Smith & Wesson Brands (SWBI) Q4 2026 earnings summary

Executive summary

• Q4 net sales reached $178.4 million, up 26.7% year-over-year, with full-year net sales at $523.8 million, a 10.4% increase over the prior year.

• Q4 and full fiscal 2026 results exceeded expectations, driven by strong consumer demand, innovation, and operational execution.

• Q4 GAAP net income was $16.2 million ($0.36/share), nearly doubling from $8.6 million ($0.19/share) last year.

• Outperformance driven by strong handgun shipments, with new products accounting for 38% of shipments in Q4 and the full year.

• Cash from operations in Q4 was $74.6 million; full-year operating cash flow was $114.2 million.

Financial highlights

• Q4 non-GAAP net income was $16.2 million ($0.36/share), up from $9.0 million ($0.20/share) last year.

• Q4 Adjusted EBITDAS was $30.9 million (17.3% margin), up from $23.5 million (16.7%) last year.

• Gross margin improved to 29.8%, up one percentage point, aided by higher production volume and a 2%-3% price increase.

• Debt reduced to $20 million from $80 million at prior year-end.

• Dividends paid totaled $23.2 million; $60 million repaid on revolving credit facility.

Outlook and guidance

• Fiscal 2027 revenue expected to grow mid-single digits over fiscal 2026, with Q1 revenues projected 15%-20% higher year-over-year.

• Margins in Q1 anticipated to be one to two points higher, despite a sequential 5% decline in ASPs due to product mix.

• Operating expenses for Q1 expected to rise about 20% year-over-year due to higher volume and profit-related costs.

• Effective tax rate for fiscal 2027 projected at 30%.

• Industry demand expected to remain robust in fiscal 2027.