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 a 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.”
The company now projects its full-year revenue to reach a range of 23.0 billion to 24.5 billion crowns ($1.10 billion-$1.17 billion). Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to touch 4.5 billion to 4.8 billion crowns.
Colt CZ Group had previously expected revenue of around 25 billion crowns and EBITDA of 5.5 billion crowns, both with a margin of plus or minus 10%.
The company also 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,” Colt Chief Executive Radek 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)
