Sturm, Ruger & Company, Inc. reported net sales of $132.5 million for the second quarter of 2025, an increase from $130.8 million in Q2 2024. However, the company recorded a net loss of $17.2 million, or $1.05 per diluted share, a significant decline from the $8.3 million net income, or $0.47 diluted EPS, in the prior-year period. On an adjusted basis, diluted earnings per share were $0.41.
The net loss was primarily driven by substantial non-recurring charges related to strategic initiatives, including a $17 million inventory and asset write-off, a $5.7 million sales reduction from the close-out of 67,000 units of discontinued models, and a $3.7 million increase in general and administrative expenses for leadership transition and organizational changes. Gross profit plummeted to $5.1 million, or 3.9% of sales, from $29.2 million, or 22.3% of sales, in Q2 2024.
For the first half of 2025, net sales were $268.2 million, flat compared to $267.6 million in H1 2024, resulting in a net loss of $9.5 million, or $0.57 per diluted share. The company's Board of Directors declared a quarterly dividend of $0.16 per share, approximately 40% of adjusted diluted earnings. CEO Todd Seyfert emphasized these actions are critical to 'clear the way for sustainable growth' and highlighted the recent $16.4 million acquisition of Anderson Manufacturing, funded by cash on hand, to increase capacity and broaden product offerings. Capital expenditures are projected to exceed $30 million in 2025, up from $6.7 million in the first half, supporting new product introductions and manufacturing upgrades, while the company maintains a robust, debt-free balance sheet with $101.4 million in cash and short-term investments.
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