Taurus Navigates Operational Challenges, Accelerates Global Expansion with Strategic Market Focus

Taurus Navigates Operational Challenges, Accelerates Global Expansion with Strategic Market Focus

São Paulo, Brazil – May 25, 2025 – Taurus (TASA3, TASA4), the Brazilian firearms manufacturing giant, demonstrated resilience and strategic focus by releasing its first-quarter 2025 results. Despite a period of operational adjustment at its U.S. unit, marked by the implementation of the robust SAP system, the Company reported a gross margin of 32.3%, reaffirming its superior profitability compared to global competitors like Ruger (22.0%) and Smith & Wesson (24.1%). This performance, in line with Q1 2024, underscores the robustness of its cost structure and management efficiency.

The SAP implementation in the North American unit, while crucial for modernizing and streamlining management processes, involved a planned shutdown for 20 days of collective vacation and operational restrictions for approximately 40 days, extending into February. This naturally impacted the Company's consolidated revenue for Q1 2025, which totaled R$ 349.1 million, as most of Taurus's revenue originates from the U.S. market. However, Taurus Global CEO, Salesio Nuhs, described the situation as "foreseen and necessary," projecting that sales not realized at the beginning of the year will be compensated in the coming months.

B3 Performance: Market Evaluates Long-Term Strategy

Despite the temporary revenue dip, the capital market has been closely monitoring Taurus's moves. The Company's shares, traded on B3 under the tickers TASA3 and TASA4, have reflected investors' perception of the company's long-term strategy. Analysts point out that SAP modernization, coupled with aggressive international expansion and portfolio diversification, are key drivers for Taurus's future. The ability to maintain a high gross margin, even in a transitional quarter, tends to be viewed positively, signaling the company's operational health and value-generating capacity. While daily fluctuations are common, the overall view leans towards valuing companies that invest in efficiency and promising markets.

Innovation & Global Expansion: New Products & Strategic Markets

Taurus has not curbed its innovative spirit. In January, its participation in the SHOT Show 2025 in Las Vegas, the largest trade fair in the sector, served as a platform for launching prominent products. The GX2 pistols, the micro-compact TUC 22, and the GX4 Carry, which now includes the .38 TPC caliber—the first caliber developed in Brazil and already a commercial success—reinforce Taurus's leadership in the civilian segment, both in Brazil and the U.S.

However, the major bet for the future lies in the expansion of the military segment. In April, at LAAD Defense & Security 2025 in Rio de Janeiro, Taurus unveiled product prototypes that will position it as one of the few companies globally with a complete portfolio in both civilian and military segments. Highlights include firearms reaching the .50 BMG caliber and the innovative TAS (Tactical Air Soldier), a drone project equipped with tactical weaponry currently under development.

A strategic milestone was the signing of a Memorandum of Understanding (MoU) with the Turkish company MertSav. The acquisition of MertSav, expected to be finalized by the end of July 2025, is projected to reduce the development time for military segment products by up to eight years, accelerating Taurus's entry into a global market that moved over US$ 41 billion in 2023 and has the potential to reach US$ 71.5 billion by 2032.

Furthermore, the Company's internationalization continues with negotiations for a Joint Venture (JV) with Scopa Military Industries in Saudi Arabia, awaiting a formal position from the Saudi government. In India, JD Taurus remains active, targeting the promising civilian market and, primarily, the defense market, participating in significant tenders such as the mega-tender for 425,000 rifles, whose result is expected before the end of Q2 2025.

Shareholder Returns: Dividends, Bonus Shares & Share Buyback

Taurus maintains its commitment to maximizing shareholder returns. Its Bylaws stipulate a minimum dividend payment of 35% of adjusted net profit. In addition to 2024 earnings (R$ 25.5 million), the Ordinary General Meeting on April 29, 2025, approved the distribution of a 10% bonus in new shares, credited on May 12, 2025, also generating a tax benefit for shareholders.

To further reinforce confidence in the Company, the Board of Directors approved a new share buyback program on March 25, 2025, allowing for the acquisition of up to 300,000 common shares and 3.03 million preferred shares. "All measures taken aim to benefit shareholders in different ways, but always generating value," concludes Salesio Nuhs.

Taurus thus demonstrates a multifaceted strategy, combining operational efficiency, portfolio innovation, and aggressive global expansion, all while striving to strengthen value for its investors.

UNVEILED BRAZIL SEARCH