Sturm, Ruger & Company, Inc. Q1 FY2026 earnings call

• Announcement of Andrew Wieland as Senior Vice President and Chief Financial Officer following Tom Deneen's transition. • Strategic cooperation agreement with Beretta Holding to avoid proxy contest and ensure focus on business. • Comment on New York Stock Exchange inadvertently disclosing dividend information. • Net sales increase, diluted earnings details, cash from operations, capital expenditures, dividend payment. • Units ordered and backlog growth, strength of innovation and new product launches. • Progress on profitability through operational cost reductions. • Priorities for current quarter: recover production shortfalls, meet strong demand, expand accessory offerings.

Net sales for the quarter increased 4% to $141 million, compared with $136 million in the prior year period. Diluted earnings were $0.01 per share, compared to $0.46 per share in the corresponding period of 2025. On an adjusted basis, excluding certain expenses, diluted earnings for the quarter were 27 cents per share. Units ordered increased 28% to 525,000 units versus 410,000 units for the same period last year. Backlog of $330 million exceeded the $275 million for the same period in 2025, an increase of 20% year-over-year. New products accounted for $51.6 million, representing 41% of total firearm sales in the quarter.

• Expectation that one-time costs related to Beretta deal will run through by end of May and run rate will come down quickly. • Priorities for current quarter include recovering production shortfalls, meeting strong demand, expanding accessory offerings.

• Temporary production disruptions due to severe weather impacting Newport and Maiden facilities, creating a shortfall of roughly 30,000 units in the quarter. • Broader macroeconomic environment pressure on discretionary income impacting consumer behavior.

Q: Just wanted to ask a little bit on the one-time items here in Q1. Just as we think about kind of the potential proxy fight with Beretta, kind of what maybe we could expect for one-time-ish expenses as we roll into Q2?

A: Mark. Good question. Listen, we just finalized that deal in the last few days. And so our expectation is obviously that the run rate will come down quickly. We obviously have some work to do between now and the annual meeting. And so a majority of those costs will run through by the end of May. And so we'll continue to have some costs, but we're seeing the end of that and look forward to cutting those off and moving the business forward.