Smith & Wesson Brands, Inc. ( (SWBI) ) has released its Q3 earnings. Here is a breakdown of the information Smith & Wesson Brands, Inc. presented to its investors.
Smith & Wesson Brands, Inc. is a prominent U.S.-based company specializing in the manufacturing and design of firearms, including handguns, long guns, and suppressors, under the Smith & Wesson and Gemtech brands. The company also offers forging and machining services to third parties.
In its latest earnings report for the third quarter of fiscal 2025, Smith & Wesson Brands, Inc. reported net sales of $115.9 million, a decrease from the previous year, with a gross margin of 24.1% and an adjusted EPS of $0.02 per share. The company highlighted its ability to maintain profitability despite lower sales through strategic cost management and a flexible manufacturing model.
Key financial metrics from the report include a 15.7% decline in net sales compared to the same quarter last year, and a reduction in gross margin from 28.7% to 24.1%. The company’s GAAP net income was $1.7 million, or $0.04 per diluted share, down from $7.9 million, or $0.17 per diluted share, in the previous year. Non-GAAP net income also saw a decline, with adjusted EBITDAS at $13.3 million, representing 11.5% of net sales.
Despite the challenges, Smith & Wesson’s new products have shown strong performance, contributing to over 41% of sales in the quarter. The company remains optimistic about its position in the market, supported by its innovation pipeline and disciplined cost control. However, it anticipates a 5-10% decrease in full-year revenue compared to fiscal 2024.
Looking ahead, Smith & Wesson Brands, Inc. expects the firearms market to remain stable and believes it is well-positioned for continued success due to its strong balance sheet, innovative product offerings, and commitment to returning value to stockholders through dividends and strategic investments.