Traeger Q3 2025 slides: Revenue up 2.7%, Project Gravity savings target hits $50MM

Introduction & Market Context

Traeger Inc (NYSE:COOK) released its third-quarter 2025 investor presentation on November 5, showcasing modest revenue growth despite ongoing challenges from tariffs and a constrained consumer environment. The wood pellet grill manufacturer reported a 2.7% year-over-year revenue increase to $125 million, exceeding analyst expectations of $110.66 million, though profitability metrics showed mixed results.

The company's stock rose 11.48% to $0.906 following the release, despite reporting an earnings per share (EPS) of -$0.17, significantly missing the forecasted -$0.04. Investors appeared to focus on the company's strategic initiatives, particularly the expanded cost-saving program dubbed "Project Gravity."

Quarterly Performance Highlights

Traeger's third-quarter results showed growth across most key metrics, with total revenue reaching $125 million, up 2.7% from $122 million in Q3 2024. The revenue mix consisted of 61% grills, 20% consumables, and 19% accessories.

As shown in the following chart of quarterly revenue results:

Breaking down the revenue components, grill sales increased 2.2% to $77 million, while consumables saw the strongest growth at 12.3%, reaching $25 million. Accessories revenue declined 4.3% to $24 million compared to the prior year.

On the profitability front, Traeger reported mixed results with gross margin contracting while adjusted EBITDA improved:

Gross profit reached $49 million with a margin of 38.7%, representing a 360 basis point contraction from 42.3% in Q3 2024. However, adjusted EBITDA increased to $13.8 million with an 11.0% margin, up from $12 million and 10.1% in the prior year. The adjusted net loss improved to $4 million from $7 million in Q3 2024.

The company's overall quarterly performance snapshot shows:

Strategic Initiatives

CEO Jeremy Andrus emphasized the importance of the company's cost-saving initiative, stating, "Project Gravity will be transformational, unlocking capacity to invest in key growth pillars and drive household penetration." The program has been expanded with an additional $20 million in run-rate savings as part of Phase 2, bringing the total to $50 million once fully implemented.

The Project Gravity initiative is being executed in two phases through the end of 2026:

Phase 1, which includes workforce reductions and centralizing MEATER's business operations, is expected to yield approximately $30 million in annualized cost savings. Phase 2 encompasses more structural changes, including exiting the Costco Roadshow program, redirecting Traeger.com consumers to retail partners, transitioning to a distributor model in Europe, and consolidating pellet mill operations.

Simultaneously, Traeger is addressing tariff challenges through a comprehensive mitigation strategy:

The company is diversifying its supply chain outside of China, with a meaningful production shift expected by the end of 2026. It has also successfully resumed direct import ordering via First Sale and is negotiating costs with contract manufacturers. These efforts are complemented by strategic pricing increases and robust inventory management informed by real-time sell-through data.

Forward-Looking Guidance

Traeger maintained its full-year fiscal 2025 guidance, projecting:

The company expects total revenue between $540 million and $555 million, with gross margin between 40.5% and 41.5%, and adjusted EBITDA between $66 million and $73 million. Key assumptions include a high single-digit decline in grill revenues, a high single-digit increase in consumables revenues, and a low single-digit decline in accessories revenues.

Traeger is also focusing on several growth pillars, including accelerating brand awareness through expanded social media presence and partnerships with brands like Budweiser/Bud Light, driving recurring revenues through consumables (which grew approximately 12% in the quarter), and expanding globally with strong performance in Canada.

Financial Position & Balance Sheet

Traeger reported solid liquidity despite ongoing challenges, with quarter-end liquidity of $167 million compared to $177 million in Q3 2024. Net debt stood at $398 million, relatively unchanged from $399 million in the prior year.

The company emphasized that balance sheet health remains a key priority as it navigates through its strategic transformation initiatives and tariff mitigation efforts.

While Traeger's presentation highlighted improvements in adjusted metrics, it's worth noting that GAAP net loss reportedly widened to $90 million from $20 million year-over-year, according to earnings call transcripts. This significant gap between adjusted and GAAP results underscores the substantial costs associated with the company's ongoing transformation efforts.

As Traeger continues implementing Project Gravity and adapting to market challenges, investors will be closely monitoring whether these strategic initiatives translate into sustainable profitability improvements and a return to more robust growth in the coming quarters.

Full presentation:

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