Tue, May 6, 9:00 PM (11 days ago)
**The Eastern Company (EML) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $63,312,774 (down 2% YoY from $64,624,238). - **Gross Margin:** 22.4% (down from 23.9% YoY). - **Operating Profit:** $3,231,165 (down 5.2% YoY from $3,410,078). - **Net Income:** $1,943,689 (down 0.2% YoY from $1,947,572). - **EPS:** $0.32 (down from $0.34 YoY). **Profit Margins:** - **Gross Margin:** 22.4% (down from 23.9% YoY). - **Operating Margin:** 5.1% (down from 5.3% YoY). - **Net Margin:** 3.1% (down from 3.0% YoY). **Cash Flow:** - **Operating Cash Flow:** -$1,848,184 (down from $2,782,727 YoY). - **Investing Cash Flow:** -$1,565,275 (up from -$2,693,520 YoY). - **Financing Cash Flow:** -$2,952,847 (up from -$1,744,612 YoY). **Earnings Changes:** - **Net Income:** Down 0.2% YoY. - **EPS:** Down 5.9% YoY. **Quarterly Performance Discussion:** - **Sales Decrease:** Due to decreased sales of truck mirror assemblies and truck accessories, offset by increased sales of returnable transport packaging products. - **Backlog:** Decreased 9% to $85.9 million. - **Gross Margin:** Decreased due to lower margins in latch and handle assemblies, offset by gains in returnable transport packaging. - **Operating Expenses:** Decreased due to lower payroll-related expenses, offset by higher sales commissions and restructuring expenses. **Trends & Uncertainties:** - **Tariffs:** U.S. tariffs implemented in March 2025 did not materially impact Q1 2025 results, but long-term effects remain uncertain. - **Acquisitions:** Acquisition of certain assets from Centralia Industrial Painting, Inc. expected to enhance competitiveness. - **Discontinued Operations:** Big 3 Mold business held for sale, reflected as discontinued operations. **Future Operations Impact:** - **Cash Flow:** Expected to be sufficient to cover short-term and long-term working capital requirements. - **Debt:** Compliance with credit agreement covenants, with $27.0 million available on revolving line of credit. - **Risk Factors:** Include global economic conditions, interest rates, tariffs, and geopolitical events. **Ticker:** EML **Full Name:** The Eastern Company