Vista Outdoor (VSTO) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2024 decreased 1.6% year-over-year to $665.9M, with The Kinetic Group up 0.5% and Revelyst segments down 3.9% due to volume declines and divestitures.

• Operating income fell 13.3% to $65.7M, driven by lower gross profit in The Kinetic Group and higher incentive compensation, partially offset by improved results in Revelyst segments.

• Net income for the quarter was $41.8M, down from $44.4M in the prior year; diluted EPS was $0.71 compared to $0.76.

• GEAR Up transformation program delivered $11.6M in cost savings YTD, with $25–30M expected for FY25 and $100M run-rate by FY27.

• Major divestitures included RCBS and Fiber Energy Products, impacting segment results and inventory levels.

Financial highlights

• Gross profit increased 1.2% to $211.4M, with margin up to 31.8% from 30.9% year-over-year.

• Operating cash flow for the six months was $80.5M, down from $107.5M in the prior year.

• Total debt reduced to $590M from $720M at March 31, 2024; debt/capitalization ratio improved to 32.4%.

• Interest expense declined 50.5% to $8.2M for the quarter due to lower average debt and rates.

• Inventory in Revelyst segments decreased 7.9% since year-end, reflecting ongoing management efforts and divestitures.

Outlook and guidance

• Management expects continued cost savings from GEAR Up, targeting $25–30M in FY25 and $100M by FY27.

• The Kinetic Group faces input cost pressures and global powder shortages but maintains focus on execution.

• Outdoor participation trends remain strong, with Vista positioned to capture share through innovation and partnerships.

• Inflation and commodity volatility may continue to impact margins, especially in The Kinetic Group.