Key Highlights

  • Net sales were USD 147.6 million against a USD 131.03 million estimate and USD 126.8 million a year earlier.
  • Adjusted EPS of USD 0.44 compares with a USD 0.37 estimate, while GAAP diluted EPS was USD 0.36.
  • Gross Margin was 20.7% against 15.1% a year earlier; adjusted EBITDA was USD 14.3 million against USD 2.9 million.
  • The board declared an 18 cent Dividend payable December 4, 2026; cash and short-term investments were USD 101.4 million.

Sturm, Ruger & Company (NYSE:RGR) reported third quarter net sales of USD 147.6 million, against USD 126.8 million a year earlier and an estimate of USD 131.03 million. Adjusted diluted EPS was USD 0.44 against an estimate of USD 0.37, while GAAP diluted EPS was USD 0.36.

Revenue: Firearms Sales and Demand Indicators

Net firearms sales were USD 146.8 million against USD 126.1 million, up 16.4% as stated, and castings sales were USD 0.8 million against USD 0.7 million. Units shipped were 402,300 at an average sales price of USD 348, against 361,600 units at USD 336 a year earlier.

Estimated sell-through from distributors to retailers was 355,800 units against 370,600 a year earlier. Ending Backlog was USD 261.7 million against USD 227.0 million, and distributor inventory was 221,400 units against 211,700. New product sales were USD 99.5 million for the nine months, which the company described as 24% of firearm sales.

Profit and Margins: Cost Control and Beretta-Related Expenses

Gross profit was USD 30.5 million against USD 19.2 million. Management credited cost control from the previously announced organizational realignment and the leveraging of fixed costs over higher production. General and administrative expense was USD 16.4 million against USD 13.5 million, including USD 1.8 million of legal fees tied to the Beretta Holding agreement.

Net income was USD 5.8 million against USD 1.6 million, and adjusted EBITDA margin was 9.7% against 2.2%. For the nine months, the company said proxy contest costs of USD 6.3 million, or USD 0.29 per share, and severance and realignment costs of USD 3.2 million, or USD 0.15 per share, reduced non-GAAP results by USD 0.44 per share.

The company entered a cooperation agreement with Beretta Holding S.A. in May, and on September 16 its stockholder rights plan was terminated ahead of the scheduled October 13 expiry. A new chief financial officer was appointed in April.

Cash, Dividend and Capital Spending

Cash and short-term investments totaled USD 101.4 million at quarter end, and the unsecured USD 40 million Credit facility, which expires January 7, 2028, was unused. Operating Cash Flow for the nine months was USD 24.2 million against USD 38.8 million, which the company linked to shipment timing and an ERP implementation. Capital expenditures were USD 8.9 million against USD 27.6 million, and the company said 2026 capital spending could range from USD 20 million to USD 30 million.

Dividends paid in the nine months were USD 6.4 million. The board authorized an 18 cent dividend for stockholders of record on November 20, payable December 4, which the company described as approximately 40% of third quarter adjusted diluted Earnings of 44 cents per share.

Benchmarks Ahead

Net sales of USD 147.6 million sit alongside a gross margin of 20.7%, adjusted EBITDA of USD 14.3 million and an ending backlog of USD 261.7 million.

The dated and stated items include the December 4 dividend payment, the possible USD 20 million to USD 30 million of 2026 capital spending, and a definitive agreement to sell the former Southport, Connecticut headquarters for USD 5.9 million, with closing targeted for the fourth quarter of 2026. Management described Beretta-related costs as limited in duration, though some additional expenses may arise in the near term, and pointed to its Ruger 2030 plan as the framework for its priorities.