Smith & Wesson Brands Acquires Savage in $165 Million Deal; Pays $42.4M Cash Plus 19.99% Stock

SMITH & WESSON BRANDS, INC. (SWBI) filed an SEC Form 8-K — Completion of Acquisition or Disposition of Assets. Exhibit 99.1 Smith & Wesson Acquires Savage Arms • Creates leading U.S. firearms manufacturer, bringing together two iconic American brands • Meaningfully expands Smith & Wesson’s presence in hunting category • Expected to be immediately cash accretive to full year earnings per s

Smith & Wesson (SWBI) acquired Savage Arms, a 130-year-old firearms manufacturer, for $160M. The deal expands SWBI's hunting category presence and is expected to be immediately accretive to earnings per share by $0.04 for the remainder of fiscal 2027, with full-year accretion of $0.07 per share. JDH Capital, Savage's seller, becomes SWBI's largest stockholder with a 16.7% stake and board representation.

Smith & Wesson (SWBI) reported a profit turnaround with Q2 net sales up 32.3% YoY to $112.6M and EPS of $0.06, reversing a prior loss. Shipments rose 20%, outpacing industry demand. Pricing power improved with ASPs up 9-18%. A $2.9M tariff refund boosted gross margin, but underlying gains were modest. The board approved a $0.13 quarterly dividend.

Smith & Wesson Brands reported Q1 2027 net sales growth of 32%, driven by market share gains in handguns and long guns. The company maintained full-year revenue guidance of 5-7% and expects Q2 sales to rise 10% YoY. Gross margins expanded due to tariff refunds and production absorption, despite inflationary pressures. Capital spending is projected at $45M-$50M for the year, with Q2 operating expenses rising 10-15% sequentially.

Smith & Wesson reported Q1 earnings, highlighting doubled shipments of the Model 1854 rifle and strong growth in wholesale, law enforcement, and international markets. Average selling prices increased 9% for handguns and 18% for long guns year over year. Gross margin rose to 28.7%, with tariff refunds and higher production absorption contributing. Operating expenses increased due to legal and advertising costs. The company expects Q2 sales growth of 10% and improved gross margins. Smith & Wesson

Smith & Wesson (SWBI) stock rose 5.8% after reporting Q1 fiscal 2027 results with net sales up 32.3% to $112.6M and net income of $2.6M, exceeding estimates. The company reaffirmed its annual revenue growth guidance of 5-7% and authorized a $0.13 dividend.