Ruger Swings to Q2 Profit on 19% Sales Jump, Gross Margin Surge
RGR sits 44% above its 52-week low of $28.33.
Summary
Ruger swung to a $7.0M Q2 profit from a year-ago loss as sales jumped 19% and gross margins surged to 21.3%. New products and higher production drove the rebound, while one-time costs from the Beretta settlement and layoffs masked even stronger underlying performance.
Key Events · Earnings and Guidance · RGR
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Q2 Profit Swing
Net income of $7.0M ($0.43 diluted EPS) vs. a $17.2M loss a year ago, driven by a 19% sales increase to $158.1M.
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Gross Margin Expansion
Gross margin surged to 21.3% from 3.9%, reflecting the absence of prior-year inventory write-offs and better fixed-cost absorption on higher production.
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New Product Strength
New products (RXM pistol, Marlin lever-actions, etc.) contributed $29.3M, or 19.8% of firearm sales, underscoring successful innovation.
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Non-Recurring Costs
Beretta-related legal and advisory fees of $1.2M in Q2 ($4.4M H1) and severance costs of $0.7M ($3.2M H1) weighed on reported results but are largely behind the company.
Analysis · RGR · Manufacturing
A sharp turnaround defined Ruger's Q2 2026, with net income reaching $7.0 million versus a $17.2 million loss a year ago. Revenue climbed 19% to $158.1 million, fueled by robust demand for new products such as the RXM pistol and Marlin lever-action rifles. Gross margin exploded from 3.9% to 21.3% as the company lapped prior-year inventory write-offs and benefited from higher production volumes. The quarter also included $1.2 million in non-recurring costs tied to the Beretta proxy settlement and $0.7 million in severance from a February reduction-in-force. Excluding those items, adjusted EBITDA was $16.6 million, up from $5.4 million. The balance sheet remains fortress-like with $117.5 million in cash and short-term investments and no debt. The board declared a $0.21 dividend, consistent with its 40% payout policy. This report confirms the operational turnaround is gaining traction, though the full-year impact of Beretta-related costs and restructuring will continue to weigh on reported earnings.
At the time of this filing, RGR was trading at $40.75 on NYSE in the Manufacturing sector, with a market capitalization of approximately $602.7M. The 52-week trading range was $28.33 to $48.21. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.