Smith & Wesson Brands, Inc. (SWBI) Q4 2026 Earnings Call Transcript
Smith & Wesson Brands delivered strong Q3 FY26 results, with revenue up 17.1% and significant growth in handguns. Recent stock outperformance (+38.2% since December) has erased the easy upside; SWBI is now rated 'Hold' due to valuation and industry headwinds. Handgun innovation and higher ASPs drove gains, but long gun sales and overall industry background checks are declining, signaling sector softness.
Smith & Wesson offers strong growth and a growing dividend, which appeals to both income and yield investors. Handguns remain SWBI's core, comprising nearly 80% of sales and driving a favorable product mix that boosted gross margin to 26.2%. Recent Google Search Trends reveal that interest has remained at a recent high in 2026 for Smith & Wesson products.
Smith & Wesson Brands trades at distressed levels despite a durable brand and market leadership. SWBI is exiting a cyclical trough, with inventory normalized, pricing power intact, and robust operating cash flow even in weak quarters. Normalized free cash flow yield stands at 9%, with a price target of $16.06 per share—implying 37% upside as the cycle turns.
Smith & Wesson Brands, Inc. (SWBI) Q2 2026 Earnings Call Transcript
Stocks trading at or near their 52-week lows offer value and higher-than-average yields that investors can capitalize on. The risk is that stock trading at or near their 52-week lows also often move on to set lower lows, undermining the opportunity.
Shares of Smith & Wesson Inc. NASDAQ: SWBI are down 12% after the company reported its fourth quarter earnings for fiscal year 2025 after the market closed on June 18. The firearms manufacturer reported $140.76 million in revenue in the quarter.
The gun manufacturer's sales plummeted roughly 50% between its 2021 and 2023 fiscal years, and they have flatlined since.
Downgrading Smith & Wesson due to disappointing free cash flow and weak FY25 results, missing revenue and earnings estimates. Rising inventory, declining cash reserves, and increased debt signal potential financial strain and risk to future dividends and buybacks. The current valuation is too high given the lack of near-term growth, ongoing macroeconomic pressures, and execution challenges.
Smith & Wesson Brands, Inc. (NASDAQ:SWBI ) Q3 2025 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Kevin Maxwell - General Counsel Mark Smith - President & Chief Executive Officer Deana McPherson - Chief Financial Officer Conference Call Participants Mark Smith - Lake Street Capital Markets Matthew Raab - Craig-Hallum Rommel Dionisio - Aegis Capital Corp Operator Good day, everyone, and welcome to the Smith & Wesson Brands, Inc.'s Third Quarter Fiscal 2025 Financial Results Conference Call. This call is being recorded.
Revolvers are a type of pistol that contains a revolving chamber of bullets. The bullets can be fired one after another without the need to reload. While revolvers were widely used during the Civil War, it was during the Old West that the most iconic revolvers were made famous with the growing popularity of Colt Revolvers. Today, Colt’s Manufacturing is still a top seller of American-made revolvers. Although semi-automatic pistols may have replaced revolvers in convenience and high capacity, many people prefer the simplicity and reliability of revolvers. Using data from the ATF, 24/7 Wall St. identified the 13 companies making the best-selling American-made revolvers. We reviewed manufacturing figures for thousands of federally licensed gunmakers in the United States and ranked them on total revolver production in 2022. 24/7 Wall St. also independently verified that this data is the most up-to-date at this time. Why It Matters Firearm sales in the U.S. hit historic highs during and after the pandemic. Both directly and indirectly, the U.S. arms and ammunition industry generated over $90 billion in economic output in 2023 and employed over 384,000 Americans, according to the National Shooting Sports Foundation, an industry advocacy group. In recent years, surging demand for firearms has been a boon for American gunmakers. Here are 13 of America’s top revolver manufacturers. 13. Belmont Firearms & Range Revolvers manufactured domestically in 2022: 592 (0.1% of all U.S.-made revolvers) Popular revolver model(s): N/A Belmont Firearms revolver production location(s): New Hampshire Belmont Firearms 2022 total domestic firearm production: 959 (61.7% revolvers) 12. Nighthawk Custom Revolvers manufactured domestically in 2022: 965 (0.1% of all U.S.-made revolvers) Popular revolver model(s): Super Sport, Korth Classic, Mongoose, Ranger Nighthawk revolver production location(s): Arkansas Nighthawk 2022 total domestic firearm production: 4,831 (20.0% revolvers) 11. Magnum Research Revolvers manufactured domestically in 2022: 2,304 (0.3% of all U.S.-made revolvers) Popular revolver model(s): BFR Magnum Research revolver production location(s): Minnesota Magnum Research 2022 total domestic firearm production: 18,512 (12.4% revolvers) 10. Automated Finishing Company Revolvers manufactured domestically in 2022: 2,487 (0.3% of all U.S.-made revolvers) Popular revolver model(s): N/A Automated Finishing Company revolver production location(s): Massachusetts Automated Finishing Company 2022 total domestic firearm production: 5,456 (45.6% revolvers) 9. Bearman Industries Revolvers manufactured domestically in 2022: 3,866 (0.5% of all U.S.-made revolvers) Popular revolver model(s): N/A Bearman revolver production location(s): Utah Bearman 2022 total domestic firearm production: 11,675 (33.1% revolvers) 8. Standard Manufacturing Revolvers manufactured domestically in 2022: 8,203 (1.0% of all U.S.-made revolvers) Popular revolver model(s): S333 Thunderstruck, Sheriff’s Model Standard Manufacturing revolver production location(s): Connecticut Standard Manufacturing 2022 total domestic firearm production: 14,585 (56.2% revolvers) 7. North American Arms Revolvers manufactured domestically in 2022: 10,765 (1.3% of all U.S.-made revolvers) Popular revolver model(s): TGH-M, PUG-D, 22M-R4 North American Arms revolver production location(s): Utah North American Arms 2022 total domestic firearm production: 10,770 (100.0% revolvers) 6. Diamondback Firearms Revolvers manufactured domestically in 2022: 12,458 (1.5% of all U.S.-made revolvers) Popular revolver model(s): Sidekick, Sidekick Birdshead Diamondback revolver production location(s): Florida Diamondback 2022 total domestic firearm production: 123,025 (10.1% revolvers) 5. Kimber Manufacturing Revolvers manufactured domestically in 2022: 15,853 (1.9% of all U.S.-made revolvers) Popular revolver model(s): K6XS, K6S DASA, K6S DCR Kimber revolver production location(s): Alabama Kimber 2022 total domestic firearm production: 230,325 (6.9% revolvers) 4. Colt’s Manufacturing Revolvers manufactured domestically in 2022: 98,839 (11.9% of all U.S.-made revolvers) Popular revolver model(s): Kodiak, Python, Anaconda, King Cobra Colt revolver production location(s): Connecticut Colt 2022 total domestic firearm production: 158,797 (62.2% revolvers) 3. Sturm, Ruger & Company Revolvers manufactured domestically in 2022: 174,947 (21.1% of all U.S.-made revolvers) Popular revolver model(s): Bearcat, Wrangler, Redhawk, Super Blackhawk Ruger revolver production location(s): Arizona, Connecticut, and New Hampshire Ruger 2022 total domestic firearm production: 1,565,743 (11.2% revolvers) 2. Smith & Wesson Revolvers manufactured domestically in 2022: 208,737 (25.1% of all U.S.-made revolvers) Popular revolver model(s): Model 19, Model 29, Model 27 S&W revolver production location(s): Massachusetts and Missouri S&W 2022 total domestic firearm production: 973,994 (21.4% revolvers) 1. Heritage Manufacturing Revolvers manufactured domestically in 2022: 287,283 (34.6% of all U.S.-made revolvers) Popular revolver model(s): Barkeep, Rough Rider, Roscoe Heritage revolver production location(s): Georgia Heritage 2022 total domestic firearm production: 308,040 (93.3% revolvers) The post Meet the 13 American-Made Revolver Brands You Need to Know appeared first on 24/7 Wall St..
Smith & Wesson Brands, Inc. has recently moved its headquarters to Tennessee, which should boost returns in the years ahead. FY2025 will be a transition year for the small-cap manufacturer as both earnings and sales fall. SWBI shares do yield 4.8% and a covered call strategy can enhance this yield significantly.