Ruger(RGR) - 2025 Q2 - Quarterly Results

Financial Highlights & Overview Second Quarter 2025 Results Sturm, Ruger & Co. reported Q2 2025 net sales of $132.5 million, a net loss of $1.05 per share due to $26.4 million in strategic charges Q2 2025 vs Q2 2024 Financial Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $132.5 million | $130.8 million | | Diluted EPS (GAAP) | ($1.05) | $0.47 | | Adjusted Diluted EPS | $0.41 | $0.47 | | Quarterly Dividend | $0.16 per share | $0.16 per share | Q2 2025 Strategic Initiative Costs | Initiative | Cost Impact | | :--- | :--- | | Inventory and related other asset write-off | $17.0 million | | Product rationalization and SKU reduction | $5.7 million | | Organizational realignment | $3.7 million | First Half 2025 Results First half 2025 net sales were $268.2 million, with a net loss of $0.57 per share compared to prior year earnings H1 2025 vs H1 2024 Financial Performance | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Sales | $268.2 million | $267.6 million | | Diluted EPS (GAAP) | ($0.57) | $0.87 | | Adjusted Diluted EPS | $0.87 | $0.94 | Management Commentary & Strategic Initiatives CEO Commentary on Strategic Initiatives CEO Todd Seyfert detailed strategic initiatives including leadership evolution and inventory rationalization, expecting continued market challenges - The company reorganized its operations to empower business units with greater flexibility and ownership of results[7] - A comprehensive inventory rationalization was performed, writing off excess, obsolete, or discontinued inventory, including legacy models and certain Marlin-related items[7] - Management expects continued market challenges and potential industry consolidation but believes the company is strengthened for long-term growth[9] Acquisition and Expansion The company acquired a $16 million manufacturing facility in Hebron, Kentucky, from Anderson Manufacturing to increase capacity and broaden product offerings - Acquired the manufacturing facility and equipment from Anderson Manufacturing in Hebron, Kentucky[8] - The investment was $16 million, paid from cash on hand, aimed at increasing capacity and manufacturing capabilities[8] Operational & Financial Health Key Operational Observations New products comprised $42.2 million (33.5%) of Q2 2025 firearm sales, with slight inventory increases and H1 2025 cash from operations at $25.9 million - Sales of new products represented $42.2 million, or 33.5% of firearm sales in Q2 2025[10] - Finished goods inventories increased by 4,000 units for the company and 4,200 units for distributors compared to Q2 2024[10] - Cash provided by operations was $25.9 million in H1 2025, with capital expenditures of $6.7 million expected to increase in H2 2025[10] Shareholder Returns & Capital Position The company maintains a strong, debt-free balance sheet with $101.4 million in cash and short-term investments, returning $23.0 million to shareholders in H1 2025 - As of June 28, 2025, the company had $101.4 million in cash and short-term investments, a current ratio of 4.0 to 1, and no debt[10] Shareholder Returns (H1 2025) | Return Method | Amount | | :--- | :--- | | Quarterly Dividends | $6.9 million | | Share Repurchases | $16.1 million | | Total | $23.0 million | - On June 28, 2025, stockholders' equity was $289.3 million, with a book value of $17.82 per share[10] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 28, 2025, total assets were $349.5 million, down from $384.0 million at year-end 2024, with stockholders' equity at $289.3 million Balance Sheet Summary (in thousands) | Account | June 28, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $226,546 | $258,357 | | Net Inventories | $53,018 | $76,486 | | Total Assets | $349,535 | $384,034 | | Total Current Liabilities | $57,222 | $60,809 | | Total Stockholders' Equity | $289,333 | $319,582 | Condensed Consolidated Statements of Income Q2 2025 saw a gross profit of $5.1 million on $132.5 million sales, leading to an operating loss of $20.7 million and a net loss of $17.2 million Income Statement Highlights - Q2 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Net Sales | $132,491 | $130,761 | | Gross Profit | $5,146 | $29,154 | | Operating (Loss) Income | ($20,716) | $8,972 | | Net (Loss) Income | ($17,226) | $8,264 | Income Statement Highlights - H1 (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Net Sales | $268,229 | $267,581 | | Gross Profit | $35,041 | $58,557 | | Operating (Loss) Income | ($12,244) | $16,503 | | Net (Loss) Income | ($9,458) | $15,348 | Condensed Consolidated Statements of Cash Flows H1 2025 cash from operations was $25.9 million, with investing activities providing $10.6 million and financing activities using $23.3 million, increasing cash by $13.2 million Cash Flow Summary - H1 2025 vs H1 2024 (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $25,877 | $26,085 | | Cash from (used for) Investing Activities | $10,626 | ($6,419) | | Cash used for Financing Activities | ($23,259) | ($27,687) | | Increase (Decrease) in Cash | $13,244 | ($8,021) | | Cash at End of Period | $23,272 | $7,153 | Non-GAAP Financial Measures EBITDA Reconciliation Q2 2025 EBITDA was $2.3 million with a 1.7% margin, a significant decrease from $14.5 million and 11.1% in Q2 2024, reflecting lower operating income EBITDA Reconciliation - Q2 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income | ($17,226) | $8,264 | | Inventory Rationalization | $17,002 | — | | EBITDA | $2,254 | $14,455 | | EBITDA Margin | 1.7% | 11.1% | Adjusted EPS Reconciliation Q2 2025 GAAP loss of $1.05 per share was adjusted for $0.90 inventory, $0.34 product, and $0.20 realignment charges, resulting in adjusted diluted EPS of $0.41 Adjusted Diluted EPS Reconciliation - Q2 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | ($1.05) | $0.47 | | Inventory Rationalization | $0.90 | — | | Product Rationalization & SKU Reduction | $0.34 | — | | Organizational Realignment | $0.20 | — | | Adjusted Diluted EPS | $0.41 | $0.47 |