Traeger Q2 FY25: Rev down 13.6% to $145.5mln, Net loss $7.4mln, Adj. EBITDA $14.3mln

• Traeger reports Q2 FY25 total revenues down 13.6% to $145.5mln • Net loss of $7.4mln • Adjusted EBITDA at $14.3mln • Expects to offset 80% of FY25 unmitigated tariff impact • Targets $30mln in annualized cost savings with Phase 1 of Project Gravity

Traeger, Inc. (NYSE: COOK), the leading manufacturer of wood pellet grills, released its second quarter (Q2) fiscal year 2025 financial results. The company reported total revenues of $145.5 million, down 13.6% year-over-year (YoY), and a net loss of $7.4 million. Despite these figures, Traeger maintained a robust Adjusted EBITDA of $14.3 million. The company expects to offset approximately 80% of its $60 million unmitigated tariff impact for the fiscal year and has announced a cost-saving plan, Project Gravity, targeting $30 million in annualized cost savings with its first phase.

The revenue decline was primarily driven by a 21.9% decrease in grill sales to $74.2 million, due to a decline in unit volume partially offset by an increase in average selling price. Consumables sales increased by 7.5% to $36.4 million, driven by growth in wood pellet sales, while accessories sales decreased by 11.9% to $34.9 million, largely due to lower sales of MEATER smart thermometers.

Traeger's CEO, Jeremy Andrus, commented, "Our second quarter results reflect tariff-related dynamics which impacted both sales and Adjusted EBITDA performance in the quarter. During the quarter, our team worked diligently to implement measures to mitigate our exposure to tariffs. These actions are expected to drive improvement to second half 2025 Adjusted EBITDA performance as compared to what we experienced in the second quarter."

To address ongoing challenges, Traeger has launched Project Gravity, a multi-step streamlining effort aimed at unlocking significant efficiencies and value. The first phase of Project Gravity is expected to drive $30 million in annualized cost savings once fully implemented, with additional savings anticipated as the plan progresses. Andrus noted, "Given the uncertain macroeconomic backdrop, our focus this year is to protect profitability and cash flow. Our outlook for the Fiscal Year demonstrates our efforts in these areas."

The company's Q2 FY25 results highlight the impact of tariffs on its operations, with Traeger actively working to mitigate these effects. The announcement of Project Gravity underscores the company's commitment to cost management and efficiency, positioning it to navigate the current economic environment.

References:
[1] https://www.nasdaq.com/articles/louisiana-pacific-lpx-q2-revenue-2
[2] https://www.businesswire.com/news/home/20250806417811/en/Traeger-Announces-Second-Quarter-Fiscal-2025-Results