Smith & Wesson Brands, Inc. (NASDAQ: SWBI) reported stronger Q4 earnings as new product demand, higher shipments and cash generation supported results.

Key Highlights

  • Net sales rose 26.7% to $178.4 million in Q4 from $140.8 million a year earlier.
  • EPS increased to $0.36 from $0.19 in the prior-year quarter.
  • Gross margin improved to 29.8%, up 100 basis points from last year.
  • Operating cash flow reached $74.6 million in Q4, supporting debt reduction and dividends.

Smith & Wesson Brands, Inc. (NASDAQ: SWBI) reported a sharp rise in fourth-quarter fiscal 2026 earnings, driven by higher firearm shipments, new product sales and improved manufacturing leverage. The US firearm manufacturer posted net sales of $178.4 million for the quarter ended April 30, up 26.7% from the same period last year.

GAAP net income increased to $16.2 million, or $0.36 per diluted share, compared with $8.6 million, or $0.19 per diluted share, a year earlier. Non-GAAP EPS also came in at $0.36, compared with $0.20 in the prior-year quarter.

The company said new products accounted for 37.5% of total fourth-quarter revenue. Handguns represented more than 80% of units shipped, with handgun unit sales into the sporting goods channel rising 23.2%. That growth outpaced a 1.1% increase in adjusted NICS, a widely used proxy for retail firearm demand.

Gross margin improved to 29.8% from 28.8% a year earlier. The company attributed the improvement to higher production volume, lower promotions and a price increase introduced earlier in the calendar year, partly offset by tariffs, volume-related costs and inventory reserves.

For the full fiscal year, net sales rose 10.4% to $523.8 million. GAAP net income was $18.5 million, or $0.41 per diluted share, while non-GAAP adjusted EBITDAS increased to $69.2 million.

Cash generation strengthened materially. The company generated $74.6 million in operating cash flow during the fourth quarter and $114.2 million for the full fiscal year. Free cash flow reached $69.7 million in Q4 and $90.4 million for fiscal 2026.

Balance sheet repair was also visible. Smith & Wesson repaid $60.0 million on its revolving credit facility during the year, reducing borrowings to $20.0 million at fiscal year-end from $80.0 million a year earlier. Cash and cash equivalents stood at $28.2 million.

The company expects fiscal 2027 firearm industry demand to be slightly above fiscal 2026 levels. It also expects first-quarter revenue to rise 15% to 20% from the prior year, with full-year revenue growth in the mid-single digits.