracts that enabled a complete transition to NATO-caliber individual weapons.

Outlook for the Second Half of 2025
Colt CZ said, “In line with previous announcements, Colt CZ continues to see major global business opportunities in the military and law enforcement segment. Cooperation with NATO and EU member countries, along with the NATO Support and Procurement Agency (NSPA), remains a top priority. At the same time, the Group acknowledges the growing importance of other markets, mainly in Asia. Winning tenders and timely execution of signed contracts are other prerequisites for fulfilling this outlook. Additionally, maintaining profitability and retaining margins in the firearms segment, particularly in the U.S. market, remains one of the company’s key objectives for the remainder of 2025.

“During the first half 2025, Colt CZ closely monitored discussions regarding the introduction of U.S. tariffs on European goods and proactively implemented measures aimed at protecting its profitability, particularly at the EBITDA level. The Group was able to adjust prices of the affected exports in a timely manner, resulting in no significant impact of the tariffs on its financial results for the first half of 2025. Colt CZ estimates that approximately 10 percent of its sales in the U.S. market will be affected by the newly imposed 15 percent tariffs. As a result, the Group does not currently anticipate any material impact on its planned consolidated revenues. Nonetheless, a potential adverse effect on operating profitability, particularly at the EBITDA level, in the low single-digit percentage range cannot be ruled out.

“Based on the above considerations, the Group confirms its 2025 outlook, anticipating revenues of CZK 25 billion and adjusted EBITDA of approximately CZK 5.5 billion (+/- 10 percent). This outlook does not include the potential impact of the SNC acquisition. We are focusing on order fulfillment, new product development, and closely monitoring key markets.”

Image courtesy Colt CZ Hungary