A climate of uncertainty in a moribund retail market isn’t the best circumstance to introduce yourself to investment analysts. But just over sixty days into his new position as Ruger’s President and Chief Executive Officer, that’s where Todd Seyfert found himself. Fortunately, the quarterly numbers, although relatively flat, were still profitable.
For the first quarter of 2025, a quarter that has seen overall declines in all categories of firearms, Ruger’s numbers made flat look like the new up. Sales were slightly lower than Q1 2024, but profits -the ultimate measure to shareholders- were forty six cents per share, compared with forty cents per share in Q1 ’24.
For Ruger’s new President & CEO, Todd Seyfert, the Q1 2025 conference call was his first opportunity to field questions from analysts. Profits help -and Ruger’s continued their quarterly profits yet again. Ruger image with permission.
Seyfert was quick to give credit for the solid performance to the legacy he inherited from former President and CEO Chris Killoy. “He built a great team at Ruger,” Seyfert said, “and that legacy will survive for a long time to come.”
Looking to the future, Seyfert sees Ruger continuing its positive trajectories -even in a down market. “The industry is cyclical,” he told analysts, “but it doesn’t have to be that way with Ruger.”
Ruger, Seyfert said, will continue to thrive in the current economy for several reasons. A key element is the “introduction of new products while driving efficiencies across the company.”
As has been the case for some time, new products continue to add to Ruger’s positive numbers. For Q1 of 2025, new products accounted for nearly a third (31.6%) of the quarterly revenues. Those new products include the new 10/22 carbon fiber model, RXM pistol, Ruger American Rifle Model 2, and the fourth generation of the Ruger Precision Rifle.
“These new products,” Seyfert said, “not only reinforce our commitment to quality, but continue to excite our loyal base, drive demand and elevate the entire portfolio of Ruger products.”
The attraction of at least two of those new products seems to be the new Ruger partnerships with Magpul (RXM pistols) and Dead Air Silencers (RXD30Ti and RXD22Ti suppressors).
Seems those aren’t the only new things Seyfert sees in Ruger’s future. “Looking ahead, innovation remains our core focus,” he told analysts. “We have plans in the works for expanding the availability of key models, increasing the speed to market on our new product roadmaps, and offering more configurations of recently launched new models.”
“We’re positioned for success,” he said, “to remain the largest and best commercial firearms manufacturer in the industry.”
“The biggest opportunity for us,” Seyfert said, “remains new products. We have a roadmap for faster launches and we will continue to put capital behind those launches to get them to market faster.”
So, Lake Street Capital’s Mark Smith asked, “is the RXM a good product for us to watch as far as platforms going forward?”
“Absolutely,” Seifert said, “MagPul is a great partner, and there’s a lot to come as far as building out around the RXM. That’s not just for the current model, but the platform around it.”
And what about tariffs? "As a U.S.-based manufacturer, we are uniquely positioned to navigate global trade disruptions,” Seyfert said. “Our American-made products insulate us to a degree from current tariff and supply chain uncertainties, though we are monitoring areas where these costs may still have an effect. With that said, we continue to plan for growth, position ourselves for long-term market leadership, and aggressively manage costs across the business.”
“We feel confident about our new product launches, and we’re being aggressive about taking share in an overall down market,” he continued. “We feel we have the opportunity to go out, be aggressive, and take market share. Our balance sheet makes that possible.”
“We are in a position of strength,” he said, “and we’re leaning into that.”
If you’re a Ruger fan, that’s reason to pay attention going forward.
If you’re a Ruger competitor, Seyfert’s declaration that Ruger’s looking to expand market share couldn’t be clearer. In a down market, the only guaranteed way to grow market share is by taking it from your competitors.
Of course there’s another way to capture share and expand capabilities: via acquisitions.
Ruger’s sitting on cash, has no debt and has made it plain they’re looking for ways to increase both market share and capacities.
Hummmm….sounds like someone’s going -or has gone- shopping.
We’ll keep you posted.
— Jim Shepherd
