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Yahoo
14-05-2025
- Business
- Yahoo
RGR Q1 Earnings Call: Flat Sales in Weak Market, Focus Remains on Innovation and Capacity
American firearm manufacturing company Ruger (NYSE:RGR) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $135.7 million. Its non-GAAP profit of $0.46 per share was 29.2% below analysts' consensus estimates. Is now the time to buy RGR? Find out in our full research report (it's free). Revenue: $135.7 million vs analyst estimates of $148 million (flat year on year, 8.3% miss) Adjusted EPS: $0.46 vs analyst expectations of $0.65 (29.2% miss) Adjusted EBITDA: $14.3 million vs analyst estimates of $18.71 million (10.5% margin, 23.6% miss) Operating Margin: 6.2%, in line with the same quarter last year Free Cash Flow Margin: 7.4%, up from 4.1% in the same quarter last year Market Capitalization: $612.4 million Ruger's first quarter results reflected the impact of a challenging firearms market, with management citing pressure across handguns, rifles, and shotguns. CEO Todd Seyfert emphasized that while industry-wide retail sales declined, Ruger's own performance held steady, supported by demand for recent new product introductions such as the RXM pistol and the Marlin lever-action rifles. Seyfert highlighted operational improvements and the company's ability to adapt production levels to market conditions, noting, 'Our flexible manufacturing model allowed us to adjust production based on demand while maintaining our focus on safety, quality, delivery, and cost.' Looking forward, management outlined plans to accelerate new product launches and expand production capacity, even as broader consumer demand remains uncertain. Seyfert described a 'full pipeline of roadmaps for our product categories' and indicated that capital investments would support getting new models to market faster. He acknowledged industry headwinds but projected that Ruger's financial discipline and U.S.-centric supply chain would help the company maintain stability and pursue growth opportunities, stating, 'We actually feel that we have opportunity to go out in certain categories, be more aggressive, take share, and we have the balance sheet to do that.' Management attributed Ruger's flat sales to continued demand for new products and operational adaptability in a declining market. They also highlighted ongoing investments intended to improve long-term competitiveness. Leadership Transition: The quarter marked Todd Seyfert's first as CEO, following Chris Killoy's retirement. Seyfert has prioritized maintaining Ruger's culture of quality and operational discipline during the transition. Industry-wide Demand Weakness: Management pointed to a nearly 10% year-on-year decline in overall U.S. retail firearm unit sales, with Ruger's results outperforming this trend by remaining flat. Seyfert noted, 'Although the firearms industry may be cyclical, Ruger does not have to be.' New Product Contribution: New product sales made up 31.6% of quarterly revenue. High-demand launches included the RXM pistol, second-generation Ruger American rifle, and Marlin lever-action rifles, indicating ongoing customer interest in recently introduced models. Flexible Manufacturing and Supply Chain: Ruger's U.S.-based manufacturing footprint and sourcing insulated the company from immediate tariff impacts. The company increased raw material inventories to buffer against potential supply disruptions and cost increases. Capital Investment Plans: Management discussed higher capital expenditures—potentially exceeding $30 million for the year—to support faster new product introductions, capacity expansion, and manufacturing upgrades. Seyfert stated, 'We will be more aggressive in terms of the pace of the launches.' Management expects near-term performance to be shaped by ongoing market headwinds, but plans to pursue growth through accelerated product launches, operational investments, and market share gains. Accelerated Product Launches: The company plans to increase the pace of new firearm introductions, aiming to capture customer interest and respond quickly to shifting market preferences. This approach is designed to offset weak industry demand. Capacity Expansion and Efficiency: Planned investments in production capacity and manufacturing upgrades are intended to improve output and reduce production bottlenecks. Management believes this will position Ruger to capitalize on future market recovery and consumer trends. Monitoring Industry Risks: Management acknowledged risks from persistent weak consumer demand, potential supply chain disruptions, and the impact of tariffs. While immediate effects are limited, the company is closely watching input costs and inventory dynamics to maintain margin stability. Rommel Dionisio (Aegis Capital): Asked if higher capital spending signals a more aggressive pace of new product launches. Seyfert confirmed, 'We will be more aggressive in terms of the pace of the launches.' Rommel Dionisio (Aegis Capital): Inquired about marketing and sales investment impact on profitability. Seyfert said near-term spending would be capital-focused, with expense increases tied to future growth in new product introductions. Rommel Dionisio (Aegis Capital): Questioned which product categories offer the most significant launch opportunities. Seyfert declined specifics but stated the pipeline is robust across all platforms. Mark Smith (Lake Street): Asked about the RXM pistol's effect on average selling price (ASP). Seyfert noted a short-term impact from the ramp-up, expecting stabilization as production levels out. Mark Smith (Lake Street): Probed confidence behind capacity expansion amid weak demand. Seyfert cited a combination of strong new product roadmaps and the ability to invest aggressively due to Ruger's solid balance sheet. Looking ahead, the StockStory team will be monitoring (1) the pace and commercial reception of new product launches across Ruger's core and emerging platforms, (2) the effectiveness of capital investments in boosting production efficiency and meeting demand, and (3) any signs of improvement or further deterioration in broader U.S. firearms market trends. Updates on supply chain stability and tariff impacts will also be important indicators of future performance. Ruger currently trades at a forward EV-to-EBITDA ratio of 11.3×. Should you double down or take your chips? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Business Wire
30-04-2025
- Business
- Business Wire
Sturm, Ruger & Company, Inc. Reports First Quarter Diluted Earnings of 46¢ Per Share and Declares Quarterly Dividend of 18¢ Per Share
SOUTHPORT, Conn.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2025, net sales were $135.7 million and diluted earnings were 46¢ per share. For the corresponding period in 2024, net sales were $136.8 million and diluted earnings were 40¢ per share. The Company also announced today that its Board of Directors declared a dividend of 18¢ per share for the first quarter for stockholders of record as of May 16, 2025, payable on May 30, 2025. This dividend varies each quarter because the Company pays a percentage of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income. Chief Executive Officer Todd W. Seyfert commented on the first quarter of 2025, 'The challenges in the firearms market are clear and well-documented across the industry. According to RetailBI's Q1 2025 report, retail firearm unit sales declined 9.6% year-over-year, with revenue down 11.5%. Handguns, rifles, and shotguns were all under pressure, and even adjusted NICS checks declined by 4.2%. Despite these headwinds, I'm proud to report that Ruger remained flat in sales, while staying profitable. My mindset as CEO is that although the firearms industry may be cyclical, Ruger does not have to be, and our performance this quarter supports that. That resilience is a direct result of our disciplined operations and strong new product pipeline. Consumer demand for the Ruger American Rifle Generation II, our Marlin lever-action rifles, and the RXM pistol developed with Magpul Industries contributed to our momentum. These products not only reinforce our commitment to quality but also continue to excite our loyal base, drive demand and elevate the entire portfolio of Ruger products.' Other observations on the quarter include: Sales of new products, including the RXM pistol, Super Wrangler revolver, Marlin lever-action rifles, and American Centerfire Rifle Generation II, represented $40.7 million or 31.6% of firearm sales in the first quarter of 2025. New product sales include only major new products that were introduced in the past two years. Compared to the first quarter of 2024, the Company's and distributors' finished goods inventories increased 17,900 units and decreased 20,100 units, respectively. Cash provided by operations during the first quarter of 2025 was $11.1 million. At March 29, 2025, our cash and short-term investments totaled $108.3 million. Our current ratio is 4.6 to 1 and we have no debt. In the first quarter of 2025, capital expenditures totaled $1.1 million. We expect our 2025 capital expenditures will increase from recent years and may exceed $30 million as we invest in new product introductions, expand capacity, upgrade our manufacturing capabilities and strengthen our facility infrastructure. The Company returned $7.0 million to its shareholders in the first quarter of 2025 through: the payment of $4.0 million of quarterly dividends, and $3.0 million through the repurchase of 79,200 shares of its common stock at an average cost of $37.74 per share. At March 29, 2025, stockholders' equity was $321.4 million, which equates to a book value of $19.39 per share, of which $6.53 per share was cash and short-term investments. Mr. Seyfert discussed the Company's plans for moving forward, 'Looking ahead, innovation remains our core focus. As I stated earlier, our robust pipeline of upcoming products is designed to energize the market, drive growth, and extend our brand reach. We have plans in the works for expanding the availability of key models, increasing the speed to market on our new product roadmaps, and offering more configurations of recently launched new models. In addition, as a U.S.-based manufacturer, we are uniquely positioned to navigate global trade disruptions. Our American-made products insulate us to a degree from current tariff and supply chain uncertainties, though we are monitoring areas where these costs may still have an effect. With that said, we continue to plan for growth, position ourselves for long-term market leadership, and aggressively manage costs across the business. We look forward to sharing more detail on these initiatives, and our roadmap for long-term growth, at the upcoming annual meeting on Thursday, May 29 th at 9:00 AM." Today, the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2025. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. Tomorrow, May 1, 2025, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the first 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 first 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) March 29, 2025 December 31, 2024 Liabilities and Stockholders' Equity Current Liabilities Trade accounts payable and accrued expenses $ 34,006 $ 35,750 Contract liabilities with customers 789 - Product liability 373 431 Employee compensation and benefits 14,402 18,824 Workers' compensation 5,231 5,804 Total Current Liabilities 54,801 60,809 Employee compensation 1,088 1,835 Product liability accrual 61 61 Lease liabilities 1,572 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 – 24,473,499 issued, 16,580,839 outstanding 2024 – 24,467,983 issued, 16,654,523 outstanding 24,473 24,468 Additional paid-in capital 51,499 50,536 Retained earnings 440,531 436,609 Less: Treasury stock – at cost 2025 – 7,892,660 shares 2024 – 7,813,460 shares (195,022 ) (192,031 ) Total Stockholders' Equity 321,481 319,582 Total Liabilities and Stockholders' Equity $ 379,003 $ 384,034 Expand STURM, RUGER & COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) Three Months Ended March 29, 2025 March 30, 2024 Operating Activities Net income $ 7,768 $ 7,084 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 5,571 5,833 Stock-based compensation 1,146 1,082 Excess and obsolescence inventory reserve 40 - Deferred income taxes (1,576 ) (3,116 ) Changes in operating assets and liabilities: Trade receivables (343 ) (5,951 ) Inventories 5,740 11,314 Trade accounts payable and accrued expenses (2,281 ) (2,057 ) Contract liabilities with customers 789 (119 ) Employee compensation and benefits (5,023 ) (11,480 ) Product liability (58 ) (311 ) Prepaid expenses, other assets and other liabilities (628 ) 5,066 Cash provided by operating activities 11,145 7,345 Investing Activities Property, plant and equipment additions (1,124 ) (1,788 ) Purchases of short-term investments (36,288 ) (39,488 ) Proceeds from maturities of short-term investments 39,580 42,487 Cash provided by investing activities 2,168 1,211 Financing Activities Remittance of taxes withheld from employees related to share-based compensation (178 ) (624 ) Repurchase of common stock (2,991 ) (3,219 ) Dividends paid (3,992 ) (4,080 ) Cash used for financing activities (7,161 ) (7,923 ) Increase in cash and cash equivalents 6,152 633 Cash and cash equivalents at beginning of period 10,028 15,174 Cash and cash equivalents at end of period $ 16,180 $ 15,807 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 two non-GAAP financial measures, EBITDA and EBITDA margin, 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 calculates EBITDA margin by dividing EBITDA by total net sales.
Globe and Mail
03-03-2025
- Business
- Globe and Mail
Craft Holsters Unveils Premium Holster Line for Ruger RXM
Combining Comfort, Security, and Accessibility for Every Ruger Owner TUALATIN, OREGON - 3rd March, 2025 - Craft Holsters, a distinguished provider of premium custom holsters, proudly unveils its newest addition—a meticulously crafted range of holsters designed exclusively for the Ruger RXM. This latest offering underscores Craft Holsters' commitment to providing top-tier carrying solutions that blend security, comfort, and accessibility for both seasoned Ruger enthusiasts and those new to the world of firearms. As one of the newest entries in Ruger's celebrated handgun lineup, the Ruger RXM has been making waves with its innovative design and reliability. In response to the firearm's rising popularity, Craft Holsters has developed a collection of Ruger RXM holsters that enhance the carrying experience for a wide variety of users. 'Our goal at Craft Holsters has always been to cater to the unique needs of firearm owners by providing holsters that seamlessly integrate with their lifestyle,' says Viktor Kovac, CEO of Craft Holsters. 'With the Ruger RXM gaining traction among shooters, we knew it was imperative to develop a holster line that perfectly accommodates its features while ensuring both comfort and safety for its users.' This newly released holster series is meticulously handcrafted, ensuring a precise fit that enhances firearm retention, quick draw capability, and long-lasting durability. As highlighted in our Ruger RXM review, these holsters are designed to complement the pistol's features while offering maximum comfort and security. From classic leather designs to modern Kydex options, the Ruger RXM holster lineup offers solutions for both open and concealed carry, making it an ideal choice for diverse shooting needs. Beyond catering to the existing Ruger fan base, Craft Holsters aims to introduce novice shooters to the importance of high-quality holster selection. 'A well-made holster is an integral part of responsible gun ownership,' explains Marianne Pal, Marketing Assistant at Craft Holsters and author of numerous Ruger firearm reviews. 'With this release, we want to not only provide Ruger RXM owners with a secure and comfortable carry option but also help new gun owners understand the significance of proper firearm handling and holster choice.' The Ruger RXM holster collection is now available for purchase, customers can explore a variety of styles tailored for their specific carry needs. Craft Holsters' dedication to providing holsters for Ruger handguns extends beyond the RXM. The company proudly offers a comprehensive selection of custom-fitted holsters for every Ruger model featured in their in-depth reviews, ensuring that all Ruger owners have access to high-quality, tailor-made carrying solutions. About Craft Holsters Craft Holsters is a leading manufacturer of premium leather and custom-fitted holsters, blending time-honored craftsmanship with modern technology. Dedicated to enhancing the carrying experience for firearm enthusiasts, the company delivers an extensive range of high-quality holsters tailored to fit a diverse array of handguns. With a strong focus on durability, comfort, and precision, Craft Holsters remains a trusted name in the firearm accessories industry, offering solutions that meet the demands of both professional and civilian gun owners worldwide. To view original press release on PR Gun, please visit Media Contact Company Name: Craft Holsters Contact Person: Marianna Pal Email: Send Email City: TUALATIN State: OREGON Country: United States Website:
