The Eastern Company Reports Fourth Quarter and Full Year 2025 Results

About this update from Eastern Company (the)

SHELTON, CT / ACCESS Newswire / March 3, 2026 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced its results of operations for the fourth fiscal quarter and full year ended January 3, 2026. "2025 was a year defined by market headwinds we could not control and operational actions we could," stated Ryan Schroeder, President and CEO. "Our primary end-markets - heavy-duty truck and automotive - remained under pressure throughout the year, resulting in our financial performance for both the fourth quarter and full year falling far short of expectations. What we could control, however, we did. Among other things, we restructured our cost base, generating $4 million in annualized savings, and mitigated the impact of approximately $10 million in tariffs through increased pricing and cost reductions. The result was a year that remained profitable despite significant volume declines. Fourth quarter gross margin decreased by only 20 basis points despite a decline of over 13% in sales, and we finished the year with net income of $6.0. million and adjusted EBITDA of $19.4 million, which we believe demonstrates the effectiveness of our restructuring actions and the resilience of our operating model. "The decisive actions we took over the course of 2025 - the restructuring initiatives, footprint optimization, cost-alignment measures, and improved accountability - were investments in Eastern's future earnings power. Equally important, we remained disciplined stewards of capital throughout the year by reducing outstanding debt by $8.7 million, returning $2.7 million to shareholders through dividends, and repurchasing $3.7 million of common stock," continued Mr. Schroeder. "Above all, we maintained a strong customer focus as our teams invested in product development and innovation to address evolving customer needs, expanded relationships across a broader customer base, and pursued opportunities in new end markets to capture emerging growth. "We are confident that the restructuring and operational changes implemented in 2025 establish a solid foundation for Eastern's next chapter, which is firmly focused on pursuing disciplined growth. Looking ahead, the Co...

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