Ruger’s third-quarter EPS jumps 260% and margins widen (NYSE: RGR)

Posted by Bonnie Powley on Nov 7th, 2026

What happened

Sturm, Ruger & Company, Inc. (NYSE: RGR) reported third-quarter diluted earnings of $0.36 per share, up from $0.10 a year earlier.

Net sales rose 16.5% to $147.6 million from $126.8 million in the third quarter of 2025. Gross margin widened to 20.7% from 15.1%. Ruger credited better cost control, product mix and operational execution.

Net income rose 266.9% to $5.8 million. Adjusted earnings were $0.44 per share. That excludes $0.08 of stockholder rights costs tied to Ruger's talks with Beretta Holding and its preparation for the 2026 annual meeting.

The board declared a quarterly dividend of $0.18 per share. Ruger also said it would suspend production of a limited number of product families in October. They account for approximately $25 million of total revenues and earn minimal to no profit. Ruger said a suspension does not necessarily mean permanent discontinuation.

Key numbers

Metric	Latest	Change	Source
Net sales, Q3	$147.6 million	from $126.8 million, +16.5%	SEC 8-K Exhibit 99.1
Diluted EPS, Q3	$0.36	from $0.10, +260.0%	SEC 8-K Exhibit 99.1
Gross margin, Q3	20.7%	from 15.1%, +5.6 percentage points	SEC 8-K Exhibit 99.1, change calculated by OptimistFi
Net income margin, Q3	3.9%	from 1.2%, +2.7 percentage points	Calculated from SEC 8-K
Net income, Q3	$5.8 million	from $1.58 million, +266.9%	SEC 8-K Exhibit 99.1
Operating cash flow, nine months	$24.2 million	from $38.8 million	SEC 8-K Exhibit 99.1

Why it matters

The quarter supports OptimistFi's view that RGR only works if Ruger restores unit economics after fiscal 2025's margin collapse. OptimistFi's calculation shows net margin widening to 3.9% from 1.2%, about 2.7 percentage points, because profit grew faster than revenue.

Dropping products that earn little profit points the same way. Chief Executive Todd Seyfert said Ruger is aligning its people, equipment and capital with the products and markets that offer the most demand, profit and long-term growth.

Cash generation lags the earnings rebound. Cash from operations for the first nine months was $24.2 million, down from $38.8 million a year earlier. Trade receivables absorbed $37.2 million of cash. Ruger holds $101.4 million in cash and short-term investments and has no debt. It expects capital spending of approximately $30 million for the year, against $8.9 million so far.

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What's next

Ruger hosts a webcast at 4:30 p.m. ET on Nov. 4 to discuss the results. The dividend goes to shareholders of record on Nov. 20 and is payable Dec. 4.

The next quarterly report will show whether the gross margin gain holds as the product suspensions take effect. It will also show whether operating cash flow starts to follow earnings higher.