Sturm, Ruger & Company (RGR) Q4 2024 earnings summary

Executive summary

• 2024 net sales were $536 million, with diluted EPS of $1.77, both down from 2023 due to lower gross margin and profitability pressures.

• Fourth quarter 2024 net sales were $146 million, with diluted EPS of $0.62, both up from the prior year’s Q4 and showing strong sequential improvement.

• New product launches, including the RXM pistol and American Rifle Gen II, drove significant sales and market share gains.

• Leadership transition announced: Todd Seyfert to become CEO in March 2025, ensuring continuity.

• Board declared a $0.24 per share dividend for Q4, about 40% of net income.

Financial highlights

• Gross margin declined from 25% in 2023 to 21% in 2024, mainly due to deleveraging, inflation, and product mix.

• Cash and short-term investments totaled $105.5 million at year-end, with a current ratio of 4.2:1 and no debt.

• Book value per share was $19.03, with $6.28 per share in cash and short-term investments.

• Generated $56 million in cash from operations and invested $21 million in capital expenditures in 2024.

• Net income for 2024 was $30.6 million, down from $48.2 million in 2023.

Outlook and guidance

• Entering 2025 with a strong, debt-free balance sheet, reduced distributor inventories, and a robust pipeline of new products.

• 2025 capital expenditures expected to total $20 million.

• Continued focus on disciplined pricing and long-term shareholder value creation.