Sturm, Ruger & Company, Inc.

Second-quarter net sales were $158 million, up 19% versus Q2 2025. Adjusted EBITDA margin expanded to 10.5%. Diluted earnings were $0.43 per share compared with a diluted loss of $1.05 per share a year ago; adjusted diluted earnings were $0.52 per share versus $0.41 last year. Cash generated from operations was more than $17 million in the quarter and $36 million for the first six months, while year-to-date net sales reached $299 million, up 12%. Management said sales of new products were $81 million, or 29% of firearm sales for the period. For 2026, Ruger reiterated capital expenditures of approximately $30 million, and said Q3/Q4 spending should be more weighted to the back half of the year. No specific next-quarter revenue or EPS guidance was provided.

Todd Seyfert framed the quarter as a meaningful step forward in the 2026 plan, emphasizing stronger manufacturing execution, improved throughput, and rebuilding finished goods inventory without losing discipline. He said the newly established Ruger Business System is meant to create a common operating framework and support more consistent execution through the cycle. His tone was constructive and confident, but he also stressed that there is still important work ahead and that the company is focused on long-term operational improvement rather than short-term fixes.

Todd Seyfert highlighted the financial upside from favorable product mix, continued premiumization, and improved manufacturing efficiencies, which helped lift adjusted EBITDA margin to 10.5%. He pointed to $118 million of cash and short-term investments, a 3.3:1 current ratio, no debt, and $8 million of year-to-date capital expenditures, versus a full-year CapEx expectation of about $30 million. He also noted $3 million returned to shareholders via dividends in the first half and said capital will be deployed first into the business, with buybacks or M&A considered only if appropriate.

Analysts focused on the new-product cadence, the rise in units on back order, and how capital spending may be timed. Management said some Gen II rifles rolled off the new-product tracking window, and some launches were postponed in the near term so Ruger could prioritize current demand, especially heading into hunting season. On back orders, Seyfert said the company is focused on increasing output, adding people or shifts where needed, and matching production to the highest-demand lines. He also said CapEx is usually spent more heavily after midyear, so Q3 and Q4 should carry more of the spending.