Sturm, Ruger & Company, Inc. reported its financial results for the first quarter of 2026, revealing total net sales of $141.4 million, a 4.1% increase from $135.7 million in the same period last year. The company's net firearms sales rose to $140.9 million, up 4.2% from $135.2 million in the prior year. However, the company experienced a decline in gross profit, which fell to $28.1 million from $29.9 million, resulting in a gross margin decrease from 22.0% to 19.9%. The net income for the quarter was $128,000, a significant drop of 98.4% compared to $7.8 million in the first quarter of 2025.
The financial performance was impacted by several factors, including increased general and administrative expenses, which surged by 72.1% to $20.7 million, primarily due to $3.2 million in legal fees related to a strategic cooperation agreement with Beretta Holding S.A. and $2.5 million in severance costs from a reduction-in-force. The company also reported a loss from operations of $1.9 million, compared to an operating income of $8.5 million in the previous year. The effective tax rate for the quarter was notably high at 271.6%, influenced by the company's low earnings and the impact of tax credits.
In terms of operational developments, Sturm, Ruger launched several new products, contributing $51.6 million, or 41% of total firearm sales for the quarter. The company reported a 3% increase in estimated sell-through of its products from independent distributors to retailers, which outpaced a 2% increase in adjusted National Instant Criminal Background Check System (NICS) checks. The company’s finished goods inventory decreased by 95,800 units, indicating strong retail demand for its new products. The Hebron Facility is currently operating at target capacity.
Strategically, the company has undergone significant organizational changes, including the appointment of a new Chief Financial Officer, Andrew T. Wieland, and the retirement of three board members, with three new directors added to enhance operational expertise. The company also executed a reduction-in-force to align its structure with strategic priorities. Looking ahead, Sturm, Ruger anticipates continued focus on operational efficiency and product innovation, while managing the costs associated with its recent strategic initiatives. The company has authorized a dividend of 11 cents per share, reflecting its commitment to returning value to shareholders despite the recent financial challenges.
About STURM RUGER & CO INC
Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms including rifles, pistols, and revolvers primarily for the domestic sporting, hunting, and law enforcement markets. The company emphasizes product innovation, quality, and domestic production, serving wholesale distributors and end-users. It also produces investment castings and MIM parts for internal use and sale. Ruger’s core value is delivering reliable, high-quality firearms through a vertically integrated business model.
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