Q3 2026 Smith & Wesson Brands Inc Earnings Call Transcript
Key Points
- Smith & Wesson Brands Inc (SWBI) reported a 17% year-over-year increase in net sales, reaching nearly $136 million.
- The company achieved a significant 28.1% increase in EBITDAS, amounting to $16.8 million.
- Adjusted EPS rose to $0.08 from $0.03 in the prior year period, indicating improved profitability.
- Operating cash flow saw substantial growth, increasing by more than $30 million year over year.
- The company successfully reduced its debt from $90 million at the end of Q2 to $75 million at the end of Q3, with an additional $20 million paid down subsequently.
- Long gun shipments into the sporting goods channel decreased by 25%, compared to a 5.6% decline in overall NICS.
- Long gun average selling prices (ASPs) decreased by about 11% due to lower volume of higher-priced products.
- Operating expenses increased by $5.7 million compared to the prior year, partly due to higher profit-related and stock-based compensation expenses.
- The gross margin was negatively impacted by 160 basis points due to tariffs.
- Despite strong performance in handguns, the long gun market remains challenging, with a need for strategic adjustments to drive growth.
Good day, everybody, and welcome to Smith & Wesson Brands Incorporated's third-quarter fiscal 2026 financial release and conference call. This call is being recorded.
At this time, I would like to turn the call over to Kevin Maxwell, Smith & Wesson's General Counsel, who will give us some information about today's call. Thank you. You may begin.
Thank you and good afternoon. Our comments today may contain forward-looking statements. Our use of the words anticipate, project, estimate, expect, intend, believe, and other similar expressions are intended to identify forward-looking statements.
Forward-looking statements may also include statements on topics such as our product development, strategies, market share, demand, consumer preferences, inventory conditions for our products, growth opportunities and trends, and industry conditions in general.
Forward-looking statements represent our current judgment
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