Overview

• U.S. wood pellet grill maker's Q1 revenue fell 34%, missing analyst expectations

• Adjusted EBITDA and adjusted net income for Q1 both beat analyst expectations

• Revenue decline driven by lower grill sales, mix shift to lower-priced models, and channel actions

Outlook

• Traeger expects full-year 2026 revenue between $465 mln and $485 mln

• Company raises full-year 2026 adjusted EBITDA outlook to $57 mln-$67 mln

• Traeger sees full-year 2026 gross margin at 39.5%-40.5%

Result Drivers

• GRILL SALES DECLINE - Co said grill revenue fell due to lower unit volumes and average selling prices, citing last year's product launch, pre-tariff retail orders, and channel optimization under Project Gravity

• TARIFF REFUND IMPACT - Q1 gross margin benefited from a $12.4 mln IEEPA tariff refund; excluding this, margin declined due to trade spend timing, lower direct import sales, tariff-related costs, and MEATER fixed cost deleverage

• COST REDUCTIONS - Sales, marketing, and G&A expenses fell due to lower employee-related costs, reduced discretionary overhead, and cost actions under Project Gravity

Company press release: ID:nBw94J9xfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the appliances, tools & housewares peer group is "buy."

• Wall Street's median 12-month price target for Traeger Inc is $37.50, about 14.4% below its May 8 closing price of $43.83

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