RGR · Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company’s Q1 2026 results reflect a dual narrative: robust top-line momentum amid near-term earnings pressure from strategic and operational investments. Revenue growth of 4% to $141 million — the fourth straight quarter of YoY expansion — was underpinned by a 28% surge in units ordered and a 20% increase in backlog to $330 million, signaling sustained demand strength. Critically, new products drove $51.6 million or 41% of firearm sales, validating Ruger’s innovation pipeline across rifles, shotguns, and pistols. However, GAAP diluted EPS fell sharply to $0.01 from $0.46 in Q1 2025 due to $7.4 million in nonrecurring expenses: $3.2 million tied to the Beretta cooperation agreement, $2.5 million from a February reduction in force, and $1.7 million in retention award accruals. Adjusted EPS of $0.27 — though down from prior-year GAAP EPS — reflects continued progress on operational efficiency and marks the fourth consecutive quarter of improving adjusted operating profit. The strategic cooperation with Beretta Holding, Ruger’s largest shareholder, resolves potential governance disruption and brings industry expertise without dilution or control change, enhancing long-term execution clarity. Meanwhile, the CFO transition signals leadership continuity as Andrew Wieland assumes financial stewardship following Tom Dineen’s three-decade tenure. Capital discipline remains evident: $19 million in operating cash flow, $5 million in YTD capex against a $30 million full-year plan, and a debt-free balance sheet with $105 million in highly liquid short-term investments as of March 28, 2026. Management explicitly attributes recent headwinds — including ~30,000-unit production shortfall from severe weather — to transitory factors, reaffirming confidence in the Ruger 2030 strategy centered on profitable expansion, ecosystem-driven accessory growth, and capacity alignment with demand.