Earnings

Ruger's Sales Growth Reaccelerates After a Slow First Quarter

The Tip Desk · July 30, 2026 · 3 min read

Second-quarter net sales reached $158.1 million, up 19% from a year earlier, and diluted earnings were $0.43 a share after a $1.05 loss a year earlier.

Sturm, Ruger & Company, Inc. (RGR) reported a sharp reacceleration in sales growth in the second quarter of 2026, after a milder year-over-year increase in the first quarter. Net sales were $158.1 million, up 19% from $132.5 million a year earlier, following a 4.1% year-over-year rise in the first quarter.

The firearms maker also swung to a profit. Diluted earnings were $0.43 a share, compared with a $1.05 diluted loss a share in the year-ago quarter. Adjusted diluted earnings were $0.52 a share versus $0.41 a share a year earlier.

Gross profit was $33.7 million, versus $5.1 million a year earlier. Operating income was $7.6 million, versus a $20.7 million operating loss a year earlier. Adjusted EBITDA was $16.6 million, with an adjusted EBITDA margin of 10.5%. Net income margin was 4.4%.

Average selling price increased 10% to $384. Improved product mix and operational execution contributed to a 4% increase in adjusted gross margin versus the year-ago quarter.

President and Chief Executive Officer Todd Seyfert said the quarter showed sequential and year-over-year sales growth, improved bottom-line results, and improved manufacturing execution after first-quarter production constraints. He said the company continued executing its 2026 Plan, with strong core product demand and the introduction of the Ruger Business System as a long-term operating framework.

Estimated sell-through from independent distributors to retailers increased 19% from the year-ago quarter, exceeding a 5% increase in adjusted NICS in the same period. Compared with the second quarter of 2025, finished-goods inventories decreased 100,100 units and distributors’ inventories decreased 45,800 units. Seyfert said adjusted NICS remained above prior-year levels during the quarter and that improved manufacturing execution allowed the company to begin rebuilding finished-goods inventory.

During the quarter the company incurred about $1.2 million of legal, professional and advisory fees related to negotiating and finalizing a Strategic Cooperation Agreement with Beretta Holding S.A., announced May 4, 2026, plus one-time expenses tied to a transition of the chief financial officer. Management said those items do not reflect the underlying performance of the core business.

Cash generated from operations was $17.3 million in the second quarter. The board declared a quarterly dividend of $0.21 a share, payable August 28, 2026, which the company said equates to about 40% of adjusted net income of $0.52 a share.

For the first six months of 2026, net sales were $299.4 million, up 12% from $268.2 million a year earlier. Diluted earnings were $0.44 a share for the period, versus a $0.57 diluted loss a share a year earlier. Adjusted diluted earnings were $0.79 a share, versus $0.87 a share in the first half of 2025. Cash generated from operations in the first half totaled $36.1 million, compared with $25.9 million in 2025.

Sales of new products, including the RXM pistol, Marlin 1894 lever-action rifles, American Centerfire Rifle Generation II, Glenfield rifles, Harrier rifles and the Ruger Red Label III Shotgun, represented $80.9 million, or 29%, of firearm sales for the six-month period.

As of June 27, 2026, cash and short-term investments totaled $117.5 million. The current ratio was 3.3 to 1 and there was no debt. Capital expenditures for the six months totaled $8.1 million. The company expects capital expenditures to total approximately $30 million for the year for new product introductions, expanded capacity, upgraded manufacturing and facility infrastructure. It returned $3.0 million to shareholders through quarterly dividends in the first six months and did not repurchase any shares.

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