Eastern Company (EML) reports earnings

The report was filed on March 11, 2025

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Eastern Company (EML-3.76%) has submitted its 10-K filing for the fiscal year ended December 28, 2024.

The filing reports net sales of $272.8 million for 2024, an increase from $258.9 million in 2023. Net income for 2024 was $13.2 million, or $2.13 per diluted share, compared to $11.8 million, or $1.88 per diluted share, in 2023.

The company's backlog increased to $89.2 million as of December 28, 2024, primarily due to new mirror programs for Class 8 trucks at Velvac.

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Eastern Company operates in the Engineered Solutions segment, which includes businesses like Big 3 Precision, Eberhard, and Velvac, providing products such as vehicular hardware and packaging solutions.

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During 2024, Eastern Company sold Big 3 Mold, which is now classified as discontinued operations. The financial results of Big 3 Mold are reflected as discontinued operations in the statements.

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The company reported a gross margin of 24.7% for 2024, an increase from 23.9% in 2023, attributed to improved pricing and cost-saving initiatives.

Operating expenses for 2024 included $42.2 million in selling and administrative expenses, which increased by 7.9% from 2023.

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Eastern Company maintains a credit agreement with TD Bank and others, with a $60 million term portion and a $30 million revolving commitment portion.

The company reported a total debt of $42.2 million as of December 28, 2024, with a senior net leverage ratio requirement not to exceed 3.5 to 1 under its credit agreement.

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Eastern Company expects to continue its policy of paying regular cash dividends, with $2.7 million paid in 2024.

The filing also details various risks, including competition, global operations, and potential impacts from changes in tax laws or regulations.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Eastern Company annual 10-K report dated March 11, 2025. To report an error, please email earnings@qz.com.