Sturm Ruger (RGR) Q4 2025 Earnings Call Transcript

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Tuesday, March 3, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Todd Seyfert

• Chief Financial Officer — Thomas Dineen

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Todd Seyfert: Thank you, Sarah. As we adjacent retired 2025, it is important to admit the situation we've been operating in. Overall, it was a hard twelvemonth for the firearms manufacture and for user durables much broadly. Inflationary pressures, discretionary spending constraints and a normalization of request pursuing respective historically elevated years person each created headwinds passim the market. At the aforesaid time, 2025 was a twelvemonth of important alteration astatine Ruger. Exactly 1 twelvemonth ago, I started arsenic CEO. Since then, I've been moving with the enactment squad to hole the institution for the future.

These efforts included a apical to bottommost reappraisal of the business, strengthening of our merchandise pipeline, capableness enlargement successful Hebron, Kentucky, accrued CapEx commitments, and inventory rationalization and merchandise repositioning. I'm arrogant of however our squad has finished the year. Industry-wide information confirms that 2025 was a challenging twelvemonth for our sector, yet the estimated sell-through of our products done organisation accrued 4.5% from 2024 contempt a 4.1% alteration successful adjusted NICS during the aforesaid period. Against that backdrop, we besides delivered apical enactment maturation versus 2024, introduced meaningful innovation and closed the twelvemonth with beardown underlying demand. We judge this speaks straight to the resilience of our concern exemplary and the competitory differentiation the Ruger marque provides.

With that, I'll crook the telephone implicit to Tom Dineen, our Chief Financial Officer, to locomotion done our fiscal results for the year. Tom?

Thomas Dineen: Thanks, Todd. Net income for the 4th accrued 3.6% to $151 cardinal compared with $146 cardinal successful the anterior twelvemonth period. Diluted net were $0.21 per stock compared to $0.62 per stock successful the corresponding play of 2024. For the afloat twelvemonth of 2025, nett income accrued 1.9% to $546 cardinal compared with $536 cardinal successful the afloat twelvemonth 2024. The institution reported a nett nonaccomplishment of $0.27 per stock compared to diluted net of $1.77 per stock successful the anterior year. On an adjusted basis, excluding the interaction of expenses related to shareholder rights contented and the modulation of elder leadership, diluted net for the 4th fourth of 2025 were $0.26 per share.

In summation to the aforementioned 4th fourth expenses, successful the 2nd 4th of 2025, the institution rationalized and price-repositioned respective merchandise lines, reduced the fig of models offered and implemented an organizational realignment, which adversely impacted the results of operations for 2025. On an adjusted basis, excluding the interaction of these nonrecurring expenses, diluted net for 2025 were $0.84 per share. On an adjusted basis, excluding the simplification successful [indiscernible] disbursal of $1.5 cardinal and expenses related to the Chief Executive Officer hunt and transition, diluted net for 2024 were $1.86. On December 31, 2025, our currency and short-term investments totaled $93 million.