Quarterly ResultMay 12, 2026, 04:32 PM
Eastern Co. Q1 Net Sales $59.7M, Net Income $0.6M; EPS $0.11
AI Summary
The Eastern Company reported a decline in its first quarter 2026 financial results, with net sales decreasing 5.7% to $59.7 million and net income falling to $0.6 million, or $0.11 per diluted share, compared to the prior year. Adjusted EBITDA also saw a significant 35% reduction. Despite these declines, the company noted sequential revenue growth driven by improved order execution and an increase in backlog to $82.2 million, while also strengthening its balance sheet through $1.0 million in debt reduction and share repurchases. Management anticipates improving financial performance as operational issues in its racks business are expected to be resolved by the end of the second quarter.
Key Highlights
- Net sales decreased 5.7% to $59.7 million in Q1 2026 from $63.3 million in Q1 2025.
- Net income for Q1 2026 was $0.6 million, or $0.11 per diluted share, down from $1.9 million, or $0.31 per diluted share, in Q1 2025.
- Adjusted EBITDA from continuing operations decreased 35% to $3.0 million.
- Backlog increased sequentially to $82.2 million as of April 4, 2026.
- Gross margin was 20.0% for Q1 2026, compared to 22.4% for Q1 2025.
- The company reduced total debt by $1.0 million during the quarter.
- Eastern Co. repurchased 21,120 shares of common stock for $422,355.
- Operational issues in the racks business are expected to be largely resolved by the end of Q2 2026.