Vista Outdoor Inc.

Total sales decreased 7.1% to $644.2 million. Gross profit decreased 6.9% to $211.2 million, with gross margin at 32.8%, relatively flat year over year. EBITDA declined 11.3% to $110.1 million, with EBITDA margin at 17.1%, and adjusted EPS declined 6.5% to $1.01. Adjusted free cash flow was $70 million, and net debt ended the quarter at $579 million with net leverage of 1.3x. By segment, Revelyst sales decreased 13.6% to $273.7 million, gross profit fell 14.2% to $81.4 million, gross margin was 29.7%, and EBITDA was $15.6 million. The Kinetic Group sales decreased 1.6% to $370.4 million, gross profit was $129.8 million with a 35% margin, and EBITDA was $111.2 million. For full-year FY2025, Vista expects sales of $2.665 billion to $2.775 billion, Kinetic sales of $1.425 billion to $1.475 billion, Revelyst sales of $1.24 billion to $1.3 billion, adjusted EBITDA of $410 million to $490 million, adjusted EPS of $3.60 to $4.50, and adjusted free cash flow of $240 million to $320 million. Management said Revelyst should see sequential sales improvement through the year, Q2 EBITDA more than doubling sequentially, and margin improvement each quarter; Kinetic sales and EBITDA are expected to be evenly distributed across the remaining three quarters.

Eric Nyman framed the quarter around execution amid ongoing strategic change, while emphasizing that the board’s review is designed to maximize stockholder value. He said Revelyst faced supply chain and launch-timing issues, but he remained confident in the company’s brand portfolio, product pipeline, and ability to deliver on FY2025 targets. His tone was constructive and upbeat, especially around market-share gains, new partnerships like Guy Fieri/Camp Chef, and the long-term value creation potential of Revelyst.

Andy Keegan focused on the financial bridge: Revelyst’s Q1 miss was driven by timing, mix, and divestitures, partially offset by $5 million of GEAR Up savings. He highlighted $70 million of adjusted free cash flow, a $81 million reduction in net debt, and year-over-year inventory reduction of 13% overall, including about $100 million at Revelyst or 25% lower. He also detailed the FY2025 GEAR Up savings path of $25 million to $30 million, with about $10 million from the April 2023 restructuring program, $2 million to $3 million from real estate, more than $5 million from supply chain/operations, and $2 million to $3 million from indirect costs.

Analysts pressed for a clearer bridge to Revelyst’s goal of doubling standalone EBITDA, and management said the plan depends on ramping GEAR Up savings, recovering the $13 million of delayed orders, and benefiting from lower freight and lower promotions versus last year. On the Bushnell Golf launch delay, management said a software issue found during final quality checks pushed the launch back, but the product is now in market and sales should be recovered over the year. Questions also focused on specialty-channel weakness, and management said specialty remains pressured and is likely a 12- to 18-month turnaround, while mass and DTC are stronger.