斯特姆-魯格第二季淨銷售增19% 調整後每股盈利0.52美元

EX-99.1
2
ex99-1.htm
EX-99.1

 

 

 

 

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

 

Delivered Second Quarter Net Sales of $158.1 Million

 

Earnings per Share was $0.43, Adjusted Earnings
per Share was $0.52

 

Generated $17.3 Million of Cash from Operations

 

Declares Quarterly Dividend of $0.21 Per Share

 

MAYODAN, NC – July 29, 2026 – 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

 

·The Company achieved net sales of $158.1 million, a 19% increase over the $132.5 million achieved in the corresponding period in 2025.

·Diluted earnings were $0.43 per share compared to $1.05 diluted loss per share in the corresponding period in 2025.

·On an adjusted basis, diluted earnings for the second quarter of 2026 were $0.52 per share compared to $0.41 per share in the corresponding
period in 2025.

·Average selling price increased 10% to $384 during the quarter, while improved product mix and operational execution contributed to
a 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 was 10.5%

 

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 $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

 

·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 a 5% 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 for the period, a 12% increase over the $268.2 million achieved in the corresponding
period in 2025.

·Diluted earnings were $0.44 per share for the period compared to $0.57 diluted loss per share in the corresponding period in 2025.

·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 per share compared
to adjusted earnings of $0.87 per share for the first half of 2025. The 2025 adjusted earnings exclude the inventory and related other
asset write-off, product rationalization, and organizational realignment incurred in the second quarter of 2025.

  

  

 

·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, or 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, compared to $25.9 million in 2025.

·As of June 27, 2026, Ruger’s cash and short-term investments totaled $117.5 million. The Company’s current ratio is 3.3
to 1 and there is no debt.

·For the period, capital expenditures totaled $8.1 million. The Company expects capital expenditures to total approximately $30 million
for the year for continued investments in new product introductions, expanded capacity for product lines in greatest demand, upgraded
manufacturing capabilities and strengthened facility infrastructure.

·In the first six months, the Company returned $3.0 million to its shareholders through the payment of quarterly dividends. The Company
did not repurchase any shares of its common stock during the period.

“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 
  61  
  61 

 
   
     
    

 
 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  
  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 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  
  —  
  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, 
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  
  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