Company Overview
Vista Outdoor Inc. is a leading global designer, manufacturer, and marketer of outdoor recreation and shooting sports products. The company operates through four reportable segments: The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology.
Vista Outdoor has a rich history dating back to its incorporation in Delaware in 2014. The company has since grown into a diversified portfolio of iconic brands, including Remington, Federal Premium, CCI, Speer, Bushnell, Simms, Fox, Bell, and CamelBak, among others. Through a combination of organic growth and strategic acquisitions, Vista Outdoor has established a strong presence in the outdoor recreation and shooting sports industries.
Segment Performance
The Kinetic Group
The Kinetic Group, which encompasses the company's ammunition brands, has consistently delivered strong financial performance, reporting net sales of $1.31 billion and adjusted EBITDA of $422.59 million in fiscal year 2024. This segment has a long history of supplying ammunition for hunting, target shooting, and personal protection, and has earned numerous industry awards for excellence in product innovation and technology over the years.
In the most recent quarter (Q2 2025), The Kinetic Group reported net sales of $351.32 million, gross profit of $113.13 million, and operating income of $87.09 million. For the six months ended September 30, 2024, the segment's net sales were $721.76 million, with a gross profit of $242.90 million and operating income of $191.49 million.
Revelyst Segments
In contrast, Vista Outdoor's Revelyst segments (Outdoor Performance, Adventure Sports, and Precision Sports Technology) have faced some challenges in recent years, with net sales declining to $1.37 billion and adjusted EBITDA of $435.63 million in fiscal year 2024. These segments were previously organized under Vista Outdoor's Outdoor Products and Sporting Products reportable segments but were restructured in 2024 to better align with their brand portfolios.
Revelyst Outdoor Performance includes outdoor cooking, fishing, and technical apparel brands like Camp Chef and Simms Fishing. In Q2 2025, this segment reported net sales of $100.22 million, gross profit of $25.80 million, and operating income of $2.60 million. For the six months ended September 30, 2024, net sales were $189.73 million, with gross profit of $47.53 million and operating income of $271,000.
Revelyst Adventure Sports houses protective gear and hydration brands like Fox, Bell, and CamelBak. This segment reported Q2 2025 net sales of $159.47 million, gross profit of $49.56 million, and operating income of $11.05 million. For the six-month period, net sales were $286.73 million, with gross profit of $84.47 million and operating income of $4.85 million.
Revelyst Precision Sports Technology manages golf technology brands Bushnell Golf and Foresight Sports. In Q2 2025, this segment achieved net sales of $54.91 million, gross profit of $22.95 million, and operating income of $7.83 million. For the six months ended September 30, 2024, net sales were $111.88 million, with gross profit of $47.69 million and operating income of $15.35 million.
Strategic Initiatives
To address these challenges, Vista Outdoor initiated the GEAR Up transformation program in fiscal year 2024, which is aimed at driving cost savings and operational efficiencies across the Revelyst segments. The program has already delivered $5 million in cost savings in the first quarter of fiscal year 2025, and the company expects to realize $25 million to $30 million in savings during the current fiscal year, with a long-term goal of achieving $100 million in annual run-rate cost savings by fiscal year 2027.
Financials
Vista Outdoor's financial position remains solid, with a net debt leverage ratio of 1.3x as of the end of the first quarter of fiscal year 2025. The company generated $70 million in adjusted free cash flow during the quarter, allowing it to reduce its net debt position by $81 million. This strong cash flow generation and prudent financial management provide the company with the flexibility to invest in growth initiatives, pursue strategic acquisitions, and return capital to shareholders.
For the most recent fiscal year (2024), Vista Outdoor reported revenue of $2.75 billion, a net loss of $5.51 million, operating cash flow of $400.89 million, and free cash flow of $370.35 million. In the most recent quarter (Q2 2025), the company achieved revenue of $665.92 million, net income of $41.80 million, operating cash flow of $26.78 million, and free cash flow of $19.04 million.
Year-over-year revenue decreased by 1.60%, primarily driven by lower volumes at The Kinetic Group and Revelyst, partially offset by increased government sales at Revelyst and increased pricing at The Kinetic Group.
Liquidity
Despite the challenges faced in recent years, including over $374 million in unusual items recorded in fiscal year 2023 primarily due to asset impairments, Vista Outdoor has shown resilience. The company has completed strategic acquisitions like Foresight Sports in 2021 to expand its portfolio of leading outdoor recreation brands and has made progress streamlining its operations by divesting non-core businesses like RCBS and Fiber Energy Products in recent years.
As of March 31, 2024, Vista Outdoor had a debt-to-equity ratio of 0.4770, cash holdings of $60.27 million, and a current ratio of 2.90. The company's quick ratio stood at 1.26. Vista Outdoor maintains a $600 million senior secured asset-based revolving credit facility, of which $336.05 million was available as of September 30, 2024, providing additional financial flexibility.
Outlook
Vista Outdoor's diversified portfolio, commitment to innovation, and focus on operational excellence position the company well for long-term growth. The company's recent strategic actions, including the planned sale of its The Kinetic Group business to Czechoslovak Group a.s. and the potential separation of its Revelyst business, further underscore its determination to maximize shareholder value and position the company for success in the years to come.
Looking ahead, Vista Outdoor has provided guidance for fiscal year 2025, projecting total sales in the range of $2.665 billion to $2.775 billion and adjusted EBITDA between $410 million and $490 million. The company's guidance implies a double-digit increase in standalone adjusted EBITDA for its Revelyst segments, driven by the success of its GEAR Up program and an expectation of improved market conditions.
Specifically, The Kinetic Group is expected to generate sales of $1.425 billion to $1.475 billion and adjusted EBITDA of $350 million to $400 million. Revelyst is projected to achieve sales of $1.24 billion to $1.3 billion and adjusted EBITDA of $130 million to $160 million. The company also anticipates adjusted EPS of $3.60 to $4.50 and adjusted free cash flow of $240 million to $320 million.
Vista Outdoor expects sequential improvement in Revelyst's sales and EBITDA margin throughout the fiscal year, with a clear path to achieving the projected cost savings through the GEAR Up transformation program. The company has reaffirmed its expectation to double Revelyst's standalone adjusted EBITDA in fiscal year 2025.
Industry Trends
The outdoor recreation industry has experienced strong growth in recent years. According to the 2024 Outdoor Participation Trends Report, the outdoor participation base grew to a record 175.8 million participants, representing 57.3% of all Americans aged six and older. This trend, which began in 2016 and accelerated during the COVID-19 pandemic, bodes well for Vista Outdoor's long-term prospects in the outdoor recreation market.
Vista Outdoor's diversified portfolio, strategic initiatives, and focus on operational efficiency position the company to capitalize on these positive industry trends and drive sustainable growth in the coming years.