SWBI · CIK 0001092796
What Smith & Wesson Brands, Inc. told the SEC could break it.
Smith & Wesson's disclosures cluster around how concentrated and how regulated its operations are. It sells mostly through distributors — its top five accounted for about 45% of net sales in fiscal 2025 — and it makes everything in just four plants across three locations, with key components for most products and its core R&D housed at a single Springfield, Massachusetts site, so a disruption there (or in its ongoing $114 million-plus relocation) could impair production. Surrounding all of it is the regulation specific to firearms: extensive federal and state rules plus export controls under which the State Department licenses international sales, Congress can block any export-controlled sale of $1 million or more, and new BIS rules tightened exports in May 2024 — while, like other manufacturers, it also faces raw-material and tariff cost pressure from the April 2025 reciprocal tariffs.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- raw materials (steel, wood, lead, brass, plastics) with alternative sources, plus exposure to tariffs already imposed on certain products (April 2025 reciprocal tariffs)medium
Smith & Wesson uses numerous raw materials — steel, wood, lead, brass and plastics — to produce and test its products (with alternative sources available), but it is exposed to protectionist trade restrictions and is currently subject to tariffs on certain of its products, with more products potentially becoming tariffed in the future; the April 2025 worldwide reciprocal tariffs and retaliatory measures, together with raw-material/component price increases and shortages, could raise costs and pressure margins.
“We are currently subject to tariffs on certain of our products, and other of our products could become subject to tariffs in the future.”
SEC filing →As of 2025
Customer concentration
- top five U.S. commercial distributors = ~45% of net sales (no individual ≥10%; sales flow ~91% through federal firearm licensees to consumers)medium
Smith & Wesson sells primarily through distributors, and its top five U.S. commercial distributors together accounted for approximately 45%, 46% and 44% of net sales in fiscal 2025/2024/2023; although the company believes losing one would not be material (since the non-exclusive distributors share dealer customers and volume would reallocate), this distributor concentration still channels the large majority of its sales through a handful of intermediaries, and ~91% of net sales flow through federal firearm licensees to domestic consumers.
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
The Christman Company
“The parties to the Construction Contract agreed that Christman will perform and complete the Work (as defined therein) on a cost-plus basis for a guaranteed minimum price of $ 114.0 million, including contingencies.”
Cited →
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