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, 2024

 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 001-10435

 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, 2024:

 Common Stock, $1 par value - $ 771,970,000

 The number of shares outstanding of the registrant's
common stock as of February 10, 2025: Common Stock, $1 par value – 16,762,100, shares

 DOCUMENTS INCORPORATED BY REFERENCE.

 Portions of the registrant's Proxy Statement
relating to the 2025 Annual Meeting of Stockholders to be held May 29, 2025 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 Comment

 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 Subsidiaries (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 Subsidiaries
(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, 2024 were from the firearms segment, with less than 1% from the castings
segment. Export sales represent approximately 5% 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, 2024, 2023, and
2022, net sales attributable to the Company's firearms operations were $533.6 million, $540.7 million and $593.3 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 $310.2 million, $306.8 million, and $305.4 million of total net sales for the years 2024, 2023, and 2022, 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 $135.3 million, $131.4 million, and $184.7 million of revenues for the years 2024, 2023, and 2022, 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 $54.8 million, $72.5 million, and $70.0 million
of revenues for the years 2024, 2023, and 2022, respectively.

 Accessories

 The Company also manufactures and sells accessories
and replacement parts for its firearms. These sales accounted for $33.3 million, $30.0 million, and $33.2 million of total net sales for
the years 2024, 2023, and 2022, respectively.

 Castings Products

 Net sales attributable to the Company's
casting operations (excluding intercompany transactions) accounted for $3.0 million, $3.0 million, and $2.6 million, for 2024, 2023, and
2022, respectively. These sales represented less than 1% of total net sales in each year.

 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 precision investment casting and metal injection
molding. 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, 14 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 2024, the Company's largest customers
and the percent of firearms sales they represented were as follows: Lipsey's – 28%; Sports South - 18%; and Davidson's
- 16%.

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

 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%.

 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 5%, 6%, and 6% of the Company's consolidated net sales for 2024, 2023, and 2022, respectively.

 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, many competitors manufacture products in two or three of the four categories (rifles, shotguns, pistols, and
revolvers) and a few competitors manufacture products in all four categories. 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, 2025, the Company employed approximately
1,780 full-time employees, approximately 33% 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.

 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 2024, 2023, and 2022, the Company spent approximately
$8.2 million, $9.8 million, and $9.6 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, 2025, the Company had
approximately 60 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

(until March 1, 2025)

 Todd W. Seyfert

 President and Chief Executive Officer

(effective March 1, 2025)

 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 Manufacturing Operations

 Michael W. Wilson

 Vice President of New Product Development

 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. Mr. Killoy will step down as President & Chief Executive Officer on March 1, 2025 and then
serve as a Special Advisor through his planned retirement from the Company in May 2025.

 Todd W. Seyfert will become President & Chief
Executive Officer on March 1, 2025. Previously, Mr. Seyfert served as the President of Segment Land Vehicles Americas at Dometic Group
AB since January 2024. Prior to that Mr. Seyfert served as the Chief Executive Officer of FeraDyne Outdoors, LLC, a leading manufacturer
of premium archery and hunting products from February 2016 through May 2023.

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

 Michael W. Wilson became Vice President of New
Product Development on April 1, 2024. Previously, he served as the Company's Vice President of Operations for New Product Development,
Product Engineering and Mayodan Manufacturing since June 15, 2023. 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 potential volatility of these relationships may also
impact the Company's decision making regarding the appropriate allocation of capital to be used for activities such as internal
investment, share repurchases, and potential acquisitions.

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

 The Company maintains insurance coverage with
third-party insurers and through a wholly-owned captive insurance company with respect to product liability claims, which the Company
established in 2024. 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, or the funding level of the Company's wholly-owned captive
insurance company 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 Company and/or 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 14 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.

 The ability to develop and produce new
products is important to the Company's success.

 The Company has a long
history of designing, engineering, and manufacturing innovative new products. These new products help to drive growth, excitement, and
profitability and have historically allowed the Company to refrain from having to extend some of the aggressive promotions, discounts,
rebates, and the extension of payment terms offered by its competitors. While the Company believes it has a strong record of designing,
manufacturing, and selling new, high-quality products, failure to continue to do so in the future could harm its reputation, cause the
Company to lose business, and cause the Company to incur significant promotional costs, which would have an adverse impact on its operating
results and financial condition.

 The Company may be impacted by the actions of its competitors.

 The Company remains focused on the long-term goal
of creating shareholder value. Its disciplined pricing and promotion strategy may not always benefit current period sales and profitability,
but endeavors to enhance its long-term performance and promote consistency throughout the distribution channel. Allowing both independent
distributors and retailers to confidently invest in its inventory is essential to the Company's long-term success and leadership
in the volatile firearms market. However, the aggressive promotions, discounts, rebates, and the extension of payment terms offered by
its competitors could negatively impact the Company's market share, which would have an adverse impact on its operating results
and financial condition.

 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 wages
and benefits 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 generally 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.

 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.

 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 2024:

 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

 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 28, 2024, 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 were no lawsuits formally instituted against the Company during
the three months ending December 31, 2024.

 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, 2025, the Company had 1,790 stockholders of record.

 Issuer Repurchase of Equity Securities

 In 2022, 2023 and 2024 the Company repurchased
shares of its common stock. Details of the purchases in 2022, 2023 and 2024 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

 First Quarter 2024

 January 1 to January 27

 7,317

 $
 43.42

 7,317

 January 28 to February 24

 20,307

 $
 42.93

 20,307

 February 25 to March 30

 47,400

 $
 42.79

 47,400

 Second Quarter 2024

 March 31 to April 27

 —

 —

 —

 April 28 to May 25

 28,924

 $
 42.92

 28,924

 May 26 to June 29

 373,969

 $
 42.27

 373,969

 Third Quarter 2024

 June 30 to July 27

 156,517

 $
 41.27

 156,517

 July 28 to August 24

 —

 —

 —

 August 25 to September 28

 64,325

 $
 40.66

 64,325

 Fourth Quarter 2024

 September 29 to October 26

 11,340

 $
 40.50

 11,340

 October 27 to November 23

 52,129

 $
 39.50

 52,129

 November 23 to December 31

 72,832

 $
 34.81

 72,832

 Total

 1,103,562

 $
 42.07

 1,103,562

 $
 40,290,000

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

 At December 31, 2024 approximately $40.3 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 12/31/24)

 *Assumes $100 invested on 12/31/19 in stock or index, including reinvestment of dividends.

 2019

 2020

 2021

 2022

 2023

 2024

 Sturm, Ruger & Company, Inc.

 100.00

 150.16

 164.09

 138.57

 127.41

 100.76

 Standard & Poors 500

 100.00

 118.40

 152.39

 124.79

 157.59

 197.02

 Russell 2000 Index

 100.00

 119.96

 137.74

 109.59

 128.14

 142.93

 Dow Jones US Recreational Products TSM

 100.00

 134.75

 176.32

 115.79

 142.58

 108.76

 For the year ended December 31, 2024, 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 5% 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.

 Results of Operations - 2024

 Product Demand

 The estimated sell-through of the Company's
products from the independent distributors to retailers in 2024 increased 5% from 2023. In 2024, adjusted NICS decreased 4% from 2023.
The increase in the sell-through of the Company's products despite the decrease in adjusted NICS background checks may be attributable
to new product introductions, like the Ruger American Rifle Generation II bolt-action rifles, the Marlin lever-action rifles, and the
RXM pistol, which helped offset 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:

 2024

 2023

 2022

 Estimated Units Sold from Distributors to Retailers (1)

 1,471,300

 1,406,600

 1,506,800

 Total Adjusted NICS Background Checks (2)

 15,239,000

 15,848,000

 16,425,000

 (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):

 2024

 2023

 2022

 $
 533.3

 $
 433.8

 $
 451.2

 $

 $

 $

 $
 252.9

 $
 229.0

 $
 314.4

 $

 $

 $

 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 1% in 2024 compared to 2023.

 Annual Summary Unit Data

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

 2024

 2023

 2022

 1,414,300

 1,159,000

 1,083,800

 1,379,500

 1,398,200

 1,733,200

 1,407,800

 1,367,500

 1,641,000

 Average Sales Price

 $

 $

 $

 445,300

 438,800

 647,300

 The Company's finished goods inventory decreased
by 28,300 units during 2024, while distributor inventories of the Company's
products decreased by 63,500 units during the same period.

 Inventory data follows:

 2024

 2023

 2022

 115,200

 112,800

 Units – Distributor Inventory (3)

 195,800

 298,400

 Total inventory (4)

 311,000

 402,800

 411,200

 (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, 2024, as compared to year ended December
31, 2023:

 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):

 31, 2024

 Net firearms sales

 $
 532.6

 $
 540.7

 $
 (8.1
)

 (1.5
)%

 Net casting sales

 3.0

 3.0

 0.0

 0.5
 %

 Total net sales

 535.6

 543.7

 (8.1
)

 (1.5
)%

 Cost of products sold

 421.2

 410.1

 11.1

 2.7
 %

 $
 114.4

 $
 133.6

 $
 (19.2
)

 (14.4
)%

 Gross margin

 21.4%

 24.6%

 (3.2
)%

 (13.0
)%

 Firearms sales decreased 2% and unit shipments
increased 3%, respectively, in 2024. New products represented $159.3 million or 32% of firearms sales in 2024, an increase from $119.0
million or 23% of firearms sales in 2023. New product sales include only major new products that were introduced in the past two years.
In 2024, new products included the RXM pistol, American Centerfire Rifle Generation II, Marlin 1894 lever-action rifles, Security-380
pistol, Super Wrangler revolver, LC Carbine, and the Small-Frame Autoloading Rifle and the Marlin 1895 Marlin lever-action rifles, which
were only included for a portion of the year.

 The
decreased gross profit for the year ended December 31, 2024 is attributable to the decrease in sales, unfavorable deleveraging
of fixed costs resulting from decreased production, and a product mix shift toward products with relatively lower margins that remain
in stronger demand.

 The decrease in gross margin for the year ended
December 31, 2024 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):

 31, 2024

 Selling expenses

 $
 38.8

 $
 38.8

 $
 —

 (0.1%
)

 General and administrative expenses

 44.0

 42.7

 1.3

 3.0%

 Total operating expenses

 $
 82.8

 $
 81.5

 $
 1.3

 1.5%

 Selling expenses for the year ended December 31,
2024 were substantially unchanged from 2023, as increased spending on advertising was offset by modest reductions in several selling and
marketing initiatives.

 The
increase in general, and administrative expenses for the year ended December 31, 2024 was primarily attributable to increased professional
service costs and accrued severances of $1.5 million taken in the first quarter of 2024 related to a reduction in force involving
approximately 80 employees. These increases were partially offset by a reduction in incentive compensation expenses. The aforementioned
accrued severances were settled in cash and consist of one-time termination charges arising from severance obligations and other customary
employee benefit payments in connection with a reduction in force.

 Operating Income

 Operating income was $31.6 million or 5.9% of
sales in 2024. This is a decrease of $20.4 million from 2023 operating income of $52.1 million or 9.6% of sales.

 Other Operating Income (Expense), Net

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

31, 2024

 Royalty income

 $
 0.8

 $
 0.6

 $
 0.2

 30.2%

 4.9

 5.5

 (0.6
)

 (10.6%
)

 (0.1
)

 (0.2
)

 0.1

 (50.2%
)

 Other income, net

 0.5

 0.8

 (0.3
)

 (41.5%
)

 Other income

 $
 6.1

 $
 6.7

 $
 (0.6
)

 (10.0%
)

 The decrease in other income for the year ended
December 31, 2024 was primarily the result of decreases in interest income due to decreased interest rates earned on short-term investments
and other income, partially offset by increased royalty.

 Income Taxes and Net Income

 The
effective income tax rate was 19.1% in 2024 and 18.0% in 2023. The Company's 2024 and 2023 effective tax rates differ from the
statutory federal tax rate due principally to research and development tax credits, state income taxes, and the nondeductibility of certain
executive compensation.

 As a result of the foregoing factors, consolidated
net income was $30.6 million in 2024. This represents a decrease of $17.6 million from 2023 consolidated net income of $48.2 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)

 2024

 2023

 $

 $

 Income tax expense

 7,212

 10,609

 Depreciation and amortization expense

 22,063

 22,383

 (4,885
)

 (5,465
)

 EBITDA

 $
 55,055

 $
 75,947

 EBITDA margin

 10.3%

 14.0%

 Net income margin

 5.7%

 8.9%

 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.

 Quarterly Data

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

 2024

 Q4

 Q3

 Q2

 Q1

 374,300

 316,900

 250,500

 472,600

 364,300

 330,300

 370,400

 314,500

 398,700

 327,400

 336,300

 345,400

 Estimated Units Sold from Distributors to Retailers

 410,500

 336,300

 327,800

 396,700

 Total Adjusted NICS Background Checks

 4,460,000

 3,432,000

 3,364,000

 3,983,000

 Average Unit Sales Price

 $

 $

 $

 $

 445,300

 469,700

 480,200

 566,000

 115,200

 149,600

 146,700

 112,600

 Units – Distributor Inventory (5)

 195,800

 207,600

 216,500

 208,000

 2023

 Q4

 Q3

 Q2

 Q1

 316,600

 176,300

 258,100

 408,000

 305,200

 324,500

 387,400

 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

 176,100

 160,000

 108,900

 Units – Distributor Inventory (5)

 306,200

 305,200

 291,800

 (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)

 2024

 Q4

 Q3

 Q2

 Q1

 $
 126.3

 $
 109.4

 $
 99.5

 $
 198.2

 $

 $

 $

 $

 $
 252.9

 $
 268.7

 $
 272.2

 $
 296.2

 $

 $

 $

 $

 2023

 Q4

 Q3

 Q2

 Q1

 $
 116.7

 $
 58.8

 $
 102.1

 $
 156.2

 $

 $

 $

 $

 $
 229.0

 $
 234.8

 $
 293.7

 $
 327.3

 $

 $

 $

 $

 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):

 2024

 2023

 Net firearms sales

 $
 145.3

 $
 129.6

 $
 15.7

 12.1
 %

 Net casting sales

 0.5

 1.0

 (0.5
)

 (47.6
)%

 Total net sales

 145.8

 130.6

 15.2

 11.6
 %

 Cost of products sold

 112.6

 98.3

 14.3

 14.5
 %

 $
 33.2

 $
 32.3

 $
 0.9

 2.9
 %

 Gross margin

 22.8
 %

 24.7
 %

 (1.9
)%

 (7.7
)%

 Results
of Operations - 2023

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

 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:

 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

 112,800

 20,600

 Units – Distributor Inventory (1)

 298,400

 164,200

 Castings Setups

 71,415

 55,971

 68,469

 Orders Received and Ending Backlog

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

 2023

 2022

 2021

 $
 433.8

 $
 451.2

 $
 606.5

 Average Sales Price of Orders Received (2)

 $

 $

 $

 $
 229.0

 $
 314.4

 $
 429.7

 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 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.

 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.

 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

 112,800

 20,600

 Units – Distributor Inventory (3)

 298,400

 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.

 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 BackgroundChecks

 4,742,000

 3,284,000

 3,654,000

 4,168,000

 Average Unit Sales Price

 $

 $

 $

 $

 438,800

 460,000

 592,100

 670,400

 176,100

 160,000

 108,900

 Units – Distributor Inventory (5)

 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 BackgroundChecks

 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

 112,800

 108,600

 99,700

 50,400

 Units – Distributor Inventory (5)

 298,400

 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

 $

 $

 $

 $

 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 $119.0 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 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):

31, 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):

31, 2022

 Royalty income

 $
 0.6

 $
 0.8

 (0.2
)

 (21.4
 %)

 5.5

 2.6

 2.9

 114.1
 %

 (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

 (5,465
)

 (2,552
)

 EBITDA

 $
 75,947

 $
 131,772

 EBITDA margin

 14.0%

 22.1%

 Net income margin

 8.9%

 14.8%

 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, 2024, the Company had cash and cash equivalents of $10.0 million and $95.5 million in short term investments. The Company's
pre-LIFO working capital of $264.1 million, less the LIFO reserve of $66.4 million, resulted in working capital of $197.7 million and
a current ratio of 4.2 to 1. 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 $55.5
million, $33.9 million, and $77.2 million in 2024, 2023, and 2022, respectively. The increase in cash provided in 2024 compared to 2023
is primarily attributable to the decrease in inventory in 2024 compared to the increase in 2023, and the reduction in prepaid and other
assets compared to increases in those accounts in 2023, partially offset by reduced income in 2024.

 The decrease in cash provided in 2023 compared
to 2022 is primarily attributable to the decrease in net income in 2023.

 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 $20.8 million, $15.8
million, and $27.7 million in 2024, 2023, and 2022, respectively. In 2025, the Company expects capital expenditures to approximate $20
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, 2024, the Company had $62.5 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, 2024, the Company's investment in this money market fund totaled $33.0 million.

 In 2024, the Company repurchased 835,060 shares
of its common stock for $34.4 million in the open market. The average price per share purchased was $41.19. These purchases were funded
with cash on hand.

 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.

 At December 31, 2024, approximately $40.3 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 $11.8 million, $110.8 million, and $42.7 million in 2024, 2023, and 2022,
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 14, 2025, the Company's Board
of Directors authorized a dividend of 24 per share to shareholders of record on March 14, 2025. 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, 2024, the Company had approximately
$37.5 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 $2.8 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 14 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 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. The Company adopted ASU 2023-07, beginning with the current filing. The adoption of the new guidance required
additional disclosures, but did not have a material impact to the Company. Refer to Note 17, Operating Segment Information, for the updated
presentation

 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.

 In November 2024, the FASB issued ASU No. 2024-03,
"Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures," which requires additional
disclosure of certain costs and expenses within the notes to the financial statements. The updated standard is effective for annual reporting
periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027.
The requirements will be applied prospectively with the option for retrospective application. Early adoption is 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, 2024 and 2023

 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022

 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 Subsidiaries

 Opinion on the Internal Control Over Financial Reporting

 We have audited Sturm, Ruger & Company, Inc. and Subsidiaries'
(the Company) internal control over financial reporting as of December 31, 2024, 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, 2024, 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
19, 2025 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 19, 2025

 Report of Independent Registered Public Accounting
Firm

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

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance sheets of Sturm,
Ruger & Company, Inc. and its subsidiaries (the Company) as of December 31, 2024 and 2023, 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, 2024,
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, 2024 and 2023,
and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, 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,
2024, 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 19, 2025 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 $76.5 million as of December 31, 2024,
included a LIFO inventory reserve of $66.4 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
 management's 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
significant 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 19, 2025

 Consolidated Balance Sheets

 (Dollars in thousands, except per share data)

 2024

 2023

 Assets

 Current Assets

 Cash and cash equivalents

 $
 10,028

 $
 15,174

 Short-term investments

 95,453

 102,485

 Trade receivables, net

 67,145

 59,864

 Gross inventories

 149,417

 150,192

 Less LIFO reserve

 ( 66,398
)

 ( 64,262
)

 Less excess and obsolescence reserve

 ( 6,533
)

 ( 6,120
)

 Net inventories

 76,486

 79,810

 Prepaid expenses and other current assets

 9,245

 14,062

 Total Current Assets

 258,357

 271,395

 Property, plant and equipment

 477,622

 462,397

 Less allowances for depreciation

 ( 406,373
)

 ( 390,863
)

 Net property, plant and equipment

 71,249

 71,534

 Deferred income taxes

 16,681

 11,976

 Other assets

 37,747

 43,912

 Total Assets

 $
 384,034

 $
 398,817

 2024

 2023

 Liabilities and Stockholders' Equity

 Current Liabilities

 Trade accounts payable and accrued expenses

 $
 35,750

 $
 31,708

 Contract liabilities with customers (Note 2)

 —

 Product liability

 Employee compensation and benefits

 18,824

 24,660

 Workers' compensation

 5,804

 6,044

 Total Current Liabilities

 60,809

 63,195

 Lease liability (Note 7)

 1,747

 2,170

 Employee compensation

 1,835

 1,685

 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

 2024 – 24,467,983 issued,

 16,790,824 outstanding

 2023 – 24,437,020 issued,

 17,458,620 outstanding

 24,468

 24,437

 Additional paid-in capital

 50,536

 46,849

 Retained earnings

 436,609

 418,058

 Less: Treasury stock – at cost

 2024 – 7,677,159 shares

 2023 – 6,978,400 shares

 ( 192,031
)

 ( 157,623
)

 Total Stockholders' Equity

 319,582

 331,721

 Total Liabilities and Stockholders' Equity

 $
 384,034

 $
 398,817

 Consolidated Statements of Income and Comprehensive Income

 (In thousands, except per share data)

 2024

 2023

 2022

 Net firearms sales

 $
 532,608

 $
 540,746

 $
 593,289

 Net castings sales

 3,035

 3,021

 2,553

 Total net sales

 535,643

 543,767

 595,842

 Cost of products sold

 421,228

 410,148

 415,757

 114,415

 133,619

 180,085

 Operating Expenses (Income):

 Selling

 38,755

 38,788

 36,114

 General and administrative

 44,006

 42,752

 40,551

 Other operating income, net

 —

 ( 5
)

 ( 36
)

 Total operating expenses

 82,761

 81,535

 76,629

 Operating income

 31,654

 52,084

 103,456

 Other income:

 Royalty income

 4,885

 5,465

 2,552

 ( 102
)

 ( 205
)

 ( 256
)

 Other income, net

 1,690

 Total other income, net

 6,121

 6,740

 4,823

 Income before income taxes

 37,775

 58,824

 108,279

 Income taxes

 7,212

 10,609

 19,947

 Net income and comprehensive income

 $

 $

 $

 Basic Earnings Per Share

 $
 1.79

 $
 2.73

 $
 5.00

 Diluted Earnings Per Share

 $
 1.77

 $
 2.71

 $
 4.96

 Weighted average number of common shares outstanding – Basic

 17,088,205

 17,676,955

 17,648,850

 Weighted average number of common shares outstanding – Diluted

 17,270,101

 17,811,218

 17,793,348

 Cash Dividends Per Share

 $
 0.69

 $
 6.27

 $
 2.42

 Consolidated Statements of Stockholders' Equity

 (Dollars in thousands)

 Common

 Stock

 Additional

Paid-in

Capital

 Retained

 Earnings

 Treasury

 Stock

 Total

 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

 Dividends paid

 ( 11,829
)

 ( 11,829
)

 4,342

 4,342

 Vesting of RSU's

 ( 624
)

 ( 624
)

 Common stock issued – compensation plans

 ( 31
)

 —

 Unpaid dividends accrued

 ( 183
)

 ( 183
)

 Repurchase of 835,060 shares of common stock

 ( 34,408
)

 ( 34,408
)

 Balance at December 31, 2024

 $
 24,468

 $
 50,536

 $
 436,609

 $
 ( 192,031
)

 $
 319,582

 Consolidated Statements of Cash Flows

 (In thousands)

 2024

 2023

 2022

 Operating Activities

 $

 $

 $

 Adjustments to reconcile net income to cash provided by operating activities:

 Depreciation and amortization

 22,063

 22,383

 25,789

 4,342

 3,989

 1,671

 Excess and obsolescence inventory reserve

 1,308

 Gain on sale of assets

 —

 ( 5
)

 ( 36
)

 Deferred income taxes

 ( 4,705
)

 ( 5,867
)

 ( 5,573
)

 Changes in operating assets and liabilities:

 Trade receivables

 ( 7,281
)

 5,585

 ( 8,413
)

 2,911

 ( 16,125
)

 ( 21,644
)

 Trade accounts payable and accrued expenses

 3,789

 ( 4,406
)

 ( 640
)

 Contract liability with customers

 ( 149
)

 ( 882
)

 1,031

 Employee compensation and benefits

 ( 5,869
)

 ( 6,469
)

 ( 3,420
)

 Product liability

 ( 188
)

 ( 584
)

 Prepaid expenses, other assets and other liabilities

 9,615

 ( 13,026
)

 ( 954
)

 Income taxes receivable/payable

 —

 ( 1,171
)

 1,171

 Cash provided by operating activities

 55,504

 33,901

 77,231

 Investing Activities

 Property, plant and equipment additions

 ( 20,821
)

 ( 15,796
)

 ( 27,730
)

 Purchases of short-term investments

 ( 138,885
)

 ( 192,627
)

 ( 365,480
)

 Proceeds from maturity of short-term investments

 145,917

 249,274

 406,319

 Net proceeds from sale of assets

 —

 Cash (used for) provided by investing activities

 ( 13,789
)

 40,856

 13,209

 Financing Activities

 Dividends paid

 ( 11,829
)

 ( 110,789
)

 ( 42,718
)

 Repurchase of common stock

 ( 34,408
)

 ( 11,811
)

 ( 222
)

 Payment of employee withholding tax related to share-based compensation

 ( 624
)

 ( 2,156
)

 ( 3,371
)

 Cash used for financing activities

 ( 46,861
)

 ( 124,756
)

 ( 46,311
)

 (Decrease) increase in cash and cash equivalents

 ( 5,146
)

 ( 49,999
)

 44,129

 Cash and cash equivalents at beginning of year

 15,174

 65,173

 21,044

 Cash and cash equivalents at end of year

 $
 10,028

 $
 15,174

 $
 65,173

 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 5 % 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, 2024.

 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 subsidiaries. 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, 2024, 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, 2024, 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, 2024, 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 2024, 2023, and 2022, were $ 3.4 million, $ 3.1 million, and $ 2.4
million, respectively.

 Shipping
Costs

 Costs incurred related to the shipment of products
are included in selling expense. Such costs totaled $ 4.3 million, $ 4.4 million, and $ 4.7 million in 2024, 2023, and 2022, respectively.

 Research and Development

 In 2024, 2023, and 2022, the Company spent approximately
$ 8.2 million, $ 9.8 million, and $ 9.6 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 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. The Company adopted ASU 2023-07, beginning with the current filing. The adoption of the new guidance required
additional disclosures, but did not have a material impact to the Company. Refer to Note 17, Operating Segment Information, for the updated
presentation.

 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.

 In November 2024, the FASB issued ASU No. 2024-03,
"Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures," which requires additional
disclosure of certain costs and expenses within the notes to the financial statements. The updated standard is effective for annual reporting
periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15,
2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is 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, 2024, December 31, 2023, and December 31, 2022 is as follows:

 2024

 2023

 2022

 Contract liabilities with customers at January 1,

 $

 $
 1,031

 $
 —

 Revenue recognized

 ( 149
)

 ( 4,084
)

 —

 Revenue deferred

 —

 3,202

 1,031

 Contract liabilities with customers at December 31,

 $
 —

 $

 $
 1,031

 During the year ended December 31, 2024, the Company
did not defer any revenue and recognized $ 0.1 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, 2024 of $ 0.1 million
and there being no deferred contract revenue liability at December 31, 2024.

 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.

 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.

 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:

 2024

 2023

 Trade receivables

 $
 68,855

 $
 61,428

 Allowance for doubtful accounts

 ( 400
)

 ( 400
)

 Allowance for discounts

 ( 1,310
)

 ( 1,164
)

 $
 67,145

 $
 59,864

 In 2024, the largest individual trade receivable
balances accounted for 26 %, 20 %, 14 %, and 11 % of total trade receivables, respectively.

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

 4. Inventories

 Inventories consist of the following:

 2024

 2023

 Inventory at FIFO

 Finished goods

 $
 26,022

 $
 30,989

 Materials and products in process

 123,395

 119,203

 Gross inventories

 149,417

 150,192

 Less: LIFO reserve

 ( 66,398
)

 ( 64,262
)

 Less: excess and obsolescence reserve

 ( 6,533
)

 ( 6,120
)

 Net inventories

 $
 76,486

 $
 79,810

 5. Property, Plant and Equipment

 Property, plant and equipment consist of the following:

 2024

 2023

 Land and improvements

 $
 2,826

 $
 2,826

 Buildings and improvements

 76,153

 74,650

 Machinery and equipment

 333,365

 322,730

 Dies and tools

 65,278

 62,191

 Property, plant and equipment

 477,622

 462,397

 Less allowances for depreciation

 ( 406,373
)

 ( 390,863
)

 Net property, plant and equipment

 $
 71,249

 $
 71,534

 Depreciation expense totaled $ 21.1 million, $ 21.1
million, and $ 24.4 million in 2024, 2023, and 2022, respectively.

 6. Other Assets

 Other assets consist of the following:

 2024

 2023

 Patents, at cost

 $
 10,339

 $
 10,280

 Deposits on capital items

 18,443

 23,045

 Marlin trade name, at cost

 7,800

 7,800

 Accumulated amortization

 ( 8,008
)

 ( 7,171
)

 Other

 9,173

 9,958

 $
 37,747

 $
 43,912

 The capitalized cost of patents is amortized using
the straight-line method over their useful lives. Expenses related to patent amortization was $ 0.5 million in 2024, $ 0.4 million in 2023,
and $ 0.4 million in 2022. The estimated annual patent amortization expense for each of the next five years is $ 0.4 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, 2024:

 Balance Sheet Line
 Item

 2024

 2023

 Right-of-use assets

 Other assets

 $
 2,345

 $
 2,781

 Operating lease liabilities

 Current portion

 Trade accounts payable and accrued expenses

 $

 $

 Noncurrent portion

 Lease liabilities

 1,747

 2,170

 Total operating lease liabilities

 $
 2,345

 $
 2,781

 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 table below includes cash
paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount
rate:

 Year Ended

 2024

 2023

 Cash paid for amounts included in the measurement of lease liabilities

 $

 $

 Cash amounts paid for short-term leases

 $

 $

 Right-of-use assets obtained in exchange for lease liabilities

 $
 —

 $
 —

 Weighted average remaining lease term (years)

 7.7

 7.9

 Weighted average discount rate

 8.0 %

 5.0 %

 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, 2024:

 2025

 $

 2026

 2027

 2028

 2029

 Thereafter

 Total undiscounted future minimum lease payments

 2,951

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

 ( 606
)

 Total operating lease liabilities

 $
 2,345

 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, 2024 is 7.7 years.

 8. Trade Accounts Payable and Accrued Expenses

 Trade accounts payable and accrued expenses consist
of the following:

 2024

 2023

 Trade accounts payable

 $
 13,170

 $
 11,100

 Federal excise taxes payable

 13,192

 11,954

 Accrued other

 9,388

 8,654

 $
 35,750

 $
 31,708

 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

 On January 7, 2022, the Company entered into a
three-year, $ 40 million unsecured revolving line of credit agreement with a bank. On June 6, 2024, the Company amended its existing line
of credit agreement, which now expires January 7, 2028. Borrowings under this new facility bear interest at the applicable Secured Overnight
Financing Rate (SOFR), plus 150 basis points, plus an additional adjustment of eight basis points. The Company is also charged one-quarter
of a percent

 ( 0.25 %) per year on the unused portion. At December 31, 2024, 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 $ 4.1 million, $ 4.7 million, and $ 4.1 million
in 2024, 2023, and 2022, respectively.

 Additionally, in 2024, 2023, and 2022 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 $ 7.0 million, $ 6.9 million, and $ 7.4 million in 2024, 2023, and 2022, respectively.

 12. Other Operating Income, Net

 Other operating income, net consists of the following:

 2024

 2023

 2022

 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:

 2024

 2023

 2022

 Current

 Deferred

 Current

 Deferred

 Current

 Deferred

 Federal

 $
 10,310

 $
 ( 4,190
)

 $
 14,763

 $
 ( 5,285
)

 $
 21,741

 $
 ( 4,694
)

 State

 1,607

 ( 515
)

 1,713

 ( 582
)

 3,779

 ( 879
)

 $
 11,917

 $
 ( 4,705
)

 $
 16,476

 $
 ( 5,867
)

 $
 25,520

 $
 ( 5,573
)

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

 2024

 2023

 2022

 Statutory federal income tax rate

 21.0 %

 21.0 %

 21.0 %

 State income taxes, net of federal tax benefit

 1.5

 2.2

 2.7

 Research and development tax credits

 ( 5.9
)

 ( 2.7
)

 ( 4.2
)

 Other

 2.5

 ( 2.5
)

 ( 1.1
)

 Effective income tax rate

 19.1 %

 18.0 %

 18.4 %

 The Company estimates that its effective tax rate
in 2025 will approximate 20.3 %.

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

 2024

 2023

 Deferred tax assets

 Capitalized research and development costs

 $
 12,566

 $
 9,144

 Employee compensation and benefits

 2,483

 2,452

 Allowances for doubtful accounts and discounts

 1,831

 1,635

 1,876

 1,698

 Other

 1,537

 1,608

 Total deferred tax assets

 20,745

 16,968

 Deferred tax liabilities:

 Depreciation

 2,868

 3,578

 Other

 1,196

 1,414

 Total deferred tax liabilities

 4,064

 4,992

 Net deferred tax assets

 $
 16,681

 $
 11,976

 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
$ 10.6 million, $ 26.0 million, and $ 28.7 million, during 2024, 2023, and 2022, 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:

 2024

 2023

 2022

 Numerator:

 $

 $

 $

 Denominator:

 Weighted average number of common shares outstanding – Basic

 17,088,205

 17,676,955

 17,648,850

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

 181,896

 134,263

 144,498

 Weighted average number of common shares outstanding – Diluted

 17,270,101

 17,811,218

 17,793,348

 15. Stock Repurchases

 In 2024, 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

 First Quarter 2024

 January 1 to January 27

 7,317

 $
 43.42

 7,317

 January 28 to February 24

 20,307

 $
 42.93

 20,307

 February 25 to March 30

 47,400

 $
 42.79

 47,400

 Second Quarter 2024

 March 31 to April 27

 —

 —

 —

 April 28 to May 25

 28,924

 $
 42.92

 28,924

 May 26 to June 29

 373,969

 $
 42.27

 373,969

 Third Quarter 2024

 June 30 to July 27

 156,517

 $
 41.27

 156,517

 July 28 to August 24

 —

 —

 —

 August 25 to September 28

 64,325

 $
 40.66

 64,325

 Fourth Quarter 2024

 September 29 to October 26

 11,340

 $
 40.50

 11,340

 October 27 to November 23

 52,129

 $
 39.50

 52,129

 November 23 to December 31

 72,832

 $
 34.81

 72,832

 Total

 1,103,562

 $
 42.07

 1,103,562

 $
 40,290,000

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

 At December 31, 2024, approximately $ 40.3 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 845,000 shares remain available for future grants as of
December 31, 2023. Approximately 150,000 shares remaining from the 2017 SIP will be available for future grants under the terms of
the 2023 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 $ 5.8 million, $ 6.2 million, and $ 5.7 million in 2024, 2023, and 2022, 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 2024, 9,291 deferred stock awards were issued
to non-employee directors that will vest in June 2025 and 11,992 deferred stock awards were issued to non-employee directors that will
vest in June 2027

 In 2023, 7,566 deferred stock awards were issued
to non-employee directors that vested 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.

 Compensation expense related to these awards is
amortized ratably over the vesting period. Compensation expense related to these awards was $ 0.9 million in 2024, $ 0.9 million in 2023,
and $ 0.8 million in 2022.

 At December 31, 2024, 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 2024, 153,000 restricted stock units were
issued. Compensation costs related to these restricted stock units was $ 6.8 million, of which $ 1.9 million was recognized in 2024. The
costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

 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.

 At December 31, 2024, there was $ 7.8 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.

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

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

 2024

 2023

 2022

 Net Sales

 $
 532,608

 $
 540,746

 $
 593,289

 Unaffiliated

 3,035

 3,021

 2,553

 Intersegment

 31,528

 33,086

 21,306

 34,563

 36,107

 23,859

 Eliminations

 ( 31,528
)

 ( 33,086
)

 ( 21,306
)

 $
 535,643

 $
 543,767

 $
 595,842

 Costs of Goods Sold

 $
 417,222

 $
 407,068

 $
 410,507

 Unaffiliated

 4,006

 3,080

 5,250

 Intersegment

 31,528

 33,086

 21,306

 35,534

 36,166

 26,556

 Eliminations

 ( 31,528
)

 ( 33,086
)

 ( 21,306
)

 $
 421,228

 $
 410,148

 $
 415,757

 Gross Profit (Loss)

 $
 115,386

 $
 133,678

 $
 182,782

 ( 971
)

 ( 59
)

 ( 2,697
)

 $
 114,415

 $
 133,619

 $
 180,085

 Operating Income (Loss)

 $
 33,273

 $
 52,887

 $
 106,803

 ( 1,619
)

 ( 803
)

 ( 3,347
)

 $
 31,654

 $
 52,084

 $
 103,456

 Income (Loss) Before Income Taxes

 $
 34,051

 $
 53,723

 $
 108,609

 ( 1,616
)

 ( 799
)

 ( 3,338
)

 Corporate

 5,340

 5,900

 3,008

 $
 37,775

 $
 58,824

 $
 108,279

 2024

 2023

 2022

 Identifiable Assets

 $
 230,024

 $
 228,699

 $
 223,301

 9,303

 11,144

 11,910

 Corporate

 144,707

 158,974

 249,552

 $
 384,034

 $
 398,817

 $
 484,763

 Goodwill

 $
 3,055

 $
 3,055

 $
 3,055

 $
 3,264

 $
 3,264

 $
 3,264

 Depreciation

 $
 19,952

 $
 19,301

 $
 21,992

 1,154

 1,814

 2,452

 $
 21,106

 $
 21,115

 $
 24,444

 Capital Expenditures

 $
 20,488

 $
 15,395

 $
 26,598

 1,175

 $
 20,821

 $
 15,796

 $
 27,773

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

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

 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 %.

 The Company's assets are located entirely
in the United States and domestic sales represented at least 94 % of total sales in 2024, 2023, and 2022.

 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, 2024:

 Three Months Ended

 3/30/24

 6/29/24

 9/28/24

 12/31/24

 Net Sales

 $
 136,820

 $
 130,761

 $
 122,287

 $
 145,775

 29,403

 29,154

 22,672

 33,186

 7,084

 8,264

 4,738

 10,477

 Basic earnings per share

 0.41

 0.48

 0.28

 0.63

 Diluted earnings per share

 $
 0.40

 $
 0.47

 $
 0.28

 $
 0.62

 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

 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, $ 0.5 million and $ 0.7 million in 2024, 2023, and 2022, 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 $ 0.4 million, $ 0.3 million and $ 0.3 million in 2024, 2023, and 2022, respectively. One of the Company's
Directors also serves on the Board of the NSSF.

 20. Contingent Liabilities

 As
of December 31, 2024, the Company was a defendant in eight (8) lawsuits and is aware of cert ain other such claims. The lawsuits
generally fall into four (4) categories: municipal litigation, breach of contract, unfair trade practices, and trademark litigation. Each
is discussed in turn below.

 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.

 In City of Gary v. Smith & Wesson Corp.,
et al, filed in Indiana State Court in 1999, the City of Gary, Indiana 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 Complaint 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.

 On March 15, 2024, Indiana Governor Eric Holcomb
signed into law HB 1235, which reserves to the State of Indiana the right to bring an action on behalf of a political subdivision against
a firearm or ammunition manufacturer, trade association, seller, or dealer, concerning certain matters. The new law also prohibits a political
subdivision from bringing or maintaining such an action. Following passage of this new law, the Company and other Defendants filed a Motion
for Judgment on the Pleadings on March 18, 2024. On August 12, 2024, the Court denied Defendants' motion. The Court granted Defendants'
subsequent request to certify the Order for appeal. On October 2, 2024, Defendants filed a motion with the Indiana Court of Appeals to
accept jurisdiction over the interlocutory appeal, which was granted over Plaintiff's objection on November 1, 2024. On October
16, 2024, the trial court entered an Order staying all proceedings pending the interlocutory appeal. Briefing of the appeal is underway.

 Estados Unidos Mexicanos v. Smith & Wesson
Brands, Inc., et al. was filed by the Country of Mexico 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 jointly filed
a motion to dismiss the Complaint, which was granted on September 30, 2022. Several defendants, including the Company, also filed Rule
12(b)(2) motions to dismiss for lack of personal jurisdiction, which the Court declined to rule on in light of its dismissal. Plaintiffs
appealed the dismissal to the First Circuit Court of Appeals and, on January 22, 2024, the Court of Appeals reversed the District Court's
dismissal and remanded the case for further proceedings. The Defendants filed a Petition for Writ of

 Certiorari seeking review by the
United States Supreme Court while the case moved forward at the District Court.

 On June 17, 2024, the District Court heard argument
on the pending Rule 12(b)(2) motions to dismiss. On August 7, 2024, the Court granted the motions, dismissing the Company and some of
the other Defendants from the case, but has not yet entered judgement in favor of these Defendants. Because judgment has not entered in
favor of the Company, the 30-day period in which Plaintiff may appeal the Court's August 7, 2024 ruling has not yet begun to run.
Subsequently, the Supreme Court granted the Defendants' Petition for Writ of Certiorari. Oral argument at the Supreme Court is scheduled
for March 4, 2025.

 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 the same defendants and makes essentially the same allegations raised 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 and 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.

 Breach of Contract

 The Company is a defendant in Jones v. Sturm,
Ruger & Co., a purported class action lawsuit 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. On January 20, 2023, five Plaintiffs filed an Amended Complaint naming
the Company and Freestyle Solutions, Inc. as Defendants. The Complaint alleged causes of action for negligence, breach of implied warranties,
and unjust enrichment.

 The Company moved to dismiss the Amended Complaint,
and on March 27, 2024, the Court dismissed Plaintiffs' negligence and unjust enrichment claims against the Company. The Court denied
the motion with respect to Plaintiffs' breach of contract claim, concluding that development

 of additional information is required
to assess the applicability of the limitation of liability clause contained in the Company's terms and conditions of use. The case
is proceeding accordingly.

 Unfair Trade Practices

 Estate of Suzanne Fountain v. Sturm, Ruger
& Co., Inc., was filed in Connecticut Superior Court and arises out of the criminal shooting 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 Connecticut Superior Court on behalf of five Plaintiffs. Like Estate of Suzanne Fountain, the
claims arise from the criminal shooting 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 and, following briefing and oral argument, the matter was remanded on April 25, 2024.

 On June 12, 2024, Ruger filed Motions to Dismiss
the Connecticut state court cases based upon the doctrine of forum non conveniens. Following oral argument on September 9, 2024,
the Court allowed Plaintiffs limited, additional discovery and requested further briefing on the matter. The briefing has been completed
and the parties are awaiting a decision from the Court.

 Trademark
Litigation

 On March
12, 2024, the Company was named as a defendant in FN Herstal, et al. v. Sturm, Ruger & Company, Inc., which is pending
in the U.S. District Court for the Middle District of North Carolina. T he Complaint alleges that
the Company's use of the initialism "SFAR" in connection with the marketing of its Small Frame Autoloading Rifle infringes
the Plaintiffs' SCAR trademark. The Complaint alleges violations of the Lanham Act and the North Carolina Unfair and Deceptive Trade
Practices Act, as well as trademark infringement under North Carolina common law. The Company believes that the allegations are meritless
and is defending the action accordingly.

 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 between July
10, 2000 and August 31, 2024, insurance coverage was provided on an annual basis for losses exceeding $ 5 million per claim, with an aggregate
maximum loss of $ 10 million annually, except for certain claims brought by governments or municipalities, which are excluded from coverage.
Insurance coverage was not renewed with incumbent carriers effective September 1, 2024. Rather, the Company established a wholly-owned
captive insurance company for claims made on or after September 1, 2024.

 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 time 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 range of reasonably possible losses relating to unfavorable outcomes cannot be made. The dollar amount of
damages claimed at December 31, 2024, 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 2024, one ( 1) trademark lawsuit was filed
against the Company, one ( 1) negligence lawsuit was resolved, and one ( 1) traditional product liability lawsuit was resolved. One ( 1)
municipal lawsuit was dismissed, however the time period in which to file an appeal has been stayed by the Court and the Company considers
this matter still open. As of December 31, 2024, the Company was a defendant in eight ( 8) lawsuits involving its products, including four
( 4) municipal lawsuits, two ( 2) lawsuits based upon unfair trade practices, one (1) breach of contract, and one (1) trademark litigation.

 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 five 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.

 The Company's product liability expense
was $ 0.7 million in 2024, $ 1.5 million in 2023, $ 1.3 million in 2022. This expense includes the cost of outside legal fees, 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, 2024 follows:

 Balance Sheet Roll-forward for Product Liability
Reserve

 Cash Payments

 Balance

Beginning

of Year (a)

 Accrued

 Legal

 (Income)

(b)

 Legal Fees

(c)

 Settlements

(d)

 Balance

End of

Year (a)

 2022

 $

 ( 417
)

 ( 167
)

 —

 $

 2023

 $

 ( 129
)

 —

 $

 2024

 $

 ( 254
)

 —

 $

 Income Statement Detail for Product Liability

 Accrued

Legal

 (b)

 Insurance

Premium

(e)

 Total

Product

 Liability

 2022

 $
 ( 417
)

 1,524

 $
 1,107

 2023

 $

 1,226

 $
 1,726

 2024

 $

 $

 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, 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, 2024 and 2023 balance
sheets approximate carrying values at those dates.

 22. Subsequent Events

 On February 14, 2025, the Company's Board
of Directors authorized a dividend of 24 per share to shareholders of record on March 14, 2025.

 On January 17, 2025, the Company announced the
appointment of Mr. Todd W. Seyfert as its next President & Chief Executive Officer, effective March 1, 2025. Mr. Christopher J. Killoy
will step down as President & Chief Executive Officer on that date and then serve as a Special Advisor through his planned retirement
from the Company in May 2025.

 Mr. Kevin B. Reid, Sr. will step down as Vice
President, General Counsel, and Corporate Secretary on June 30, 2025 and then serve as Senior Counsel to the Company until his planned
retirement from the Company on June 30, 2026.

 The Company's management has evaluated transactions
occurring subsequent to December 31, 2024 and determined that there were no other 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, 2024. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that as of
December 31, 2024, 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, 2024. 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, 2024, 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, 2024 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 2024. 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, 2024, 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

 John A. Cosentino, Jr. (1)
 Adoption of Rule 10b5-1 Plan
 November 14, 2024
 November 14, 2025
 5,000

 (1)
 John A. Cosentino, Jr., a director of the Company, entered into a Rule 10b5-1 Plan on November 14, 2024. Mr. Cosentino's Rule
10b5-1 Plan provides for the potential sale of up to 5,000 shares of the Company's common stock. The Rule 10b5-1 Plan expires on
November 14, 2025, 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, 2024.

 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 2025 Annual Meeting
of Stockholders scheduled to be held May 29, 2025, which will be filed with the SEC in April 2025.

 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 2025 Annual Meeting
of Stockholders scheduled to be held May 29, 2025, which will be filed with the SEC in April 2025.

 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 2025 Annual Meeting
of Stockholders scheduled to be held May 29, 2025, which will be filed with the SEC in April 2025.

 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 2025 Annual Meeting of Stockholders scheduled to be held May 29, 2025, which will be
filed with the SEC in April 2025.

 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, 2024:

 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

 90,940

 —

 2023 Stock Incentive Plan

 298,421

 —

 845,399**

 Equity compensation plans not approved by security holders

 None.

 Total

 398,361

 —

 845,399

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

 **
 Includes 151,386 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 2025
Annual Meeting of Stockholders scheduled to be held May 29, 2025.

 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 2025 Annual Meeting of Stockholders scheduled
to be held May 29, 2025, which will be filed with the SEC in April 2025.

 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 November 25, 2024, by and between the Company and Thomas A. Dineen (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024). **

 Exhibit 10.2

 Severance Agreement, dated as of November 25, 2024 by and between the Company and Kevin B. Reid, Sr. (Incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024).**

 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 November 25, 2024, by and between the Company and Shawn C. Leska (Incorporated by reference to Exhibit 99.3 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024).**

 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) and that certain Second Amendment to Loan Agreement, dated June 6, 2024, 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 June 10, 2024).

 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 10.10

 Employment Agreement, dated as of January 15, 2025, by and between the Company and Todd W. Seyfert (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 17, 2025). **

 Exhibit 19.1

 Sturm Ruger & Company, Inc. Insider Trading Policy

 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

 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 19, 2025

 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 November 25, 2024, by and between the Company and Thomas A. Dineen (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024). **

 Exhibit 10.2

 Severance Agreement, dated as of November 25, 2024 by and between the Company and Kevin B. Reid, Sr. (Incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024).**

 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 November 25, 2024, by and between the Company and Shawn C. Leska (Incorporated by reference to Exhibit 99.3 to the Company's Current Report on Form 8-K filed with the SEC on November 27, 2024).**

 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) and that certain Second Amendment to Loan Agreement, dated June 6, 2024, 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 June 10, 2024).

 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 10.10

 Employment Agreement, dated as of January 15, 2025, by and between the Company and Todd W. Seyfert (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 17, 2025). **

 Exhibit 19.1

 Sturm Ruger & Company, Inc. Insider Trading Policy

 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, 2024

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, 2024

 $

 $
 —

 $
 —

 $

 Year ended December 31, 2023

 $

 $
 —

 $
 —

 $

 Year ended December 31, 2022

 $

 $
 —

 $
 —

 $

 Allowance for discounts:

 Year ended December 31, 2024

 $
 1,164

 $
 12,241

 $
 12,095
 (a)

 $
 1,310

 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

 (a) Discounts taken

 Yes No Yes Yes 0000095029 false FY

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