Sturm, Ruger & Company, Inc. Reports Second Quarter 2026 Results
Key Terms
adjusted ebitda financial
non-gaap financial
lifo reserve financial
current ratio financial
Delivered Second Quarter Net Sales of
Earnings per Share was
Generated
Declares Quarterly Dividend of
Second Quarter 2026 Financial Highlights
-
The Company achieved net sales of
$158.1 million 19% increase over the$132.5 million -
Diluted earnings were
$0.43 $1.05 -
On an adjusted basis, diluted earnings for the second quarter of 2026 were
$0.52 $0.41 -
Average selling price increased
10% to$384 4% increase in adjusted gross margin compared to Q2 2025. -
Net Income Margin for the Quarter was
4.4% . Adjusted EBITDA Margin for the Quarter was10.5%
During the second quarter, the Company incurred incremental expenses associated with negotiating and finalizing the Strategic Cooperation Agreement (“Agreement”) with Beretta Holding S.A. (“Beretta Holding”), which was announced on May 4, 2026. The Company incurred legal, professional and advisory fees and other expenses totaling approximately
The Company announced today that its Board of Directors declared a dividend of
The second quarter reflected continued execution of the Company's 2026 Plan, highlighted by improved operating performance, strong core product demand and the introduction of the Ruger Business System, establishing the Company's long-term operating framework.
“Our second quarter results demonstrate our ability to deliver against our strategy,” said Todd Seyfert, President and Chief Executive Officer. “We delivered sequential and year-over-year sales growth, improved bottom-line results and improved manufacturing execution following first quarter production constraints.”
Second Quarter 2026 Operational Highlights
-
The estimated sell-through of the Company’s products from the independent distributors to retailers in Q2 2026 increased by
19% from Q2 2025, exceeding a5% increase in adjusted NICS during the same period. - Compared to the second quarter of 2025, the Company’s finished goods inventories decreased 100,100 units while distributors’ inventories decreased 45,800 units, reflecting strong retail pull through of our new products.
“Adjusted NICS remained above prior-year levels during the quarter, and Ruger continued to outperform the broader market,” Seyfert added. “Improved manufacturing execution also allowed us to begin rebuilding finished goods inventory, enhancing product availability for our customers while maintaining disciplined inventory management.”
An important milestone during the quarter was the formal establishment of the Ruger Business System – the operating framework for how the company will plan, execute and continuously improve performance across the enterprise.
“The establishment of the Ruger Business System is much more than a new operating process,” Seyfert continued. “It creates a common way of working company-wide, aligning our people around shared objectives, reinforcing accountability and providing the tools and capabilities for successful execution of our Ruger 2030 strategy, and beyond.”
Year-to-Date 2026 Highlights
Through the first six months of 2026, the Company continued executing its 2026 Plan while strengthening its operational foundation through improved manufacturing performance and disciplined capital allocation. Other highlights include:
-
The Company achieved net sales of
$299.4 million 12% increase over the$268.2 million -
Diluted earnings were
$0.44 $0.57 -
On an adjusted basis, excluding severance costs related to a first quarter reduction-in-force and legal, professional and advisory fees and other expenses related to the stockholder matters, diluted earnings for the first six months of 2026 were
$0.79 $0.87 -
Sales of new products, including the RXM pistol, Marlin 1894 lever-action rifles, American Centerfire Rifle Generation II, Glenfield rifles, Harrier rifles and the Ruger Red Label III Shotgun, represented
$80.9 million 29% , of firearm sales for the period. New product sales include only major new products that were introduced in the past two years. -
Cash generated from operations during the first half of 2026 totaled
$36.1 million $25.9 million -
As of June 27, 2026, Ruger’s cash and short-term investments totaled
$117.5 million -
For the period, capital expenditures totaled
$8.1 million $30 million -
In the first six months, the Company returned
$3.0 million
“As we reach the midpoint of 2026, we are encouraged by the progress we've made across the business. While there is still important work ahead, we believe the operational foundation we continue building positions Ruger to execute with greater consistency, respond more effectively to changing market conditions and create durable long-term value for our shareholders,” Seyfert concluded.
Today, the Company filed its Quarterly Report on Form 10-Q for the second quarter of 2026. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.
The Quarterly Report on Form 10-Q for the second quarter of 2026 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Quarterly Report on Form 10-Q to ensure that they have adequate information to make informed investment judgments.
Earnings Call Information
The Company will host a webcast at 4:30pm ET today to discuss the second quarter 2026 financial results. Participants may access the live webcast via this link or by visiting Ruger.com/corporate. Those who wish to ask questions during the webcast will need to pre-register prior to the meeting.
About Sturm, Ruger & Co., Inc.
Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. With products made in America, Ruger offers consumers almost 800 variations of 40 product lines, across the Ruger, Marlin and Glenfield brands. For over 75 years, Ruger has been a model of corporate and community responsibility. Our motto, “Arms Makers for Responsible Citizens®,” echoes our commitment to these principles as we work hard to deliver quality and innovative firearms.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this communication may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “may,” “will,” “could,” “anticipate,” “estimate,” “expect,” “predict,” “project,” “future,” “potential,” “intend,” “plan,” “assume,” “believe,” “forecast,” “look,” “build,” “focus,” “create,” “work,” “continue” or the negative of such terms or other variations thereof and words and terms of similar substance. Such statements also include, among others, statements with respect to the future performance of the Company. The forward-looking statements in this communication are based upon the current beliefs, assumptions and expectations of Ruger and are subject to significant risks and uncertainties, including without limitation, market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against Ruger, the impact of future firearms control, environmental legislation and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained herein because of a variety of other factors, including without limitation those detailed in the Ruger’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other filings made by Ruger with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. Ruger expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in beliefs, assumptions or expectations or any change in events, conditions or circumstances on which any such statements are based.
This press release includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and adjusted earnings per share. These measures are not prepared in accordance with
STURM, RUGER & COMPANY, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||
(Dollars in thousands) |
||||||
|
June 27, 2026 |
December 31, 2025 |
||||
|
|
|
||||
Assets |
|
|
||||
|
|
|
||||
Current Assets |
|
|
||||
Cash and cash equivalents |
$ |
30,651 |
|
$ |
18,451 |
|
Short-term investments |
|
86,810 |
|
|
74,082 |
|
Trade receivables, net |
|
77,112 |
|
|
64,510 |
|
|
|
|
||||
Gross inventories |
|
106,606 |
|
|
113,166 |
|
Less LIFO reserve |
|
(68,402 |
) |
|
(67,058 |
) |
Less excess and obsolescence reserve |
|
(3,929 |
) |
|
(3,227 |
) |
Net inventories |
|
34,275 |
|
|
42,881 |
|
|
|
|
||||
Assets held for sale |
|
372 |
|
|
- |
|
Prepaid expenses and other current assets |
|
9,751 |
|
|
11,680 |
|
Total Current Assets |
|
238,971 |
|
|
211,604 |
|
|
|
|
||||
Property, plant and equipment |
|
509,797 |
|
|
506,799 |
|
Less allowances for depreciation |
|
(433,601 |
) |
|
(426,702 |
) |
Net property, plant and equipment |
|
76,196 |
|
|
80,097 |
|
|
|
|
||||
Deferred income taxes |
|
17,107 |
|
|
19,720 |
|
Other assets |
|
32,013 |
|
|
30,576 |
|
Total Assets |
$ |
364,287 |
|
$ |
341,997 |
|
STURM, RUGER & COMPANY, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued) |
||||||
(Dollars in thousands, except per share data) |
||||||
|
June 27, 2026 |
December 31, 2025 |
||||
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
||||
|
|
|
||||
Current Liabilities |
|
|
||||
Trade accounts payable and accrued expenses |
$ |
39,061 |
|
$ |
34,122 |
|
Contract liabilities with customers |
|
465 |
|
|
- |
|
Product liability |
|
777 |
|
|
964 |
|
Employee compensation and benefits |
|
26,727 |
|
|
15,023 |
|
Workers’ compensation |
|
4,399 |
|
|
4,638 |
|
Total Current Liabilities |
|
71,429 |
|
|
54,747 |
|
|
|
|
||||
Lease liabilities |
|
1,009 |
|
|
1,158 |
|
Employee compensation |
|
1,995 |
|
|
2,271 |
|
Product liability accrual |
|
61 |
|
|
61 |
|
|
|
|
||||
Contingent liabilities |
|
- |
|
|
- |
|
|
|
|
||||
|
|
|
||||
Stockholders’ Equity |
|
|
||||
Common Stock, non-voting, par value |
|
|
||||
Authorized shares 50,000; none issued |
|
- |
|
|
- |
|
Common Stock, par value |
|
|
||||
2026 – 60,000,000 shares authorized |
|
|
|
|
|
|
24,524,481 issued, |
|
|
|
|
|
|
15,978,256 outstanding |
|
|
|
|
|
|
2025 – 40,000,000 shares authorized |
|
|
|
|
|
|
24,490,478 issued, |
|
|
|
|
|
|
15,944,253 outstanding |
|
24,524 |
|
|
24,490 |
|
Additional paid-in capital |
|
57,293 |
|
|
55,356 |
|
Retained earnings |
|
426,107 |
|
|
422,045 |
|
Less: Treasury stock – at cost |
|
|
|
|
|
|
2026 – 8,546,225 shares |
|
|
|
|
|
|
2025 – 8,546,225 shares |
|
(218,131 |
) |
|
(218,131 |
) |
Total Stockholders’ Equity |
|
289,793 |
|
|
283,760 |
|
Total Liabilities and Stockholders’ Equity |
$ |
364,287 |
|
$ |
341,997 |
|
STURM, RUGER & COMPANY, INC. |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
||||||||||||
(Dollars in thousands, except per share data) |
||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
June 27,
|
June 28,
|
June 27,
|
June 28,
|
||||||||
|
|
|
|
|
||||||||
Net firearms sales |
$ |
157,679 |
|
$ |
131,567 |
|
$ |
298,575 |
|
$ |
266,762 |
|
Net castings sales |
|
379 |
|
|
924 |
|
|
839 |
|
|
1,467 |
|
Total net sales |
|
158,058 |
|
|
132,491 |
|
|
299,414 |
|
|
268,229 |
|
|
|
|
|
|
||||||||
Cost of products sold |
|
124,316 |
|
|
127,345 |
|
|
237,594 |
|
|
233,188 |
|
|
|
|
|
|
||||||||
Gross profit |
|
33,742 |
|
|
5,146 |
|
|
61,820 |
|
|
35,041 |
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
||||||||
Selling |
|
10,303 |
|
|
10,277 |
|
|
19,659 |
|
|
19,690 |
|
General and administrative |
|
15,810 |
|
|
15,585 |
|
|
36,481 |
|
|
27,595 |
|
Total operating expenses |
|
26,113 |
|
|
25,862 |
|
|
56,140 |
|
|
47,285 |
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
7,629 |
|
|
(20,716 |
) |
|
5,680 |
|
|
(12,244 |
) |
|
|
|
|
|
||||||||
Other income: |
|
|
|
|
||||||||
Interest income |
|
702 |
|
|
954 |
|
|
1,503 |
|
|
1,992 |
|
Interest expense |
|
(23 |
) |
|
(22 |
) |
|
(45 |
) |
|
(38 |
) |
Other income, net |
|
592 |
|
|
396 |
|
|
1,688 |
|
|
649 |
|
Total other income, net |
|
1,271 |
|
|
1,328 |
|
|
3,146 |
|
|
2,603 |
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
8,900 |
|
|
(19,388 |
) |
|
8,826 |
|
|
(9,641 |
) |
|
|
|
|
|
||||||||
Income taxes |
|
1,919 |
|
|
(2,162 |
) |
|
1,717 |
|
|
(183 |
) |
|
|
|
|
|
||||||||
Net income (loss) and comprehensive income (loss) |
$ |
6,981 |
$ |
(17,226 |
) |
$ |
7,109 |
$ |
(9,458 |
) |
||
|
|
|
|
|
||||||||
Basic earnings (loss) per share |
$ |
0.44 |
|
$ |
(1.05 |
) |
$ |
0.45 |
|
$ |
(0.57 |
) |
|
|
|
|
|
||||||||
Diluted earnings (loss) per share |
$ |
0.43 |
|
$ |
(1.05 |
) |
$ |
0.44 |
|
$ |
(0.57 |
) |
Weighted average number of common shares outstanding - Basic |
15,957,073 |
16,370,674 |
15,951,342 |
16,494,828 |
||||||||
Weighted average number of common shares outstanding - Diluted |
16,272,905 |
16,370,674 |
16,231,621 |
16,494,828 |
||||||||
|
|
|
|
|
||||||||
Cash dividends per share |
$ |
0.11 |
|
$ |
0.18 |
|
$ |
0.19 |
|
$ |
0.42 |
|
STURM, RUGER & COMPANY, INC. |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||
(Dollars in thousands) |
||||||
|
Six Months Ended |
|||||
|
June 27, 2026 |
June 28, 2025 |
||||
|
|
|
||||
Operating Activities |
|
|
||||
Net income (loss) |
$ |
7,109 |
|
$ |
(9,458 |
) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
||||
Depreciation and amortization |
|
12,393 |
|
|
11,143 |
|
Stock-based compensation |
|
2,031 |
|
|
2,415 |
|
Excess and obsolescence inventory reserve |
|
702 |
|
|
40 |
|
Inventory and other asset write-off |
|
- |
|
|
17,002 |
|
Loss on disposal of assets |
|
1 |
|
|
185 |
|
Deferred income taxes |
|
2,613 |
|
|
(2,440 |
) |
Changes in operating assets and liabilities: |
|
|
||||
Trade receivables |
|
(12,602 |
) |
|
5,340 |
|
Inventories |
|
7,904 |
|
|
10,247 |
|
Assets held for sale |
|
(372 |
) |
|
- |
|
Trade accounts payable and accrued expenses |
|
4,534 |
|
|
(3,194 |
) |
Contract liabilities with customers |
|
465 |
|
|
91 |
|
Employee compensation and benefits |
|
11,411 |
|
|
(1,123 |
) |
Product liability |
|
(187 |
) |
|
355 |
|
Prepaid expenses, other assets and other liabilities |
|
72 |
|
|
(4,726 |
) |
Cash provided by operating activities |
|
36,074 |
|
|
25,877 |
|
|
|
|
||||
Investing Activities |
|
|
||||
Property, plant and equipment additions |
|
(8,059 |
) |
|
(6,746 |
) |
Net proceeds from the sale of assets |
|
3 |
|
|
- |
|
Purchases of short-term investments |
|
(40,112 |
) |
|
(63,793 |
) |
Proceeds from maturities of short-term investments |
|
27,384 |
|
|
81,165 |
|
Cash (used for) provided by investing activities |
|
(20,784 |
) |
|
10,626 |
|
|
|
|
||||
Financing Activities |
|
|
||||
Remittance of taxes withheld from employees related to share-based compensation |
(60 |
) |
(178 |
) |
||
Repurchase of common stock |
|
- |
|
|
(16,148 |
) |
Dividends paid |
|
(3,030 |
) |
|
(6,933 |
) |
Cash used for financing activities |
|
(3,090 |
) |
|
(23,259 |
) |
|
|
|
||||
Increase in cash and cash equivalents |
|
12,200 |
|
|
13,244 |
|
|
|
|
||||
Cash and cash equivalents at beginning of period |
|
18,451 |
|
|
10,028 |
|
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
30,651 |
|
$ |
23,272 |
|
Non-GAAP Financial Performance Measures
In an effort to provide investors with additional information regarding its financial results, the Company refers to various
The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to understanding its operating results and the ongoing performance of its underlying business, as Adjusted EBITDA assists investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its operating performance. The Company believes that this reporting provides better transparency and comparability to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate the Company’s financial performance.
The Company defines Adjusted EBITDA as earnings before interest, taxes, and depreciation and amortization (EBITDA), as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance, as itemized below. Specifically, the Company calculates Adjusted EBITDA by (i) adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, (ii) subtracting the amount of interest income that was included in net income from net income, (iii) subtracting income tax benefits, (iv) adding the amount of extraordinary cash and non-cash, non-operating expenses, and (v) subtracting non-recurring income or non-recurring gains that do not contribute directly to management’s evaluation of its operating results. The Company calculates Adjusted EBITDA margin by dividing Adjusted EBITDA by total net sales.
Adjusted EBITDA was
Adjusted EBITDA was
Non-GAAP Reconciliation – Adjusted EBITDA |
||||||||||||
Adjusted EBITDA |
||||||||||||
(Unaudited, dollars in thousands) |
||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
June 27,
|
June 28,
|
June 27,
|
June 28,
|
||||||||
|
|
|
|
|||||||||
Net income (loss) |
$ |
6,981 |
|
$ |
(17,226 |
) |
$ |
7,109 |
|
$ |
(9,458 |
) |
|
|
|
|
|
||||||||
Inventory and other asset write-off |
|
- |
|
|
17,002 |
|
|
- |
|
|
17,002 |
|
Income tax expense (benefit) |
|
1,919 |
|
|
(2,162 |
) |
|
1,717 |
|
|
(183 |
) |
Depreciation and amortization expense |
|
6,385 |
|
|
5,572 |
|
|
12,393 |
|
|
11,143 |
|
Interest income |
|
(702 |
) |
|
(954 |
) |
|
(1,503 |
) |
|
(1,992 |
) |
Interest expense |
|
23 |
|
|
22 |
|
|
45 |
|
|
38 |
|
Stockholder rights costs (a) |
|
1,234 |
|
|
- |
|
|
4,434 |
|
|
- |
|
Severance costs (b) |
|
737 |
|
|
3,181 |
|
|
3,260 |
|
|
3,181 |
|
Adjusted EBITDA |
$ |
16,577 |
|
$ |
5,435 |
|
$ |
27,455 |
|
$ |
19,731 |
|
Adjusted EBITDA margin |
|
10.5 |
% |
|
4.1 |
% |
|
9.2 |
% |
|
7.4 |
% |
Net income (loss) margin |
|
4.4 |
% |
|
(13.0 |
%) |
|
2.6 |
% |
|
(3.5 |
%) |
(a) |
|
Costs incurred in engaging with Beretta Holding on, amongst other things, Beretta Holding’s ownership of Company Common Stock, the Company’s October 14, 2025 Rights Agreement, negotiations concerning potential strategic cooperation between the Company and Beretta Holding, and in engaging a proxy solicitation firm and preparing a preliminary proxy statement associated with the 2026 Annual Meeting. |
(b) |
|
Costs incurred associated severance and related costs as part of an executed reduction-in-force as part of broader efforts to structurally align the organization to strategic priorities and the future operating model and are not indicative of ongoing operations. |
Non-GAAP Reconciliation – Adjusted EPS
Adjusted Diluted Earnings per Share
Adjusted diluted earnings per share (“Adjusted EPS”) is defined as (i) net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs, divided by (ii) the weighted average diluted common stock shares outstanding. The Company believes that Adjusted EPS is useful to understanding its operating results and the ongoing performance of its underlying business by identifying unusual and infrequent non-operating items that are not related to our ongoing operations and presenting our earnings independent of those items.
|
Three Months Ended |
Six Months Ended |
||||||||
|
June 27,
|
June 28,
|
June 27,
|
June 28,
|
||||||
|
|
|
|
|||||||
Diluted earnings per share |
$ |
0.43 |
$ |
(1.05 |
) |
$ |
0.44 |
$ |
(0.57 |
) |
|
|
|
|
|
||||||
Stockholder rights costs |
|
0.06 |
|
- |
|
|
0.15 |
|
- |
|
Organizational realignment |
|
0.03 |
|
0.20 |
|
|
0.20 |
|
0.20 |
|
Inventory and other asset write-off |
|
- |
|
0.91 |
|
|
- |
|
0.90 |
|
Product rationalization and SKU reduction |
- |
0.35 |
- |
0.34 |
||||||
Adjusted diluted earnings per share |
$ |
0.52 |
$ |
0.41 |
|
$ |
0.79 |
$ |
0.87 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260729922943/en/
Sturm, Ruger & Co., Inc.
700 S Ayersville Rd
www.ruger.com
203-259-7843
Source: Sturm, Ruger & Company, Inc.