The Eastern Company (EML) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

deepen and diversify our customer relationships to position us to capture emerging opportunities, reduce volatility, and support sustainable long-term performance. Turning to our balance sheet, we have repurchased approximately 118,000 shares through the end of the third quarter. This represents almost 2% of our outstanding shares and demonstrates our ongoing commitment to allocating capital to benefit our shareholders. We also reduced debt by $7 million and and entered into a new $100 million revolving credit facility with Citizens Bank that provides us with additional flexibility to enhance our priorities, including continued investments into long-term growth initiatives and potential M&A opportunities. Given the proactive steps we have taken and our historically strong balance sheet, we are confident that Eastern Company is well equipped to weather the cyclical market downturn and to capitalize on opportunities when our markets return to healthier positions. With that, I'll hand it over to Nick to dig a little deeper into the quarter. Nick? Thanks, Ryan. I'll focus my review today on the company's financial results from continuing operations for the third quarter of 2025. Net sales in the third quarter of 2025 decreased 22% to $55.3 million from $71.3 million in last year's third quarter. The decline was primarily due to decreased sales of returnable transport packaging products and truck mirror assemblies of 9.9 million and 6.4 million respectively. Our backlog as of September 27, 2025 decreased 23.6 million or 24% to 74.3 million from 97.2 million as of September 28, 2024. driven by decreased orders for returnable transport packaging products of $15.2 million, latch and handle assemblies of $4.7 million, and truck and mirror assemblies of $3.6 million. Gross mar...