SMITH & WESSON BRANDS, INC. (SWBI) FY2026 10-K Annual Report

Filed: Jun 17, 2026
Industrials
Ordnance & Accessories, (No Vehicles/Guided Missiles)SEC EDGAR

SMITH & WESSON BRANDS, INC. (SWBI) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

SMITH & WESSON BRANDS, INC. FY2026 10-K Analysis

Business Overview

  • Core business model: Design and manufacture of firearms, firearm-related products, and manufacturing services under Smith & Wesson and Gemtech brands
  • New product introductions in fiscal 2026: expanded Model 1854 Lever-Action Rifle calibers, new micro handgun variants (BodyGuard 2.0 series), steel frame M&P HD pistols, and innovative Gemtech Nebula 5.7 suppressor
  • Strategic shift: Headquarters and significant operations relocation to Maryville, Tennessee completed in January 2024, consolidating distribution and manufacturing assets
  • Quantitative metric: R&D spend increased to $10.3 million in fiscal 2026 from $9.6 million in prior year; total employees as of FY2026 at 1,386
  • Noteworthy fact: Launch of Smith & Wesson Academy in Maryville, TN, including pistol range and 300-yard rifle range, serving as a hub for training, product testing, and customer events

Management Discussion & Analysis

  • Revenue $523.8M, up 10.4% YoY ($49.2M increase from $474.7M in 2025); handguns up 18.8% ($62.5M), long guns down 13% ($13.5M)
  • Gross margin 26.9% vs 26.8% YoY; operating margin 5.6% vs 5.0% YoY; net income $18.5M, up 37.7% from $13.4M (EPS diluted $0.41 vs $0.30)
  • Best segment: handguns $394.4M, +18.8%; worst segment: long guns $90.5M, down 13%
  • Cash from operations $114.2M vs $(7.2)M prior year; repaid $60.0M debt; dividends $23.2M; capex $23.7M with $40-45M expected in 2027; no stock repurchases in 2026
  • Outlook: expect modest inventory growth in 2027; inflation to continue impacting costs; believe current capital and credit facilities adequate for 12+ months; risks include demand volatility and regulatory changes impacting firearms industry

Risk Factors

  • Regulatory risk from ongoing enforcement under state "gun industry accountability" laws; company is defendant in an active civil lawsuit
  • Geopolitical/macro exposure to tariffs and trade policy shifts; higher tariffs negatively impacted gross margin by ~100 basis points in fiscal 2026
  • Operational risk from limited facilities in three locations; Springfield plant modernization risk with capital expenditures and disruption potential
  • Competitive risk from private firearm makers with lower cost structures able to compete aggressively on price and new product introductions
  • Financial concentration risk with two customers comprising 24.7% of net sales and 30.2% of accounts receivable as of April 30, 2026

SMITH & WESSON BRANDS, INC. FY2026 Key Financial Metrics
XBRL

Revenue

$524M

+10.4% YoY

Net Income

$18M

+37.7% YoY

Gross Margin

26.9%

+14bp YoY

Operating Margin

5.6%

+54bp YoY

Net Margin

3.5%

+70bp YoY

ROE

4.9%

+130bp YoY

Total Assets

$513M

-8.4% YoY

EPS (Diluted)

$0.41

+36.7% YoY

Operating Cash Flow

$114M

+1681.0% YoY

Source: XBRL data from SMITH & WESSON BRANDS, INC. FY2026 10-K filing on SEC EDGAR. All figures in USD.

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