10-Q · May 6, 2026
Sturm, Ruger & Company, Inc. posted Q1 2026 results with revenue of $141.4 million, up 4.1% year-over-year, but reported a steep drop in diluted EPS to $0.10, down 98.7% from $7.8 million in the previous year.…
Earnings analysis · 10-Q
RGR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Ruger delivered a substantial Q2 recovery: revenue increased 19.3% year over year to $158.1 million, gross margin rose 17.4 percentage points to 21.3%, and diluted EPS recovered to $0.41 from a $1.05 loss. Sequentially,…
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Ruger delivered a substantial Q2 recovery: revenue increased 19.3% year over year to $158.1 million, gross margin rose 17.4 percentage points to 21.3%, and diluted EPS recovered to $0.41 from a $1.05 loss. Sequentially, revenue increased about 11.9% and operating margin improved from approximately -1.4% to 4.8%, reflecting higher firearms demand, new-product contribution, and manufacturing leverage. Cash generation and liquidity improved, though elevated governance/restructuring expenses, weak castings sales, and higher distributor inventory remain watch items.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.41
What stood out
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Sales rebound accelerates in Q2
Q2 revenue rose 19.3% year over year to $158.1 million from $132.5 million and increased approximately 11.9% sequentially from implied Q1 sales of $141.3 million. Firearms sales increased 19.8% to $157.7 million.
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Gross margin recovered sharply
Gross margin expanded to 21.3% from 3.9% a year earlier and roughly 19.9% in Q1. Gross profit rose to $33.7 million from $5.1 million, aided by higher volume, fixed-cost leverage, and no repeat of prior-year inventory rationalization write-offs.
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Profitability turned positive
Operating income was approximately $7.6 million, or a 4.8% operating margin, versus an approximately $20.8 million operating loss and a -15.6% margin a year ago. Diluted EPS recovered to $0.41 from a $1.05 loss in Q2 2025 and $0.01 in Q1 2026.
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New products underpin firearms growth
New products generated $29.3 million, or 19.8% of Q2 firearm sales. First-half new-product sales were $80.9 million, or 28.9% of firearms sales, supporting the improved sales mix.
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Cash conversion strengthened
First-half operating cash flow increased to $36.1 million from $25.9 million. Less $8.1 million of capital expenditures, implied first-half free cash flow was $28.0 million; capex equaled 2.7% of $299.4 million in first-half revenue.
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Strong liquidity and no revolver usage
Liquidity remained substantial: cash and short-term investments were $117.5 million, working capital was $168.3 million, and the $40 million revolving credit facility was unused at June 27, 2026.
What to watch
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Castings revenue declined sharply
The castings segment contracted 59.0% year over year, with quarterly sales falling to $0.4 million from $0.9 million. While small, it remains a negative offset to the $26.1 million increase in firearms sales.
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Transition and governance costs weigh on earnings
First-half G&A rose 32.2% to $36.4 million, including $4.4 million of Beretta/proxy-related costs, $3.2 million of severance costs, and a $1.7 million one-time share-based-compensation expense. Management expects Beretta-related costs to be limited in duration, but says additional near-term expenses may occur.
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Distributor inventory remains a channel risk
Distributor inventory increased by 12,600 units during the first half of 2026, while company and distributor inventory totaled 225,500 units at quarter-end. Channel inventory growth could pressure future distributor orders if retail sell-through slows.
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Raw-material inflation and supply risk
Management cites potential raw-material supply constraints and inflation as risks to purchase prices and production. The company produced 419,300 units in Q2, up 22% sequentially, increasing exposure to any interruption in material availability.
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No updated risk factors; firearms concentration persists
The filing states there were no material changes to risk factors versus the 2025 Form 10-K. Firearms represented approximately 99% of sales, leaving results highly concentrated in one regulated, cyclical end market.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management expects 2026 capital expenditures of $20 million to $30 million, principally for new-product introductions and manufacturing equipment/facility upgrades.
Earlier filings 4
10-K · March 2, 2026
Sturm, Ruger reported firearms net sales of $543.5 million in 2025, up from $532.6 million in 2024, with rifles ($338.2 million) and pistols ($141.9 million) driving the increase while revolver sales fell to $39.2…
10-K · February 19, 2025
Sturm, Ruger & Company is a U.S.-centric firearms manufacturer whose 2024 net sales were approximately $536.6 million (firearms $533.6 million; castings $3.0 million). The company relies on three core product categories…
10-Q · May 7, 2024
Sturm, Ruger reported Q1 net sales of $136,820,000 and diluted EPS of $0.40, with gross margin of 21.5% and operating margin of 5.5%, all down vs. the prior-year quarter. Operating cash flow was positive at $7,345,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.