U.S. Firms Seek Service Partners for AI-Ready Hybrid Clouds
AI is transforming the digital landscape, and data centers are at the heart of these changes. Service providers are delivering the tools and expertise enterprises need to build infrastructure that supports AI.
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The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.S. finds that the rapid adoption of technologies such as generative AI and large language models (LLMs) has created unprecedented demand for data processing and storage, making data centers even more critical for enterprise operations. Service providers are helping organizations address many data center challenges, especially the need for scalability, high-speed connectivity and regulatory compliance.
'AI is transforming the digital landscape, and data centers are at the heart of these changes,' said Anay Nawathe, ISG cloud delivery lead for the Americas. 'Service providers are delivering the tools and expertise enterprises need to build infrastructure that supports AI.'
Providers are helping companies virtualize workloads, move them to cloud or colocation data centers and manage them with cloud-agnostic tools, the report says. The transition from traditional data centers to cloud-based infrastructure can improve scalability, security and efficiency. Reducing IT spending is a growing priority for U.S. enterprises as they face macroeconomic uncertainty on several fronts. Providers' managed services include observability and automation to improve enterprise cloud operations and FinOps frameworks to manage cloud costs.
AI and ML bring valuable new capabilities to managed services for both private and hybrid clouds, ISG says. These include algorithms to analyze real-time data and logs and metrics to detect anomalies and forecast disruptions. Many U.S. enterprises want to use AI and ML but do not know how to start. They seek AI-ready infrastructure consulting that includes design, implementation and management.
Enterprises distributing workloads across private and public clouds need to optimize the placement of those workloads to gain the full benefits of cloud-based computing. They are taking advantage of AI-powered features in managed services that automatically determine the best placement of each workload based on cost, performance requirements, resource availability and regulations.
Security is a high priority for companies that migrate data and applications to hybrid clouds, and providers are integrating security operations into their services, ISG says. Enterprises use these features, including continuous monitoring, advanced threat detection and rapid incident response mechanisms, to ensure a consistent security posture across all managed environments.
'Companies are trusting critical workloads to hybrid clouds and the services that manage them,' said Shashank Rajmane, senior manager and principal analyst, ISG Provider Lens Research, and author of the report. 'They rely on service providers to enforce security policies and automate data governance and compliance across all parts of that distributed infrastructure.'
The report also explores other U.S. trends related to hybrid cloud services, including advances in software-defined data centers and growing investments in DevOps and containerization for consistent application development and management.
For more insights into U.S. enterprise challenges related to data centers and hybrid clouds, plus ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here.
The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.S. evaluates the capabilities of 71 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting.
The report names Kyndryl and NTT DATA as Leaders in three quadrants each. It names Accenture, Capgemini, Cognizant, DXC Technology, Ensono, Rackspace Technology and TCS as Leaders in two quadrants each. Centersquare, CoreSite, CyrusOne, DataBank, Deloitte, Digital Realty, Equinix, Flexential, HCLTech, Hexaware, IBM, Infinite Computer Solutions, Infosys, Microland, Mphasis, PwC, QTS, Unisys, UnitedLayer and Wipro are named as Leaders in one quadrant each.
In addition, Coforge and HPE are named as Rising Stars — companies with a 'promising portfolio' and 'high future potential' by ISG's definition — in one quadrant each.
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud data center service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Unisys and UnitedLayer.
The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens ® Research
The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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Los Angeles Times
a minute ago
- Los Angeles Times
Most stocks fall as hopes weaken for a September cut to interest rates
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Business Wire
a minute ago
- Business Wire
NewMarket Corporation Reports Second Quarter and First Half 2025 Results
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The decrease in petroleum additives operating profit was primarily driven by a 2.5% decline in shipments between quarterly periods and an increase in technology investments, slightly offset by favorable product mix. The decline in shipments was mainly driven by lubricant additives shipments, partially offset by a slight increase in fuel additives shipments. Petroleum additives sales were $1.3 billion for the first half of 2025 and the first half of 2024. Petroleum additives operating profit for the first half of 2025 was $281.9 million, compared to $298.7 million in the same period last year. The drivers for the decrease in operating profit between these periods were consistent with those affecting the second quarter comparison discussed above. Shipments decreased 4.9% when comparing the first half of 2025 with the same period in 2024, with decreases in both lubricant additives and fuel additives shipments. Specialty materials sales were $42.0 million for the second quarter of 2025, compared to $38.0 million for the second quarter of 2024. Specialty materials operating profit was $10.5 million for the second quarter of 2025, compared to operating profit of $5.0 million for the second quarter of 2024. The increase in specialty materials operating profit was primarily driven by increased volumes. As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of its business. Specialty materials sales were $95.8 million for the first half of 2025, compared to $55.1 million for the first half of 2024. Specialty materials operating profit for the first half of 2025 was $33.7 million, compared to slightly above breakeven in the same period last year. Specialty materials sales and operating profit for the first half of 2024 reflect financial results since the acquisition of American Pacific Corporation (AMPAC) on January 16, 2024. Our operations generated solid cash flows during the first half of 2025. We repurchased common stock for $77.2 million, including $20.2 million of repurchases in the second quarter, paid dividends of $51.9 million, and funded capital expenditures of $29.3 million in the first half of 2025. Additionally, we reduced our Net Debt by $122.2 million during the first half of 2025, driving our Net Debt to EBITDA ratio down to 1.0 as of June 30, 2025. We are pleased with the strong performance of our business during the first half of 2025 and continue to see favorable results from our ongoing efficiency initiatives. Investing in technology to meet customer needs, enhancing our operational efficiency, and improving our portfolio profitability will remain priorities throughout 2025. We continue to monitor the uncertain macroeconomic environment, particularly the changes in international trade relations and tariffs, and assess the potential impacts to our operations. Our dedicated team makes decisions to promote long-term value for our shareholders and customers, and remains focused on our long-term objectives. We believe the fundamentals of how we run our business - a long-term view, safety-first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability - will continue to be beneficial for all our stakeholders. Sincerely, Thomas E. Gottwald The petroleum additives segment consists of the North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and Europe/Middle East/Africa/India (Europe or EMEAI) regions. The specialty materials segment, which consists of the AMPAC business, operates primarily in North America. The Company has disclosed the non-GAAP financial measures EBITDA, Net Debt, and Net Debt to EBITDA, as well as the related calculations in the schedules included with this earnings release. EBITDA is defined as income from continuing operations before the deduction of interest and financing expenses, income taxes, depreciation (on property, plant, and equipment) and amortization (on intangibles and lease right-of-use assets). Net Debt is defined as long-term debt, including current maturities, less cash and cash equivalents. Net Debt to EBITDA is defined as Net Debt divided by EBITDA for the rolling four quarters ended as of the specified date. The Company believes that even though these items are not required by or presented in accordance with United States generally accepted accounting principles (GAAP), these additional measures enhance understanding of the Company's performance and period to period comparability. The Company believes that these items should not be considered an alternative to our results determined under GAAP. As a reminder, a conference call and webcast is scheduled for 3:00 p.m. ET on Thursday, July 31, 2025, to review second quarter 2025 financial results. You can access the conference call live by dialing 1-888-506-0062 (domestic) or 1-973-528-0011 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until Thursday, August 7, 2025, at 3:00 p.m. ET by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode number is 52660. The call will also be broadcast via the internet and can be accessed through the Company's website at or A webcast replay will be available for 30 days. NewMarket Corporation is a holding company operating through its subsidiaries, Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), and American Pacific Corporation (AMPAC). The Afton and Ethyl companies develop, manufacture, blend, and deliver chemical additives that enhance the performance of petroleum products. AMPAC is a manufacturer of specialty materials primarily used in solid rocket motors for the aerospace and defense industries. The NewMarket family of companies has a long-term commitment to its people, to safety, to providing innovative solutions for its customers, and to making the world a better place. Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket's management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industries; failure to protect our intellectual property rights; sudden, sharp, or prolonged raw material price increases; competition from other manufacturers; current and future governmental regulations; the loss of significant customers; termination or changes to contracts with contractors and subcontractors of the U.S. government or directly with the U.S. government; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, wars and health-related epidemics; risks related to operating outside of the United States, including tariffs and trade policy; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from acquisitions, or our inability to successfully integrate acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Part I, Item 1A. 'Risk Factors' of our Annual Report on Form 10-K for the year ended December 31, 2024, which is available to shareholders at You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur. NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per-share amounts, unaudited) Second Quarter Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 698,509 $ 710,228 $ 1,399,455 $ 1,406,964 Cost of goods sold 477,555 491,773 942,478 972,144 Gross profit 220,954 218,455 456,977 434,820 Selling, general, and administrative expenses 45,428 42,840 88,406 87,205 Research, development, and testing expenses 32,374 28,663 65,550 59,863 Operating profit 143,152 146,952 303,021 287,752 Interest and financing expenses, net 10,735 15,910 21,435 31,564 Other income (expense), net 15,271 11,952 30,215 24,499 Income before income tax expense 147,688 142,994 311,801 280,687 Income tax expense 36,444 31,374 74,608 61,335 Net income $ 111,244 $ 111,620 $ 237,193 $ 219,352 Earnings per share - basic and diluted $ 11.84 $ 11.63 $ 25.11 $ 22.87 Cash dividends declared per share $ 2.75 $ 2.50 $ 5.50 $ 5.00 Expand NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts, unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 70,257 $ 77,476 Trade and other accounts receivable, less allowance for credit losses 453,709 395,450 Inventories 494,849 505,426 Prepaid expenses and other current assets 49,001 51,203 Total current assets 1,067,816 1,029,555 Property, plant, and equipment, net 739,182 735,361 Intangibles (net of amortization) and goodwill 737,873 750,424 Prepaid pension cost 518,818 490,418 Operating lease right-of-use assets, net 76,247 71,253 Deferred charges and other assets 54,593 52,530 Total assets $ 3,194,529 $ 3,129,541 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 260,486 $ 225,874 Accrued expenses 77,568 89,277 Dividends payable 21,460 22,037 Income taxes payable 18,647 15,798 Operating lease liabilities 17,170 15,337 Other current liabilities 6,741 6,155 Total current liabilities 402,072 374,478 Long-term debt 841,829 971,281 Operating lease liabilities - noncurrent 59,377 54,754 Other noncurrent liabilities 279,528 267,445 Total liabilities 1,582,806 1,667,958 Shareholders' equity: Common stock and paid-in capital (with no par value; issued and outstanding shares - 9,396,621 at June 30, 2025 and 9,524,789 at December 31, 2024) 515 0 Accumulated other comprehensive income 69,702 32,870 Retained earnings 1,541,506 1,428,713 Total shareholders' equity 1,611,723 1,461,583 Total liabilities and shareholders' equity $ 3,194,529 $ 3,129,541 Expand NEWMARKET CORPORATION AND SUBSIDIARIES SELECTED CONSOLIDATED CASH FLOW DATA (In thousands, unaudited) Six Months Ended June 30, 2025 2024 Net income $ 237,193 $ 219,352 Depreciation and amortization 57,270 55,130 Cash pension and postretirement contributions (4,871 ) (5,781 ) Working capital changes (828 ) (40,696 ) Deferred income tax expense (benefit) 4,604 (7,461 ) Capital expenditures (29,295 ) (28,533 ) Acquisition of business, net of cash acquired 0 (681,479 ) Net (repayments) borrowings under revolving credit facility (30,000 ) 279,000 Principal payment on 3.78% senior note (50,000 ) 0 (Payment) proceeds on term loan (50,000 ) 250,000 Dividends paid (51,898 ) (47,972 ) Repurchases of common stock (77,218 ) 0 Debt issuance costs 0 (2,251 ) All other (12,176 ) (13,613 ) Decrease in cash and cash equivalents $ (7,219 ) $ (24,304 ) Expand
Business Wire
a minute ago
- Business Wire
Sturm, Ruger & Company, Inc. Reports Second Quarter Results
SOUTHPORT, Conn.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the second quarter of 2025, net sales were $132.5 million and the Company lost $1.05 per share. On an adjusted basis, excluding certain items discussed below, diluted earnings per share were 41¢. For the corresponding period in 2024, net sales were $130.8 million and diluted earnings were 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 ended June 28, 2025, net sales were $268.2 million and the Company lost 57¢ per share. On an adjusted basis, excluding the items above, diluted earnings for the first half of 2025 were 87¢ per share. For the corresponding period in 2024, net sales were $267.6 million and diluted earnings were 87¢ per share. 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 94¢. The Company also announced today that its Board of Directors declared a dividend of 16¢ per share for the second quarter for stockholders of record as of August 15, 2025, payable on August 29, 2025. This dividend is approximately 40% of adjusted diluted earnings of 41¢ per share for the second quarter of 2025. President and Chief Executive Officer 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 a thorough inventory rationalization, reassessing its raw materials, work-in-process, 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. Mr. Seyfert also commented on the Company's July expansion into Hebron, Kentucky, 'Our recent acquisition demonstrates our commitment to strengthen 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, which was paid from 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% of firearm sales in the second quarter of 2025. New product sales include only major new products that were introduced in the past two years. Compared to the second quarter of 2024, the Company's and distributors' finished goods inventories increased 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, our cash and short-term investments totaled $101.4 million. Our current ratio is 4.0 to 1 and we have 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 we invest in new product introductions, expand capacity, upgrade our manufacturing capabilities and strengthen our 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. On June 28, 2025, stockholders' equity was $289.3 million, which equates to a book value of $17.82 per share, of which $6.24 per share was cash and short-term investments. Mr. 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.' Today, the Company filed its Quarterly Report on Form 10-Q for the second quarter of 2025. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. Tomorrow, July 31, 2025, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the second quarter operating results. Interested parties can listen to the webcast via this link or by visiting Those who wish to ask questions during the webcast will need to pre-register prior to the meeting. The Quarterly Report on Form 10-Q for the second quarter of 2025 is available on the SEC website at and the Ruger website at Investors are urged to read the complete Quarterly Report on Form 10-Q to ensure that they have adequate information to make informed investment judgments. About Sturm, Ruger & Co., Inc. Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. With products made in America, Ruger offers consumers almost 800 variations of more than 40 product lines, across both the Ruger and Marlin brands. For over 75 years, Ruger has been a model of corporate and community responsibility. Our motto, 'Arms Makers for Responsible Citizens ®,' echoes our commitment to these principles as we work hard to deliver quality and innovative firearms. The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events. STURM, RUGER & COMPANY, INC. (Dollars in thousands, except per share data) June 28, 2025 December 31, 2024 Liabilities and Stockholders' Equity Current Liabilities Trade accounts payable and accrued expenses $ 32,589 $ 35,750 Contract liabilities with customers 91 - Product liability 786 431 Employee compensation and benefits 17,998 18,824 Workers' compensation 5,758 5,804 Total Current Liabilities 57,222 60,809 Employee compensation 1,485 1,835 Product liability accrual 61 61 Lease liabilities 1,434 1,747 Contingent liabilities - - Stockholders' Equity Common Stock, non-voting, par value $1: Authorized shares 50,000; none issued - - Common Stock, par value $1: Authorized shares – 40,000,000 2025 – 24,490,478 issued, 16,233,934 outstanding 2024 – 24,467,983 issued, 16,654,523 outstanding 24,490 24,468 Additional paid-in capital 52,751 50,536 Retained earnings 420,271 436,609 Less: Treasury stock – at cost 2025 – 8,256,544 shares 2024 – 7,813,460 shares (208,179 ) (192,031 ) Total Stockholders' Equity 289,333 319,582 Total Liabilities and Stockholders' Equity $ 349,535 $ 384,034 Expand STURM, RUGER & COMPANY, INC. (Dollars in thousands, except per share data) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net firearms sales $131,567 $129,829 $266,762 $265,837 Net castings sales 924 932 1,467 1,744 Total net sales 132,491 130,761 268,229 267,581 Cost of products sold 127,345 101,607 233,188 209,024 Gross profit 5,146 29,154 35,041 58,557 Operating expenses: Selling 10,277 9,484 19,690 19,190 General and administrative 15,585 10,698 27,595 22,864 Total operating expenses 25,862 20,182 47,285 42,054 Operating (loss) income (20,716 ) 8,972 (12,244 ) 16,503 Other income: Interest income 954 1,329 1,992 2,684 Interest expense (22 ) (25 ) (38 ) (42 ) Other income, net 396 179 649 357 Total other income, net 1,328 1,483 2,603 2,999 (Loss) income before income taxes (19,388 ) 10,455 (9,641 ) 19,502 Income taxes (2,162 ) 2,191 (183 ) 4,154 Net (loss) income and comprehensive (loss) income $(17,226 ) $8,264 $(9,458 ) $15,348 Basic earnings per share $(1.05 ) $0.48 $(0.57 ) $0.88 Diluted earnings per share $(1.05 ) $0.47 $(0.57 ) $0.87 Expand STURM, RUGER & COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) Six Months Ended June 28, 2025 June 29, 2024 Operating Activities Net (loss) income $ (9,458 ) $ 15,348 Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and amortization 11,143 11,137 Stock-based compensation 2,415 2,152 Excess and obsolescence inventory reserve 40 (467 ) Inventory and other asset write-off 17,002 - Loss on disposal of assets 185 - Deferred income taxes (2,440 ) (2,751 ) Changes in operating assets and liabilities: Trade receivables 5,340 3,745 Inventories 10,247 6,945 Trade accounts payable and accrued expenses (3,194 ) (2,770 ) Contract liabilities with customers 91 (149 ) Employee compensation and benefits (1,123 ) (8,469 ) Product liability 355 (305 ) Prepaid expenses, other assets and other liabilities (4,726 ) 1,669 Cash provided by operating activities 25,877 26,085 Investing Activities Property, plant and equipment additions (6,746 ) (10,414 ) Purchases of short-term investments (63,793 ) (76,409 ) Proceeds from maturities of short-term investments 81,165 80,404 Cash provided by (used for) investing activities 10,626 (6,419 ) Financing Activities Remittance of taxes withheld from employees related to share-based compensation (178 ) (624 ) Repurchase of common stock (16,148 ) (20,276 ) Dividends paid (6,933 ) (6,787 ) Cash used for financing activities (23,259 ) (27,687 ) Increase (decrease) in cash and cash equivalents 13,244 (8,021 ) Cash and cash equivalents at beginning of period 10,028 15,174 Cash and cash equivalents at end of period $ 23,272 $ 7,153 Expand Non-GAAP Financial Measures In an effort to provide investors with additional information regarding its financial results, the Company refers to various United States generally accepted accounting principles ('GAAP') financial measures and three non-GAAP financial measures, EBITDA, EBITDA margin, and adjusted earnings per share, which management believes provides useful information to investors. These non-GAAP financial measures may not be comparable to similarly titled financial measures being disclosed by other companies. In addition, the Company believes that the non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. The Company believes that EBITDA and EBITDA margin are useful to understanding its operating results and the ongoing performance of its underlying business, as EBITDA provides information on the Company's ability to meet its capital expenditure and working capital requirements, and is also an indicator of profitability. The Company believes that this reporting provides better transparency and comparability to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate the Company's financial performance. EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company's EBITDA calculation also excludes any one-time non-cash, non-operating expense. The Company calculates EBITDA margin by dividing EBITDA by total net sales. Non-GAAP Reconciliation – Adjusted EPS Adjusted Earnings per Share Adjusted earnings per share is defined as net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs. Adjusted diluted earnings per share is defined as adjusted net income divided by the weighted average diluted common shares outstanding.
