The 98% GAAP EPS collapse is the headline number that will drive the stock reaction. While the adjusted EPS and strong order/backlog metrics provide some offset, the market will focus on the earnings miss. Monitor the Q2 call for updates on production recovery and whether the Beretta-related costs are truly behind the company. The stock may gap down on the earnings shock despite the revenue growth.
Price Chart
Executive Summary
Sturm, Ruger & Co. reported Q1 2026 results: net sales rose 4% YoY to $141M, but diluted EPS collapsed to $0.01 from $0.46, hammered by $7.4M in nonrecurring charges (Beretta agreement costs, workforce reduction, retention awards). Adjusted diluted EPS was $0.27. Units ordered surged 28% to 525,000 and backlog grew 20% to $330M, yet the earnings collapse overshadows the top-line growth.
Key Facts
- Net sales increased 4% YoY to $141 million from $136 million
- Diluted EPS collapsed to $0.01 from $0.46 YoY
- Adjusted diluted EPS (excluding nonrecurring items) was $0.27
- Nonrecurring charges totaled ~$7.4M: $3.2M Beretta agreement costs, $2.5M workforce reduction, $1.7M retention awards
- Units ordered increased 28% to 525,000 from 410,000 YoY
- Backlog grew 20% to $330 million from $275 million YoY
- New products accounted for $51.6M, or 41% of total firearm sales
- Cash and short-term investments: $105M; no debt; current ratio 3.5:1
- Quarterly dividend declared: $0.11/share, payable May 29, 2026
- Capital expenditures expected to total $30M for the year
Financial Impact
GAAP EPS declined by $0.45 per share YoY (from $0.46 to $0.01), a 98% drop. Adjusted EPS of $0.27 still represents a 41% decline from prior-year GAAP EPS of $0.46.
Risk Factors
- GAAP EPS collapse of 98% YoY will likely spook the market
- Nonrecurring charges of $7.4M may recur if Beretta cooperation costs persist into Q2
- Production disruptions from severe weather created a ~30,000 unit shortfall that needs to be recovered
- Macroeconomic pressure on discretionary income could dampen future demand
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001174947-26-000567 |
| Document: form8k-35882_rgr.htm | 0001174947-26-000567 |
| Document: 0001174947-26-000567-index-headers.html | 0001174947-26-000567 |
| Document: 0001174947-26-000567-index.html | 0001174947-26-000567 |
| Document: 0001174947-26-000567.txt | 0001174947-26-000567 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | SC 13D/A | $50.10 | awaiting T+20 | — | $46.38 (−7.42%) |
Oct 20, 2026 7d ago | SC TO-T/A | $48.74 | awaiting T+20 | — | $46.38 (−4.83%) |
Oct 16, 2026 11d ago | SC TO-T/A | $45.90 | awaiting T+20 | — | $46.38 (+1.06%) |
Sep 16, 2026 5w ago | 8-K | $40.14 $42.94 | ▲ +6.98% | ▲ +5.52% | $46.38 (+15.56%) |
Jun 4, 2026 20w ago | 8-K | $39.39 $37.65 | ▼ −4.42% | ▼ −3.04% | $46.38 (+17.76%) |
May 21, 2026 22w ago | Insider Cluster | $40.04 $40.49 | ▲ +1.12% | ▲ +2.54% | $46.38 (+15.85%) |
May 15, 2026 23w ago | Insider Cluster | $39.47 $39.47 | · 0.00% | ▼ −2.12% | $46.38 (+17.52%) |
May 8, 2026 24w ago | 8-K | $39.04 $38.77 | ▲ +0.69% | ▲ +0.72% | $46.38 (−18.81%) |
May 4, 2026 25w ago | 8-K | $41.77 $38.84 | ▼ −7.01% | ▼ −11.97% | $46.38 (+11.05%) |
May 4, 2026 25w ago | DEFA14A | $40.99 $38.94 | ▼ −5.00% | ▼ −10.65% | $46.38 (+13.16%) |
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