Maryville, Tennessee--(Newsfile Corp. - November 20, 2025) -  Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced it plans to release its second quarter fiscal 2026 financial results on Thursday, December 4, 2025, after the close of the market. The full text of the press release will be available on the Smith & Wesson Brands, Inc. web site at www.smith-wesson.com under the Investor Relations section.The company will host a conference call and ...

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Core Insights - Ruger reported Q3 CY2025 revenue of $126.8 million, exceeding analyst expectations of $124.2 million, reflecting a year-on-year growth of 3.7% [6] - The company's non-GAAP profit per share was $0.11, which was 69% below the consensus estimate of $0.36, indicating significant margin pressure [6][3] Financial Performance - Revenue: $126.8 million vs analyst estimates of $124.2 million (3.7% year-on-year growth, 2.1% beat) [6] - Adjusted EPS: $0.11 vs analyst expectations of $0.36 (69% miss) [6] - Adjusted EBITDA: $2.85 million vs analyst estimates of $11.97 million (2.2% margin, 76.2% miss) [6] - Operating Margin: -2.7%, down from 3.1% in the same quarter last year [6] - Market Capitalization: $560.8 million [6] Operational Challenges - The newly acquired Hebron, Kentucky facility contributed to higher operating expenses due to startup costs without immediate production benefits [7] - Management is focused on operational investments and product innovation to address profitability challenges while navigating external market headwinds [5][3] Market Environment - The firearms market is facing headwinds from tariff and interest rate uncertainty, inflationary pressures, and a softening job market, impacting discretionary consumer spending [3] - A 10-15% market contraction this year has created a challenging environment for revenue growth and profitability [8] Strategic Initiatives - Management plans to enhance efficiency and portfolio strength through operational improvements and new product launches, including expanding the RXM pistol family and reintroducing the Glenfield Firearms brand [4] - New products accounted for $41 million, or 34% of net firearms sales, highlighting the importance of ongoing innovation in a contracting market [7] Shareholder Returns - Despite margin pressures, Ruger continues to return capital to shareholders through dividends and share repurchases while maintaining a debt-free balance sheet [8]

Financial Data and Key Metrics Changes - Net sales for the quarter were $126.8 million, up from $122.3 million in the corresponding period in 2024, representing a year-over-year growth [2] - Diluted earnings per share (EPS) were $0.10, compared to $0.28 in the same period last year [2] - The company reported a pre-tax loss of $2.1 million in Q3 2025, primarily due to acquisition and operating costs at the new facility in Hebron, Kentucky, and increased material and technology costs [2][3] - For the nine months ended September 27, 2025, net sales totaled $395 million, with a diluted EPS loss of $0.48, compared to $389.9 million in sales and $1.15 EPS in the same period in 2024 [3] Business Line Data and Key Metrics Changes - New product sales accounted for $41 million, or 34% of net firearm sales, indicating strong demand for innovative products [9] - The company rationalized and repositioned several product lines, which adversely impacted operational results for the nine months ended September 27, 2025 [3] - The Hebron facility, acquired in July, is expected to enhance production capacity for modern sporting rifles, contributing to future sales growth [8] Market Data and Key Metrics Changes - NICS checks, often used as a market proxy, are down approximately 4% year-to-date compared to 2024, indicating a challenging market environment [1] - The availability of used firearms at retail continues to influence market dynamics [1] Company Strategy and Development Direction - The company is focused on operational efficiency and profitability through a comprehensive assessment of operations and product portfolio [7] - Strategic initiatives include product line rationalization, SKU consolidation, and realigning manufacturing to maximize efficiency [8] - The company aims to maintain a strong, debt-free balance sheet while investing in core product innovation and returning capital to shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about top-line growth and the importance of product innovation in a challenging economic market [1][9] - The company is positioned for sustained growth with a strong pipeline of new products and a disciplined approach to capital allocation [11][12] Other Important Information - The company generated $13 million in cash from operations in Q3 and $39 million in the first nine months of 2025 [4] - Capital expenditures for the year are expected to total $35 million, focusing on new product introductions and expanded manufacturing capabilities [4] Q&A Session Summary Question: What is putting downward pressure on gross profit margin? - Management indicated that the pressure is primarily due to costs associated with the new Hebron facility, which incurred $1.4 million in costs without generating revenue [15][16] Question: Update on the Hebron facility's production status? - Management confirmed that they are on pace to begin production with firearms by year-end [18] Question: Insights on sales price and product mix? - Management noted that heavy LCP orders and shipments were significant drivers in the quarter, and the Glenfield expansion is seen as an opportunity to enter a new price point [20][21] Question: Pressure from rising input prices? - Management reported that input prices have been fairly flat, with some advance purchasing helping mitigate costs [22] Question: Positioning of the Glenfield line and potential cannibalization? - Management clarified that Glenfield targets a new market segment at a lower price point, thus not cannibalizing existing Marlin sales [27][28] Question: Update on the reintroduction of the Red Label shotgun? - Management stated that the reintroduction is part of the strategy to become a full-line firearms manufacturer and is not directly related to any shareholder influence [35][36] Question: Any updates on the Beretta situation? - Management expressed appreciation for Beretta's investment and indicated openness to engage in discussions while maintaining the company's focus on U.S. manufacturing [39]

Core Points - Sturm, Ruger & Company, Inc. (NYSE-RGR) will file its Quarterly Report on Form 10-Q on November 5, 2025, after the close of the stock market [1] - The company will host a webcast on November 6, 2025, at 9:00 a.m. ET to discuss the third quarter operating results [1] - Interested parties can access the webcast via a provided link or by visiting Ruger.com/corporate [1] - Pre-registration is required for those who wish to ask questions during the webcast [1]

Core Viewpoint - The Board of Directors of Sturm, Ruger & Company, Inc. has adopted a limited-duration stockholder rights plan in response to Beretta Holding S.A.'s significant accumulation of Ruger's common stock, aimed at protecting the interests of all stockholders and ensuring fair treatment [1][2]. Summary by Sections Rights Plan Adoption - The Rights Plan is effective from October 14, 2025, to October 13, 2026, and is a temporary measure to allow the Board to assess Beretta's intentions and evaluate options [1][2]. - The plan aims to prevent Beretta from gaining control through open market accumulation without compensating stockholders or allowing the Board adequate time for informed decision-making [2][3]. Board's Rationale - The Board, led by Chairman John Cosentino, believes that the Rights Plan is a prudent step to fulfill its fiduciary duties, especially given Beretta's potential to increase its stake in Ruger [3]. - The Board is open to discussions with Beretta regarding operational and strategic collaborations, emphasizing a commitment to long-term value creation for stockholders [3]. Rights Plan Details - The Rights Plan issues one right for each share of common stock, becoming exercisable if any person or group acquires 10% or more of the outstanding shares [5]. - Passive institutional investors are exempt from the Rights Plan, which does not limit stockholders' ability to solicit support for meetings [5][8]. - If the rights become exercisable, holders can acquire shares at a 50% discount to the market price or exchange rights for common stock [7]. Beretta's Stake - Beretta disclosed a 7.7% ownership interest in Ruger on September 22, 2025, which increased to 9.0% by October 2, 2025, without prior notification to Ruger [6]. - Beretta has not engaged in discussions with Ruger and has refused to sign a confidentiality and standstill agreement [6]. Company Background - Sturm, Ruger & Company, Inc. is a leading manufacturer of firearms in the U.S., offering nearly 800 variations across more than 40 product lines [10].

Company Overview - Smith & Wesson Brands, Inc. (NASDAQ: SWBI) is a historic American company that has been in operation since before the Civil War, specializing in the manufacture of firearms, which are considered a uniquely American product [1] Investment Insights - The focus on small-cap opportunities that provide asymmetric upside is highlighted, along with an interest in generating income through sustainable high dividend yields [2] - Key factors for investment consideration include insider buying, high insider ownership, a long history of free cash flow growth, and substantial catalysts for turnaround [2] - The investment strategy is oriented towards long-term holding, with a preference for matching market returns during bull runs and generating superior returns during market downturns [2]

Market Reaction - Shares of gun manufacturers experienced a significant spike following the assassination of conservative activist Charlie Kirk, a trend commonly observed after high-profile shootings as consumers tend to purchase firearms out of fear of potential restrictions on gun sales [1][4]. - Smith & Wesson Brands Inc. saw its shares rise by 6.7% on Wednesday afternoon, with an additional increase of 2.6% during premarket trading on Thursday before declining by approximately 2% after the market opened [1]. - Sturm Ruger & Company closed up more than 3% on Wednesday and surged an additional 3% during after-hours trading, while American Outdoor Brands rose by 5.3% on the same day [2]. Historical Context - Historical data indicates that gun stocks typically surge after mass shooting incidents. For instance, following the assassination attempt on President Donald Trump, Smith & Wesson shares increased by 11% and Sturm Ruger & Company by 5% [5]. - After the Uvalde elementary school shooting in 2022, Smith & Wesson stocks surged by 7% and Sturm Ruger & Company jumped by 4% [5]. Industry Insights - Experts have noted that the gun industry operates under "perverse incentives," where sales and stock prices tend to rise in the aftermath of violent events [3]. - Research indicates that high-profile shootings lead to increased gun purchases as individuals seek to protect themselves and hedge against potential firearm bans [4].

Economic Indicators - Stock index futures are showing positive movement with S&P 500 futures up by 0.2%, Nasdaq 100 futures up by 0.2%, and Dow futures up by 0.1% as investors anticipate the retail inflation report [3] - The 10-year Treasury yield remains unchanged at 4.06%, while the 2-year yield is flat at 3.56% [4] - The Consumer Price Index (CPI) for August is expected to rise by 0.3% month-over-month, up from 0.2% in the previous month, with a year-over-year increase anticipated at 2.9%, compared to 2.7% in July [4] Gun Industry - Gun stocks have seen a rise following the shooting of conservative activist Charlie Kirk, with Smith & Wesson up 4.9% in premarket trading after a 6.7% increase on Wednesday [5][7] - American Outdoor Brands closed 5.3% higher and is slightly up in premarket, while Sturm, Ruger closed with a 3% gain and is up 7.4% postmarket [7] - The shooting incident is expected to drive demand for stricter gun control laws, historically leading to increased demand for firearms [6] Technology and Robotics - Ant Group has introduced its first humanoid robot, the R1 model, which can perform various tasks including serving as a tour guide and sorting medicine [8] - The R1 robot was demonstrated at the 2025 Inclusion Conference in Shanghai and is designed for end-to-end planning of complex assignments [8] Corporate Developments - Opendoor Technologies shares surged by 40% after the appointment of former Shopify COO Kaz Nejatian as CEO, with co-founders returning to the board [10] - Khosla Ventures and co-founder Eric Wu will invest $40 million in Opendoor through a private placement to support business growth [10]

Economic Indicators - Stock index futures are showing positive movement with S&P 500 futures up 0.2%, Nasdaq 100 futures up 0.2%, and Dow futures up 0.1% as investors anticipate the retail inflation report [3] - The 10-year Treasury yield remains unchanged at 4.06%, while the 2-year yield is flat at 3.56% [4] - The August Consumer Price Index (CPI) is expected to rise by 0.3% month-over-month, increasing from 0.2% in the previous month, with a year-over-year forecast of 2.9%, up from 2.7% in July [4] Gun Industry - Gun stocks have seen a rise following the shooting of conservative activist Charlie Kirk, with Smith & Wesson up 4.9% in premarket trading after a 6.7% increase on Wednesday [5][7] - American Outdoor Brands closed 5.3% higher and is slightly up in premarket, while Sturm, Ruger closed with a 3% gain and is up 7.4% postmarket [7] - The shooting incident is anticipated to drive demand for stricter gun control laws, historically leading to increased demand for firearms [6] Technology and Robotics - Ant Group has introduced its first humanoid robot, the R1 model, capable of performing various tasks such as serving as a tour guide and sorting medicine [8] - The R1 robot was demonstrated at the 2025 Inclusion Conference in Shanghai, showcasing its ability to handle complex assignments [8] Corporate Developments - Opendoor Technologies shares surged by 40% after the appointment of former Shopify COO Kaz Nejatian as CEO, with co-founders returning to the board [10] - Khosla Ventures and co-founder Eric Wu will invest $40 million in Opendoor through a private placement to support business growth [10]