Sturm, Ruger & Company, Inc. Reports Second Quarter 2026 Results

Sturm, Ruger & Company, Inc. Reports Second Quarter 2026 Results MAYODAN, N.C.--( BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE: RGR) (“Ruger” or the “Company”) announced today its financial results for the second quarter 2026.

Second Quarter 2026 Financial Highlights

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 $1.2 million related to the Agreement negotiations during the quarter. Additionally, there were one-time expenses related to the transition of the Chief Financial Officer that were incurred in the quarter. These items do not, in the opinion of management, reflect the underlying performance of the core business.

The Company announced today that its Board of Directors declared a dividend of $0.21 per share for the second quarter for shareholders of record as of August 14, 2026, payable on August 28, 2026. This dividend equates to approximately 40% of adjusted net income of $0.52 per share for the second quarter of 2026.

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

“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:

“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 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.

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

Contingent liabilities

Stockholders’ Equity

Common Stock, non-voting, par value $1:

Authorized shares 50,000; none issued

Common Stock, par value $1:

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,

2026

June 28,

2025

June 27,

2026

June 28,

2025

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

Inventory and other asset write-off

17,002

Loss on disposal of assets

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

Employee compensation and benefits

11,411

(1,123

)

Product liability

(187

)

355

Prepaid expenses, other assets and other liabilities

(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

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 United States generally accepted accounting principles (“GAAP”) financial measures and three supplemental non-GAAP financial performance measures, Adjusted EBITDA, Adjusted EBITDA margin, and adjusted diluted earnings per share (“Adjusted EPS”), which management believes provides useful information to investors. These non-GAAP financial performance measures may not be comparable to similarly titled financial performance measures being disclosed by other companies. In addition, the Company believes that these non-GAAP financial performance measures have limitations as analytical tools, and, accordingly, should be considered in addition to, and not in lieu of, GAAP financial measures. The presentation of Adjusted EBITDA and Adjusted EPS should not be construed to imply that the Company’s future results will not be affected by unusual or non-recurring items.

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 $16.6 million for the three months ended June 27, 2026, an increase of 205.0% from $5.4 million in the comparable prior year period.

Adjusted EBITDA was $27.5 million for the six months ended June 27, 2026, an increase of 39.1% from $19.7 million in the comparable prior year period.

Non-GAAP Reconciliation – Adjusted EBITDA

Adjusted EBITDA

(Unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

June 27,

2026

June 28,

2025

June 27,

2026

June 28,

2025

Net income (loss)

6,981

(17,226

)

7,109

(9,458

)

Inventory and other asset write-off

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

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,

2026

June 28,

2025

June 27,

2026

June 28,

2025

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

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