Sturm, Ruger & Company Inc. reported a significant loss in the second quarter ended June 28, due to charges related to inventory write-offs, SKU rationalization, and organizational realignment. Earnings were down modestly, excluding the charges. Sales for the period increased by 1.3 percent to $132.5 million.

The net loss totaled $17.2 million, or $1.05 a share.

On an adjusted basis, diluted earnings per share were 41 cents a share. For the corresponding period in 2024, earnings were $8.3 million, or $0.47 per share.

As previously disclosed, the company has undertaken several strategic initiatives during the quarter aimed at reorganization and realignment to enhance its operational and market positioning. These initiatives adversely impacted the results of operations for the second quarter of 2025:

  • Inventory and related other asset write-off $17.0 million
  • Product rationalization and SKU reduction $5.7 million
  • Organizational realignment $3.7 million

For the six months, net sales totaled $268.2 million, and the company reported a loss of $0.57 per share. On an adjusted basis, excluding the items above, diluted earnings for the first half of 2025 were $0.87 per share. For the corresponding period in 2024, net sales totaled $267.6 million, and diluted earnings per share were $0.87. On an adjusted basis, excluding the reduction in force expense of $1.5 million incurred in the first quarter of 2024, diluted earnings per share for the first half of 2024 were $0.94 cents.

President and CEO Todd Seyfert commented on the results, “This quarter marks my first full quarter as CEO, and we took decisive steps to position Ruger for long-term success. As part of this transition, we evolved our leadership structure and reorganized our operations to empower each business unit with greater flexibility and clearer ownership of results. We also brought our entire product strategy under one comprehensive team to sharpen our focus on future innovation and execution.”

As part of these steps, the company conducted an inventory rationalization, reassessing its raw materials, work-in-progress, and finished goods to identify and reserve for excess, obsolete, or discontinued inventory. This included legacy models at the end of their lifecycle, products no longer aligned with Ruger’s long-term strategy, and Marlin-related items not included in that brand’s future roadmap. In addition, the company repositioned key elements of its product portfolio to better match today’s market conditions, ensuring that its most desirable products reach consumers at competitive prices. While these actions adversely impacted this quarter’s results, they strengthen Ruger’s ability to pursue growth and deliver stability through cyclical markets.

Seyfert also commented on the company’s July expansion into Hebron, KY. “Our recent acquisition demonstrates our commitment to strengthening Ruger’s position as the nation’s leading firearms manufacturer for the consumer market. We are delighted to have acquired the manufacturing facility and equipment formerly of Anderson Manufacturing and look forward to welcoming many of their skilled workers to the Ruger team. This $16 million investment, paid from our cash on hand, will increase our capacity, strengthen our manufacturing capabilities and broaden our product offerings. As I have stated before, we will continue to be proactive in looking for strategic opportunities to grow our portfolio, maximize production and deliver consistent performance over time.”

Other observations on the second quarter include:

  • 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 percent of firearm sales in the second quarter of 2025. New product sales include only major new products introduced within the past two years.
  • Compared to the second quarter of 2024, the company’s and distributors’ finished goods inventories increased by 4,000 units and 4,200 units, respectively.
  • Cash provided by operations during the first half of 2025 was $25.9 million. On June 28, 2025, Ruger’s cash and short-term investments totaled $101.4 million. Ruger’s current ratio is 4.0 to 1 and Ruger has no debt.
  • In the first half of 2025, capital expenditures totaled $6.7 million. 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 Ruger invests in new product introductions, expands capacity, upgrades Ruger’s manufacturing capabilities and strengthen its facility infrastructure.
  • The company returned $23.0 million to its shareholders in the first half of 2025 through the payment of $6.9 million of quarterly dividends, and $16.1 million through the repurchase of 443,084 shares of its common stock at an average cost of $36.42 per share.
  • As of June 28, 2025, stockholders’ equity totaled $289.3 million, corresponding to a book value of $17.82 per share, of which $6.24 per share was comprised of cash and short-term investments.

Seyfert concluded, “We know the market remains dynamic, and we expect to see continued challenges and potential consolidation across the industry throughout the remainder of this year. Yet, our realignment and our acquisition strengthen Ruger’s ability to respond, adapt and grow for the long term. We remain committed to our guiding principles: delivering rugged, reliable and innovative products, operating with financial discipline and creating long-term value for our shareholders.”

Image courtesy Sturm, Ruger & Company