Sturm, Ruger & Company, Inc. Reports Fourth Quarter and Full-Year 2025 Results
MAYODAN, N.C.--( BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE: RGR) (“Ruger” or the “Company”) announced today its financial results for the fourth quarter and full-year 2025.
Fourth Quarter 2025 Financial Highlights
Full-Year 2025 Financial Highlights
The Company also announced today that its Board of Directors declared a dividend of $0.08 per share for the fourth quarter for stockholders of record as of March 16, 2026, payable on March 31, 2026. This dividend equates to approximately 40% of net income.
“We are encouraged by our fourth quarter and full-year results, with revenues exceeding the same periods last year despite a challenging consumer environment. This performance reflects the strength of our product strategy and our continued focus on innovation,” said Todd Seyfert, President and Chief Executive Officer. “During the fourth quarter, we launched 65 new models, including three new platforms – the Glenfield by Ruger rifle, the Red Label III shotgun and the Harrier rifle – all of which are seeing strong consumer demand. Along with the continued expansion of Marlin rifles, the American Rifle Gen II family and the RXM lineup, our product pipeline is delivering as planned and enabling Ruger to outperform the broader market.”
Additional Highlights
“While our product momentum and demand remain strong, we must stay focused on improving our bottom-line performance. As I outlined last year, increasing profitability, aligning our manufacturing footprint with demand and right-sizing the business for the future are not optional – they are essential,” Seyfert added. “Over the past year, we have begun taking decisive actions to better balance capacity, control costs and position Ruger for long-term success. As we start 2026 our team continues to be focused on executing the plan, continuing to improve our cost structure and investing in the products and capabilities that will enable our growth and performance in the future.”
Today, the Company filed its Annual Report on Form 10-K for 2025. The financial statements included in this Annual Report on Form 10-K are attached to this press release.
The Annual Report on Form 10-K for 2025 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K 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 fourth quarter and full-year 2025 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.
Forward-Looking Statements
The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as 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 the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.
This press release includes certain non-GAAP financial measures, including EBITDA and adjusted earnings per share. These measures are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure are included in the tables accompanying this release.
STURM, RUGER & COMPANY, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
December 31,
2025
2024
Assets
Current Assets
Cash and cash equivalents
$
18,451
$
10,028
Short-term investments
74,082
95,453
Trade receivables, net
64,510
67,145
Gross inventories
113,166
149,417
Less LIFO reserve
(67,058
)
(66,398
)
Less excess and obsolescence reserve
(3,227
)
(6,533
)
Net inventories
42,881
76,486
Prepaid expenses and other current assets
11,680
9,245
Total Current Assets
211,604
258,357
Property, plant and equipment
506,799
477,622
Less allowances for depreciation
(426,702
)
(406,373
)
Net property, plant and equipment
80,097
71,249
Deferred income taxes
19,720
16,681
Other assets
30,576
37,747
Total Assets
$
341,997
$
384,034
STURM, RUGER & COMPANY, INC.
Consolidated Balance Sheets (CONTINUED)
(Dollars in thousands, except per share data)
December 31,
2025
2024
Liabilities and Stockholders’ Equity
Current Liabilities
Trade accounts payable and accrued expenses
$
34,122
$
35,750
Contract liabilities with customers
-
-
Product liability
964
431
Employee compensation and benefits
15,023
18,824
Workers’ compensation
4,638
5,804
Total Current Liabilities
54,747
60,809
Lease liability
1,158
1,747
Employee compensation
2,271
1,835
Product liability accrual
61
61
Contingent liabilities
-
-
Stockholders’ Equity
Common stock, non-voting, par value $1:
Authorized shares – 50,000; none issued
Common stock, par value $1:
Authorized shares – 40,000,000
2025 – 24,490,478 issued,
15,944,253 outstanding
2024 – 24,467,983 issued,
16,790,824 outstanding
24,490
24,468
Additional paid-in capital
55,356
50,536
Retained earnings
422,045
436,609
Less: Treasury stock – at cost
2025 – 8,546,225 shares
2024 – 7,677,159 shares
(218,131
)
(192,031
)
Total Stockholders’ Equity
283,760
319,582
Total Liabilities and Stockholders’ Equity
$
341,997
$
384,034
STURM, RUGER & COMPANY, INC.
Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share data)
Year ended December 31,
2025
2024
2023
Net firearms sales
$
543,474
$
532,608
$
540,746
Net castings sales
2,583
3,035
3,021
Total net sales
546,057
535,643
543,767
Cost of products sold
464,906
421,228
410,148
Gross profit
81,151
114,415
133,619
Operating Expenses (Income):
Selling
39,062
38,755
38,788
General and administrative
54,201
44,006
42,752
Other operating expense (income), net
187
-
(5
)
Total operating expenses
93,450
82,761
81,535
Operating (loss) income
(12,299
)
31,654
52,084
Other income:
Royalty income
1,401
857
658
Interest income
3,259
4,885
5,465
Interest expense
(94
)
(102
)
(205
)
Other income, net
572
481
822
Total other income, net
5,138
6,121
6,740
(Loss) income before income taxes
(7,161
)
37,775
58,824
Income taxes
(2,770
)
7,212
10,609
Net (loss) income and comprehensive (loss) income
$
(4,391
)
$
30,563
$
48,215
Basic (Loss) Earnings Per Share
$
(0.27
)
$
1.79
$
2.73
Diluted (Loss) Earnings Per Share
$
(0.27
)
$
1.77
$
2.71
Weighted average number of common shares outstanding – Basic
16,235,995
17,088,205
17,676,955
Weighted average number of common shares outstanding – Diluted
16,235,995
17,270,101
17,811,218
Cash Dividends Per Share
$
0.62
$
0.69
$
6.27
STURM, RUGER & COMPANY, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year ended December 31,
2025
2024
2023
Operating Activities
Net (loss) income
$
(4,391
)
$
30,563
$
48,215
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization
22,871
22,063
22,383
Stock-based compensation
5,020
4,342
3,989
Excess and obsolescence inventory reserve
(767
)
413
1,308
Inventory write-off
17,002
-
-
Loss (gain) on disposal of assets
187
-
(5
)
Deferred income taxes
(3,039
)
(4,705
)
(5,867
)
Changes in operating assets and liabilities:
Trade receivables
2,635
(7,281
)
5,585
Inventories
21,191
2,911
(16,125
)
Trade accounts payable and accrued expenses
(2,746
)
3,789
(4,406
)
Contract liability with customers
-
(149
)
(882
)
Employee compensation and benefits
(3,416
)
(5,869
)
(6,469
)
Product liability
533
(188
)
372
Prepaid expenses, other assets and other liabilities
(772
)
9,615
(13,026
)
Income taxes receivable/payable
-
-
(1,171
)
Cash provided by operating activities
54,308
55,504
33,901
Investing Activities
Property, plant and equipment additions
(15,846
)
(20,821
)
(15,796
)
Purchase of Anderson Manufacturing assets
(15,010
)
-
-
Purchases of short-term investments
(108,905
)
(138,885
)
(192,627
)
Proceeds from maturity of short-term investments
130,276
145,917
249,274
Net proceeds from sale of assets
-
-
5
Cash (used for) provided by investing activities
(9,485
)
(13,789
)
40,856
Financing Activities
Dividends paid
(10,122
)
(11,829
)
(110,789
)
Repurchase of common stock
(26,100
)
(34,408
)
(11,811
)
Payment of employee withholding tax related to share-based compensation
(178
)
(624
)
(2,156
)
Cash used for financing activities
(36,400
)
(46,861
)
(124,756
)
Increase (decrease) in cash and cash equivalents
8,423
(5,146
)
(49,999
)
Cash and cash equivalents at beginning of year
10,028
15,174
65,173
Cash and cash equivalents at end of year
$
18,451
$
10,028
$
15,174
Non-GAAP Financial Measure
In an effort to provide investors with additional information regarding its results, the Company refers to various United States generally accepted accounting principles (“GAAP”) financial measures and three non-GAAP financial measures, EBITDA, EBITDA margin, and adjusted diluted earnings per share (“Adjusted EPS”), which management believes provides useful information to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that the non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. The Company believes that EBITDA and EBITDA margin are useful to understanding its operating results and the ongoing performance of its underlying business, as EBITDA provides information on the Company’s ability to meet its capital expenditure and working capital requirements, and is also an indicator of profitability. The Company believes that this reporting provides better transparency and comparability to its operating results. 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 per share independent of those items. The Company uses both GAAP and non-GAAP financial measures to evaluate its financial performance.
Non-GAAP Reconciliation – EBITDA and EBITDA Margin
EBITDA
(Unaudited, dollars in thousands)
Year ended December 31,
2025
2024
Net income
$
(4,391
)
$
30,563
Inventory rationalization
17,002
-
Income tax (benefit) expense
(2,770
)
7,212
Depreciation and amortization expense
22,871
22,063
Interest expense
94
102
Interest income
(3,259
)
(4,885
)
EBITDA
$
29,547
$
55,055
EBITDA margin
5.4
%
10.3
%
Net income margin
(0.8
)%
5.7
%
EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. The Company calculates this by 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, and subtracting the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company’s EBITDA calculation also excludes certain one-time non-cash, non-operating expenses.
Non-GAAP Reconciliation – Adjusted EPS
Adjusted Diluted Earnings per Share
Adjusted diluted earnings per share 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.
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Diluted earnings per share
$
0.21
$
0.62
$
(0.27
)
$
1.77
Inventory rationalization
-
-
0.63
-
Product rationalization and SKU reduction
-
-
0.24
-
Organizational realignment
-
-
0.12
0.07
Stockholder rights issues
0.04
-
0.04
-
Senior leadership transition
0.01
-
0.08
0.02
Adjusted diluted earnings per share
$
0.26
$
0.62
$
0.84
$
1.86