PRAGUE (Reuters) -Czech gunmaker Colt CZ Group posted a rise in its nine-month earnings on Thursday but lowered its annual outlook, citing revenue delays caused by the U.S. government shutdown.
The United States is one of the company’s biggest markets, alongside its European sales of firearms and ammunition.
Due to the U.S.
shutdown, Colt CZ Group said some revenue expected in the fourth quarter “will instead be partially realized in 2026, while production-related costs have already been incurred.”
Chief Executive Radek Musil told an analyst call that the shift would raise the revenue outlook in the company’s 2026 budget to a 14-15% increase, from a 9-10% rise expected before.
The company now projects its full-year revenue in 2025 to reach a range of 23.0 billion to 24.5 billion crowns ($1.10 billion-$1.17 billion), versus 22.4 billion posted in 2024.
EBITDA is likely to touch 4.5 billion to 4.8 billion crowns, versus 4.6 billion last year.
For 2025, Colt CZ Group had previously expected revenue of around 25 billion crowns and earnings before interest, tax, depreciation and amortisation (EBITDA) of 5.5 billion crowns, both with a margin of plus or minus 10%.
Shares in Colt CZ fell over 2% and touched a more than two-month low of 721 crowns. They have risen 15% in the past year.
The company reported selling 10.4% fewer firearms in the first nine months of the year.
For the period, revenue rose 7.3% to 16.07 billion crowns year-on-year, driven by ammunition sales, including a previous acquisition now fully consolidated.
EBITDA adjusted for extraordinary items was up 13.6% at 3.43 billion crowns.
“The unfavourable developments in the U.S. market have affected not only our company, but also our competitors,” Musil said.
“However, we believe that the measures implemented during the year will help us gradually improve our market position.”
($1 = 20.9660 Czech crowns)
(Reporting by Jason Hovet; Editing by Sherry Jacob-Phillips and Elaine Hardcastle)
