RGR · Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company reported first quarter 2026 net sales of $141.4 million, a 4.1% increase from $135.7 million in the same period last year, driven by strong demand for new products which accounted for $51.6 million or 41% of firearm sales. However, GAAP diluted earnings per share fell sharply to $0.01 from $0.46, primarily due to $3.2 million in legal and advisory fees related to the Strategic Cooperation Agreement with Beretta Holding S.A. and $2.5 million in severance costs from a reduction-in-force. Excluding these non-recurring items, adjusted diluted EPS was $0.27, down from $0.46. Gross profit decreased to $28.1 million from $29.9 million, with gross margin declining to 19.9% from 22.0%, reflecting higher cost of products sold. Operating income swung to a loss of $1.9 million from a profit of $8.5 million. The company generated $18.8 million in cash from operations and ended the quarter with $105.2 million in cash and short-term investments, no debt, and a current ratio of 3.5 to 1. Capital expenditures totaled $4.8 million, with full-year guidance of $30 million. Management highlighted that the temporary expenses are expected to roll off, improving visibility into underlying earnings power. The company declared a quarterly dividend of $0.11 per share, payable May 29, 2026.