STURM RUGER & CO INC
For the period ended Jun 28, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Jul 30, 2025
RGR$49.93+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-04-30.
0001174947-25-000659
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-07-30.
0001174947-25-001113
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 64 previous paragraphs and 78 current paragraphs.
41 unchanged; 21 reworded; 9 added; 2 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 15 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
During the six months ended June 28, 2025 the Company has undertaken several strategic initiatives to enhance its operational and market positioning. These initiatives include:
Current report
These initiatives impacted the results of operations for the three month period ending June 28, 2025 as follows, which reduced diluted earnings per share $1.46:
Current report
The decreased gross profit for the six months ended June 28, 2025 is attributable to inventory rationalization write-offs and the aforementioned sales reductions, partially off-set by favorable deleveraging of fixed costs resulting from increased production.
Current report
The increase in general and administrative expenses for the three months ended June 28, 2025 was primarily attributable to expenses incurred due to the Company’s leadership transition and organizational realignment.
Current report
The increase in general and administrative expenses for the six months ended June 28, 2025 was primarily attributable to expenses incurred due to the Company’s leadership transition and organizational realignment. This action is part of the Company’s initiatives to reallocate its resources and cost structure into prioritized areas that will drive long-term growth and improve margins. As the Company focuses on these goals, it will continue to pursue opportunities to reduce or eliminate investment in areas of lower focus.
Current report
Consolidated net loss was $(9.5) million for the six months ended June 28, 2025, a change of (161.6%) from $15.3 million consolidated net income in the comparable prior year period.
Current report
EBITDA was $2.3 million for the three months ended June 28, 2025, a decrease of 84.4% from $14.5 million in the comparable prior year period.
Current report
For the six months ended June 28, 2025 EBITDA was $16.6 million, a decrease of 40.9% from $28.0 million in the comparable prior year period.
Current report
On July 1, 2025 the Company announced the asset purchase of Anderson Manufacturing, a manufacturer of firearms and firearm accessories based in Hebron, Kentucky for $16.4 million. This strategic purchase includes Anderson’s manufacturing facility and machinery and will provide Ruger the opportunity to work with a skilled and experienced workforce, strengthening its production capabilities and expanding its product offerings.
Removed paragraphs (2)
Previous report
The slight decrease in general and administrative expenses for the three months ended March 29, 2025 was primarily attributable to the initial expense of the prior year’s reduction in force, partially offset by increased professional service costs.
Previous report
EBITDA was $14.3 million for the three months ended March 29, 2025, an increase of 5.6% from $13.5 million in the comparable prior year period.
Reworded paragraphs (21)
Previous wording
Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales accounted for approximately 5% of total sales for each of the three month periods ended March 29, 2025 and March 30, 2024. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market.
Current wording
Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales accounted for approximately 5% of total sales for each of the six month periods ended June 28, 2025 and June 29, 2024. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market.
Previous wording
The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 8% in the first quarter of 2025 compared to the prior year period. For the same period, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation (“NSSF”)) decreased 4%. Estimated sell-through from the independent distributors to retailers and total adjusted NICS background checks for the trailing five quarters follow:
Current wording
The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 4% in the first half of 2025 compared to the prior year period. For the same period, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation (“NSSF”)) decreased 4%. Estimated sell-through from the independent distributors to retailers and total adjusted NICS background checks for the trailing six quarters follow:
Previous wording
The units ordered, value of orders received, average sales price of units ordered, and ending backlog for the trailing five quarters are as follows (dollars in millions, except average sales price):
Current wording
The units ordered, value of orders received, average sales price of units ordered, and ending backlog for the trailing six quarters are as follows (dollars in millions, except average sales price):
Previous wording
The Company reviews the estimated sell-through from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company to plan production levels. The Company’s overall production in the first quarter of 2025 increased 2% from the fourth quarter of 2024*.*
Current wording
The Company reviews the estimated sell-through from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company to plan production levels. The Company’s overall production in the second quarter of 2025 increased 3% from the first quarter of 2025*.*
Previous wording
Firearms unit data for the trailing five quarters are as follows (dollar amounts shown are net of Federal Excise Tax of 10% for handguns and 11% for long guns):
Current wording
Firearms unit data for the trailing six quarters are as follows (dollar amounts shown are net of Federal Excise Tax of 10% for handguns and 11% for long guns):
Previous wording
During the first quarter of 2025, the Company’s finished goods inventory increased by 15,300 units and distributor inventories of the Company’s products decreased by 7,900 units.
Current wording
During the first half of 2025, the Company’s finished goods inventory increased by 35,500 units and distributor inventories of the Company’s products increased by 24,900 units.
Previous wording
Inventory unit data for the trailing five quarters follows:
Current wording
Inventory unit data for the trailing six quarters follows:
Previous wording
Total consolidated net sales and net firearms sales decreased slightly for the three months ended March 29, 2025. Sales of new products, including the RXM pistol, Super Wrangler revolver, Marlin lever-action rifles, and American Centerfire Rifle Generation II represented $40.7 million or 31.6% of firearm sales in the three months ended March 29, 2025. New product sales include only major new products that were introduced in the past two years.
Current wording
Total consolidated net sales and net firearms sales increased slightly for the three months ended June 28, 2025, despite the $5.7 million reduction related to the close out of 67,000 units of discontinued models. Sales of new products, including the RXM pistol, Super Wrangler revolver, Marlin lever-action rifles, and American Centerfire Rifle Generation II represented $42.2 million or 33.5% of firearm sales in the three months ended June 28, 2025. New product sales include only major new products that were introduced in the past two years.
Previous wording
The increased gross profit for the three months ended March 29, 2025 is attributable to favorable leveraging of fixed costs resulting from increased production, despite the $0.8 million of deferred revenue related to sales promotions.
Current wording
The decreased gross profit for the three months ended June 28, 2025 is attributable to inventory rationalization write-offs taken during the quarter and the aforementioned sales reductions, partially off-set by favorable leveraging of fixed costs resulting from increased production.
Previous wording
The increase in gross margin for the three months ended March 29, 2025 is attributable to the aforementioned factors.
Current wording
The decrease in gross margin for the three months ended June 28, 2025 is attributable to the aforementioned factors.
Previous wording
The decrease in selling expenses for the three months ended March 29, 2025 was attributable to decreased spending on industry shows, personnel costs, and shipping expenses, partially offset by increases in travel costs and several promotional and marketing initiatives.
Current wording
The increase in selling expenses for the three months ended June 28, 2025 was attributable to increases in advertising and several promotional and marketing initiatives, partially offset by decreases in spending on travel costs, industry shows, personnel costs, and shipping expenses.
Previous wording
The Company's 2025 and 2024 effective tax rates differ from the statutory federal tax rate due principally to research and development tax credits, state income taxes and the nondeductibility of certain executive compensation. The Company’s effective income tax rate was 20.3% and 21.7% for the three months ended March 29, 2025 and March 30, 2024, respectively
Current wording
The Company's 2025 and 2024 effective tax rates differ from the statutory federal tax rate due principally to research and development tax credits, state income taxes and the nondeductibility of certain executive compensation. The reduction in 2025 earnings increased the impact of these items, which resulted in effective income tax rates of 11.2% and 1.9% for the three and six months ended June 28, 2025, respectively. The Company’s effective income tax rate was 21.0% and 21.3% for the three and six months ended June 29, 2024, respectively.
Previous wording
As a result of the foregoing factors, consolidated net income was $7.8 million for the three months ended March 29, 2025, an increase of 9.7% from $7.1 million in the comparable prior year period.
Current wording
As a result of the foregoing factors, consolidated net loss was $(17.2) million for the three months ended June 28, 2025, a change of (308.4%) from $8.3 million consolidated net income in the comparable prior year period.
Previous wording
EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company calculates EBITDA margin by dividing EBITDA by total net sales.
Current wording
EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company’s EBITDA calculation also excludes any one-time non-cash, non-operating expense. The Company calculates EBITDA margin by dividing EBITDA by total net sales.
Previous wording
At the end of the first quarter of 2025, the Company’s cash and short-term investments totaled $108.3 million. Pre-LIFO working capital of $266.1 million, less the LIFO reserve of $67.5 million, resulted in working capital of $198.6 million and a current ratio of 4.6 to 1.
Current wording
At the end of the second quarter of 2025, the Company’s cash and short-term investments totaled $101.4 million. Pre-LIFO working capital of $233.7 million, less the LIFO reserve of $68.2 million, resulted in working capital of $165.5 million and a current ratio of 4.0 to 1.
Previous wording
Cash provided by operating activities was $11.1 million for the three months ended March 29, 2025, compared to $7.3 million for the comparable prior year period. The increase in cash provided in the three months ended March 29, 2025 is primarily attributable to the increase in net income and the lesser increase in deferred income taxes and lower net payouts of accrued employee compensation and benefits in the three months ended March 29, 2025, partially offset by the lesser reductions in inventory and prepaid expenses and other current assets in the three months ended March 29, 2025.
Current wording
Cash provided by operating activities was $25.9 million for the six months ended June 28, 2025, compared to $26.1 million for the comparable prior year period. The slight decrease in cash provided in the six months ended June 28, 2025 is primarily attributable to the decrease in net income and the lesser reductions in prepaid expenses and other current assets in the six months ended June 28, 2025, partially offset by the impact of the write-off of inventory related to the Company’s inventory rationalization and the lower net payouts of accrued employee compensation and benefits in the six months ended June 28, 2025.
Previous wording
Capital expenditures for the three months ended March 29, 2025 totaled $1.1 million, a decrease from $1.8 million in the comparable prior year period. In 2025, the Company expects capital expenditures related to new product introductions and upgrades to our manufacturing equipment and facilities could range from $20 million to $30 million. Actual capital expenditures could vary significantly from the projected amounts due to the timing of capital projects. The Company finances, and intends to continue to finance, all of these activities with funds provided by operations and current cash and cash equivalents.
Current wording
Capital expenditures for the six months ended June 28, 2025 totaled $6.7 million, a decrease from $10.4 million in the comparable prior year period. The Company expects capital expenditures in the latter half of 2025 to increase from the first half of the year, exclusive of the Anderson purchase, as we invest in new product introductions, expand capacity, upgrade our manufacturing capabilities and strengthen our facility infrastructure. Actual capital expenditures could vary significantly from the projected amounts due to the timing of capital projects. The Company finances, and intends to continue to finance, all of these activities with funds provided by operations and current cash and cash equivalents.
Previous wording
Dividends of $4.0 million were paid during the three months ended March 29, 2025. The Company has financed its dividends with cash provided by operations and current cash. The quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. The Company’s practice is to pay a dividend of approximately 40% of net income.
Current wording
Dividends of $6.9 million were paid during the six months ended June 28, 2025. The Company has financed its dividends with cash provided by operations and current cash. The quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. The Company’s practice is to pay a dividend of approximately 40% of net income.
Previous wording
On April 25, 2025, the Company’s Board of Directors authorized a dividend of 18¢ per share to shareholders of record on May 16, 2025, payable on May 30, 2025. The payment of future dividends depends on many factors, including internal estimates of future performance, then-current cash and short-term investments, and the Company’s need for funds.
Current wording
On July 25, 2025, the Company’s Board of Directors authorized a dividend of 16¢ per share to shareholders of record on August 15, 2025, payable on August 29, 2025. This dividend is approximately 40% of adjusted diluted earnings of 41¢ per share for the second quarter of 2025. The payment of future dividends depends on many factors, including internal estimates of future performance, then-current cash and short-term investments, and the Company’s need for funds.
Previous wording
As of March 29, 2025, the Company had $63.3 million of United States Treasury instruments which mature within one year. The Company also invests available cash in a bank-managed money market fund that invests exclusively in United States Treasury instruments which mature within one year. At March 29, 2025, the Company’s investment in this money market fund totaled $28.9 million.
Current wording
As of June 28, 2025, the Company had $55.2 million of United States Treasury instruments which mature within one year. The Company also invests available cash in a bank-managed money market fund that invests exclusively in United States Treasury instruments which mature within one year. At June 28, 2025, the Company’s investment in this money market fund totaled $22.9 million.
Previous wording
During the three months ended March 29, 2025 the Company purchased 79,200 shares of its common stock for $3.0 million in the open market. The average price per share purchased was $37.74. These purchases were funded with cash on hand. As of March 29, 2025, $37.3 million remained authorized for future stock repurchases.
Current wording
During the six months ended June 28, 2025 the Company purchased 443,084 shares of its common stock for $16.1 million in the open market. The average price per share purchased was $36.42. These purchases were funded with cash on hand. As of June 28, 2025, $24.1 million remained authorized for future stock repurchases.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Net sales, cost of products sold, and gross profit data for the six months ended (dollars in millions):
Current report — wording carried from elsewhere
Total consolidated net sales and net firearms sales increased slightly for the six months ended June 28, 2025, despite the $5.7 million reduction related to the close out of 67,000 units of discontinued models. Sales of new products, including the RXM pistol, Super Wrangler revolver, Marlin lever-action rifles, and American Centerfire Rifle Generation II, represented $82.6 million or 32.5% of firearm sales in the first half of 2025. New product sales include only major new products that were introduced in the past two years.
Current report — wording carried from elsewhere
The decrease in gross margin for the six months ended June 28, 2025 is attributable to the aforementioned factors.
Current report — wording carried from elsewhere
Selling and general and administrative expenses data for the six months ended (dollars in millions):
Current report — wording carried from elsewhere
The increase in selling expenses for the six months ended June 28, 2025 was attributable to increases in advertising and several promotional and marketing initiatives, partially offset by decreases in spending on industry shows, personnel costs, and shipping expenses.
Current report — wording carried from elsewhere
Other income data for the six months ended (dollars in millions):
Current report — wording carried from elsewhere
The decrease in other income for the six months ended June 28, 2025 was attributable to decreased interest income.