Ruger Q3 Gross Margin Rises to 20.7% From 15.1% a Year Earlier

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter net sales were $147.6 million, and diluted earnings reached $0.36 a share after a year-earlier $0.10.

Sturm, Ruger & Company, Inc. (RGR) posted third-quarter net sales of $147.6 million, a 16.5% increase from $126.8 million a year earlier, as firearms sales carried the bulk of the total. Diluted earnings were $0.36 a share, compared with $0.10 a share in the year-ago quarter. Adjusted diluted earnings were $0.44 a share.

The firearms maker said average selling price remained strong both year-over-year and sequentially, reaching approximately $377 for the quarter. Net firearms sales were $146.8 million, versus $126.1 million a year earlier; net castings sales were $0.8 million.

Profitability improved more sharply than the top line. Gross margin increased to 20.7%, up from 15.1% in the third quarter of 2025, which the company attributed to improved cost control, product mix and operational execution. Operating income was $6.0 million, versus an operating loss of $3.5 million a year earlier. Net income was $5.8 million, up 266.9% from $1.6 million. Adjusted EBITDA was $14.3 million, and adjusted EBITDA margin was 9.7%. Net income margin was 3.9%.

Selling expenses were $8.1 million. General and administrative expenses were $16.4 million. Stockholder rights costs of $1.8 million, or $0.08 a share, were added back in the third-quarter Adjusted EBITDA and adjusted EPS reconciliations.

Sequential sales declined from $158.1 million in the second quarter, and year-over-year growth slowed to 16.5% from 19% in that prior quarter. The board declared a quarterly dividend of $0.18 a share, down from $0.21 in the second quarter, for shareholders of record as of November 20, 2026, payable December 4, 2026. The company said the dividend equates to approximately 40% of adjusted net income of $0.44 a share.

President and Chief Executive Officer Todd Seyfert said the quarter reflected continued operational progress, with year-over-year and sequential sales growth and year-over-year and sequential improvement in profitability. The company said it remained focused on translating top-line growth into stronger bottom-line performance through disciplined cost management, improved product mix and enhanced operational execution.

Ruger continued advancing initiatives under its Ruger 2030 strategy. It expanded implementation of the Ruger Business System and implemented a new Oracle enterprise resource planning platform during the quarter. In October it announced it would suspend production of a limited number of product families that collectively represent approximately $25 million of total revenues and generate minimal to no profitability. The company said suspension does not necessarily mean permanent discontinuation and that it intends to evaluate opportunities to redesign and reposition select products.

Through the first nine months of 2026, net sales were $447 million, a 13% increase from $395 million in the corresponding 2025 period. Diluted earnings were $0.79 a share for the nine months, compared with a diluted loss of $0.48 a share a year earlier. Adjusted diluted earnings for the nine months were $1.23 a share, compared with $0.65 a share in the same 2025 period. Cash generated from operations in the first nine months totaled $24.2 million, compared with $38.8 million in 2025. As of September 26, 2026, cash and short-term investments totaled $101.4 million. The company said its current ratio is 3.0 to 1 and it has no debt. Capital expenditures for the nine months totaled $8.9 million; the company expects capital expenditures to total approximately $30 million for the year.

Seyfert said that as the company approaches the end of 2026 it is increasingly confident in the progress it is making, and that it is growing the top line, improving profitability and making investments in systems, manufacturing capabilities and products.