Operating Segment Information

12 Months Ended

Dec. 31, 2025

Operating Segment Information [Abstract]

Operating Segment Information

17. Operating Segment Information

The Company has two reportable operating segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a number of federally-licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts.

Corporate segment income relates to interest income, the sale of non-operating assets, and other non-operating activities. Corporate segment assets consist of cash and other non-operating assets.

The Company evaluates performance and allocates resources, in part, based on income (loss) before taxes. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (see Note 1). Intersegment sales are recorded at the Company’s cost plus a fixed profit percentage.

This segment structure reflects the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s reportable segments are not aggregated.

The Company’s method for measuring performance of a reportable segment is primarily gross profit. The CODM does not review disaggregated assets by segment. The Company adopted ASU 2023-07 in January 2025. The most significant provision was the required disclosure of significant segment expenses that are regularly provided to the CODM. The Company’s CODM periodically reviews cost of goods sold by segment and treats it as a significant segment expense.

Year ended December 31,	2025			2024			2023
Net Sales
Firearms	$	543,474		$	532,608		$	540,746
Castings
Unaffiliated		2,583			3,035			3,021
Intersegment		23,570			31,528			33,086
		26,153			34,563			36,107
Eliminations		(23,570	)		(31,528	)		(33,086	)
	$	546,057		$	535,643		$	543,767
Costs of Goods Sold
Firearms	$	461,416		$	417,222		$	407,068
Castings
Unaffiliated		3,490			4,006			3,080
Intersegment		23,570			31,528			33,086
		27,060			35,534			36,166
Eliminations		(23,570	)		(31,528	)		(33,086	)
	$	464,906		$	421,228		$	410,148
Gross (Loss) Profit
Firearms	$	82,058		$	115,386		$	133,678
Castings		(907	)		(971	)		(59	)
	$	81,151		$	114,415		$	133,619
Operating (Loss) Income
Firearms	$	(10,722	)	$	33,273		$	52,887
Castings		(1,577	)		(1,619	)		(803	)
	$	(12,299	)	$	31,654		$	52,084
(Loss) Income Before Income Taxes
Firearms	$	(9,965	)	$	34,051		$	53,723
Castings		(1,535	)		(1,616	)		(799	)
Corporate		4,339			5,340			5,900
	$	(7,161	)	$	37,775		$	58,824

Year ended December 31,	2025		2024		2023
Identifiable Assets
Firearms	$	205,061	$	230,024	$	228,699
Castings		7,659		9,303		11,144
Corporate		129,277		144,707		158,974
	$	341,997	$	384,034	$	398,817
Goodwill
Firearms	$	3,445	$	3,055	$	3,055
Castings		209		209		209
	$	3,654	$	3,264	$	3,264
Depreciation
Firearms	$	20,853	$	19,952	$	19,301
Castings		1,153		1,154		1,814
	$	22,006	$	21,106	$	21,115
Capital Expenditures
Firearms	$	30,509	$	20,488	$	15,395
Castings		347		333		401
	$	30,856	$	20,821	$	15,796

In 2025, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 27%; Sports South - 22%; and Davidson’s - 18%.

In 2024, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 28%; Sports South - 18%; and Davidson’s - 16%.

In 2023, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 24%; Davidson’s - 19%; and Sports South -15%.

The Company’s assets are located entirely in the United States and domestic sales represented at least 94% of total sales in 2025, 2024, and 2023.