Group 1: Smith & Wesson Brands - Smith & Wesson Brands is currently trading at $8.66, with a 52-week range of $8.38 to $16.85 and a dividend yield of 6.00% [2] - The company faces significant headwinds, including tariffs and revenue deleveraging, which have negatively impacted margins and led to insufficient income to cover the dividend [2][3] - The payout ratio is projected to exceed 150% by the end of fiscal 2025, raising concerns about the sustainability of the dividend [2][3] - Analysts have a consensus rating of Moderate Buy, but sentiment is declining, and the price target is falling, indicating potential further downside risk [4] Group 2: SunCoke Energy - SunCoke Energy is trading at $8.18, with a 52-week range of $7.47 to $12.82 and a dividend yield of 5.86% [6] - The company has headwinds from weaker coal prices; however, its dividend payment is considered safe due to long-term contracts that guarantee cash flow [6][7] - The payout ratio is expected to be around 70% in 2025, which is sustainable for the business [6] - A recent acquisition of Phoenix Global is anticipated to positively impact revenue and profitability, diversifying SunCoke's business [7] - MarketBeat tracks one analyst rating this stock as a Buy, with a price target over 65% above current trading levels, supported by strong institutional ownership [8] Group 3: Tronox Holdings - Tronox Holdings is trading at $5.67, with a 52-week range of $4.35 to $17.45 and a dividend yield of 8.82% [10] - The company reported a net loss for the previous fiscal year, but analysts believe it is at a turning point due to shifts in demand for TiO2 pigments [10][12] - The consensus rating among eight analysts is Moderate Buy, indicating potential for a 50% upside, with recent upgrades from JPMorgan raising the price target to $7 [11] - Tronox's balance sheet is strong enough to sustain the dividend until business conditions improve, with expectations of positive earnings by the end of the fiscal year [12]

Core Viewpoint - Smith & Wesson Inc. reported disappointing fourth-quarter earnings for fiscal year 2025, leading to a 12% drop in stock price, with revenue and earnings per share missing expectations significantly [1][2][6] Financial Performance - Revenue for the quarter was $140.76 million, missing expectations of $153.41 million and down 18% from $159.15 million year-over-year [1][2] - Earnings per share (EPS) were 20 cents, below the expected 23 cents and 55% lower compared to the same quarter last year [2] Market Sentiment - The stock's decline erases previous gains and reflects bearish sentiment among traders, with significant options activity indicating volatility expectations [4][5] - Despite the negative earnings report, there is a potential for swing trading opportunities as the company enters a seasonally strong period, particularly for longarm sales [3][7] Business Environment - Smith & Wesson faces challenges such as excess inventory and margin compression due to slowing consumer demand, compounded by a difficult macroeconomic environment [6] - The company has not provided full-year guidance for fiscal year 2026 due to tariff uncertainties, which may further pressure stock performance [2] Future Outlook - Analysts have a 12-month stock price forecast of $12.75, indicating a potential upside of 46.05% from the current price of $8.73 [9] - Concerns over civil unrest and economic uncertainty may drive demand for firearms, although regulatory concerns could impact future sales [8][10]

Financial Performance - Net sales for fiscal 2025 were $474.7 million, a decrease of $61.2 million, or 11.4%, compared to fiscal 2024[223] - Gross profit decreased by $30.9 million, or 19.6%, with a gross margin of 26.8%, down 270 basis points from the prior year[223] - Net income for fiscal 2025 was $13.4 million, or $0.30 per diluted share, compared to $41.4 million, or $0.89 per diluted share, in fiscal 2024[223] - Operating income decreased by $23.2 million, or 49.3%, to $23.9 million, representing 5.0% of net sales[234] - Net income for fiscal 2025 was $13.4 million, down $27.9 million or 67.5% compared to fiscal 2024, resulting in a diluted net income per share of $0.30[239] - Income tax expense for fiscal 2025 was $5.8 million, a decrease of $4.5 million or 43.8% from fiscal 2024, with an effective tax rate of 30.2%[238] Cash Flow and Investments - Cash used in operating activities was $7.2 million in fiscal 2025, a decline of $113.9 million from cash provided in fiscal 2024[240] - Cash used in investing activities decreased by $62.3 million in fiscal 2025, with capital expenditures of $21.6 million, $69.2 million lower than fiscal 2024[243] - Cash used in financing activities was $9.2 million in fiscal 2025, primarily due to $25.5 million in share repurchases and $23.1 million in dividend distributions[245] - The company expects to spend between $25.0 million and $30.0 million on capital expenditures in fiscal 2026[244] - The company had $25.2 million in cash and cash equivalents on hand as of April 30, 2025[250] Expenses and Costs - Research and development expenses increased by $2.3 million, or 31.8%, primarily due to higher materials and testing costs associated with new product development[232] - Interest expense increased by $2.6 million, or 124.9%, primarily due to higher average debt balances[236] - Inflationary pressures have increased costs for components, parts, raw materials, and labor, expected to continue impacting the company in fiscal 2026[253] Inventory and Sales - Inventory balances increased by $29.3 million between April 30, 2024, and April 30, 2025, due to a slowdown in demand[231] - New products accounted for 42.8% of net sales for the 12 months ended April 30, 2025, including six new pistols and six new long guns[229] Market Overview - The U.S. firearm manufacturing industry grew at a 1.5% compound annual growth rate in units from 2018 through 2023[225] - The annual domestic non-military firearm market is estimated at approximately $2.8 billion for handguns and $1.9 billion for long guns[225] Debt and Compliance - As of April 30, 2025, the company had $80.0 million of borrowings outstanding on its revolving line of credit, with an average interest rate of 6.69%[247] - The company is in compliance with all debt covenants as of April 30, 2025[247]

Group 1 - Smith & Wesson (NASDAQ: SWBI) gained significant attention during the last U.S. presidential election due to differing political views on gun control [1] - The focus is on identifying companies with a market capitalization of less than $10 billion that have a proven ability to reinvest capital for impressive returns [1] - The ideal companies should demonstrate a long-term capability of capital compounding with a high enough compound annual growth rate to potentially deliver tenfold returns or greater [1] Group 2 - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - The approach emphasizes maintaining a long-term perspective on investments to generate higher returns compared to market indices [1]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $140.8 million, down $18.4 million or 11.6% compared to the prior year [13] - Gross margin decreased to 28.8%, down 6.7 percentage points from the prior year [14] - Net income for Q4 was $8.6 million, a decrease of $18.7 million from the prior year [15] - GAAP earnings per share (EPS) was $0.19, down from $0.59 in the prior year [15] - Non-GAAP EPS was $0.20, down from $0.48 in Q4 fiscal 2024 [15] - Cash generated from operations was $40.8 million, with net free cash of $33.5 million after capital expenditures [16] Business Line Data and Key Metrics Changes - New products accounted for 44% of total sales in Q4 [6] - Average selling prices (ASPs) decreased by 4.5% year-over-year, with long guns ASPs increasing by 11% and handguns ASPs declining by 6.3% [7][8] - Shipments into the sporting goods channel for long guns declined by 31.7% [7] Market Data and Key Metrics Changes - Overall adjusted market share was down 5.4% in Q4, with an 8.4% decline in shipments [6] - NICS data for long guns was down 7.1% in Q4 [7] - Consumer demand for firearms is cautious due to macroeconomic factors affecting discretionary spending [8] Company Strategy and Development Direction - The company plans to focus on innovation and new product development as a competitive differentiator [6] - Management is extending the summer shutdown by an extra week to align inventory levels with demand [10] - The company aims to prioritize debt reduction and maintain dividend payments [11] Management's Comments on Operating Environment and Future Outlook - Management expects demand for firearms in fiscal 2026 to be similar to fiscal 2025, with potential headwinds from inflation and tariffs [17] - The first quarter of fiscal 2026 is anticipated to be approximately 10% lower than the previous year [17] - Management believes that the exit of smaller competitors from the market may provide opportunities for market share growth [20] Other Important Information - The company reported a $29.3 million increase in inventory due to market softening in the first half of the fiscal year [16] - The effective tax rate is expected to be approximately 30% for the upcoming fiscal year [18] Q&A Session Summary Question: Impact of smaller competitors exiting the market - Management views the exit of smaller players as a potential tailwind for market share growth, with no significant influx of liquidation inventory expected [20][21] Question: Pricing and ASPs in the competitive market - Management believes there is no need for across-the-board pricing cuts, as the brand remains strong and new products are performing well [22] Question: Consumer behavior in response to economic pressures - Demand is still strong at the high-end and entry-level markets, while mid-tier products are seeing a decline [24] Question: Inventory management and shutdown extension - The extra week of shutdown is to better align inventory with demand, particularly in Q2 [25][26] Question: Exposure to tariffs and their impact - Management is monitoring tariff impacts closely, particularly for steel, and is looking for cost control initiatives [30][35] Question: Inventory reduction expectations - Significant inventory reduction is expected throughout the fiscal year, with Q1 typically being the softest quarter [36] Question: Balance sheet and debt repayment - Healthy cash generation is anticipated, with a significant reduction in debt expected as cash is used for repayment [40][41]

Financial Data and Key Metrics Changes - Net sales for the fourth quarter were $140.8 million, which is $18.4 million or 11.6% lower than the prior year comparable quarter [13] - Gross margin decreased to 28.8%, down 6.7 percentage points from the prior year, attributed to lower production volume and increased promotions [14] - Net income for the fourth quarter was $8.6 million, a decrease of $18.7 million compared to the prior year, primarily due to lower net sales and gross margin [15] - GAAP earnings per share (EPS) was $0.19, down from $0.59 in the prior year, while non-GAAP EPS was $0.20, down from $0.48 [15] Business Line Data and Key Metrics Changes - New products accounted for 44% of sales in the fourth quarter, indicating a strong performance in innovation [6] - Average selling prices (ASPs) decreased by 4.5% year-over-year, with long guns ASPs increasing by 11% and handguns ASPs declining by 6.3% [7][8] - In the handgun category, market share was gained despite a 3.4% decline in adjusted mix, while long guns saw a 31.7% decline in shipments [7] Market Data and Key Metrics Changes - Overall adjusted mix was down 5.4%, with an 8.4% decline in shipments into the channel [6] - The firearms market is experiencing cautious consumer behavior due to macroeconomic pressures, with demand for firearms appearing normal for the summer [8][9] - Inventory levels in the channel are being managed conservatively, with a slight increase of about 5,000 units during the quarter [9] Company Strategy and Development Direction - The company plans to focus on innovation and new product introductions to maintain market share leadership [10][11] - An extra week of summer shutdown is planned to better align inventory levels with demand [10] - The company aims to prioritize debt reduction and maintain a strong balance sheet while investing in innovation [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors such as inflation and high interest rates are impacting demand, with expectations for a 10% decrease in first-quarter demand compared to the previous year [17] - Margins are expected to remain under pressure due to low volume and cost increases, particularly from tariffs on raw materials [17] - The company remains optimistic about its market position and plans to leverage its brand strength to maintain ASPs [8][11] Other Important Information - The company generated $40.8 million in cash from operations during the quarter and ended with $25.2 million in cash [16] - The Board authorized a quarterly dividend of $0.13 to be paid to stockholders [16] Q&A Session Summary Question: Impact of smaller competitors exiting the market - Management views the exit of smaller players as a potential tailwind for market share acquisition, with no significant influx of liquidation inventory expected [19][20] Question: Pricing and ASPs in the competitive market - Management believes there is no need for pricing cuts due to strong brand performance and successful new product introductions [22][23] Question: Consumer behavior in response to economic pressures - Demand is still strong in high-end and entry-level markets, while mid to lower-tier segments are trending towards lower-priced products [24][25] Question: Inventory reduction strategy - A significant inventory reduction is expected throughout the year, with Q1 typically being the softest quarter [37] Question: Balance sheet and debt repayment outlook - Healthy cash generation is anticipated, with a significant reduction in debt expected as inventory levels decrease [41][42]

• Q4 Net Sales of $140.8 Million • Q4 Gross Margin of 28.8%; Non-GAAP Gross Margin of 29.2% • Q4 EPS of $0.19/Share Exhibit 99.1 Smith & Wesson Brands, Inc. Reports Fourth Quarter and Full Fiscal 2025 Financial Results MARYVILLE, Tenn., June 18, 2025 – Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the fourth quarter and full fiscal year 2025, ended April 30, 2025. Fourth Quarter Fiscal 2025 Financial H ...

Financial Performance - Q4 net sales were $140.8 million, a decrease of $18.4 million, or 11.6%, from the comparable quarter last year [5] - Q4 gross margin was 28.8%, compared to 35.5% in the comparable quarter last year [5] - Q4 GAAP net income was $8.6 million, or $0.19 per diluted share, compared to $27.3 million, or $0.59 per diluted share, for the comparable quarter last year [5] - Non-GAAP net income for Q4 was $9.0 million, or $0.20 per diluted share, compared to $22.1 million, or $0.48 per diluted share, for the comparable quarter last year [5] - Full year net sales were $474.7 million, a decrease of $61.2 million, or 11.4%, from the prior fiscal year [5] - Full year gross margin was 26.8%, compared to 29.5% in the prior fiscal year [5] - Full year GAAP net income was $13.4 million, or $0.30 per diluted share, compared to $41.4 million, or $0.89 per diluted share, for the prior fiscal year [5] Management Commentary - The President and CEO noted that the fourth quarter was more difficult than anticipated due to macro-economic and industry trends, with lower sales and production volumes pressuring margins [4] - The Executive Vice President and CFO indicated that persistent inflation, high interest rates, and tariff concerns negatively impacted firearm market conditions [4] Market Outlook - The company expects demand for firearms in fiscal 2026 to be similar to fiscal 2025, subject to economic headwinds such as inflation and tariff-related cost increases [4] - The overall firearms market is seeing consumers being cautious due to macro-economic factors affecting discretionary spending [4] Dividend Announcement - The board of directors has authorized a quarterly dividend of $0.13 per share, payable to stockholders of record on July 7, 2025 [6]

Company Announcement - Smith & Wesson Brands, Inc. has rescheduled its conference call to discuss the fourth quarter and full fiscal 2025 financial and operational results from June 19, 2025, to June 18, 2025 [1] - The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) [1] Participation Details - Interested parties in North America can participate by dialing 1-877-704-4453, while those outside North America can dial 1-201-389-0920 [2] - Participants are advised to dial in at least 10 minutes prior to the start of the call [2] - A live and archived webcast will be available on the company's website under the Investor Relations section [2] Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of handgun, long gun, and suppressor products under the Smith & Wesson® and Gemtech® brands [3] - The company also provides forging and machining services to third parties [3]

Core Viewpoint - Smith & Wesson Brands, Inc. is set to release its fourth quarter and full fiscal 2025 financial results on June 19, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day, featuring key executives including the President and CEO, Mark Smith, and CFO, Deana McPherson [2] - The conference call is scheduled to begin at 5:00 p.m. Eastern Time [2] Group 2: Participation Details - Interested parties in North America can join the call by dialing 1-877-704-4453, while international participants can call 1-201-389-0920 [3] - Participants are advised to dial in at least 10 minutes prior to the start of the call [3] Group 3: Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of handgun, long gun, and suppressor products under the Smith & Wesson® and Gemtech® brands [4] - The company also provides forging and machining services to third parties [4]