Sturm, Ruger Reports $17.2 Million Net Loss Amid Strategic Changes and Increased Costs

Sturm, Ruger & Company, Inc. reported a net loss of $17.2 million for the three months ended June 28, 2025, a significant decline from a net income of $8.3 million in the same period last year. For the first half of 2025, the company recorded a net loss of $9.5 million, compared to a net income of $15.3 million in the prior year. Total net sales for the second quarter increased slightly to $132.5 million, up from $130.8 million, while net firearms sales rose to $131.6 million from $129.8 million. However, the gross profit plummeted to $5.1 million, down 82.3% from $29.2 million a year earlier, primarily due to increased costs associated with inventory rationalization and the write-off of discontinued models.

The company’s financial performance reflects several strategic changes, including a leadership transition and an organizational realignment aimed at improving operational efficiency. These initiatives resulted in increased general and administrative expenses, which rose by 45.7% to $15.6 million in the second quarter. Additionally, the company undertook an inventory rationalization process that led to a $17 million increase in the cost of sales, reflecting the write-off of excess and obsolete inventory. The impact of these changes contributed to a diluted earnings per share loss of $1.05 for the quarter.

Operationally, Sturm, Ruger reported a decrease in estimated unit sell-through from independent distributors to retailers, which fell by 4% in the first half of 2025 compared to the previous year. The National Instant Criminal Background Check System (NICS) background checks, a proxy for firearm sales, also decreased by 4%. Despite these challenges, sales of new products, including the RXM pistol and Marlin lever-action rifles, accounted for 33.5% of firearm sales in the second quarter, totaling $42.2 million.

Looking ahead, Sturm, Ruger announced the acquisition of Anderson Manufacturing for $16.4 million, which is expected to enhance its production capabilities and expand its product offerings. The company plans to continue investing in new product introductions and manufacturing upgrades, with capital expenditures anticipated to increase in the latter half of 2025. The Board of Directors has also authorized a dividend of 16 cents per share, reflecting a commitment to returning value to shareholders despite the recent financial challenges. The company’s current cash and short-term investments total $101.4 million, providing a solid liquidity position as it navigates these operational changes.