TASA3: quote, dividends and indicators for Taurus

Taurus Armas S.A., traded on B3 through the shares TASA3 and TASA4, is a light firearms manufacturer classified as a Strategic Defense Company in Brazil. Founded in 1939 in Porto Alegre (RS) under the name Forjas Taurus, it began operating in metallurgy, producing its own machinery in a context of scarcity of imported equipment during World War II. After the end of the conflict, the company turned to the production of revolvers and hand tools, becoming a joint-stock company in 1949. In the following decades, it expanded its industrial base, went through cycles of tight regulation of the arms sector in the country and experienced changes in its ownership structure, including periods under foreign control and subsequent return to domestic control. Its trajectory includes significant acquisitions, such as the Brazilian subsidiary of Beretta in 1980, the creation of Taurus International in the United States in 1981, and the listing of its shares on what was then the São Paulo Stock Exchange in 1982, integrating the company more broadly into the capital markets.

Throughout the 1990s and 2000s, Taurus consolidated itself as a global manufacturer of handguns, obtaining quality certifications such as ISO 9000 and international certifications, while diversifying its activities with businesses in armor, helmets and metal equipment. In the 2010s, the company went through a period of corporate and operational restructuring, joining B3's Level 2 of Corporate Governance in 2011 and later concentrating its firearms production in São Leopoldo (RS). The period included efforts to reprofile debt, streamline industrial operations, unify plants and implement financial adjustments to reduce leverage and rebalance the capital structure. From 2018 onward, the company began an operational and financial turnaround, reviewing processes, renewing its portfolio and renegotiating debt, which paved the way for the start of operations at its US factory in 2019 and for strong results in the following years, including the resumption of dividend distributions after a long hiatus.

Taurus's business model is focused on the production and sale of light firearms, mainly revolvers, pistols and tactical weapons, including carbines, rifles, machine guns and submachine guns. The company maintains industrial units in São Leopoldo (RS), where its headquarters are located, in Bainbridge, in the state of Georgia (USA), and in India through the JD Taurus joint venture, whose operation began in 2024 with pilot batches under the supervision of Brazilian teams. In 2025, Taurus produced 778 thousand firearms, 582 thousand units in Brazil and 246 thousand at the North American plant, while the Indian unit started up assembly capacity of approximately 1,150 firearms per day, with the possibility of expansion depending on demand. The company also operates in related segments, such as the production of metal injection molded parts (MIM – Metal Injection Molding) used in its own firearms and sold on a made-to-order basis to third parties, as well as the manufacture of magazines through the Taurus JM joint venture, and the production and sale of motorcycle helmets through its subsidiary Taurus Helmets.

From an operational segmentation standpoint, Taurus organizes its results into three fronts: Firearms & Accessories, Helmets and Others. The Firearms & Accessories segment covers short firearms for civilian, police and military use, long firearms (rifles, carbines, shotguns) and submachine guns, as well as MIM products and magazines. In 2025, this segment accounted for R$ 1,321.2 million in net revenue, equivalent to 90.3% of consolidated revenue, with 959 thousand firearms sold. The Helmets segment, operated by Taurus Helmets, targets the motorcycle rider market, with more than forty years of operations, a wide network of around 12 thousand points of sale and a presence in e-commerce, having generated R$ 136.3 million in net revenue in 2025, or 9.3% of the total. The Others segment includes the retail of firearms and ammunition at AMTT stores, technical assistance and operations such as the manufacture and sale of goggles, with marginal participation in consolidated revenue and results. There is no relevant client concentration, as none of them individually accounted for more than 10% of net revenue in 2025.

Taurus's operations are clearly international, with heavy reliance on foreign markets. In 2025, net revenue from Brazil was R$ 301.6 million, equivalent to 20.6% of consolidated revenue. The United States accounted for R$ 1,003.5 million, or 68.6% of revenue, while the rest of the world totaled R$ 157.9 million, representing 10.8%. In the domestic market, firearms sales are predominantly intended for government agencies, police forces, judges and the CAC public (hunters, shooters and collectors). In the United States, the company's main market, demand is concentrated in the civilian segment, while in other countries sales combine the civilian market and bidding processes for military and police forces, with longer negotiation and approval cycles. The company holds a leading position in the Brazilian firearms and helmets markets and is one of the world's main manufacturers of light firearms, standing out as the largest producer of revolvers. Distribution combines direct service to major retailers, regional distributors, sales representatives and exports to more than 100 countries, with distributor networks covering more than 70 markets outside the Brazil–United States axis.

The regulatory environment has a direct influence on the business, both in Brazil and abroad. The manufacture, trade, export and import of firearms and ammunition in the Brazilian market are highly regulated, requiring authorizations and oversight by various public bodies. Taurus holds an operating license issued by the Federal Police, an Army registration certificate for firearms manufacturing, registration with IBAMA and an environmental operating license, among other permits. Each export transaction is preceded by an authorization for preliminary negotiation from the Ministry of Foreign Affairs and the Ministry of Defense, reflecting the company's classification as a Strategic Defense Company. Internationally, the company must constantly monitor import regulations in different countries. In 2025, for example, additional tariffs of up to 50% imposed by the United States on imported products affected sales and margins, which led to logistical adjustments, inventory buildup and increased local assembly. In 2026, a decision by the US Supreme Court ruled the previous tariff structure illegal, resulting in a reduction of the tariff to 10% and the prospect of recovering part of the amounts paid in the form of surtax.

Taurus's production process is metallurgy- and proprietary technology-intensive, with stages that include forging steel, stainless steel, aluminum, titanium and magnesium profiles, CNC machining, MIM injection with sintering in furnaces, heat and surface treatments, sanding, polishing and final assembly with adjustments and calibrations. The company has been replacing manual processes with robotic cells, especially in sanding, in order to increase productivity and standardization. The main inputs are steel and various polymers, mostly sourced in the domestic market, with exposure to price volatility of ores in the international scenario. In helmet production, ABS, manual and automated painting, polycarbonate sheets, foams and fabrics are used, with sewing, finishing and assembly stages. Taurus has developed an impact and resistance testing laboratory that complies with NBR and SNELL standards, which supports the brand’s technical positioning in the helmet market. In terms of distribution, the company serves the domestic firearms market through direct sales to major stores, distributors and government agencies, while helmets are sold through a network of representatives in all Brazilian states and exported on a small scale to South American countries.

Technological innovation is a key element of Taurus's strategy and is embodied in the CITE – Integrated Technology and Engineering Center Brazil/USA, which integrates teams from both industrial bases. The center works on the development of new materials, more efficient production processes and higher value-added products. The company was the first firearms manufacturer to use graphene in injected components and metal surface treatments, with emphasis on the GX4 Graphene pistol, launched in 2022. Ongoing research includes the use of niobium and Diamond Like Carbon (DLC) coatings, as well as the development of its own MIM compound, with the goal of reducing dependence on external suppliers and increasing technological self-sufficiency. The company has also launched new products under the Taurus, Rossi and Heritage brands in both the Brazilian and North American markets, seeking to expand its share in different consumer segments and use niches.

In the environmental, social and governance (ESG) field, Taurus publishes sustainability reports prepared based on GRI and SASB standards, covering industrial units in São Leopoldo. These documents undergo independent review and use a materiality matrix with topics distributed across governance, social and environmental dimensions. In governance, prominent topics include business ethics, corporate governance and data security. In the social dimension, the company prioritizes employee health and safety, diversity, inclusion, human rights, community relations, and product safety and quality. On the environmental front, the focus is on waste, water, energy and greenhouse gas emissions management, with environmental licensing processes in all units and compliance with applicable legal obligations. The company states alignment with selected Sustainable Development Goals, with initiatives aimed at health and well-being, education and training, gender equality, decent work, industrial innovation, reduction of inequalities and the building of partnerships. The integration of these practices into corporate strategy seeks to mitigate social and environmental risks and strengthen long-term management, a relevant aspect for assessing the risk and sustainability profile of TASA3 and TASA4 shares on B3.