Sturm, Ruger Reports Slight Decline in Net Sales but Increased Net Income in Q1 2025

Sturm, Ruger & Company, Inc. reported its financial results for the first quarter of 2025, revealing a slight decline in total net sales to $135.7 million, down from $136.8 million in the same period last year. The company's net firearms sales also decreased marginally to $135.2 million from $136.0 million. Despite the drop in sales, the company achieved a net income of $7.8 million, reflecting a 9.7% increase from $7.1 million in the prior year, driven by improved gross profit margins and effective cost management.

The company's gross profit for the quarter was $29.9 million, an increase of 1.7% compared to $29.4 million in the previous year. This improvement in gross profit was attributed to favorable fixed cost leverage resulting from increased production levels, despite a $0.8 million impact from deferred revenue related to sales promotions. The gross margin improved to 22.0%, up from 21.5% in the prior year, indicating enhanced operational efficiency.

In terms of operational metrics, Sturm, Ruger reported a decrease in estimated unit sell-through from independent distributors to retailers, which fell by 8% compared to the previous year. The National Instant Criminal Background Check System (NICS) background checks, a key indicator of firearm sales, also decreased by 4%. The company’s production levels increased by 2% from the previous quarter, with 372,000 units produced in Q1 2025. New product sales, including the RXM pistol and Super Wrangler revolver, accounted for $40.7 million, or 31.6% of total firearm sales.

Sturm, Ruger maintained a strong financial position with cash and short-term investments totaling $108.3 million at the end of the quarter. The company’s working capital was reported at $198.6 million, with a current ratio of 4.6 to 1. The company also continued its share repurchase program, buying back 79,200 shares for $3.0 million during the quarter. Looking ahead, Sturm, Ruger anticipates capital expenditures between $20 million and $30 million for new product introductions and upgrades to manufacturing facilities, while also planning to pay a dividend of 18 cents per share in May 2025.