SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, D.C. 20549

 FORM 10-K

 FOR ANNUAL AND TRANSITION REPORTS

 PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES
EXCHANGE ACT OF 1934

 (Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2023

 OR

 TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ____________ to
___________

 Commission File Number 0-4776

 STURM, RUGER & COMPANY, INC.

 (Exact Name of Registrant as Specified in Its
Charter)

 Delaware
 06-0633559

 (State or Other Jurisdiction of Incorporation or Organization)
 (I.R.S. Employer Identification No.)

 1 Lacey Place, Southport, Connecticut
 06890

 (Address of Principal Executive Offices)
 (Zip Code)

 (203) 259-7843

 (Registrant's telephone number, including
area code)

 Securities registered pursuant to Section
12(b) of the Act:

 Title of Each Class
 Trading Symbol(s)
 Name of Each Exchange on Which Registered

 Common Stock, $1 par value
 RGR
 New York Stock Exchange

 Securities registered pursuant to Section 12(g)
of the Act:

 None

 (Title of Class)

 Indicate by check mark if the registrant is a well-known seasoned issuer,
as defined in Rule 405 of the Securities Act. YES NO

 Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. YES NO

 Indicate by check mark whether registrant (1)
has filed all reports required to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or shorter such period of time that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES NO

 Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES
 NO

 Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging
growth company. See definition of "accelerated filer," "large accelerated filer," "smaller reporting
company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer
 Accelerated filer Non-accelerated filer Smaller reporting company
 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

 Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements. YES NO

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO

 The aggregate market value of the voting and non-voting
common equity held by non-affiliates of the registrant computed by reference to the price at which the common equity was last sold, or
the average bid and asked price of such common equity, as of June 30, 2023:

 Common Stock, $1 par value - $ 1,112,555,000

 The number of shares outstanding of the registrant's
common stock as of February 15, 2024: Common Stock, $1 par value – 17,664,200 shares

 DOCUMENTS INCORPORATED BY REFERENCE.

 Portions of the registrant's Proxy Statement
relating to the 2024 Annual Meeting of Stockholders to be held May 30, 2024 are incorporated by reference into Part III (Items 10 through
14) of this Report.

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibits and Financial Statement Schedules

 Signatures

 Exhibit Index

 Financial Statement Schedule

 Exhibits

 EXPLANATORY NOTE:

 In this Annual Report on Form 10-K, Sturm, Ruger
& Company, Inc. and Subsidiary (the "Company") makes forward-looking statements and projections concerning future expectations.
Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand,
sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures,
the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting
estimates, any one or more of which could cause actual results to differ materially from those projected. Words such as "expect,"
"believe," "anticipate," "intend," "estimate," "will," "should,"
"could" and other words and terms of similar meaning, typically identify such forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation
to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made
or to reflect the occurrence of subsequent unanticipated events.

 ITEM 1—BUSINESS

 Company Overview

 Sturm, Ruger & Company, Inc. and Subsidiary
(the "Company") is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Virtually all
of the Company's sales for the year ended December 31, 2023 were from the firearms segment, with less than 1% from the castings
segment. Export sales represent approximately 6% of firearms sales. The Company's design and manufacturing operations are located
in the United States and almost all product content is domestic.

 The Company has been in business since 1949 and
was incorporated in its present form under the laws of Delaware in 1969. The Company primarily offers products in three industry product
categories – rifles, pistols, and revolvers. The Company's firearms are sold through independent wholesale distributors, principally
to the commercial sporting market.

 The Company manufactures and sells investment
castings made from steel alloys and metal injection molding ("MIM") parts for internal use in the firearms segment and has
minimal sales to outside customers. The castings and MIM parts are sold to outside customers, either directly or through manufacturers'
representatives.

 For the years ended December 31, 2023, 2022, and
2021, net sales attributable to the Company's firearms operations were $540.7 million, $593.3 million and $728.1 million. The balance
of the Company's net sales for the aforementioned periods was attributable to its castings operations.

 Firearms Products

 The Company presently manufactures firearm products,
under the "Ruger" name and trademark, in the following industry categories:

 Rifles

 Revolvers

 Single-shot

 Single-action

 Autoloading

 Double-action

 Bolt-action

 Modern sporting

 Pistols

 Rimfire autoloading

 Centerfire autoloading

 In addition, the Company manufactures lever-action
rifles under the "Marlin" name and trademark.

 Most firearms are available in several models
based upon caliber, finish, barrel length, and other features.

 Rifles

 A rifle is a long gun with spiral grooves cut
into the interior of the barrel to give the bullet a stabilizing spin after it leaves the barrel. Net sales of rifles by the Company accounted
for $306.8 million, $305.4 million, and $317.5 million of total net sales for the years 2023, 2022, and 2021, respectively.

 Pistols

 A pistol is a handgun in which the ammunition
chamber is an integral part of the barrel and which typically is fed ammunition from a magazine contained in the grip. Net sales of pistols
by the Company accounted for $131.4 million, $184.7 million, and $278.4 million of revenues for the years 2023, 2022, and 2021, respectively.

 Revolvers

 A revolver is a handgun that has a cylinder that
holds the ammunition in a series of chambers which are successively aligned with the barrel of the gun during each firing cycle. There
are two general types of revolvers, single-action and double-action. To fire a single-action revolver, the hammer is pulled back to cock
the gun and align the cylinder before the trigger is pulled. To fire a double-action revolver, a single trigger pull advances the cylinder
and cocks and releases the hammer. Net sales of revolvers by the Company accounted for $72.5 million, $70.0 million, and $84.4 million
of revenues for the years 2023, 2022, and 2021, respectively.

 Accessories

 The Company also manufactures and sells accessories
and replacement parts for its firearms. These sales accounted for $30.0 million, $33.2 million, and $47.8 million of total net sales for
the years 2023, 2022, and 2021, respectively.

 Castings Products

 Net sales attributable to the Company's
casting operations (excluding intercompany transactions) accounted for $3.0 million, $2.6 million, and $2.6 million, for 2023, 2022, and
2021, respectively. These sales represented less than 1% of total net sales in each of 2023, 2022, and 2021.

 Manufacturing

 The Company produces some of its pistol models,
most of its revolvers, and some of its rifle models at the Newport, New Hampshire facility. One model of revolver, one model of rifle,
and most of the Company's pistols are produced at the Prescott, Arizona facility. Some rifle models and pistol models are produced
at the Mayodan, North Carolina facility.

 Many of the basic metal component parts of the
firearms manufactured by the Company are produced by the Company's castings segment through processes known as precision investment casting.
The Company also uses many MIM parts in its firearms. See "Manufacturing- Investment Castings and Metal Injected Moldings" below
for a description of these processes. The Company believes that investment castings and MIM parts provide greater design flexibility and
result in component parts which are generally close to their ultimate shape and, therefore, require less machining than processes requiring
machining a solid billet of metal to obtain a part. Through the

 use of investment castings and MIM parts, the Company endeavors to produce
durable and less costly component parts for its firearms.

 All assembly, inspection, and testing of firearms
manufactured by the Company are performed at the Company's manufacturing facilities. Every firearm, including every chamber of every revolver
manufactured by the Company, is test-fired prior to shipment.

 Investment Castings and Metal Injection Moldings

 To produce a product by the investment casting
method, a wax model of the part is created and coated ("invested") with several layers of ceramic material. The shell is then
heated to melt the interior wax, which is poured off, leaving a hollow mold. To cast the desired part, molten metal is poured into the
mold and allowed to cool and solidify. The mold is then broken off to reveal a near net shape cast metal part.

 Metal injection molding is a three part powder
metallurgy process by which a feedstock consisting of finely powdered metal and binders is processed through injection molding, debinding,
and sintering equipment to produce steel, stainless steel, and alloy parts of complex shape and geometry. This process allows for
high volume production while eliminating many of the wastes of traditional metal working methods, yielding net shape and near net shape
parts.

 Marketing and Distribution

 The Company's firearms are primarily marketed
through a network of federally licensed, independent wholesale distributors who purchase the products directly from the Company. They
resell to federally licensed, independent retail firearms dealers who in turn resell to legally authorized end users. All retail purchasers
are subject to a point-of-sale background check by law enforcement. These end users include sportsmen, hunters, people interested in self-defense,
law enforcement and other governmental organizations, and gun collectors. Each domestic distributor carries the entire line of firearms
manufactured by the Company for the commercial market. Currently, 15 distributors service the domestic commercial market, with an additional
26 distributors servicing the domestic law enforcement market and 44 distributors servicing the export market.

 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%.

 In 2022, the Company's largest customers
and the percent of firearms sales they represented were as follows: Lipsey's - 23%; Davidson's - 23%; and Sports South - 21%.

 In 2021, the Company's largest customers
and the percent of firearms sales they represented were as follows: Lipsey's - 21%; Sports South - 19%; and Davidson's - 19%.

 The Company employs 18 employees who service these
distributors and call on retailers and law enforcement agencies. Because the ultimate demand for the Company's firearms comes from end
users rather than from the independent wholesale distributors, the Company believes that the loss

 of any distributor would not have a
material, long-term adverse effect on the Company, but may have a material adverse effect on the Company's financial results for
a particular period. The Company considers its relationships with its distributors to be satisfactory.

 The Company also exports its firearms through
a network of selected commercial distributors and directly to certain foreign customers, consisting primarily of law enforcement agencies
and foreign governments. Foreign sales were 6% of the Company's consolidated net sales for the year ended December 31, 2023, and
6% of the Company's consolidated net sales for the year ended December 31, 2022, and 5% of the Company's consolidated net sales
for year ended December 31, 2021.

 The Company does not consider its overall firearms
business to be predictably seasonal; however, orders of many models of firearms from the distributors tend to be stronger in the first
quarter of the year and weaker in the third quarter of the year.

 Investment Castings and Metal Injection Moldings

 The castings segment provides castings and MIM
parts for the Company's firearms segment. In addition, the castings segment produces some products for a number of customers in
a variety of industries.

 Competition

 Competition in the firearms industry is intense
and comes from both foreign and domestic manufacturers. While some of these competitors concentrate on a single industry product category
such as rifles or pistols, several competitors manufacture products in all four industry categories (rifles, shotguns, pistols, and revolvers).
The principal methods of competition in the industry are product innovation, quality, availability, brand, and price. The Company believes
that it can compete effectively with all of its present competitors.

 Investment Castings and Metal Injection Moldings

 There are a large number of investment castings
and MIM manufacturers, both domestic and foreign, with which the Company competes. Competition varies based on the type of investment
castings products and the end use of the product. Companies offering alternative methods of manufacturing such as wire electric discharge
machining (EDM) and advancements in computer numeric controlled (CNC) machining also compete with the Company's castings segment.
Many of these competitors are larger corporations than the Company with substantially greater financial resources than the Company, which
could affect the Company's ability to compete with these competitors. The principal methods of competition in the industry are
quality, price, and production lead time.

 Human Capital

 The Company
is an equal opportunity employer dedicated to the attraction, development, and retention of our employees by providing a preferred work
environment that promotes and celebrates our core values of Integrity, Respect, Innovation and Teamwork. Our goal is to develop, motivate,
retain and reward passionate and dedicated employees.

 As of February 1, 2024, the Company employed approximately
1,820 full-time employees, approximately 32% of whom had at least ten years of service with the Company.

 The Company attracts candidates and retains employees
by offering competitive compensation packages, which include:

 Base wages,

 Profit sharing,

 Medical and welfare benefits,

 Holidays and other paid time off, and

 401(k) plan participation and matching program.

 The Company believes its compensation
packages:

 Provide a base level of compensation to reflect an individual's role and responsibilities,

 Recognize and reward employees for the Company's success, and

 Provide for the safety, security and well-being of employees.

 Our primary vehicle for human capital development
is Ruger University, which has a mission to:

 Enhance the understanding of our industry, Company
and culture,

 Strengthen the technical, interpersonal and leadership
skills of each employee, and

 Allow employees to positively change their own
lives while creating value for all Ruger stakeholders.

 In addition to providing a competitive compensation
package and emphasizing the development of employees, the Company retains its employees by maintaining a safe, responsible, and preferred
workplace. The Company is committed to conducting business in conformance with the highest ethical standards and in compliance with all
applicable legal and regulatory requirements. The "Code of Business Conduct and Ethics" and the "Corporate Compliance
Program" are two active programs that guide the Company's practices to achieve these goals.

 In addition, since the beginning of the global
outbreak of the Coronavirus disease 2019 ("COVID-19") in March 2020, the Company continues to take multiple proactive steps
to promote the health and safety of its employees and maintain a clean, safe, and preferred workplace.

 To assess and improve employee retention and engagement,
the Company surveys employees on an annual basis with the assistance of a third-party consultant, and takes actions to address areas of
employee concern and build on the competencies that are important for our future success.

 Research and Development

 In 2023, 2022, and 2021, the Company spent approximately
$9.8 million, $9.6 million, and $11.7 million, respectively, on research and development activities relating to new products and the improvement
of existing products. Research and development expenses are included in costs of products sold. As of February 1, 2024, the Company had
approximately 67 employees whose primary responsibilities were research and development activities.

 Patents and Trademarks

 The Company owns various United States and foreign
patents and trademarks which have been secured over a period of years and which expire at various times. It is the policy of the Company
to apply for patents and trademarks whenever new products or processes deemed commercially valuable are developed or marketed by the Company.
The Company deems its patents and trademarks to be valuable and therefore works to police and protect them.

 Environmental Matters

 The Company is committed to achieving high standards
of environmental quality and product safety, and strives to provide a safe and healthy workplace for its employees and others in the
communities in which it operates. The Company has programs in place that monitor compliance with various environmental regulations. However,
in the normal course of its manufacturing operations the Company is subject to governmental proceedings and orders pertaining to waste
disposal, air emissions, and water discharges into the environment. These regulations are integrated into the Company's manufacturing,
assembly, and testing processes. The Company believes that it is generally in compliance with applicable environmental regulations and
that the outcome of any environmental proceedings and orders will not have a material adverse effect on the financial position of the
Company, but could have a material adverse effect on the financial results for a particular period.

 Information about our Executive Officers

 Set forth below are the names, ages, and positions
of the executive officers of the Company. Officers serve at the discretion of the Board of Directors of the Company.

 Name

 Age

 Position With Company

 Christopher J. Killoy

 President and Chief Executive Officer

 Thomas A. Dineen

 Senior Vice President, Treasurer, and Chief Financial Officer

 Kevin B. Reid, Sr.

 Vice President, General Counsel, and Corporate Secretary

 Shawn C. Leska

 Vice President, Sales

 Sarah F. Colbert

 Vice President, Administration

 Timothy M. Lowney

 Vice President of Operations for Newport, Prescott and RPM Manufacturing

 Michael W. Wilson

 Vice President of Operations for New Product Development, Product Engineering and Mayodan Manufacturing

 Robert J. Werkmeister, Jr.

 Vice President of Marketing

 Christopher J. Killoy became President & Chief
Executive Officer on May 9, 2017. Previously he served as President and Chief Operating Officer since January 1, 2014. Prior to that he
served as Vice President of Sales and Marketing since November 27, 2006. Mr. Killoy originally joined the Company in 2003 as Executive
Director of Sales and Marketing, and subsequently served as Vice President of Sales and Marketing from November 1, 2004 to January 25,
2005.

 Thomas A. Dineen became Senior Vice President
on July 10, 2017. Previously he served as Vice President since May 24, 2006. Prior to that he served as Treasurer and Chief Financial
Officer since May 6, 2003 and had been Assistant Controller since 2001. Mr. Dineen joined the Company as Manager, Corporate Accounting
in 1997.

 Kevin B. Reid, Sr. became Vice President and General
Counsel on April 23, 2008. Previously he served as the Company's Director of Marketing from June 4, 2007. Mr. Reid joined the Company
in July 2001 as an Assistant General Counsel.

 Shawn C. Leska became Vice President, Sales on
November 6, 2015. Mr. Leska joined the Company in 1989 and has served in a variety of positions in the sales department. Most recently,
Mr. Leska served as Director of Sales since 2011.

 Sarah F. Colbert became Vice President of Administration
on June 1, 2017. Ms. Colbert has served the Company in various human resource and legal capacities since joining the Company in 2011.

 Timothy M. Lowney became Vice President of Operations
for Newport, Prescott and RPM Manufacturing on June 15, 2023. Previously, he served as the Company's Vice President of Prescott
Operations since April 1, 2019. Mr. Lowney joined the Company in January 2007.

 Michael W. Wilson became Vice President of Operations
for New Product Development, Product Engineering and Mayodan Manufacturing on June 15, 2023. Previously, he served as the Company's
Vice President of Mayodan Operations since June 1, 2017. Mr. Wilson joined the Company in July 2007.

 Robert J. Werkmeister, Jr. became Vice President
of Marketing upon joining the Company on June 1, 2017. Mr. Werkmeister has served as the Company's Director of Marketing since January
2013 as President and founder of Symbolic, Inc., a full-service marketing agency. While with Symbolic, Rob began working with Ruger as
a client in 2002 and has been the primary strategic marketing driver for the Ruger account since 2007.

 Where You Can Find More Information

 The Company is subject to the informational requirements
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and accordingly, files its Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, Definitive Proxy Statements, Current Reports on Form 8-K, and other information with the Securities
and Exchange Commission (the "SEC"). As an electronic filer, the Company's public filings are maintained on the SEC's Internet
site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the
SEC. The address of that website is

 The Company makes its Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Definitive Proxy Statements, Current Reports on Form 8-K and amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act accessible free of charge through the Company's Internet site after the Company
has electronically filed such material with, or furnished it to, the SEC. The address of that website is  However,
such reports may not be accessible through the Company's website as promptly as they are accessible on the SEC's website.

 Additionally, the Company's corporate governance
materials, including its Corporate Governance Guidelines, the charters of the Audit, Compensation, Nominating and Corporate Governance,
Risk Oversight and Capital Policy committees, and the Code of Business Conduct and Ethics may also be found under the "Investor
Relations" subsection of the "Corporate" section of the Company's Internet site at
A copy of the foregoing corporate governance materials is available upon written request to the Corporate Secretary at Sturm, Ruger &
Company, Inc., 1 Lacey Place, Southport, Connecticut 06890.

 ITEM 1A—RISK FACTORS

 The Company's operations could be affected
by various risks, many of which are beyond its control. Based on current information, the Company believes that the following identifies
the most significant risk factors that could have a material, adverse effect on its business, operating results,

 and financial
condition. Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to
anticipate results or trends in future periods.

 In evaluating the Company's business, the
following risk factors, as well as other information in this report, should be carefully considered.

 Changes in government policies and firearms
legislation could adversely affect the Company's financial results.

 The sale, purchase, ownership, and use of firearms
are subject to thousands of federal, state and local governmental regulations. The basic federal laws are the National Firearms Act, the
Federal Firearms Act, and the Gun Control Act of 1968. Federal law generally prohibits the private ownership of fully automatic weapons
manufactured after 1986 and places certain restrictions on the interstate sale of firearms unless certain licenses are obtained. The Company
does not manufacture fully automatic weapons and holds all necessary licenses under these federal laws. If the scope of the National Firearms
Act is expanded to regulate firearms currently regulated by the Gun Control Act, it could make acquisition of commonly owned and used
firearms more expensive and complicated for consumers, which could have a material adverse impact on demand for Company products. Several
states currently have laws in effect similar to the aforementioned legislation.

 In 2005, Congress enacted the Protection of Lawful
Commerce in Arms Act ("PLCAA"). The PLCAA was enacted to address abuses by cities and agenda-driven individuals who wrongly
sought to make firearms manufacturers liable for legally manufactured and lawfully sold products if those products were later used in
criminal acts. The Company believes the PLCAA merely codifies common sense and long standing tort principles. If the PLCAA is repealed
or efforts to circumvent it are successful and lawsuits similar to those filed by cities and agenda-driven individuals in the late 1990s
and early 2000s are allowed to proceed, it could have a material adverse impact on the Company.

 Currently, federal and several states' legislatures
are considering additional legislation relating to the regulation of firearms, and a number of new laws have been enacted at the federal,
state, and local level. Enacted legislation and proposed bills are numerous and extremely varied, but many seek to limit magazine capacity,
restrict or ban the sale and, in some cases, the ownership of various types of firearms, or ban commonly owned firearms with certain features.
Other legislation seeks to require new technologies, such as microstamping and so-called "smart gun" technology, which are
not proven, reliable or feasible.

 The Company believes that the lawful private ownership
of firearms is guaranteed by the Second Amendment to the United States Constitution and that the widespread private ownership of firearms
in the United States will continue. However, there can be no assurance that the regulation of firearms will not become more restrictive
in the future and that any such restriction would not have a material adverse effect on the business of the Company. Numerous bills regulating
the ownership of firearms have been proposed at the state and federal levels, and these bills propose a wide variety of restrictions including,
for example, limiting the number of firearms that may be purchased in a specified time, increasing the age for ownership, imposing additional
licensing or

 registration requirements, creating additional restrictions on certain, common firearm features, and levying new taxes on
firearms and/or ammunition.

 The Company's results of operations could
be further adversely affected if legislation with diverse requirements is enacted.

 With literally thousands of laws being proposed
at the federal, state and local levels, if even a small percentage of these laws are enacted and they are incongruent, the Company could
find it difficult, expensive or even practically impossible to comply with them, impeding new product development and distribution of
existing products.

 The Company's results of operations could be adversely affected
by litigation.

 The Company faces risks arising from various asserted
and unasserted litigation matters. These matters include, but are not limited to, assertions of allegedly defective product design or
manufacture, alleged failure to warn, claimed unfair trade practices, purported class actions against firearms manufacturers, generally
seeking relief such as medical expense reimbursement, property damages, and punitive damages arising from accidents involving firearms
or the criminal misuse of firearms, and those lawsuits filed on behalf of municipalities alleging harm to the general public. Various
factors or developments can lead to changes in current estimates of liabilities such as final adverse judgment, significant settlement
or changes in applicable law. A future adverse outcome in any one or more of these matters could have a material adverse effect on the
Company's financial results. See Note 20 to the financial statements which are included in this Annual Report on Form 10-K.

 The Company relies upon relationships with
financial institutions.

 The Company utilizes the services of numerous
financial institutions, including banks, insurance carriers, transfer agents, and others. Anti-gun politicians, gun-control activists,
and others may target these institutions and attempt to pressure them into ceasing to do business with the Company, or to use financial
relationships to impose unacceptable and improper restrictions on the Company's business, which could have a material adverse impact
on the Company's business, operating results, and financial condition.

 The Company's insurance may be insufficient to protect us
from claims or losses.

 The Company maintains insurance coverage with
third-party insurers. However, not every risk or liability is or can be protected by insurance, and, for those risks it insures, the limits
of coverage it purchases or that are reasonably obtainable in the market may not be sufficient to cover all actual losses or liabilities
incurred. Moreover, there is a risk that commercially available liability insurance will not continue to be available to the Company at
a reasonable cost, if at all. If liability claims or losses exceed the Company's current or available insurance coverage, its business
may be harmed.

 The Company's results of operations could
be adversely affected by a decrease in demand for Company products.

 If demand for the Company's products decreases
significantly, the Company would be unable to efficiently utilize its capacity, and profitability would suffer. Decreased demand could
result from a macroeconomic downturn, or could be specific to the firearms industry as a result of social,

 political, or other factors.
If the decrease in demand occurs abruptly, the adverse impact would be even greater.

 The financial health of the Company's independent distributors
is critical to its success.

 Over 90% of the Company's sales are made
to 15 federally licensed, independent wholesale distributors. The Company reviews its distributors' financial statements and has
credit insurance for many of them. However, the Company's credit evaluations of distributors and credit insurance may not be completely
effective, especially if higher interest rates continue to exact a financial strain. If one or more independent distributors experience
financial distress or liquidity issues, the Company's sales could be adversely affected and the Company may not be able to collect
its accounts receivable on a timely basis, which would have an adverse impact on its operating results and financial condition.

 The Company must comply with various laws and
regulations pertaining to workplace safety and environment, environmental matters, and firearms manufacturing.

 In the normal course of its manufacturing operations,
the Company is subject to numerous federal, state and local laws and governmental regulations, and governmental proceedings and orders.
These laws and regulations pertain to matters like workplace safety and environment, firearms serial number tracking and control, waste
disposal, air emissions and water discharges into the environment. Noncompliance with any one or more of these laws and regulations could
have a material adverse impact on the Company.

 Misconduct of the Company's employees
or contractors could cause the Company to lose customers and could have a significant adverse impact on its business and reputation.

 Misconduct, fraud or other improper activities
by the Company's employees or contractors could have a material adverse impact on its business and reputation. Such misconduct could
include the failure to comply with federal, state, local or foreign government procurement regulations, regulations regarding the protection
of personal information, laws and regulations relating to antitrust and any other applicable laws or regulations.

 Product quality and performance is important
to the Company's success.

 The Company has a long
history of producing rugged, reliable firearms for the commercial market. While the Company believes its record of designing, manufacturing,
and selling high-quality products demonstrates its commitment to safety and quality, the Company has occasionally identified design and/or
manufacturing issues with respect to some firearms and, as a result, issued a product safety bulletin or initiated a product recall. Depending
upon the volume of products the Company has shipped into the market, any future recall or safety bulletin could harm its reputation, cause
the Company to lose business, and cause the Company to incur significant support and repair costs.

 Business disruptions at one of the Company's
manufacturing facilities could adversely affect the Company's financial results.

 The Newport, New Hampshire, Prescott, Arizona,
Mayodan, North Carolina, and Earth City, Missouri facilities are critical to the Company's success. These facilities house the Company's
principal production, research, development, engineering, design, and shipping operations. Any event that causes a disruption of the operation
of any of these facilities for even a relatively short

 period of time could have a material adverse effect on the Company's ability
to produce and ship products and to provide service to its customers.

 The Company relies on its information and communications
systems in its operations. Security breaches and other disruptions could adversely affect its business and results of operations.

 Cybersecurity threats are significant and evolving
and include, among others, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that
could lead to disruptions in mission critical systems, unauthorized release of confidential or otherwise protected information and corruption
of data. In addition to security threats, the Company is also subject to other systems failures, including network, software or hardware
failures, whether caused by the Company, third-party service providers, natural disasters, power shortages, terrorist attacks or other
events. The unavailability of the Company's information or communications systems, the failure of these systems to perform as anticipated
or any significant breach of data security could cause loss of data, disrupt Company operations, lead to financial losses from remedial
actions, require significant management attention and resources, and negatively impact the Company's reputation among its customers
and the public, which could have a negative impact on the Company's financial condition, results of operations and liquidity.

 The lack of available raw materials or component
parts could disrupt or even cease the Company's manufacturing operations. Even if manufacturing operations are not disrupted, increased
costs of raw materials and component parts could adversely affect the Company's financial results.

 Third parties supply the Company with various
raw materials for its firearms and castings, such as fabricated steel components, walnut, birch, beech, maple and laminated lumber for
rifle stocks, wax, ceramic material, metal alloys, various synthetic products and other component parts. There is a limited supply of
these materials in the marketplace at any given time, which can cause the purchase prices to vary based upon numerous market factors.
If market conditions result in a significant prolonged inflation of certain prices or if adequate quantities of raw materials cannot be
obtained, the Company's manufacturing processes could be interrupted and the Company's financial condition or results of operations
could be materially adversely affected.

 The Company relies
primarily on third parties for transportation of the products it manufactures as well as delivery of its raw materials.

 Any increase in the cost
of the transportation of the Company's raw materials or products, as a result of increases in fuel or labor costs, higher demand
for logistics services, consolidation in the transportation industry or otherwise, increased restrictions on the transportation of firearms,
may adversely affect its results of operations. If any of these providers were to fail to deliver raw materials to the Company in a timely
manner, the Company may be unable to manufacture and deliver its products in a timely manner. In addition, if any of these third parties
were to cease operations or cease doing business with the Company, the Company may be unable to replace them at a reasonable cost. And
such failure of a third-party transportation provider could harm the Company's reputation, negatively affect its customer relationships
and have a material adverse effect on its financial position and results of operations.

 Availability and retention
of the Company's labor force, especially its key management, is critical to the success of the Company.

 The
Company has observed an overall tightening and increasingly competitive labor market, which could inhibit its ability to recruit
and retain the employees it requires and could lead to increased costs, such as additional overtime to meet demand and increased wage
rates to attract and retain employees. The Company relies on the knowledge, experience, and leadership skills of its senior management
team. The Company's senior executives are not bound by employment agreements. The loss of the services of one or more of the Company's
senior executives or other key personnel could have a significant adverse impact on its business.

 A pandemic, like the COVID-19 pandemic, could
have a significant adverse impact on the Company's operations, financial results, cash flow, and financial condition.

 The COVID-19 pandemic created significant uncertainty
and adversely impacted many industries throughout the global economy. Thus far, the Company has been able to mitigate the impact of COVID-19
through its proactive measures. The extent to which a future pandemic may impact the Company's operations, financial results, cash
flow, and financial condition is difficult to predict and dependent upon many factors over which the Company has no control. These factors
include, but are not limited to, the duration and severity of the pandemic; government restrictions on businesses and individuals; potential
significant adverse impacts on the Company's employees, customers, suppliers, or service providers; the impact on U.S. and global
economies and the timing and rate of economic recovery; and potential adverse effects on the financial markets, any of which could negatively
impact the Company.

 ITEM 1B—UNRESOLVED STAFF COMMENTS

 None

 ITEM 1C—CYBERSECURITY

 Risk management and strategy

 The Company
has processes for assessing, identifying, and managing material risks from cybersecurity threats. These processes are integrated into
the Company's overall risk management systems, as overseen by the Company's Board of Directors, primarily through its Risk
Oversight Committee. These processes also include overseeing and identifying risks from cybersecurity threats associated with the use
of third-party service providers. The Company conducts security assessments of certain third-party providers before engagement and has
established monitoring procedures in its effort to mitigate risks related to data breaches or other security incidents originating from
third parties. The Company from time to time engages third-party consultants, legal advisors, and audit firms in evaluating and testing
the Company's risk management systems and assessing and remediating certain potential cybersecurity incidents as appropriate.

 The Company
has an Information Security Program ("Program") to protect personal and proprietary information in compliance with applicable
federal and state requirements. The Program is designed to:

 Ensure the security and confidentiality of employee and customer
personal information and Company proprietary information;

 Protect against anticipated threats or hazards to the security or
integrity of such information; and

 Protect against unauthorized access to, use of, or transfer of such
information in a manner that could harm or inconvenience the Company, employees or customers.

 For more
information about these risks, see the risk factor titled "The Company relies on its information and communications systems in its
operations. Security breaches and other disruptions could adversely affect its business and results of operations" under Item 1A.

 Governance

 The Company's Board
of Directors has assigned oversight of cybersecurity risk management to the Risk Oversight Committee. The Risk Oversight Committee regularly
receives reports from management, including senior information technology ("IT") leadership, and third parties on cybersecurity
matters. In addition, the Company's full Board of Directors receives reports addressing cybersecurity as part of the Company's
overall enterprise risk management program and to the extent cybersecurity matters are addressed in regular business updates.

 Senior IT leaders are
responsible for developing appropriate cybersecurity programs, including as may be required by applicable law or regulation. These individuals'
expertise in IT and cybersecurity generally has been gained from a combination of education, including relevant degrees and/or certifications,
and work experience. They are informed by their respective cybersecurity teams about, and monitor, the prevention, detection, mitigation
and remediation of cybersecurity incidents as part of the cybersecurity programs described above.

 Information regarding
cybersecurity risks may be elevated by IT leadership through a variety of channels, including discussions between or among key leaders
and Company management and reports to the Company's Board of Directors and/or certain Board committees. As noted above, the Risk
Oversight Committee regularly receives reports on cybersecurity matters from senior IT leadership.

 ITEM 2—PROPERTIES

 The Company's manufacturing operations are
carried out at four facilities. The following table sets forth certain information regarding each of these facilities:

 Approximate
 Aggregate

 Usable
 Square Feet

 Status

 Segment

 Newport, New Hampshire

 350,000

 Owned

 Firearms/Castings

 Prescott, Arizona

 230,000

 Leased

 Mayodan, North Carolina

 220,000

 Owned

 Earth City, Missouri

 35,000

 Leased

 Each firearms facility contains enclosed ranges
for testing firearms. The lease of the Prescott facility provides for rental payments which are approximately equivalent to estimated
rates for real property taxes.

 The Company has other facilities that were not
used in its manufacturing operations in 2023:

 Approximate
 Aggregate

Usable
 Square Feet

 Status

 Segment

 Southport, Connecticut

 25,000

 Owned

 Corporate

 Newport, New Hampshire(Dorr Woolen Building)

 45,000

 Owned

 Enfield, Connecticut

 10,000

 Leased

 Fairport, New York

 3,700

 Leased

 Corporate

 Mayodan, North Carolina

 225,000

 Owned

 There are no mortgages or any other major encumbrance
on any of the real estate owned by the Company.

 The Company's principal executive offices
are located in Southport, Connecticut.

 ITEM 3—LEGAL PROCEEDINGS

 The nature of the legal proceedings against the
Company is discussed at Note 20 to the financial statements, which are included in this Form 10-K.

 The Company has reported all cases instituted
against it through September 30, 2023, and the results of those cases, where terminated, to the SEC on its previous Form 10-Q and 10-K
reports, to which reference is hereby made.

 There was one lawsuit formally instituted against
the Company during the three months ending December 31, 2023, as follows: Jennifer Laws v. Sturm, Ruger & Co., filed in the
U.S. District Court for the District of New Mexico on November 20, 2023.

 ITEM 4—MINE SAFETY DISCLOSURES – NOT APPLICABLE

 ITEM 5—

 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES

 The Company's common stock is traded on
the New York Stock Exchange under the symbol "RGR." At February 5, 2024, the Company had 1,800 stockholders of record.

 Issuer Repurchase of Equity Securities

 In 2022 and 2023 the Company repurchased shares
of its common stock. In 2021, the Company did not repurchase any shares of its common stock. Details of the purchases in 2022 and 2023
follow:

 Period

 Total
 Number of
 Shares

 Average
 Price Paid
 per Share

 Total
 Number of
 Shares
 as Part of
 Publicly
 Announced
 Program

 Maximum
 Dollar
 Value of
 Shares that
 May Yet Be
 Under the
 Program

 Third Quarter 2022

 July 3 to July 30

 —

 —

 —

 July 31 to August 27

 —

 —

 —

 August 28 to October 1

 2,136

 $
 49.97

 2,136

 Fourth Quarter 2022

 October 2 to October 29

 —

 —

 —

 October 30 to November 26

 2,304

 $
 49.77

 2,304

 November 27 to December 31

 —

 —

 —

 Fourth Quarter 2023

 —

 —

 October 1 to October 28

 —

 October 29 to November 25

 179,341

 $
 45.20

 179,341

 November 26 to December 31

 84,721

 $
 43.67

 84,721

 Total

 268,502

 $
 44.79

 268,502

 $
 74,680,000

 All of these purchases were made with cash held
by the Company and no debt was incurred.

 At December 31, 2023 approximately $74.7 million
remained authorized for share repurchases.

Comparison of Five-Year Cumulative Total Return*

 Sturm, Ruger & Co., Inc., Standard & Poor's 500, Dow Jones US Recreational Products TSM Index, and Russell 2000 Index

 (Performance Results Through 12/31/23)

 *Assumes $100 invested on 12/31/18 in stock
or index including reinvestment of dividends

 2018

 2019

 2020

 2021

 2022

 2023

 Sturm, Ruger & Company, Inc.

 100.00

 89.86

 134.94

 147.45

 124.52

 114.49

 Standard & Poors 500

 100.00

 131.49

 155.68

 200.37

 164.08

 207.21

 Russell 2000 Index

 100.00

 125.52

 150.58

 172.90

 137.56

 160.85

 Dow Jones US Recreational Products TSM

 100.00

 141.70

 190.95

 249.86

 164.08

 202.05

 For the year ended December 31, 2023, the Company
has provided the five year cumulative total return results for the Dow Jones US Recreational Products Index, a widely-published index
tracking companies that provide recreational products.

 ITEM 6—[RESERVED]

 ITEM 7—

 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 Company Overview

 Sturm, Ruger & Company, Inc. (the "Company")
is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms.
Export sales represent approximately 6% of total sales. The Company's design and manufacturing operations are located in the United
States and almost all product content is domestic. The Company's firearms are sold through a select number of independent wholesale
distributors, principally to the commercial sporting market.

 The Company also manufactures investment castings
made from steel alloys and metal injection molding ("MIM") parts for internal use in its firearms and for sale to unaffiliated,
third-party customers. Less than 1% of sales are from the castings segment.

 Orders of many models of firearms from the independent
distributors tend to be stronger in the first quarter of the year and weaker in the third quarter of the year.

 Results of Operations - 2023

 Product Demand

 The estimated sell-through of the Company's
products from the independent distributors to retailers in 2023 decreased 7% from 2022. For the same period, adjusted NICS decreased 4%.
The greater reduction in the sell-through of the Company's products relative to adjusted NICS background checks may be attributable
to aggressive promotions, discounts, rebates, and the extension of payment terms offered by the Company's competitors.

 Estimated sell-through from distributors to retailers and total adjusted
NICS background checks:

 2023

 2022

 2021

 Estimated Units Sold from Distributors to Retailers (1)

 1,406,600

 1,506,800

 2,017,800

 Total Adjusted NICS Background Checks (2)

 15,848,000

 16,425,000

 18,515,000

 (1)
 The estimates for each period were calculated by taking the beginning inventory at the distributors, plus
shipments from the Company to distributors during the period, less the ending inventory at distributors. These estimates are only a proxy
for actual market demand as they:

 Rely on data provided by independent distributors
that are not verified by the Company,

 Do not consider potential timing issues within
the distribution channel, including goods-in-transit, and

 Do not consider fluctuations in inventory at
retail.

 (2)
 NICS background checks are performed when the ownership of most firearms, either new or used, is transferred
by a Federal Firearms Licensee. NICS background checks are also performed for permit applications, permit renewals, and other administrative
reasons.

 The adjusted NICS data presented above
was derived by the NSSF by subtracting NICS checks that are not directly related to the sale of a firearm, including checks used for concealed
carry ("CCW") permit application checks as well as checks on active CCW permit databases.

 Adjusted NICS data can be impacted by
changes in state laws and regulations and any directives and interpretations issued by governmental agencies.

 Orders Received and Ending Backlog

 The Company uses the estimated unit sell-through
of its products from the independent distributors to retailers, along with inventory levels at the independent distributors and at the
Company, as the key metrics for planning production levels.

 The units ordered, value of orders received and ending backlog, net
of Federal Excise Tax, for the trailing three years are as follows (dollars in millions, except average sales price):

 2023

 2022

 2021

 $
 433.8

 $
 451.2

 $
 606.5

 $

 $

 $

 $
 229.0

 $
 314.4

 $
 429.7

 $

 $

 $

 Production

 The Company reviews the estimated sell-through
from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company, to plan
production levels and manage inventories. These reviews resulted in a decrease in total unit production of 19% in 2023 compared to 2022.

 Annual Summary Unit Data

 Firearms unit data for orders, production, and
shipments follows:

 2023

 2022

 2021

 1,159,000

 1,083,800

 1,835,500

 1,398,200

 1,733,200

 2,154,600

 1,367,500

 1,641,000

 2,142,900

 Average Sales Price

 $

 $

 $

 438,800

 647,300

 1,204,500

 The Company's finished goods inventory increased
by 30,700 units during 2023.

 Distributor
inventories of the Company's products decreased by 39,100 units during 2023, and approximate a reasonable level to support rapid
fulfillment of retailer demand for most product families.

 Inventory data follows:

 2023

 2022

 2021

 143,500

 20,600

 Units – Distributor Inventory (3)

 259,300

 164,200

 Total inventory (4)

 402,800

 411,200

 184,800

 (3)
 Distributor ending inventory as provided by the independent distributors of the Company's products.
These numbers do not include goods-in-transit inventory that has been shipped from the Company but not yet received by the distributors.

 (4)
 This total does not include inventory at retailers. The Company does not have access to data on retailer
inventories.

 Year ended December 31, 2023, as compared to year ended December
31, 2022:

 Net Sales, Cost of Products Sold, and Gross
Profit

 Net
sales, c ost of products sold, and gross profit data for the year ended (dollars in millions):

2023

 2022

 Net firearms sales

 $
 540.7

 $
 593.3

 $
 (52.6
)

 (8.9
)%

 Net casting sales

 3.0

 2.5

 0.5

 18.3%

 Total net sales

 543.7

 595.8

 (52.1
)

 (8.7
)%

 Cost of products sold

 410.1

 415.7

 (5.6
)

 (1.3
)%

 $
 133.6

 $
 180.1

 $
 (46.5
)

 (25.8
)%

 Gross margin

 24.6%

 30.2%

 (5.6
)%

 (18.5
)%

 Firearms sales and unit shipments decreased 9%
and 17%, respectively, in 2023. New products represented $121.7 million or 23% of firearms sales in 2023, an increase from $78.4 million
or 14% of firearms sales in 2022. New product sales include only major new products that were introduced in the past two years. In 2023,
new products included the MAX-9 pistol (during the first quarter only), Security-380 pistol, Super Wrangler revolver, LCP MAX pistol,
Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II.

 The
decreased gross profit for the year ended December 31, 2023 is attributable to the significant decrease in sales, as well as inflationary
cost increases in materials, commodities, services, wages, energy, fuel and transportation, unfavorable deleveraging of fixed costs resulting
from decreased production, a product mix shift toward products with relatively lower margins that remain in stronger demand, and increased
promotional costs.

 The decrease in gross margin for the year ended
December 31, 2023 is attributable to the aforementioned factors, partially offset by increased pricing.

 Selling, General and Administrative

 Selling and general and administrative expenses data for the year ended
(dollars in millions):

2023

2022

 Selling expenses

 $
 38.8

 $
 36.1

 $
 2.7

 7.4%

 General and administrative expenses

 42.7

 40.5

 2.2

 5.4%

 Total operating expenses

 $
 81.5

 $
 76.6

 $
 4.9

 6.4%

 The increase in selling expenses for the year
ended December 31, 2023 was primarily attributable to increased trade show costs, travel expenditures, and advertising, partially
offset by decreased sales volume.

 The increase in general, and administrative expenses
for the year ended December 31, 2023 was primarily attributable to increased professional service costs.

 Operating Income

 Operating income was $52.1 million or 9.6% of
sales in 2023. This is a decrease of $51.4 million from 2022 operating income of $103.5 million or 17.3% of sales.

 Other Operating Income (Expense), Net

 Other income data for the year ended (dollars in millions):

 2023

2022

 Royalty income

 $
 0.6

 $
 0.8

 (0.2
)

 (21.4%
)

 Interest income

 5.5

 2.6

 2.9

 114.1%

 Interest expense

 (0.2
)

 (0.3
)

 0.1

 (19.9%
)

 Other income, net

 0.8

 1.7

 (0.9
)

 (51.4%
)

 Other income

 $
 6.7

 $
 4.8

 $
 1.9

 39.7%

 The increase in other income
for the year ended December 31, 2023 was the result of increases in interest income due to increased interest rates earned on short-term
investments, partially offset by decreased royalty and other income.

 Income Taxes and Net Income

 The
effective income tax rate was 18.0% in 2023 and 18.4% in 2022. The Company's 2023 and 2022 effective tax rate differs from the
statutory federal tax rate due principally to the availability of research and development tax credits, state income taxes, and the nondeductibility
of certain executive compensation. The impact related to research and development tax credits on the effective tax rate is expected to
decline in future years.

 As a result of the foregoing factors, consolidated
net income was $48.2 million in 2023. This represents a decrease of $40.1 million from 2022 consolidated net income of $88.3 million.

 Non-GAAP Financial Measure

 In an effort to provide investors with additional
information regarding its results, the Company refers to various United States generally accepted accounting principles ("GAAP")
financial measures and two non-GAAP financial measures, EBITDA and EBITDA margin, which management believes provides useful information
to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition,
the Company believes that the non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures.
The Company believes that EBITDA and EBITDA margin are useful to understanding its operating results and the ongoing performance of its
underlying business, as EBITDA provides information on the Company's ability to meet its capital expenditure and working capital
requirements, and is also an indicator of profitability. The Company believes that this reporting provides better transparency and comparability
to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate its financial performance.

 Non-GAAP Reconciliation – EBITDA

 EBITDA

 (Unaudited, dollars in thousands)

 2023

 2022

 $

 $

 Income tax expense

 10,609

 19,947

 Depreciation and amortization expense

 22,383

 25,789

 Interest expense

 Interest income

 (5,465
)

 (2,552
)

 EBITDA

 $
 75,947

 $
 131,772

 EBITDA margin

 14.0%

 22.1%

 EBITDA is defined as earnings before interest,
taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense and
depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest
income that was included in net income from net income to arrive at EBITDA. The Company's EBITDA calculation also excludes any one-time
non-cash, non-operating expense.

 Quarterly Data

 To supplement the summary annual unit data and
discussion above, the same data for the last eight quarters follows:

 2023

 Q4

 Q3

 Q2

 Q1

 316,600

 176,300

 258,100

 408,000

 305,200

 324,500

 387,500

 381,000

 337,800

 308,400

 336,400

 384,900

 Estimated Units Sold from Distributors to Retailers

 384,700

 307,400

 323,000

 391,500

 Total Adjusted NICS Background Checks

 4,742,000

 3,284,000

 3,654,000

 4,168,000

 Average Unit Sales Price

 $

 $

 $

 $

 438,800

 460,000

 592,100

 670,400

 143,500

 176,100

 160,000

 108,900

 Units – Distributor Inventory (5)

 259,300

 306,200

 305,200

 291,800

 2022

 Q4

 Q3

 Q2

 Q1

 156,000

 295,600

 250,600

 381,600

 397,300

 382,800

 431,800

 521,300

 393,100

 373,800

 382,600

 491,500

 Estimated Units Sold from Distributors to Retailers

 397,800

 343,500

 354,300

 411,200

 Total Adjusted NICS Background Checks

 4,531,000

 3,764,000

 3,917,000

 4,213,000

 Average Unit Sales Price

 $

 $

 $

 $

 647,300

 884,400

 962,600

 1,094,600

 108,600

 99,700

 50,400

 Units – Distributor Inventory (5)

 303,100

 272,800

 244,600

 (5)
 Distributor ending inventory as provided by the independent distributors of the Company's products.

 (in millions
except average sales price, net of Federal Excise Tax)

 2023

 Q4

 Q3

 Q2

 Q1

 $
 116.7

 $
 58.8

 $
 102.1

 $
 156.2

 $

 $

 $

 $

 $
 229.0

 $
 234.8

 $
 293.7

 $
 327.3

 $

 $

 $

 $

 2022

 Q4

 Q3

 Q2

 Q1

 $
 81.0

 $
 124.3

 $
 98.9

 $
 147.0

 $

 $

 $

 $

 $
 314.4

 $
 377.6

 $
 389.6

 $
 420.5

 $

 $

 $

 $

 Fourth Quarter Net Sales and Gross Profit Analysis

 Net sales, cost of products sold, and gross profit
data for the three months ended (dollars in millions):

2023

 2022

 Net firearms sales

 $
 129.6

 $
 148.7

 $
 (19.1
)

 (12.8
)%

 Net casting sales

 1.0

 0.5

 0.5

 79.1
 %

 Total net sales

 130.6

 149.2

 (18.6
)

 (12.5
)%

 Cost of products sold

 98.3

 109.6

 (11.3
)

 (10.3
)%

 $
 32.3

 $
 39.6

 $
 (7.3
)

 (18.4
)%

 Gross margin

 24.7%

 26.5%

 (1.8
)%

 (5.6
)%

 Results of Operations - 2022

 Year ended December 31, 2022, as compared to
year ended December 31, 2021:

 Annual Summary Unit Data

 Firearms unit data for orders, production, shipments and ending inventory,
and castings setups (a measure of foundry production) are as follows:

 2022

 2021

 2020

 1,083,800

 1,835,500

 3,041,700

 1,733,200

 2,154,600

 1,659,100

 1,641,000

 2,142,900

 1,717,700

 Average Sales Price

 $

 $

 $

 647,300

 1,204,500

 1,511,900

 20,600

 8,800

 Units – Distributor Inventory (1)

 164,200

 39,200

 Castings Setups

 55,971

 68,469

 66,044

 Orders Received and Ending Backlog

 (in millions except average sales price, net of
Federal Excise Tax):

 2022

 2021

 2020

 451.2

 $
 606.5

 $
 992.9

 Average Sales Price of Orders Received (2)

 $

 $

 $

 $
 314.4

 $
 429.7

 $
 516.6

 Average Sales Price of Ending Backlog (2)

 $

 $

 $

 (1)
 Distributor ending inventory as provided by the independent distributors of the Company's products.

 (2)
 Average sales price for orders received and ending backlog is net of Federal Excise
Tax of 10% for handguns and 11% for long guns.

 Product Demand

 The estimated sell-through of the
Company's products from the independent distributors to retailers in 2022 decreased 25% from 2021. For the same period,
adjusted NICS decreased 11%. These decreases are attributable to decreased consumer demand for firearms from the unprecedented
levels of the surge that began in 2020 and remained for most of 2021. The greater reduction in the sell-through of the
Company's products relative to adjusted NICS background checks may be attributable to the following:

 More aggressive promotions, discounts, rebates, and the extension of payment terms offered by our competitors,

 An apparent increase in sales of used firearms at retail, which are included in the adjusted NICS checks,
but are not distinguished from new gun sales, and

 Decreased retailer inventories as the anticipation of further discounting may be encouraging cautious
buying behavior by retailers.

 Estimated sell-through from distributors to retailers and total adjusted
NICS background checks:

 2022

 2021

 2020

 Estimated Units Sold from Distributors to Retailers (1)

 1,506,800

 2,017,800

 1,948,900

 Total Adjusted NICS Background Checks (2)

 16,425,000

 18,515,000

 21,084,000

 (1)
 The estimates for each period were calculated by taking the beginning inventory at the distributors, plus
shipments from the Company to distributors during the period, less the ending inventory at distributors. These estimates are only a proxy
for actual market demand as they:

 Rely on data provided by independent distributors
that are not verified by the Company,

 Do not consider potential timing issues within
the distribution channel, including goods-in-transit, and

 Do not consider fluctuations in inventory at
retail.

 (2)
 NICS background checks are performed when the ownership of most firearms, either new or used, is transferred
by a Federal Firearms Licensee. NICS background checks are also performed for permit applications, permit renewals, and other administrative
reasons.

 The adjusted NICS data presented above
was derived by the NSSF by subtracting NICS checks that are not directly related to the sale of a firearm, including checks used for concealed
carry ("CCW") permit application checks as well as checks on active CCW permit databases.

 Adjusted NICS data can be impacted by
changes in state laws and regulations and any directives and interpretations issued by governmental agencies.

 Production

 The Company reviews the estimated sell-through
from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company, to plan
production levels and manage inventories. These reviews resulted in a decrease in total unit production of 20% in 2022 compared to 2021.

 The Company's finished goods inventory increased
by 92,200 units during 2022.

 Distributor
inventories of the Company's products increased by 134,200 units during 2022, and approximate a reasonable level to support rapid
fulfillment of retailer demand for most product families.

 Inventory data follows:

 2022

 2021

 2020

 20,600

 8,800

 Units – Distributor Inventory (3)

 164,200

 39,200

 Total inventory (4)

 411,200

 184,800

 48,000

 (3)
 Distributor ending inventory as provided by the independent distributors of the Company's products.
These numbers do not include goods-in-transit inventory that has been shipped from the Company but not yet received by the distributors.

 (4)
 This total does not include inventory at retailers. The Company does not have access to data on retailer
inventories.

 Quarterly Summary Unit Data

 To supplement the summary annual unit data and
discussion above, the same data for the last eight quarters follows:

 2022

 Q4

 Q3

 Q2

 Q1

 156,000

 295,600

 250,600

 381,600

 397,300

 382,800

 431,800

 521,300

 393,100

 373,800

 382,600

 491,500

 Estimated Units Sold from Distributors to Retailers

 397,800

 343,500

 354,300

 411,200

 Total Adjusted NICS Background Checks

 4,531,000

 3,764,000

 3,917,000

 4,213,000

 Average Unit Sales Price

 $

 $

 $

 $

 647,300

 884,400

 962,600

 1,094,600

 108,600

 99,700

 50,400

 Units – Distributor Inventory (5)

 303,100

 272,800

 244,600

 2021

 Q4

 Q3

 Q2

 Q1

 373,000

 218,800

 453,400

 790,300

 512,100

 525,200

 575,400

 541,900

 502,300

 524,800

 580,800

 535,000

 Estimated Units Sold from Distributors to Retailers

 458,200

 457,400

 583,300

 518,900

 Total Adjusted NICS Background Checks

 4,763,000

 3,971,000

 4,298,000

 5,483,000

 Average Unit Sales Price

 $

 $

 $

 $

 1,204,500

 1,333,800

 1,639,800

 1,767,200

 20,600

 10,900

 10,400

 15,700

 Units – Distributor Inventory (5)

 164,200

 120,100

 52,800

 55,300

 (5)
 Distributor ending inventory as provided by the independent distributors of the Company's products.

 (in millions
except average sales price, net of Federal Excise Tax)

 2022

 Q4

 Q3

 Q2

 Q1

 $
 81.0

 $
 124.3

 $
 98.9

 $
 147.0

 $

 $

 $

 $

 $
 314.4

 $
 377.6

 $
 389.6

 $
 420.5

 $

 $

 $

 $

 2021

 Q4

 Q3

 Q2

 Q1

 $
 119.2

 $
 61.1

 $
 158.3

 $
 267.9

 $

 $

 $

 $

 $
 429.7

 $
 471.7

 $
 582.3

 $
 612.3

 $

 $

 $

 $

 Net Sales, Cost of Products Sold, and Gross
Profit

 Net
sales, c ost of products sold, and gross profit data for the year ended (dollars in millions):

 2022

 2021

 Net firearms sales

 $
 593.3

 $
 728.1

 $
 (134.8)

 (18.5
)%

 Net casting sales

 2.5

 2.6

 (0.1)

 (1.6
)%

 Total net sales

 595.8

 730.7

 (134.9)

 (18.5
)%

 Cost of products sold

 415.7

 451.2

 (35.5)

 (7.8
)%

 $
 180.1

 $
 279.5

 $
 (99.4)

 (35.6
)%

 Gross margin

 30.2%

 38.3%

 (8.1)%

 (29.7
)%

 Firearms sales and unit shipments decreased 18.5%
and 23.4%, respectively, in 2022. New products represented $78.4 million or 14% of firearms sales in 2022, compared to $155.5 million
or 22% of firearms sales in 2021. New product sales include only major new products that were introduced in the past two years. In 2022,
new products included the MAX-9 pistol, LCP MAX, Marlin 1895 lever-action rifles, PC Charger, LC Carbine, and Small-Frame Autoloading
Rifle.

 The
decreased gross profit for the year ended December 31, 2022 is attributable to the significant decrease in sales, as well as inflationary
cost increases in materials, commodities, services, energy, fuel and transportation, which were partially offset by increased pricing.

 The
decrease in gross margin for the year ended December 31, 2022 is attributable to the aforementioned inflationary cost increases and unfavorable
deleveraging of fixed costs resulting from decreased production and sales.

 Selling, General and Administrative

 Selling,
general and administrative expenses were $76.6 million in 2022, a slight increase of $0.1 million from $76.5 million in 2021, and an increase
from 10.5% of sales in 2021 to 12.9% of sales in 2022. The increase in these expenses was primarily attributable to increased shipping
costs and to the resumption of trade show participation costs, travel expenditures, and advertising that had been deferred during the
height of the COVID-19 restrictions, almost entirely offset by decreased incentive compensation expenses and decreased variable costs,
such as shipping, as a result of the reduced sales volume.

 Other Operating Income (Expense), Net

 Other operating income (expense), net was de minimis
in 2022 and an expense of $0.1 million in 2021.

 Operating Income

 Operating income was $103.5 million or 17.3% of
sales in 2022. This is a decrease of $99.6 million from 2021 operating income of $203.1 million or 27.8% of sales.

 Royalty Income

 Royalty income was $0.8 million in 2022 and $2.0
million in 2021.

 Interest Income

 Interest income was $2.6 million in 2022, an increase
from de minimis earnings in 2021, due to significantly increased interest rates earned on short-term investments beginning in the second
quarter of 2022.

 Interest Expense

 Interest expense was $0.3 million in 2022 and
$0.2 million and 2021.

 Other Income, Net

 Other income, net was $1.7 million in 2022, an
increase of $0.1 million from $1.6 million in 2021.

 Income Taxes and Net Income

 The
effective income tax rate was 18.4% in 2022 and 24.5% in 2021. The Company's 2022 and 2021 effective tax rate differs from the
statutory federal tax rate due principally to the availability of research and development tax credits, state income taxes, and the nondeductibility
of certain executive compensation. The decrease in the 2022 effective tax rate was primarily attributable to research and development
tax credits, some of which related to amended prior year income tax returns. The impact related to research and development tax credits
on the effective tax rate is expected to decline in future years.

 As a result of the foregoing factors, consolidated
net income was $88.3 million in 2022. This represents a decrease of $67.6 million from 2021 consolidated net income of $155.9 million.

 Non-GAAP Financial Measure

 In an effort to provide investors with additional
information regarding its results, the Company refers to various United States generally accepted accounting principles ("GAAP")
financial measures and two non-GAAP financial measures, EBITDA and EBITDA margin, which management believes provides useful information
to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition,
the Company believes that the non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures.
The Company believes that EBITDA and EBITDA margin are useful to understanding its operating results and the ongoing performance of its
underlying business, as EBITDA provides information on the Company's ability to meet its capital expenditure and working capital
requirements, and is also an indicator of profitability. The Company believes that this reporting provides better transparency and comparability
to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate its financial performance.

 Non-GAAP Reconciliation – EBITDA

 EBITDA

 (Unaudited, dollars in thousands)

 2022

 2021

 $

 $

 Income tax expense

 19,947

 50,695

 Depreciation and amortization expense

 25,789

 26,152

 Interest expense

 Interest income

 (2,552
)

 (49
)

 EBITDA

 $
 131,772

 $
 232,861

 EBITDA margin

 22.1%

 31.9%

 EBITDA is defined as earnings before interest,
taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense and
depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest
income that was included in net income from net income to arrive at EBITDA. The Company's EBITDA calculation also excludes any one-time
non-cash, non-operating expense.

 Financial Condition

 Liquidity

 At
December 31, 2023, the Company had cash and cash equivalents of $15.2 million and $102.5 million in short term investments. The Company's
pre-LIFO working capital of $272.5 million, less the LIFO reserve of $64.3 million, resulted in working capital of $208.2 million and
a current ratio of 4.3 to 1. The Company's current ratio is higher than the previous year's primarily due to the dividends
payable of $88 million related to the $5.00 per share special dividend that was declared on November 30, 2022 and paid on January 5, 2023.
 The Company also has access to a $40 million unsecured revolving line of credit that is currently undrawn.

 Capital Resources

 The Company believes that its cash flow from operations,
current cash position, and access to capital markets will continue to be sufficient to meet its anticipated cash requirements and contractual
obligations, which includes funding the Company's capital expenditures, acquisitions, dividend payments, and share repurchases.

 Operations

 Cash provided by operating activities was $33.9
million, $77.2 million, and $172.3 million in 2023, 2022, and 2021, respectively. The decrease in cash provided in 2023 compared to 2022
is primarily attributable to significantly decreased earnings in 2023.

 The decrease in cash provided in 2022 compared
to 2021 is primarily attributable to significantly decreased earnings in 2022 and increased inventories and trade receivables in 2022.

 Third parties supply the Company with various
raw materials for its firearms and castings, such as fabricated steel components, walnut, birch, beech, maple and laminated lumber for
rifle stocks, wax, ceramic material, metal alloys, various synthetic products and other component parts. There is a limited supply of
these materials in the marketplace at any given time, which can cause the purchase prices to vary based upon numerous market factors.
If market conditions result in a significant prolonged inflation of certain prices or if adequate quantities of raw materials cannot be
obtained, the Company's manufacturing processes could be interrupted and the Company's financial condition or results of operations
could be materially adversely affected.

 Investing
and Financing

 Capital expenditures were $15.8 million, $27.7
million, and $28.8 million in 2023, 2022, and 2021, respectively. In 2024, the Company expects capital expenditures to approximate $15
million, much of which will relate to tooling and fixtures for new product introductions and to upgrade and modernize manufacturing equipment.
Due to market conditions and business circumstances, actual capital expenditures could vary significantly from the budgeted amount. The
Company finances, and intends to continue to finance, all of these activities with funds provided by operations and current cash.

 Included in capital expenditures amount noted
above, on October 3, 2022 the Company purchased a 225,000 square foot facility, which it had previously been leasing, in Mayodan, North
Carolina for $8.3 million for use in its manufacturing and warehousing operations.

 As
of December 31, 2023, the Company had $74.7 million of United States Treasury instruments which mature within one year. The Company
also invests available cash in a bank-managed money market fund that invests exclusively in United States Treasury instruments which mature
within one year. At December 31, 2023, the Company's investment in this money market fund totaled $27.8 million.

 In 2023, the Company repurchased
264,062 shares of its common stock for $11.8 million in the open market. The average price per share purchased was $44.71. These purchases
were funded with cash on hand.

 In 2022, the Company repurchased
4,440 shares of its common stock for $0.2 million in the open market. The average price per share purchased was $49.87. These purchases
were funded with cash on hand. No shares were repurchased in 2021.

 At December 31, 2023, approximately $74.7 million
remained authorized for future share repurchases.

 On January 5, 2023, the Company paid a $5.00 per
share special dividend to shareholders of record on December 15, 2022.

 Including the $5.00 per share special dividend
paid on January 5, 2023, the Company paid dividends totaling $110.8 million, $42.7 million, and $59.1 million in 2023, 2022, and 2021,
respectively. The quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount
per share. The Company's practice is to pay a dividend of approximately 40% of net income.

 On February 16, 2024, the Company's Board
of Directors authorized a dividend of 23 per share to shareholders of record on March 15, 2024. The payment of future dividends
depends on many factors, including internal estimates of future performance, then-current cash, and the Company's need for funds.

 The Company provides supplemental discretionary
contributions to substantially all employees' individual 401(k) accounts.

 Based on its unencumbered assets, the Company
believes it has the ability to raise cash through issuance of short-term or long-term debt.

 Contractual
Obligations

 At December 31, 2023, the Company had approximately
$51.3 million in agreements to purchase goods or services that are enforceable and legally binding on the Company, all of which are expected
to be settled in less than one year. Additionally, the Company has approximately $3.6 million in operating lease obligations, which will
be payable through 2034. The Company expects to fund all of these commitments with cash flows from operations and current cash.

 Firearms Legislation
and Litigation

 See Item 1A - Risk Factors and Note 20 to the
financial statements which are included in the Annual Report on Form 10-K for a discussion of firearms legislation and litigation.

 Other Operational Matters

 In the normal course of its manufacturing operations,
the Company is subject to occasional governmental proceedings and orders pertaining to workplace safety, firearms serial number tracking
and control, waste disposal, air emissions and water discharges into the environment. The Company believes that it is generally in compliance
with applicable Bureau of Alcohol, Tobacco, Firearms & Explosives, environmental, and safety regulations and the outcome of any proceedings
or orders will not have a material adverse effect on the financial position or results of operations of the Company. If these regulations
become more stringent in the future and we are not able to comply with them, such noncompliance could have a material adverse impact on
the Company.

 Currently, there are 15 domestic distributors.
Additionally, the Company has 44 and 26 distributors servicing the export and law enforcement markets, respectively.

 The Company self-insures a significant amount
of its product liability, workers' compensation, medical, and other insurance. It also carries significant deductible amounts on
various insurance policies.

 The global outbreak of the Coronavirus disease
2019 was declared a pandemic by the World Health Organization and a national emergency by the U.S. Government in March 2020. The Company
has taken many proactive steps to maintain the health and safety of its employees and to mitigate the impact on its business. During the
twelve month period ended December 31, 2023, the Company did not experience a significant adverse impact on its business from COVID-19
or related government restrictions. The Company cannot predict the extent to which its business, results of operations, financial condition,
or cash flows will ultimately be impacted by COVID-19.

 The Company expects to realize its deferred tax
assets through tax deductions against future taxable income.

 Critical Accounting Policies and Estimates

 The preparation of financial statements in accordance
with accounting principles generally accepted in the United States requires management to make assumptions and estimates that affect the
reported amounts of assets and liabilities as of the balance sheet date and net sales and expenses recognized and incurred during the
reporting period then ended. The Company bases estimates on prior experience, facts and circumstances, and other assumptions, including
those reviewed with actuarial consultants and independent counsel, when applicable, that are believed to be reasonable. However, actual
results may differ from these estimates.

 The Company believes that the assumptions and judgments involved in the accounting estimates below have the greatest potential impact
on its financial statements, so the Company believes these to be its critical accounting estimates. The methodologies applied for determining
the estimates related to the below critical accounting estimates have not changed from the prior year.

 Product Liability Accrual

 The Company believes the determination of its
product liability accrual is a critical accounting policy. The Company's management reviews every lawsuit and claim and is in contact
with independent and corporate counsel on an ongoing basis. The provision for product liability claims is based upon many factors, which
vary for each case. These factors include the type of claim, nature and extent of injuries, historical settlement ranges, jurisdiction
where filed, and advice of counsel. An accrual is established for each lawsuit and claim, when appropriate, based on the nature of each
such lawsuit or claim.

 Amounts are charged to product liability expense
in the period in which the Company becomes aware that a claim or, in some instances a threat of a claim, has been made when potential
losses or costs of defense are probable and can be reasonably estimated. Such amounts are determined based on the Company's experience
in defending similar claims. Occasionally, charges are made for claims made in prior periods because the cumulative actual costs incurred
for that claim, or reasonably expected to be incurred in the future, exceed amounts already provided with respect to such claims. Likewise,
credits may be taken if cumulative actual costs incurred for that claim, or reasonably expected to be incurred in the future, are less
than amounts previously provided.

 While it is not possible to forecast the outcome
of litigation or the timing of related costs, in the opinion of management, after consultation with independent and corporate counsel,
there is a remote likelihood that litigation, including punitive damage claims, will have a material adverse effect on the financial position
of the Company, but such litigation may have a material impact on the Company's financial results and cash flows for a particular
period.

 Inventory Valuation and Reserves

 The Company believes the valuation of its inventory
and the related excess and obsolescence reserve is also a critical accounting policy. Inventories are carried at the lower of cost, principally
determined by the last-in, first-out (LIFO) method, or market. An actual valuation of inventory under the LIFO method is made at the end
of each year based on the inventory levels and the Company's estimates of the prevailing costs of the many components of inventory
existing at that time.

 The Company determines its excess and obsolescence
reserve by projecting the year in which inventory will be consumed into a finished product. Given ever-changing market conditions, customer
preferences and the anticipated introduction of new products, projecting the future usage of inventory is subjective. As such, it does
not seem prudent to carry inventory at full cost beyond what the Company projects to be needed during the next 36 months.

 Recent Accounting Pronouncements

 In November of 2023, the FASB issued ASU 2023-07,
"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The updated accounting guidance requires
enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating
decision maker. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning
after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the
effect the updated guidance will have on its financial statement disclosures.

 In December of 2023, the FASB issued ASU 2023-09,
"Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The updated accounting guidance requires expanded income
tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes
paid. The guidance is effective for fiscal years beginning after December 15, 2024. Prospective application is required, with retrospective
application permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

 Forward-Looking Statements and Projections

 The Company may, from time to time, make forward-looking
statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain
qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need
for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future
firearms control and environmental legislation and accounting estimates, any one or more of which could cause actual results to differ
materially from those projected. Words such as "expect," "believe," "anticipate," "intend,"
"estimate," "will," "should," "could" and other words and terms of similar meaning, typically
identify such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events
or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.

 ITEM 7A—QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

 The Company is exposed to changing interest rates
on its investments, which consist primarily of United States Treasury instruments with short-term (less than one year) maturities and
cash. The interest rate market risk implicit in the Company's investments at any given time is low, as the investments mature within short
periods and the Company does not have significant exposure to changing interest rates on invested cash.

 The Company has not undertaken any actions to
cover interest rate market risk and is not a party to any interest rate market risk management activities.

 A hypothetical 100 basis point change in market
interest rates over the next year would not materially impact the Company's earnings or cash flows. A hypothetical 100 basis point
change in market interest rates would not have a material effect on the fair value of the Company's investments.

 ITEM 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA

 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 Reports of Independent Registered Public Accounting Firm (PCAOB ID 49)

 Consolidated Balance Sheets at December 31, 2023 and 2022

 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

 Notes to Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm

 To the Stockholders and the Board of Directors of Sturm, Ruger &
Company, Inc. and Subsidiary

 Opinion on the Internal Control Over Financial Reporting

 We have audited Sturm, Ruger & Company, Inc. and Subsidiary's
(the Company) internal control over financial reporting as of December 31, 2023, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31,
2023, based on criteria established in Internal Control—Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

 We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2023 and
2022, and the related consolidated statements of income and comprehensive income, stockholders' equity, and cash flows for each of the
three years in the period ended December 31, 2023, and our report dated February 21, 2024 expressed an unqualified opinion.

 Basis for Opinion

 The Company's management is responsible for maintaining effective
internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in
the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on
the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over
financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.

 Definition and Limitations of Internal Control Over Financial Reporting

 A company's internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's
assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

 /s/RSM US LLP

 Stamford, Connecticut

 February 21, 2024

 Report of Independent Registered Public Accounting
Firm

 To the Stockholders and the Board of Directors of Sturm, Ruger &
Company, Inc. and Subsidiary

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance sheets of Sturm,
Ruger & Company, Inc. and Subsidiary (the Company) as of December 31, 2023 and 2022, the related consolidated statements of income
and comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2023,
and the related notes to the consolidated financial statements and schedule (collectively, the financial statements). In our opinion,
the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022,
and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity
with accounting principles generally accepted in the United States of America.

 We have also audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31,
2023, based on criteria established in Internal Control—Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated February 21, 2024 expressed an unqualified
opinion on the effectiveness of the Company's internal control over financial reporting.

 Basis for Opinion

 These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public
accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement
of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material
to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical
audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the
critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it
relates.

 Last-In, First-Out Inventory Reserve

 As described in Notes 1 and 4 to the financial statements, substantially all of the Company's inventories are valued at the
lower of cost, which is principally determined by the last-in, first-out (LIFO) method, or net realizable value, and the Company's
consolidated net inventories balance of $79.8 million as of December 31, 2023, included a LIFO inventory reserve of $64.3 million. The
Company records its net inventories under the LIFO method at the end of each year based on the inventory levels at the measurement date
and the prevailing inventory costs existing at that time, which are estimated using a complex manual calculation.

 We identified the LIFO inventory reserve as a critical audit matter
because of the complexities of the manual calculations performed by management to estimate the prevailing inventory costs, which includes
calculations to estimate current year price level changes through the development of a prior year and a current year cumulative price
index. Auditing management's estimate of the LIFO inventory reserve was complex and required a high degree of auditor judgement
and increased audit effort due to the complexities of management's manual calculations.

 Our audit procedures related to the Company's LIFO inventory
reserve included the following, among others:

 We obtained an understanding of the relevant controls related to the LIFO
inventory reserve and tested such controls for design and operating effectiveness, including controls related to the review of the calculations
related to the estimate of the current year price level changes, the calculation of the cumulative price indexes, and the estimate of
the LIFO inventory reserve.

 We tested the completeness, accuracy, and relevance of the underlying data
used in management's estimate of the current year price level changes, the calculation of cumulative price index and the LIFO inventory
reserve.

 We tested the mathematical accuracy of the Company's calculation to
estimate the LIFO inventory reserve.

 We evaluated the appropriateness of management's methodologies to develop
the estimate of the LIFO inventory reserve.

 We evaluated the reasonableness of management's estimate of the current
year price level changes by comparing management's estimate to external market data.

 /s/ RSM US LLP

 We have served as the Company's auditor since 2005.

 Stamford, Connecticut

 February 21, 2024

 Consolidated Balance Sheets

 (Dollars in thousands, except per share data)

 2023

 2022

 Assets

 Current Assets

 Cash and cash equivalents

 $
 15,174

 $
 65,173

 Short-term investments

 102,485

 159,132

 Trade receivables, net

 59,864

 65,449

 Gross inventories

 150,192

 129,294

 Less LIFO reserve

 ( 64,262
)

 ( 59,489
)

 Less excess and obsolescence reserve

 ( 6,120
)

 ( 4,812
)

 Net inventories

 79,810

 64,993

 Prepaid expenses and other current assets

 14,062

 7,091

 Total Current Assets

 271,395

 361,838

 Property, plant and equipment

 462,397

 447,126

 Less allowances for depreciation

 ( 390,863
)

 ( 370,273
)

 Net property, plant and equipment

 71,534

 76,853

 Deferred income taxes

 11,976

 6,109

 Other assets

 43,912

 39,963

 Total Assets

 $
 398,817

 $
 484,763

 2023

 2022

 Liabilities and Stockholders' Equity

 Current Liabilities

 Trade accounts payable and accrued expenses

 $
 31,708

 $
 35,658

 Dividends payable

 —

 88,343

 Contract liabilities with customers (Note 2)

 1,031

 Product liability

 Employee compensation and benefits

 24,660

 30,160

 Workers' compensation

 6,044

 6,469

 Income taxes payable

 —

 1,171

 Total Current Liabilities

 63,195

 163,067

 Lease liability (Note 7)

 2,170

 3,039

 Employee compensation

 1,685

 1,846

 Product liability accrual

 Contingent liabilities (Note 20)

 —

 —

 Stockholders' Equity

 Common stock, non-voting, par value $ 1:

 Authorized shares – 50,000; none issued

 Common stock, par value $ 1:

 Authorized shares – 40,000,000

 2023 – 24,437,020 issued,

 17,458,620 outstanding

 2022 – 24,378,568 issued,

 17,664,230 outstanding

 24,437

 24,378

 Additional paid-in capital

 46,849

 45,075

 Retained earnings

 418,058

 393,097

 Less: Treasury stock – at cost

 2023 – 6,978,400 shares

 2022 – 6,714,338 shares

 ( 157,623
)

 ( 145,812
)

 Total Stockholders' Equity

 331,721

 316,738

 Total Liabilities and Stockholders' Equity

 $
 398,817

 $
 484,763

 Consolidated Statements of Income and Comprehensive Income

 (In thousands, except per share data)

 2023

 2022

 2021

 Net firearms sales

 $
 540,746

 $
 593,289

 $
 728,141

 Net castings sales

 3,021

 2,553

 2,595

 Total net sales

 543,767

 595,842

 730,736

 Cost of products sold

 410,148

 415,757

 451,179

 133,619

 180,085

 279,557

 Operating Expenses (Incomes):

 Selling

 38,788

 36,114

 33,259

 General and administrative

 42,752

 40,551

 43,289

 Other operating income, net

 ( 5
)

 ( 36
)

 ( 127
)

 Total operating expenses

 81,535

 76,629

 76,421

 Operating income

 52,084

 103,456

 203,136

 Other income:

 Royalty income

 1,975

 Interest income

 5,465

 2,552

 Interest expense

 ( 205
)

 ( 256
)

 ( 164
)

 Other income, net

 1,690

 1,598

 Total other income, net

 6,740

 4,823

 3,458

 Income before income taxes

 58,824

 108,279

 206,594

 Income taxes

 10,609

 19,947

 50,695

 Net income and comprehensive income

 $

 $

 $

 Basic Earnings Per Share

 $
 2.73

 $
 5.00

 $
 8.87

 Diluted Earnings Per Share

 $
 2.71

 $
 4.96

 $
 8.78

 Weighted average number of common shares outstanding – Basic

 17,676,955

 17,648,850

 17,585,604

 Weighted average number of common shares outstanding – Diluted

 17,811,218

 17,793,348

 17,757,834

 Cash Dividends Per Share

 $
 6.27

 $
 2.42

 $
 3.36

 Consolidated Statements of Stockholders' Equity

 (Dollars in thousands)

 Common
Stock

 Additional

Paid-in

Capital

 Retained

Earnings

 Treasury

Stock

 Total

 Balance at December 31, 2020

 $
 24,206

 $
 43,468

 $
 342,615

 $
 ( 145,590
)

 $
 264,699

 Dividends paid

 ( 59,104
)

 ( 59,104
)

 8,280

 8,280

 Vesting of RSU's

 ( 4,801
)

 ( 4,801
)

 Common stock issued – compensation plans

 ( 100
)

 —

 Unpaid dividends accrued

 ( 1,312
)

 ( 1,312
)

 Balance at December 31, 2021

 24,306

 46,847

 438,098

 ( 145,590
)

 363,661

 Dividends paid

 ( 42,718
)

 ( 42,718
)

 1,671

 1,671

 Vesting of RSU's

 ( 3,371
)

 ( 3,371
)

 Common stock issued – compensation plans

 ( 72
)

 —

 Unpaid dividends accrued

 ( 90,615
)

 ( 90,615
)

 Repurchase of 4,440 shares of common stock

 ( 222
)

 ( 222
)

 Balance at December 31, 2022

 24,378

 45,075

 393,097

 ( 145,812
)

 316,738

 Dividends paid

 ( 22,446
)

 ( 22,446
)

 3,989

 3,989

 Vesting of RSU's

 ( 2,156
)

 ( 2,156
)

 Common stock issued – compensation plans

 ( 59
)

 —

 Unpaid dividends accrued

 ( 808
)

 ( 808
)

 Repurchase of 264,062 shares of common stock

 ( 11,811
)

 ( 11,811
)

 Balance at December 31, 2023

 $
 24,437

 $
 46,849

 $
 418,058

 $
 ( 157,623
)

 $
 331,721

 Consolidated Statements of Cash Flows

 (In thousands)

 2023

 2022

 2021

 Operating Activities

 $

 $

 $

 Adjustments to reconcile net income to cash provided by operating activities, net of effects of acquisition:

 Depreciation and amortization

 22,383

 25,789

 26,152

 3,989

 1,671

 8,280

 Excess and obsolescence inventory reserve

 1,308

 Gain on sale of assets

 ( 5
)

 ( 36
)

 ( 127
)

 Deferred income taxes

 ( 5,867
)

 ( 5,573
)

 Changes in operating assets and liabilities:

 Trade receivables

 5,585

 ( 8,413
)

 ( 16,125
)

 ( 21,644
)

 ( 15,726
)

 Trade accounts payable and accrued expenses

 ( 4,406
)

 ( 640
)

 ( 392
)

 Contract liability with customers

 ( 882
)

 1,031

 ( 84
)

 Employee compensation and benefits

 ( 6,469
)

 ( 3,420
)

 ( 5,433
)

 Product liability

 ( 584
)

 ( 234
)

 Prepaid expenses, other assets and other liabilities

 ( 13,026
)

 ( 954
)

 1,217

 Income taxes receivable/payable

 ( 1,171
)

 1,171

 —

 Cash provided by operating activities

 33,901

 77,231

 172,339

 Investing Activities

 Property, plant and equipment additions

 ( 15,796
)

 ( 27,730
)

 ( 28,776
)

 Purchases of short-term investments

 ( 192,627
)

 ( 365,480
)

 ( 681,940
)

 Proceeds from maturity of short-term investments

 249,274

 406,319

 602,976

 Net proceeds from sale of assets

 Cash provided by (used for) investing activities

 40,856

 13,209

 ( 107,537
)

 Financing Activities

 Dividends paid

 ( 110,789
)

 ( 42,718
)

 ( 59,104
)

 Repurchase of common stock

 ( 11,811
)

 ( 222
)

 —

 Payment of employee
 withholding tax related to share-based compensation

 ( 2,156
)

 ( 3,371
)

 ( 4,801
)

 Cash used for financing activities

 ( 124,756
)

 ( 46,311
)

 ( 63,905
)

 (Decrease) increase in cash and cash equivalents

 ( 49,999
)

 44,129

 Cash and cash equivalents at beginning of year

 65,173

 21,044

 20,147

 Cash and cash equivalents at end of year

 $
 15,174

 $
 65,173

 $
 21,044

 Notes to Consolidated Financial Statements

 (Dollars in thousands, except per share)

 1.
 Summary of Significant Accounting Policies

 Organization

 Sturm, Ruger & Company, Inc. (the "Company")
is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99 % of sales were from firearms.
Export sales represented approximately 6 % of firearms sales. The Company's design and manufacturing operations are located in the
United States and almost all product content is domestic. The Company's firearms are sold through a select number of independent
wholesale distributors principally to the commercial sporting market.

 The Company manufactures investment castings made
from steel alloys and metal injection molding ("MIM") parts for internal use in its firearms and utilizes available capacity
to manufacture and sell investment castings and MIM parts to unaffiliated, third-party customers. Castings were less than 1 % of the Company's
total sales for the year ended December 31, 2023.

 Preparation
of Financial Statements

 The Company follows United States generally accepted
accounting principles ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date
of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from these estimates.

 The significant accounting policies described
below, together with the notes that follow, are an integral part of the consolidated financial statements.

 Principles
of Consolidation

 The consolidated financial statements include
the accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated.

 Revenue Recognition

 The Company recognizes revenue in accordance
with the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC 606"), which
became effective January 1, 2018. Substantially all product sales are sold FOB (free on board) shipping point. Customary payment terms
are 2% 30 days, net 40 days. Generally, all performance obligations are satisfied when product is shipped and the customer takes ownership
and assumes the risk of loss. In some instances, sales include multiple performance obligations. The most common of these instances relates
to sales promotion programs under which downstream customers are entitled to receive no charge products based on their purchases of certain
of the Company's products from the independent distributors. The fulfillment of these no charge products is the Company's
responsibility. In such instances, the Company allocates the revenue of the promotional sales based on the estimated level of participation
in the sales promotional program and the timing of the shipment of all of the firearms included in the promotional program, including
the no charge firearms. Revenue is recognized proportionally as each performance obligation is satisfied, based on the relative customary
price of each product. Customary prices are generally determined based on the prices charged to the independent distributors. The net
change in contract liabilities for a given period is reported as an increase or decrease to sales. The Company accounts for cash sales
discounts as a reduction in sales. Amounts billed to customers for shipping and handling fees are included in net sales and costs incurred
by the Company for the delivery of goods are classified as selling expenses. Federal excise taxes are excluded from net sales.

 Cash and
Cash Equivalents

 The Company considers interest-bearing deposits
with financial institutions with remaining maturities of three months or less at the time of acquisition to be cash equivalents.

 Fair Value
Measurements of Short-term Investments

 Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or
most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable
inputs used to measure fair value into three broad levels, which are described below:

 Level 1: Unadjusted quoted prices in
active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority
to Level 1 inputs.

 Level 2: Observable prices that are
based on inputs not quoted on active markets, but corroborated by market data.

 Level 3: Unobservable inputs are used
when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy.

 The asset or liability's fair value measurement
level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation
techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 As
of December 31, 2023, the Company's short-term investments consist of U.S. Treasury instruments (Level 1), maturing within one year,
and investments in a bank-managed money market fund that invests exclusively in United States Treasury obligations and is valued
at the net asset value ("NAV") daily closing price, as reported by the fund, based on the amortized cost of the fund's
securities (Level 2). For the bank-managed money market fund, t he NAV
is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that
the fund will sell the investment for an amount different than the reported NAV.
Such securities are classified as held to maturity, since the Company has the intent and ability to do so, and are carried at cost plus
accrued interest, which approximates fair value.

 The fair value of inventory acquired as part of
business combination is based on a third-party valuation utilizing the comparable sales method which is based on Level 2 and Level 3 inputs.
The fair value of property, plant and equipment acquired as part of business combination is based on a third-party valuation utilizing
the indirect method of cost approach, which is based on Level 2 and Level 3 inputs. The fair value of patents acquired as part of business
combination is based on a third-party valuation utilizing the replacement cost method, which is based on Level 2 and Level 3 inputs. The
fair value of the remaining intangible assets as part of business combination are based on a third-party valuation utilizing discounted
cash flow methods that involves inputs, which are not observable in the market (Level 3).

 Accounts Receivable

 The Company establishes an allowance for doubtful
accounts based on the creditworthiness of its customers and historical experience. While the Company uses the best information available
to make its evaluation, future adjustments to the allowance for doubtful accounts may be necessary if there are significant changes in
economic and industry conditions or any other factors considered in the Company's evaluation. Bad debt expense has been immaterial
during each of the last three years. The Company mitigates its credit risk by maintaining credit insurance on most of its significant
customers.

 Substantially all of the Company's inventories
are valued at the lower of cost, principally determined by the last-in, first-out (LIFO) method, or net realizable value. Elements of
cost in inventories include raw materials, direct labor and manufacturing overhead.

 Property,
Plant and Equipment

 Property, plant and equipment are carried at
cost. Depreciation is computed over useful lives using the straight-line and declining balance methods predominately over 15 years for
buildings, 7 years for machinery and equipment and 3 years for tools and dies. When assets are retired, sold or otherwise disposed of,
their gross carrying values and related accumulated depreciation are removed from the accounts and a gain or loss on such disposals is
recognized when appropriate.

 Maintenance and repairs are charged to operations;
replacements and improvements are capitalized.

 Long-lived Assets

 The Company evaluates the carrying value of long-lived
assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. In performing this
review, the carrying value of the assets is compared to the projected undiscounted cash flows to be generated from the assets. If the
sum of the undiscounted expected future cash flows is less than the carrying value of the assets, the assets are considered to be impaired.
Impairment losses are measured as the amount by which the carrying value of the assets exceeds their fair value. The Company bases fair
value of the assets on quoted market prices if available or, if not available,

 quoted market prices of similar assets. Where quoted market
prices are not available, the Company estimates fair value using the estimated future cash flows generated by the assets discounted at
a rate commensurate with the risks associated with the recovery of the assets. As of December 31, 2023, the Company does not believe there
are any indications of impairment related to long-lived assets.

 Goodwill

 The Company's
goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired. We assess
goodwill for impairment on an annual basis during the fourth quarter of each year, and between annual tests whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment exists by the amount the fair value of a reporting
unit to which goodwill has been allocated is less than their respective carrying values. The impairment for goodwill is limited to the
total amount of goodwill allocated to the reporting unit. Goodwill impairment testing requires significant judgment and management estimates,
including, but not limited to, the determination of (i) the number of reporting units, (ii) the goodwill and other assets and
liabilities to be allocated to the reporting units and (iii) the fair values of the reporting units. The estimates and assumptions
described above, along with other factors such as discount rates, will significantly affect the outcome of the impairment tests and the
amounts of any resulting impairment losses. As of December 31, 2023, the Company does not believe there are any indications of
impairment related to goodwill.

 Income Taxes

 Income taxes are accounted for using the asset
and liability method. Under this method, deferred income taxes are recognized for the tax consequences of "temporary differences"
by applying enacted statutory rates applicable to future years to temporary differences between the financial statement carrying amounts
and the tax basis of the Company's assets and liabilities.

 Product Liability

 The Company provides for product liability claims
including estimated legal costs to be incurred defending such claims. The provision for product liability claims is charged to cost of
products sold.

 Advertising Costs

 The Company includes advertising costs in selling
expenses and these costs are expensed as incurred. Advertising costs for 2023, 2022, and 2021, were $ 3.1 million, $ 2.4 million, and $ 2.6
million, respectively.

 Shipping
Costs

 Costs incurred related to the shipment of products
are included in selling expense. Such costs totaled $ 4.4 million, $ 4.7 million, and $ 4.2 million in 2023, 2022, and 2021, respectively.

 Research and Development

 In 2023, 2022, and 2021, the Company spent approximately
$ 9.8 million, $ 9.6 million, and $ 11.7 million, respectively, on research and development activities relating to new products and the improvement
of existing products. These costs are included in costs of products sold and are expensed as incurred. These costs are capitalized for
tax purposes under the provisions of the Tax Cuts and Jobs Act of 2017 that relate to IRS Code Section 174, as discussed in Note 13.

 Earnings per Share

 Basic earnings per share is based upon the weighted-average
number of shares of common stock outstanding during the year. Diluted earnings per share reflect the impact of options, restricted stock
units, and deferred stock outstanding using the treasury stock method.

 Recent Accounting Pronouncements

 In November of 2023, the FASB issued ASU 2023-07,
"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The updated accounting guidance requires
enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating
decision maker. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning
after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the
effect the updated guidance will have on its financial statement disclosures.

 In December of 2023, the FASB issued ASU 2023-09,
"Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The updated accounting guidance requires expanded income
tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes
paid. The guidance is effective for fiscal years beginning after December 15, 2024. Prospective application is required, with retrospective
application permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

 2.
 Revenue Recognition and Contracts with Customers

 The impact of ASC 60 6
on revenue recognized during the years ended December 31, 2023, December 31, 2022, and December 31, 2021 is as follows:

 2023

 2022

 2021

 Contract liabilities with customers at January 1,

 $
 1,031

 $
 —

 $

 Revenue recognized

 ( 4,084
)

 —

 ( 84
)

 Revenue deferred

 3,202

 1,031

 —

 Contract liabilities with customers at December 31,

 $

 $
 1,031

 $
 —

 During the year ended December 31, 2023, the Company
deferred $ 3.2 million of revenue, offset by the recognition of $ 4.1 million of revenue previously deferred as the performance obligations
relating to the shipment of free products were satisfied. This resulted in a net increase in firearms sales for the year ended December
31, 2023 of $ 0.9 million and a deferred contract revenue liability at December 31, 2023 of $ 0.1 million. The Company estimates that revenue
from this deferred contract liability will be recognized in the first quarter of 2024.

 During the year ended December 31, 2022, the Company
deferred $ 1.0 million of revenue. There was no offset for the recognition from previously deferred revenue as the Company did not satisfy
any performance obligations relating to the shipment of free products during the year. This resulted in a net decrease in firearms sales
for the year ended December 31, 2022 of $ 1.0 million and a deferred contract revenue liability at December 31, 2022 of $ 1.0 million.

 During the year ended December 31, 2021, there
were no promotions giving rise to deferred contract liabilities and, therefore, there was no additional deferred revenue. Previously deferred
revenue of $ 0.1 million was recognized in the first quarter of 2021. The Company did not have a deferred contract revenue liability at
December 31, 2021.

 Practical Expedients and Exemptions

 The Company has elected to account for shipping
and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized
upon shipment of the goods.

 3.
 Trade Receivables, Net

 Trade receivables consist of the following:

 2023

 2022

 Trade receivables

 $
 61,428

 $
 67,183

 Allowance for doubtful accounts

 ( 400
)

 ( 400
)

 Allowance for discounts

 ( 1,164
)

 ( 1,334
)

 $
 59,864

 $
 65,449

 In 2023, the largest individual trade receivable
balances accounted for 22 %, 20 %, and 17 % of total trade receivables, respectively.

 In 2022, the largest individual trade receivable
balances accounted for 26 %, 23 %, and 18 % of total trade receivables, respectively.

 4.

 Inventories consist of the following:

 2023

 2022

 Inventory at FIFO

 Finished goods

 $
 30,989

 $
 23,573

 Materials and products in process

 119,203

 105,721

 Gross inventories

 150,192

 129,294

 Less: LIFO reserve

 ( 64,262
)

 ( 59,489
)

 Less: excess and obsolescence reserve

 ( 6,120
)

 ( 4,812
)

 Net inventories

 $
 79,810

 $
 64,993

 5.
 Property, Plant and Equipment

 Property, plant and equipment consist of the following:

 2023

 2022

 Land and improvements

 $
 2,826

 $
 2,826

 Buildings and improvements

 74,650

 72,788

 Machinery and equipment

 322,730

 314,032

 Dies and tools

 62,191

 57,480

 Property, plant and equipment

 462,397

 447,126

 Less allowances for depreciation

 ( 390,863
)

 ( 370,273
)

 Net property, plant and equipment

 $
 71,534

 $
 76,853

 Depreciation expense totaled $ 21.1 million, $ 24.4
million, and $ 25.8 million in 2023, 2022, and 2021, respectively.

 6.
 Other Assets

 Other assets consist of the following:

 2023

 2022

 Patents, at cost

 $
 10,280

 $
 10,126

 Accumulated amortization

 ( 7,171
)

 ( 6,318
)

 Deposits on capital items

 23,045

 17,106

 Marlin trade name

 7,800

 7,800

 Other

 9,958

 11,249

 $
 43,912

 $
 39,963

 The capitalized cost of patents is amortized
using the straight-line method over their useful lives. Expenses related to patent amortization was $ 0.4 million in 2023, $ 0.4 million
in 2022, and $ 0.3 million in 2021. The estimated annual patent amortization expense for each of the next five years is $ 0.3 million.
Costs incurred to maintain existing patents are charged to expense in the year incurred. The Marlin trade name will be amortized using
the straight-line method over its useful life. The estimated annual trade name amortization cost for each of the next five years is $ 0.4
million. The intangible asset related to Marlin customer relationships are included in Other above and will be amortized using the straight-line
method over its useful life. The estimated annual customer relationship name amortization expense for each of the next five years is
$ 0.1 million.

 7.
 Leased Assets

 The Company leases certain of its real estate
and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions of the guidance
of ASU 2016-02. The Company's lease agreements generally do not require material variable lease payments, residual value guarantees
or restrictive covenants.

 The Company uses the effective interest method
to record right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below presents
the right-of-use assets and related lease liabilities recognized on the condensed consolidated balance sheet as of December 31, 2023:

 Balance Sheet Line

Item

2023

2022

 Right-of-use assets

 Other assets

 $
 2,781

 $
 3,681

 Operating lease liabilities

 Current portion

 Trade accounts payable and accrued expenses

 $

 $

 Noncurrent portion

 Lease liabilities

 2,170

 3,039

 Total operating lease liabilities

 $
 2,781

 $
 3,681

 The depreciable lives of right-of-use assets are
limited by the lease term and are amortized on a straight line basis over the life of the lease.

 The Company's leases generally do not provide
an implicit interest rate, and therefore the Company calculates an incremental borrowing rate to determine the present value of its operating
lease liabilities. The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities
recognized on the condensed consolidated balance sheet as of December 31, 2023:

 2024

 $

 2025

 2026

 2027

 2028

 Thereafter

 Total undiscounted future minimum lease payments

 3,564

 Less: Difference between undiscounted lease payments & the present value of future lease payments

 ( 783
)

 Total operating lease liabilities

 $
 2,781

 Certain of the Company's lease agreements
contain renewal options at the Company's discretion. The Company does not recognize right-of-use assets or lease liabilities for
leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal option at
the inception of the lease or when a triggering event occurs. The Company's weighted average remaining lease term for operating
leases as of December 31, 2023 is 7.9 years.

 8.
 Trade Accounts Payable and Accrued Expenses

 Trade accounts payable and accrued expenses consist
of the following:

 2023

 2022

 Trade accounts payable

 $
 11,100

 $
 13,281

 Federal excise taxes payable

 11,954

 13,635

 Accrued other

 8,654

 8,742

 $
 31,708

 $
 35,658

 9.
 Accrued Dividends

 On November 30, 2022, the Company's Board
of Directors declared a $ 5.00 per share special dividend payable on January 5, 2023 to stockholders of record as of December 15, 2022.
The dividend, which totaled $ 88.3 million, was paid on January 5, 2023.

 10.
 Line of Credit

 During 2021 the Company had a $ 40
million unsecured revolving line of credit with a bank. This facility terminated on September 30, 2021. On January 7, 2022, the
Company entered into a new $ 40 million unsecured revolving line of credit agreement with a different bank that expires January 7, 2025.
Borrowings under this new facility bear interest at either 1) the Bloomberg short-Term Bank Yield Index – 1 month plus 150 basis
points, or 2) a fluctuating rate per annum equal to the greater of (i) the Bank's prime rate or (ii) the federal funds rate plus
50 basis points. The Company is also charged one-quarter of a percent ( 0.25 %) per year on the unused portion. At December 31, 2023, the
Company was in compliance with the terms and covenants of the credit facility.

 11.
 Employee Benefit Plans

 The Company sponsors a qualified defined-contribution
401(k) plan that covers substantially all of its employees. Under the terms of the 401(k) plan, the Company matches a certain portion
of employee contributions to their individual 401(k) accounts using the "safe harbor" guidelines provided in the Internal
Revenue Code. Expenses related to matching employee contributions to the 401(k) plan were $ 4.7 million, $ 4.1 million, and $ 4.0 million
in 2023, 2022, and 2021, respectively.

 Additionally, in 2023, 2022, and 2021 the Company
provided discretionary supplemental contributions to the individual 401(k) accounts of substantially all employees. Each employee received
a supplemental contribution to their account based on a uniform percentage of qualifying compensation established annually. The cost of
these supplemental contributions totaled $ 6.9 million, $ 7.4 million, and $ 7.4 million in 2023, 2022, and 2021, respectively.

 12.
 Other Operating Income, Net

 Other operating income, net consists of the following:

 2023

 2022

 2021

 Gain on sale of operating assets

 $

 $

 $

 13.

 Income Taxes

 The Company files income tax returns in the U.S.
federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state
income tax examinations by tax authorities for years before 2017.

 The federal and state income tax provision consisted of the following:

 2023

 2022

 2021

 Current

 Deferred

 Current

 Deferred

 Current

 Deferred

 Federal

 $
 14,763

 $
 ( 5,285
)

 $
 21,741

 $
 ( 4,694
)

 $
 42,422

 $

 State

 1,713

 ( 582
)

 3,779

 ( 879
)

 7,279

 $
 16,476

 $
 ( 5,867
)

 $
 25,520

 $
 ( 5,573
)

 $
 49,701

 $

 The effective income tax rate varied from the statutory federal income
tax rate as follows:

 2023

 2022

 2021

 Statutory federal income tax rate

 21.0 %

 21.0 %

 21.0 %

 State income taxes, net of federal tax benefit

 2.2

 2.7

 3.4

 Research and development tax credits

 ( 2.7
)

 ( 4.2
)

 ( 0.4
)

 Other

 ( 2.5
)

 ( 1.1
)

 0.5

 Effective income tax rate

 18.0 %

 18.4 %

 24.5 %

 The Company estimates that its effective tax rate
in 2024 will approximate 21 %.

 Significant components of the Company's
deferred tax assets and liabilities are as follows:

 2023

 2022

 Deferred tax assets

 Capitalized research and development costs

 9,144

 4,838

 Employee compensation and benefits

 2,452

 2,316

 Allowances for doubtful accounts and discounts

 1,635

 1,196

 1,698

 1,661

 Other

 1,608

 1,705

 Total deferred tax assets

 16,968

 12,353

 Deferred tax liabilities:

 Depreciation

 3,578

 5,070

 Other

 1,414

 1,174

 Total deferred tax liabilities

 4,992

 6,244

 Net deferred tax assets

 $
 11,976

 $
 6,109

 Prior to 2022, the Company expensed research and
development costs in the period in which they were incurred for both financial accounting and income tax purposes. In 2022 the Company
adopted the provisions of the Tax Cuts and Jobs Act of 2017 that relate to IRS Code Section 174. Under these provisions, research and
development costs must be capitalized and amortized over five years for income tax purposes. The Company continues to expense these costs
in the period incurred for financial accounting purposes.

 The Company made income tax payments of approximately
$ 26.0 million, $ 28.7 million, and $ 49.5 million, during 2023, 2022, and 2021, respectively. The Company expects to realize its deferred
tax assets through tax deductions against future taxable income.

 The Company does not believe it has included any
"uncertain tax positions" in its federal income tax return or any of the state income tax returns it is currently filing.
The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company
does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material
change to its financial position.

 14.

 Earnings Per Share

 Set forth below is a reconciliation of the numerator
and denominator for the basic and diluted earnings per share calculations for the periods indicated:

 2023

 2022

 2021

 Numerator:

 $

 $

 $

 Denominator:

 Weighted average number of common shares outstanding – Basic

 17,676,955

 17,648,850

 17,585,604

 Dilutive effect of options and restricted stock units outstanding under the Company's employee compensation plans

 134,263

 144,498

 172,230

 Weighted average number of common shares outstanding – Diluted

 17,811,218

 17,793,348

 17,757,834

 15.

 Stock Repurchases

 In 2023 and 2022 the Company repurchased shares
of its common stock. Details of these purchases are as follows:

 Period

 Total

Number of

Shares

 Average

 Price Paid

per Share

 Total Number

 of Shares

Purchased as

Part of

Publicly

 Announced

Program

 Maximum

Dollar Value

 of Shares that

 May Yet Be

Under the

 Program

 Third Quarter 2022

 July 3 to July 30

 —

 —

 —

 July 31 to August 27

 —

 —

 —

 August 28 to October 1

 2,136

 $
 49.97

 2,136

 Fourth Quarter 2022

 October 2 to October 29

 —

 —

 —

 October 30 to November 26

 2,304

 $
 49.77

 2,304

 November 27 to December 31

 —

 —

 —

 Fourth Quarter 2023

 October 1 to October 28

 —

 —

 —

 October 29 to November 25

 179,341

 $
 45.20

 179,341

 November 26 to December 31

 84,721

 $
 43.67

 84,721

 Total

 268,502

 $
 44.79

 268,502

 $
 74,680,000

 All of these purchases were made with cash held
by the Company and no debt was incurred. No shares were repurchased in 2021.

 At December 31, 2023, approximately $ 74.7 million
remained authorized for share repurchases.

 16.
 Compensation Plans

 In May 2017, the Company's shareholders
approved the 2017 Stock Incentive Plan (the "2017 SIP") under which employees, independent contractors, and non-employee directors
may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require
the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors.
 The Company has reserved 750,000 shares for issuance under the 2017 SIP.

 In June 2023, the Company's shareholders
approved the 2023 Stock Incentive Plan (the "2023 SIP") under which employees, independent contractors, and non-employee directors
may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require
the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors.
The Company reserved 1,000,000 shares for issuance under the 2023 SIP, of which 869,000 shares remain available for future grants as of
December 31, 2023. Any shares remaining from the 2017 SIP will be available for future grants under the terms of the 2023 SIP. As of December
31, 2023, 121,034 shares remained unawarded from the 2017 SIP. Since the shareholder approval of the 2023 SIP, no additional awards have
been or will be granted under the 2017 SIP. Previously granted and outstanding awards under the 2017 SIP will remain subject to the terms
of the 2017 SIP.

 Compensation expense related to deferred stock,
restricted stock, and restricted stock units is recognized based on the grant-date fair value of the Company's common stock, using
either the actual share price or an estimated value using the Monte Carlo valuation model. The total stock-based compensation cost included
in the Statements of Income was $ 6.2 million, $ 5.7 million, and $ 8.3 million in 2023, 2022, and 2021, respectively.

 Deferred Stock

 Deferred stock awards vest based on the passage
of time or the Company's attainment of performance objectives. Upon vesting, these awards convert one-for-one to common stock.

 In 2023, 7,566 deferred stock awards were issued
to non-employee directors that will vest in June 2024 and 9,760 deferred stock awards were issued to non-employee directors that will
vest in June 2026.

 In 2022, 5,953 deferred stock awards were issued
to non-employee directors that vested in May 2023, 7,688 deferred stock awards were issued to non-employee directors that will vest in
May 2025 and a 1,478 deferred stock award was issued to a non-employee director that will vest in June 2027.

 In 2021, 5,113 deferred stock awards were issued
to non-employee directors that vested in May 2022 and 6,615 deferred stock awards were issued to non-employee directors that will vest
in May 2024.

 Compensation expense related to these awards is
amortized ratably over the vesting period. Compensation expense related to these awards was $ 0.9 million in 2023, $ 0.8 million in 2022,
and $ 0.8 million in 2021.

 At December 31, 2023, there was $ 1.0 million of
unrecognized compensation cost related to deferred stock that is expected to be recognized over a period of three years.

 Restricted Stock Units

 The Company grants restricted stock units (RSU's)
to senior employees. Some of these RSU's are retention awards and have only time-based vesting. Other RSU's have a vesting
"double trigger." The vesting of these RSU's is dependent on the achievement of corporate objectives established by
the Compensation Committee of the Board of Directors, including return on net operating assets, stock performance, and the passage of
time.

 During 2023, 114,000 restricted stock units were
issued. Compensation costs related to these restricted stock units was $ 6.1 million, of which $ 1.3 million was recognized in 2023. The
costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

 During 2022, 82,000 restricted stock units were
issued. Compensation costs related to these restricted stock units was $ 6.0 million, of which $ 1.7 million was recognized in 2022. The
costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

 During 2021, 82,000 restricted stock units were
issued. Compensation costs related to these restricted stock units was $ 5.6 million, of which $ 1.6 million was recognized in 2021. The
costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

 At December 31, 2023, there was $ 7.5 million of
unrecognized compensation cost related to restricted stock units that is expected to be recognized over a period of 3.3 years.

 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.

 2023

 2022

 2021

 Net Sales

 $
 540,746

 $
 593,289

 $
 728,141

 Unaffiliated

 3,021

 2,553

 2,595

 Intersegment

 33,086

 21,306

 24,711

 36,107

 23,859

 27,306

 Eliminations

 ( 33,086
)

 ( 21,306
)

 ( 24,711
)

 $
 543,767

 $
 595,842

 $
 730,736

 Income (Loss) Before Income Taxes

 $
 53,723

 $
 108,610

 $
 207,657

 ( 798
)

 ( 3,338
)

 ( 2,732
)

 Corporate

 5,899

 3,007

 1,669

 $
 58,824

 $
 108,279

 $
 206,594

 Identifiable Assets

 $
 228,699

 $
 223,301

 $
 188,290

 11,144

 11,910

 13,889

 Corporate

 158,974

 249,552

 240,164

 $
 398,817

 $
 484,763

 $
 442,343

 Goodwill

 $
 3,055

 $
 3,055

 $
 3,055

 $
 3,264

 $
 3,264

 $
 3,264

 Depreciation

 $
 19,301

 $
 21,992

 $
 22,842

 1,814

 2,452

 2,959

 $
 21,115

 $
 24,444

 $
 25,801

 Capital Expenditures

 $
 15,395

 $
 26,598

 $
 25,239

 1,175

 3,537

 $
 15,796

 $
 27,773

 $
 28,776

 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 %.

 In 2022, the Company's largest customers
and the percent of firearms sales they represented were as follows: Lipsey's - 23 %; Davidson's - 23 %; and Sports South - 21 %.

 In 2021, the Company's largest customers
and the percent of firearms sales they represented were as follows: Lipsey's - 21 %; Sports South - 19 %; and Davidson's - 19 %.

 The Company's assets are located entirely
in the United States and domestic sales represented at least 94 % of total sales in 2023, 2022, and 2021.

 18.
 Quarterly Results of Operations (Unaudited)

 The following is a tabulation of the unaudited
quarterly results of operations for the two years ended December 31, 2023:

 Three Months Ended

 4/1/23

 7/1/23

 9/30/23

 12/31/23

 Net Sales

 $
 149,453

 $
 142,804

 $
 120,893

 $
 130,617

 38,486

 38,148

 24,728

 32,257

 14,350

 16,185

 7,431

 10,249

 Basic earnings per share

 0.81

 0.91

 0.42

 0.58

 Diluted earnings per share

 $
 0.81

 $
 0.91

 $
 0.42

 $
 0.58

 Three Months Ended

 4/2/22

 7/2/22

 10/1/22

 12/31/22

 Net Sales

 $
 166,575

 $
 140,653

 $
 139,390

 $
 149,224

 58,108

 43,554

 38,869

 39,554

 30,232

 20,757

 18,389

 18,954

 Basic earnings per share

 1.72

 1.18

 1.04

 1.07

 Diluted earnings per share

 $
 1.70

 $
 1.17

 $
 1.03

 $
 1.06

 19.
 Related Party Transactions

 From time to time, the Company contracts with
the National Rifle Association ("NRA") for some of its promotional and advertising activities. The Company paid the NRA $ 0.5
million, $ 0.7 million and $ 0.5 million in 2023, 2022, and 2021, respectively. One of the Company's Directors also serves as a Director
on the Board of the NRA.

 The Company is a member of the National Shooting
Sports Foundation ("NSSF"), the firearm industry trade association. The
Company paid the NSSF $ 0.3 million, $ 0.3 million and $ 0.4 million in 2023, 2022, and 2021, respectively. One of the Company's
Directors also serves on the Board of the NSSF.

 20.
 Contingent Liabilities

 As
of December 31, 2023, the Company was a defendant in nine (9) lawsuits and is aware of certain other such claims. The lawsuits
generally fall into four (4) categories: traditional product liability litigation,
municipal litigation, negligence, and unfair trade practices. Each is
discussed in turn below.

 Traditional Product Liability Litigation

 One lawsuit involves a claim for damages
related to an allegedly defective product due to its design and/or manufacture. The lawsuit stems from a specific incident of
personal injury and is based on traditional product liability theories such as strict liability, negligence, and/or breach of
warranty.

 The Company believes that the allegations in this
case are unfounded, that the incident is unrelated to the design or manufacture of the firearm involved, and that there should be no recovery
against the Company.

 Municipal Litigation

 Municipal
litigation generally includes those cases brought by cities or other governmental entities against firearms manufacturers, distributors
and retailers seeking to recover damages allegedly arising out of the criminal misuse of firearms by third parties. There are four
(4) lawsuits of this type, as follows:

 The Complaint in City of Gary v. Smith &
Wesson Corp., et al. was filed in Indiana State Court in 1999 and seeks damages,
among other things, for the costs of medical care, police
and emergency services, public health services, and other services
as well as punitive damages. In addition, nuisance abatement and/or
injunctive relief is sought to change the design, manufacture, marketing
and distribution practices of the various defendants. The suit
alleges, among other claims, negligence in the design of products, public
nuisance, negligent distribution and marketing, negligence per se and deceptive advertising. The case does not allege a specific injury to a specific individual
as a result of the misuse or use of any of the Company's products. After a long procedural history, during
the quarter ended April 3, 2021, the City initiated discovery and the manufacturer Defendants reciprocated. Discovery is ongoing.

 Estados
Unidos Mexicanos v. Smith & Wesson Brands, Inc., et al. was filed by the Country of Mexico in August 2021 in the U.S. District
Court for the District of Massachusetts and names seven defendants, mostly U.S.-based firearms manufacturers, including the Company.
The Complaint advances a variety of legal theories including negligence, public nuisance, unjust enrichment, restitution, and others.
Plaintiff essentially alleges that Defendants design, manufacture, distribute, market and sell firearms in a way that they know results
in the illegal trafficking of firearms into Mexico, where they are used by Mexican drug cartels for criminal activities. Plaintiff seeks
injunctive relief and monetary damages. On November 22, 2021, Defendants filed a joint motion to dismiss the Complaint for, among
other things, failure to state a claim on which relief may be granted. On September 30, 2022, the court entered an order granting Defendants'
motion. On October 26, 2022, Plaintiff filed a Notice of Appeal and the matter was briefed before the First Circuit Court of Appeals.
Oral argument was held on July 24, 2023. On January 22, 2024, the First Circuit Court of Appeals issued an opinion reversing the District
Court's dismissal case and remanding the case for further proceedings.

 On December 20, 2022, the City of Buffalo, New
York filed a lawsuit captioned The City of Buffalo v. Smith & Wesson Brands, Inc., et al. in the New York State Supreme Court
for Erie County, New York. The suit names a number of firearm manufacturers, distributors, and retailers as defendants, including the
Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York General Business Law, as well
as common law public nuisance. Generally, plaintiff alleges that the criminal misuse of firearms in the City of Buffalo is the result
of the manufacturing, sales, marketing, and distribution practices of the defendants. The defendants timely removed the matter to the
U.S. District Court for the Western District of New York.

 On December 21, 2022, the City of Rochester, New
York filed a lawsuit captioned The City of Rochester v. Smith & Wesson Brands, Inc., et al. in the New York State Supreme Court
for Monroe County, New York. The suit names a number of firearm manufacturers, distributors, and retailers as defendants, including the
Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York General Business Law, as well
as common law public nuisance. The allegations essentially mirror those in Buffalo, discussed in the preceding paragraph. Defendants
timely removed the matter to the U.S. District Court for the Western District of New York.

 Defendants moved to consolidate the Buffalo
and Rochester cases for pretrial purposes only. Defendants also moved to stay the cases pending a decision by the Second Circuit
Court of Appeals in National Shooting Sports Foundation, Inc. et al. v. James, which challenges the constitutionality of the recently
enacted N.Y. Gen. Bus. Law §§ 898-a–e. On June 8, 2023, the court granted
Defendants' motions and the cases were consolidated for pretrial purposes and stayed.

 Negligence

 Rossiter v. Sturm, Ruger, et al. is a lawsuit
arising out of a slip and fall accident by a contract security officer in December 2019. The Complaint was filed in the Superior Court
for Sullivan County, New Hampshire on December 13, 2022 and names Pine Hill Construction, a snow removal contractor, as a Defendant. The
Company has tendered the defense of this matter to its insurance carrier and is assisting as required.

 The Company was named in two purported class action
lawsuits arising out of a data breach at Freestyle Solutions, Inc., the vendor who was hosting the Company's ShopRuger.com website
at the time of the breach. Jones v. Sturm, Ruger & Co., was filed in the U.S. District Court for Connecticut on October 4,
2022 and Copeland v. Sturm, Ruger & Company, et al. was filed in the U.S. District Court for New Jersey on October 27, 2022.
 Copeland also named Freestyle Solutions, Inc. as a defendant. By agreement of the parties, Copeland was dismissed, without
prejudice, and consolidated with Jones in the pending Connecticut case. On January 20, 2023, five plaintiffs filed an Amended Complaint
naming the Company and Freestyle Solutions, Inc. as defendants. The Complaint alleges causes of action for negligence, breach of implied
warranties, and unjust enrichment. The Company moved to dismiss the Amended Complaint, the motion has been briefed fully, and the parties
are awaiting a ruling.

 Unfair Trade Practices

 Estate of Suzanne Fountain v. Sturm, Ruger
& Co., Inc., was filed in the Connecticut Superior Court in Stamford and arises out of the criminal shootings at the King Soopers
supermarket in Boulder, Colorado on March 22, 2021. On that date, Plaintiff's decedent, Suzanne Fountain, was murdered by 21-year-old
 Ahmad Al Aliwi Al-Issa. The Complaint alleged that the Company's advertising
and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial factor in bringing
about the wrongful death of Suzanne Fountain.

 Estate of Neven Stanisic et al. v. Sturm, Ruger
& Co., Inc., was filed in the Connecticut Superior Court in Stamford on behalf of five plaintiffs. Like Estate of Suzanne Fountain,
the claims arise from the criminal shootings at the King Soopers supermarket in Boulder, Colorado on March 22, 2021. Plaintiffs'
decedents were murdered by Ahmad Al Aliwi Al-Issa and Plaintiffs alleged that the
Company's advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial
factor in causing the wrongful death of Plaintiffs' decedents.

 The
 Fountain and Stanisic cases were consolidated for discovery purposes only and transferred by the court to the Complex Litigation
Docket. Plaintiffs then sought leave to file an Amended Complaint, essentially abandoning their negligent marketing allegations and advancing
a new theory predicated upon alleged violations of the Gun Control Act and National Firearms Act. Over the Company's objections,
Plaintiffs were permitted to file the Amended Complaint.

 The
matter was timely removed to the U.S. District Court for the District of Connecticut based upon the new allegations and federal question
jurisdiction. Plaintiffs moved to remand the case to state court, the matter has been briefed fully, and the parties are awaiting a ruling.

 Summary of Claimed Damages and Explanation
of Product Liability Accruals

 Punitive damages, as well as compensatory damages, are demanded in certain of the lawsuits and claims. In many instances, the plaintiff does not seek a specified amount of money, though
aggregate amounts ultimately sought may exceed product liability accruals and applicable insurance coverage. For product liability claims
made after July 10, 2000, coverage is provided on an annual basis
for losses exceeding $ 5 million per claim, or an aggregate maximum
loss of $ 10 million annually, except for certain new claims which
might be brought by governments or municipalities after July 10, 2000, which are excluded from coverage.

 The Company management
monitors the status of known claims and the product liability accrual, which
includes amounts for asserted and unasserted claims. While it is not possible to forecast the outcome of litigation or the timing of costs, in the opinion of management, after
consultation with special and corporate counsel, it is not probable and is unlikely that litigation, including punitive damage claims, will
have a material adverse effect on the financial position of the Company, but
may have a material impact on the Company's financial results
for a particular period.

 Product liability claim payments are made when
appropriate if, as, and when claimants and the Company reach agreement upon an amount to finally resolve all claims. Legal costs are paid
as the lawsuits and claims develop, the timing of which may vary greatly from case to case. A schedule cannot be determined in advance
with any reliability concerning when payments will be made in any given case.

 Provision is made for product liability claims
based upon many factors related to the severity of the alleged injury and potential liability exposure, based upon prior claim experience.
Because the Company's experience in defending these lawsuits and claims is that unfavorable outcomes are typically not probable or estimable,
only in rare cases is an accrual established for such costs.

 In most cases, an accrual is established only
for estimated legal defense costs. Product liability accruals are periodically reviewed to reflect then-current estimates of possible
liabilities and expenses incurred to date and reasonably anticipated in the future. Threatened product liability claims are reflected
in the Company's product liability accrual on the same basis as actual claims; i.e., an accrual is made for reasonably anticipated
possible liability and claims handling expenses on an ongoing basis.

 Often, a Complaint does not specify the amount
of damages being sought and a range of reasonably possible losses relating to unfavorable outcomes cannot be made. The dollar amount of
damages claimed at December 31, 2023 and December 31, 2022 was de minimis. The amount claimed at December 31, 2021 was $ 1.1 million
and is set forth as an indication of possible maximum liability the Company might be required to incur in these cases (regardless of the
likelihood or reasonable probability of any or all of this amount being awarded to claimants) as a result of adverse judgments that are
sustained on appeal.

 During 2023, one ( 1) traditional product liability
lawsuit was filed against the Company and one (1) was resolved. As of December 31, 2023, the Company was a defendant in seven ( 7) lawsuits
involving its products, including one ( 1) traditional product liability lawsuit, four ( 4) municipal lawsuits and two ( 2) lawsuits based
upon alleged unfair trade practices. The Company was also a defendant in two ( 2) negligence lawsuits.

 During 2022, no traditional product liability
lawsuits were filed against the Company and one ( 1) was resolved. As of December 31, 2022, the Company was a defendant in five ( 5) lawsuits
involving its products, including one ( 1) traditional product liability lawsuit and four ( 4) municipal lawsuits. The Company also was
a defendant in three ( 3) negligence lawsuits though, as discussed above, that number has since been reduced to two (2) lawsuits with the
consolidation of the Jones and Copeland matters.

 During 2021, one ( 1) traditional product liability
lawsuit was filed against the Company. As of December 31, 2021, the Company was a defendant in four ( 4) lawsuits involving its products,
including two ( 2) traditional lawsuits and two (2) municipal lawsuits.

 The
Company's product liability expense was $ 1.5 million in 2023, $ 1.3
million in 2022, and $ 1.1 million in 2021. This expense includes the cost of outside legal fees, insurance, and other expenses incurred
in the management and defense of product liability matters.

 A roll-forward of the product liability reserve and detail of product
liability expense for the three years ended December 31, 2023 follows:

 Balance Sheet Roll-forward for Product Liability
Reserve

 Cash Payments

 Balance

 Beginning

 of Year (a)

 Accrued

Legal

Expense

 (Income)

 (b)

 Legal Fees

 (c)

 Settlements

 (d)

 Balance

End of

Year (a)

 2021

 $
 1,126

 ( 7
)

 ( 227
)

 —

 $

 2022

 $

 ( 417
)

 ( 167
)

 —

 $

 2023

 $

 ( 129
)

 —

 $

 Income Statement Detail for Product Liability
Expense

 Accrued

Legal

Expense (b)

 Insurance

 Premium

Expense

(e)

 Total

Product

Liability

Expense

 2021

 $
 ( 7
)

 1,119

 $
 1,112

 2022

 $
 ( 417
)

 1,524

 $
 1,107

 2023

 $

 1,226

 $
 1,726

 Notes

 (a)
 The beginning and ending liability balances represent accrued legal fees only. Settlements and administrative
costs are expensed as incurred. Only in rare instances is an accrual established for settlements.

 (b)
 The expense accrued in the liability is for legal fees only. In 2022 and 2021, the costs incurred related
to cases that were settled or dismissed were less than the amounts accrued for these cases in prior years.

 (c)
 Legal fees represent payments to outside counsel related to product liability matters.

 (d)
 Settlements represent payments made to plaintiffs or allegedly injured parties in exchange for a full
and complete release of liability.

 (e)
 Insurance expense represents the cost of insurance premiums.

 There were no insurance recoveries during any
of the above years.

 21.
 Financial Instruments

 The Company does not hold or issue financial instruments
for trading or hedging purposes, nor does it hold interest rate, leveraged, or other types of derivative financial instruments. Fair values
of accounts receivable, accounts payable, accrued expenses and income taxes payable reflected in the December 31, 2023 and 2022 balance
sheets approximate carrying values at those dates.

 22.
 Subsequent Events

 On February 16, 2024, the Company's Board
of Directors authorized a dividend of 23 per share to shareholders of record on March 15, 2024.

 The Company's management has evaluated transactions
occurring subsequent to December 31, 2023 and determined that there were no events or transactions during that period that would have
a material impact on the Company's results of operations or financial position.

 ITEM 9—

 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 None.

 ITEM 9A—CONTROLS AND PROCEDURES

 Evaluation
of Disclosure Controls and Procedures

 The Company conducted an evaluation, with the
participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended,
as of December 31, 2023. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that as of
December 31, 2023, the Company's disclosure controls and procedures over financial reporting were effective.

 Management's Report on Internal Control over Financial
Reporting

 The Company's management is responsible
for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under
the Securities Exchange Act of 1934. Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 The Company conducted an evaluation, with the
participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of its internal control over financial
reporting as of December 31, 2023. This evaluation was performed based on the criteria established in "Internal Control —
Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in 2013.

 Management has concluded that the Company maintained
effective internal control over financial reporting as of December 31, 2023, based on criteria established in "Internal Control —
Integrated Framework" issued by the COSO in 2013.

 The effectiveness of the Company's internal
control over financial reporting as of December 31, 2023 has been audited by RSM US LLP, an independent registered public accounting firm,
as stated in their report which is included in this Form 10-K.

 Changes in Internal Control over Financial
Reporting

 There were no changes in our internal control
over financial reporting that occurred during our most recently completed fiscal quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.

 New York Stock Exchange Certification

 Pursuant to Section 303A.12(a) of the New York
Stock Exchange Listed Company Manual, the Company submitted an unqualified certification of our Chief Executive Officer to the New York
Stock Exchange in 2023. The Company has also filed, as exhibits to this Annual Report on Form 10-K, the Chief Executive Officer and Chief
Financial Officer Certifications required under the Sarbanes-Oxley Act of 2002.

 ITEM 9B—OTHER INFORMATION

 Rule 10b5-1 Trading Plans

 The adoption or termination
of contracts, instructions or written plans for the purchase and sale of the Company's securities by the Company's Section
16 officers or directors for the three months ended December 31, 2023, each of which is intended to satisfy the affirmative defense conditions
of Rule 10b5-1(c) under the Exchange Act ("Rule 10b5-1 Plan"), were as follows:

 Name
 Title
 Action
 Date

Adopted
 Expiration

Date
 Aggregate # of
 Securities to be

Purchased/Sold

 Christopher J. Killoy (1)
 President and Chief Executive Officer
 Adoption of Rule 10b5-1 Plan
 November 7, 2023
 May 7, 2024
 30,000

 John A. Cosentino, Jr. (2)
 Adoption of Rule 10b5-1 Plan
 November 7, 2023
 November 7, 2024
 3,000

 (1)
 Christopher J. Killoy, an officer of the Company, entered into a Rule 10b5-1 Plan on November 7, 2023. Mr. Killoy's Rule 10b5-1
Plan provides for the potential sale of up to 30,000 shares of the Company's common stock. The Rule 10b5-1 Plan expires on May 7,
2024, or upon the earlier completion of all authorized transactions under such Rule 10b5-1 Plan.

 (2)
 John A. Cosentino, Jr., a director of the Company, entered into a Rule 10b5-1 Plan on November 7, 2023. Mr. Cosentino's Rule
10b5-1 Plan provides for the potential sale of up to 3,000 shares of the Company's common stock. The Rule 10b5-1 Plan expires on
November 7, 2024, or upon the earlier completion of all authorized transactions under such Rule 10b5-1 Plan.

 None of the Company's directors or Section 16 officers
 adopted or terminated a "non-Rule 10b5-1 trading arrangement" as defined in Item 408 of Regulation S-K during the three months
ended December 31, 2023.

 ITEM 9C—DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS

 Not applicable.

 ITEM 10—DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 Information concerning the Company's directors,
including the Company's separately designated standing audit committee, and on the Company's code of business conduct and
ethics required by this Item is incorporated by reference from the Company's Proxy Statement relating to the 2024 Annual Meeting
of Stockholders scheduled to be held May 30, 2024, which will be filed with the SEC in April 2024.

 Information concerning the Company's executive
officers required by this Item is set forth in Item 1 of this Annual Report on Form 10-K under the caption "Executive Officers of
the Company."

 Information concerning beneficial ownership reporting
compliance required by this Item is incorporated by reference from the Company's Proxy Statement relating to the 2024 Annual Meeting
of Stockholders scheduled to be held May 30, 2024, which will be filed with the SEC in April 2024.

 ITEM 11—EXECUTIVE COMPENSATION

 Information concerning director and executive
compensation required by this Item is incorporated by reference from the Company's Proxy Statement relating to the 2024 Annual Meeting
of Stockholders scheduled to be held May 30, 2024, which will be filed with the SEC in April 2024.

 ITEM 12—

 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 Information concerning the security ownership
of certain beneficial owners and management and related stockholder matters required by this Item is incorporated by reference from the
Company's Proxy Statement relating to the 2024 Annual Meeting of Stockholders scheduled to be held May 30, 2024, which will be filed
with the SEC in April 2024.

 Securities Authorized for Issuance Under Equity Compensation Plans

 The following table provides information regarding
compensation plans under which equity securities of the Company are authorized for issuance as of December 31, 2023:

 Equity Compensation Plan Information

 Plan category

 Number of securities to

be issued upon exercise of

outstanding options,

warrants and rights

(a)

 Weighted-average

exercise price of

outstanding options,

warrants and rights

(b) *

 Number of securities

 remaining available for

 future issuance under

equity compensation

plans (excluding

securities reflected in

column (a))

(c)

 Equity compensation plans approved by security holders

 -

 2017 Stock Incentive Plan

 285,621

 -

 2023 Stock Incentive Plan

 131,188

 -

 989,846**

 Equity compensation plans not approved by security holders

 None.

 Total

 416,809

 -

 989,846

 *
 Restricted stock units are settled in shares of common stock or the cash equivalent. Accordingly, the
weighted-average exercise price is not applicable.

 **

 Includes 121,034 unused shares previously authorized for issuance under the 2017 SIP that
are now incorporated into and issuable under the 2023 SIP.

 ITEM 13—CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 Information concerning certain relationships and
related transactions required by this Item is incorporated by reference from the Company's Proxy Statement relating to the 2024
Annual Meeting of Stockholders scheduled to be held May 30, 2024.

 ITEM 14—PRINCIPAL ACCOUNTANT FEES AND SERVICES

 Information concerning the Company's principal
accountant fees and services and the pre-approval policies and procedures of the audit committee of the board of directors required by
this Item is incorporated by reference from the Company's Proxy Statement relating to the 2024 Annual Meeting of Stockholders scheduled
to be held May 30, 2024, which will be filed with the SEC in April 2024.

 ITEM 15—EXHIBITS AND FINANCIAL STATEMENT
SCHEDULE

 (a)
 Exhibits and Financial Statement Schedule

 (1)
 Financial Statements can be found under Item 8 of Part II of this Form 10-K

 (2)
 Schedule can be found on Page 87 of this Form 10-K

 (3)
 Listing of Exhibits:

 Exhibit 3.1

 Certificate of Incorporation of the Company, as amended
(Incorporated by reference to Exhibit 4.1 to the Form S-8 Registration Statement previously filed by the Company File No. 333-272443 on
June 6, 2023).

 Exhibit 3.2

 Bylaws of the Company, as amended through November 12, 2019.

 Exhibit 4.1

 Description of the Company's Securities.

 Exhibit 10.1

 Severance Agreement, dated as of April 10, 2008, by and between the Company and Thomas A. Dineen (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on April 11, 2008).

 Exhibit 10.2

 Severance Agreement, dated as of May 2, 2008 by and between the Company and Kevin B. Reid, Sr. (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on May 5, 2008).**

 Exhibit 10.3

 Transition Services and Consulting Agreement, dated August 1, 2016, by and between the Company and Michael O. Fifer (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2016).**

 Exhibit 10.4

 Amended and Restated Agreement, dated November 10, 2020, by and between the Company and Christopher J. Killoy (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K/A filed with the SEC on November 12, 2020).**

 Exhibit 10.5

 Executive Severance Agreement, dated August
 1, 2016, by and between the Company and Shawn C. Leska (Incorporated by reference to Exhibit 10.3 to the Company's Current Report
 on Form 8-K filed with the SEC on August 2, 2016).**

 Exhibit 10.6

 Loan Agreement, dated January 7, 2022
 between Sturm, Ruger & Company, Inc. and Regions Bank. (Incorporated by reference to Exhibit 10.1 to the Company's Current
 Report on Form 8-K filed with the SEC on January 11, 2022), as amended by that certain Amendment
 to Credit Agreement, dated November 3, 2022, between Sturm, Ruger & Company, Inc. and Regions Bank (Incorporated by reference
 to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022).

 Exhibit 10.7

 The Sturm, Ruger & Company,
 Inc. 2017 Stock Incentive Plan (incorporated by reference to Annex A of the Company's Definitive Proxy Statement of Schedule
 14A, filed with the SEC on March 27, 2017)**

 Exhibit 10.8

 The Sturm, Ruger & Company, Inc. 2023 Stock Incentive Plan (incorporated by reference to Annex A of the Company's Definitive Proxy Statement of Schedule 14A, filed with the SEC on April 20, 2023)**

 Exhibit 10.9

 Separation Agreement, dated as of December
 21, 2023 by and between Sturm, Ruger, & Co., Inc. and Thomas P. Sullivan (Incorporated by reference to Exhibit 99.1 to the
 Company's Current Report on Form 8-K filed with the SEC on December 21, 2023).**

 Exhibit 23.1

 Consent of RSM US LLP

 Exhibit 31.1

 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act.

 Exhibit 31.2

 Certification of Treasurer and Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act.

 Exhibit 32.1

 Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 Exhibit 32.2

 Certification of the Treasurer and Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 Exhibit 97

 Executive Compensation Clawback Policy

 Exhibit 101.INS*

 Exhibit 101.SCH*

 Exhibit 101.CAL*

 Exhibit 101.DEF*

 Exhibit 101.LAB*

 Exhibit 101.PRE*

 Exhibit 104*

 Cover Page Interactive Data File – the cover page interactive data

 *Filed herewith

**Indicates management contract or compensatory plan or arrangement

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 STURM, RUGER & COMPANY, INC.

 (Registrant)

 S/THOMAS A. DINEEN

 Thomas A. Dineen

 Principal Financial Officer

 Principal Accounting Officer, Senior Vice President,

 Treasurer, and Chief Financial Officer

 February 21, 2024

 Date

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

 S/CHRISTOPHER J. KILLOY

 S/RONALD C. WHITAKER

 Christopher J. Killoy
 Chief Executive Officer, Director
 (Principal Executive Officer)

 Ronald C. Whitaker

 S/JOHN A. COSENTINO, JR.

 S/PHILLIP C. WIDMAN

 John A. Cosentino, Jr.

 Phillip C. Widman

 S/AMIR P. ROSENTHAL

 S/SANDRA S. FROMAN

 Amir P. Rosenthal

 Sandra S. Froman

 S/TERRENCE G. O'CONNOR

 S/REBECCA S. HALSTEAD

 Terrence G. O'Connor

 Rebecca S. Halstead

 S/MICHAEL O. FIFER

 S/THOMAS A. DINEEN

 Michael O. Fifer

 Thomas A. Dineen

Principal Financial Officer

Principal Accounting Officer, Senior Vice

President, Treasurer, and Chief Financial Officer

 EXHIBIT INDEX

 Page No.

 Exhibit 3.1

 Certificate of Incorporation of the Company, as amended (Incorporated by reference to Exhibit 4.1 to the Form
S-8 Registration Statement previously filed by the Company File No. 333-272443 on June 6, 2023).

 Exhibit 3.2

 Bylaws of the Company, as amended through November 12, 2019.

 Exhibit 4.1

 Description of the Company's Securities.

 Exhibit 10.1

 Severance Agreement, dated as of April 10, 2008, by and between the Company and Thomas A. Dineen (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on April 11, 2008).**

 Exhibit 10.2

 Severance Agreement, dated as of May 2, 2008 by and between the Company and Kevin B. Reid, Sr. (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on May 2, 2008).**

 Exhibit 10.3

 Transition Services and Consulting Agreement, dated August 1, 2016, by and between the Company and Michael O. Fifer (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2016).**

 Exhibit 10.4

 Amended and Restated Agreement, dated November 10, 2020, by and between the Company and Christopher J. Killoy (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K/A filed with the SEC on November 12, 2020).**

 Exhibit 10.5

 Executive Severance Agreement, dated August 1, 2016, by and between the Company and Shawn C. Leska (Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2016).**

 Exhibit 10.6

 Loan Agreement, dated January 7, 2022 between Sturm, Ruger & Company, Inc. and Regions Bank. (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 11, 2022), as amended by that certain Amendment to Credit Agreement, dated November 3, 2022, between Sturm, Ruger & Company, Inc. and Regions Bank (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022).

 EXHIBIT INDEX (continued)

 Exhibit 10.7

 The Sturm, Ruger & Company, Inc. 2017 Stock Incentive Plan (incorporated
by reference to Annex A of the Company's Definitive Proxy Statement of Schedule 14A, filed with the SEC on March 27, 2017)

 Exhibit 10.8

 The Sturm, Ruger & Company, Inc. 2023 Stock Incentive Plan (incorporated by reference to Annex A of the Company's
Definitive Proxy Statement of Schedule 14A, filed with the SEC on April 20, 2023).**

 Exhibit 10.9

 Separation Agreement, dated as of December 21, 2023 by and between Sturm, Ruger, & Co., Inc. and Thomas P. Sullivan (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on December 21, 2023).**

 Exhibit 23.1

 Consent of RSM US LLP

 Exhibit 31.1

 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act.

 Exhibit 31.2

 Certification of Treasurer and Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act.

 Exhibit 32.1

 Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 Exhibit 32.2

 Certification of the Treasurer and Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 Exhibit 97

 Executive Compensation Clawback Policy

 Exhibit 101.INS*

 Exhibit 101.SCH*

 Exhibit 101.CAL*

 Exhibit 101.DEF*

 Exhibit 101.LAB*

 Exhibit 101.PRE*

 Exhibit 104*

 *Filed herewith

 **Indicates management contract or compensatory plan or arrangement

 YEAR ENDED DECEMBER 31, 2023

STURM, RUGER & COMPANY, INC.

 ITEMS 15(a)

FINANCIAL STATEMENT SCHEDULE

 Sturm, Ruger & Company, Inc.

 Item 15(a)--Financial Statement Schedule

 Schedule II—Valuation and Qualifying Accounts

 (In Thousands)

 COL. A

 COL. B

 COL. C

 COL. D

 COL. E

 ADDITIONS

 Description

 Balance at
 Beginning
 of Period

 (1)
 Charged
 (Credited) to
 Costs and
 Expenses

 (2)
 Charged to
 Other
 Accounts
 –Describe

 Deductions

 Balance
 at End
 of
 Period

 Deductions from asset accounts:

 Allowance for doubtful accounts:

 Year ended December 31, 2023

 $

 $
 —

 $
 —

 $

 Year ended December 31, 2022

 $

 $
 —

 $
 —

 $

 Year ended December 31, 2021

 $

 $
 —

 $
 —

 $

 Allowance for discounts:

 Year ended December 31, 2023

 $
 1,334

 $
 12,540

 $
 12,710
 (a)

 $
 1,164

 Year ended December 31, 2022

 $
 1,169

 $
 13,849

 $
 13,684
 (a)

 $
 1,334

 Year ended December 31, 2021

 $
 1,166

 $
 16,116

 $
 16,113
 (a)

 $
 1,169

 Excess and obsolete inventory reserve:

 Year ended December 31, 2023

 $
 4,812

 $
 1,615

 $
 (b)

 $
 6,120

 Year ended December 31, 2022

 $
 4,347

 $

 $
 —
 (b)

 $
 4,812

 Year ended December 31, 2021

 $
 3,394

 $

 $
 —
 (b)

 $
 4,347

 (a)
 Discounts taken

 (b)
 Inventory written off

 Yes No Yes Yes false FY 0000095029

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