Taurus Armas, Brazil's oldest gunmaker, has pivoted from cheap civilian pistols to a military‑focused portfolio after years of political swings. Bolsonaro’s pro‑gun era boosted sales, but Lula’s tighter controls and a Trump‑era tariff cut revenue. The company now seeks defense contracts worldwide.

In 2025, revenue fell to R$1.46bn ($290mn), half the 2021 peak, while the stock sits at a $140mn market cap after an 80% slide. Net income dropped 77% to R$17.7mn. The downturn mirrors a global slump in U.S. and Brazilian gun sales post‑pandemic, affecting investor sentiment in the sector.

CEO Salésio Nuhs says Taurus will add .50‑calibre submachine guns and drone systems to its lineup, targeting overseas defense contracts. A 12,000‑piece order of 9mm pistols from India in early 2026 marks the first major military deal under this new strategy, demonstrating a shift from civilian to defense sales.

Despite the move, competition remains fierce: military tech requires heavy investment, long lead times, and binary contract outcomes. Yet the potential payoff is high, given global conflicts that demand new munitions. Investors will watch whether Taurus can translate this strategy into sustainable revenue growth for shareholders and reduce volatility.