Sturm, Ruger & Company, Inc. Reports Third Quarter 2025 Financial Results
NET SALES OF $126.8 MILLION
DILUTED EARNINGS OF $0.10 PER SHARE
CASH GENERATED FROM OPERATIONS OF $12.9 MILLION
CASH RETURNED TO SHAREHOLDERS OF $12.5 MILLION
DECLARES QUARTERLY DIVIDEND OF $0.04 PER SHARE
Sturm, Ruger & Company, Inc. (NYSE: RGR), one of America’s leading manufacturers of rugged, reliable firearms, today announced its financial results for the third quarter ended September 27, 2025.
For the third quarter, the company reported net sales of $126.8 million, compared to $122.3 million in the same period last year. Diluted earnings per share were $0.10, versus $0.28 per share in the third quarter of 2024.
The company’s third-quarter results reflect both operational headwinds and transitional investments aimed at positioning Ruger for sustainable long-term growth. On a pretax basis, Ruger reported a loss of $2.1 million, driven primarily by higher costs related to its newly acquired manufacturing facility, increased input and technology expenses, and greater sales promotional spending to support product repositioning initiatives.
Factors Impacting Third Quarter Performance
During the quarter, Ruger absorbed $1.9 million in acquisition and operating costs associated with the company’s new Hebron, Kentucky facility, which was acquired in July. The integration of this site is a key step in expanding capacity for new and existing firearm lines but temporarily increased costs during the period.
Additionally, the company experienced elevated materials and technology expenses, reflecting broader inflationary trends in the manufacturing sector and ongoing investment in production modernization. Sales promotional costs were also higher, as Ruger continued its strategic efforts to drive retail sell-through and enhance consumer engagement following a series of product rationalizations earlier in the year.
Despite these short-term pressures, CEO Todd Seyfert emphasized that the company’s realignment actions are yielding early signs of progress. “This quarter’s results reflect both the realities of a challenging macro environment and the actions we are taking to position Ruger for long-term growth,” Seyfert said. “Earlier this year, we took steps to strengthen our foundation, and we are now seeing the early benefits of that work—stronger topline performance, encouraging new product momentum, and growing market share.”
Income Tax Revision and Adjusted Earnings Impact
During the third quarter, the company revised its estimated annual effective income tax rate for 2025, resulting in the recognition of a $3.0 million increase to its income tax benefit for the nine months ended September 27, 2025. This adjustment boosted third quarter net income by approximately $0.19 per share.
Excluding this tax-related benefit, Ruger would have posted a net loss of approximately $0.09 per share for the quarter.
For the nine months ended September 27, 2025, Ruger reported net sales of $395.0 million and a net loss of $0.48 per share, compared to net sales of $389.9 million and diluted earnings of $1.15 per share for the same period in 2024.
Impact of Restructuring and Strategic Adjustments
Earlier in 2025, sturm, Ruger implemented a series of restructuring initiatives designed to streamline operations, sharpen its product portfolio, and align production capacity with current demand trends. These included product line rationalization, price repositioning, and an organizational realignment to enhance agility and efficiency.
While these steps temporarily weighed on profitability, they are expected to improve long-term performance. On an adjusted basis—excluding non-recurring restructuring expenses—Ruger reported diluted earnings of $0.65 per share for the nine-month period ended September 27, 2025.
By comparison, adjusted diluted earnings per share for the nine months ended September 28, 2024, were $1.22, excluding a $1.5 million reduction-in-force expense recorded in that year’s first quarter.
Dividend Declaration and Shareholder Return
The company’s Board of Directors declared a quarterly dividend of $0.04 per share, payable on November 28, 2025, to shareholders of record as of November 17, 2025. This dividend represents approximately 40% of the company’s net income for the quarter.
Sturm,Ruger also continued its track record of returning capital to shareholders. During the first nine months of 2025, the company returned $35.6 million through both dividends ($9.5 million) and share repurchases ($26.1 million). The repurchases totaled 730,665 shares of common stock at an average price of $35.60 per share.
Operational and Financial Highlights
- New product sales totaled $40.6 million, accounting for 33.7% of firearm sales in the third quarter. Notable contributors included the RXM pistol, Marlin lever-action rifles, and the Ruger American Centerfire Rifle Generation II.
New product sales are defined as those from major product introductions within the last two years. - Inventory movement reflected the company’s focused distribution management. Compared to the same quarter in 2024, Ruger’s finished goods inventory decreased by 15,500 units, while distributors’ inventory increased by 4,100 units, aligning with the company’s efforts to support retail channel health.
- Cash flow remained strong despite a lower profit environment. Ruger generated $38.8 million in cash from operations during the first nine months of 2025 and ended the quarter with $80.8 million in cash and short-term investments. The company maintained a current ratio of 3.5 to 1 and no outstanding debt, underscoring its balance sheet strength and financial flexibility.
- Capital expenditures for the first nine months of 2025 totaled $27.6 million, including $15.0 million allocated to the Hebron, Kentucky facility acquisition.
For the full year, Ruger expects total capital expenditures of approximately $35 million, focused on supporting new product development, expanding capacity for high-demand lines, upgrading manufacturing technology, and strengthening facility infrastructure.
New Product Momentum and Strategic Progress
Sturm,Ruger’s third quarter also marked important milestones in its product innovation strategy. The company successfully introduced and expanded several key firearm platforms that are generating positive consumer response and retail momentum.
Among these initiatives are:
- The launch of the Glenfield brand, a modern reinterpretation of one of America’s most beloved rifle lines.
- The expansion of the Ruger American Rifle Generation II product family, now offering improved ergonomics, upgraded materials, and enhanced performance.
- The broadening of Marlin caliber offerings, supporting continued growth of the Marlin brand under Ruger’s ownership.
These efforts demonstrate our commitment to leveraging Ruger’s heritage while continuing to innovate and modernize our portfolio,” Seyfert said. “More is still to come, including the expansion of the RXM pistol family, the return of the Ruger Red Label shotgun, and the shipment of new modern sporting rifles from our Hebron, Kentucky facility.”
Non-GAAP Financial Measures
To enhance investors’ understanding of its financial performance, the Company reports both GAAP (Generally Accepted Accounting Principles) and certain non-GAAP financial measures, specifically EBITDA and EBITDA margin. Management believes that these non-GAAP measures provide additional insight into the Company’s operating performance and its ability to generate cash flow and meet ongoing capital and working capital requirements.
The Company uses these measures internally to evaluate operating results and believes they offer investors improved transparency and comparability across reporting periods. However, these non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for, or superior to, GAAP financial measures. Furthermore, these metrics may not be directly comparable to similarly titled measures reported by other companies.
EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. The Company calculates EBITDA by:
- Adding back interest expense, income tax expense, and depreciation and amortization to net income,
- Subtracting interest income included in net income, and
- Excluding any one-time, non-cash, non-operating expenses.
EBITDA margin is calculated by dividing EBITDA by total net sales.
Management believes that these non-GAAP measures provide a meaningful view of the Company’s underlying profitability, operational efficiency, and ability to generate cash to support future investment and shareholder returns.
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.
source link: https://www.businesswire.com
