Eastern Co
NASDAQ:EML
Eastern Co
The Eastern Co. engages in the design, manufacture and sale of industrial hardware, security products and metal products. The company is headquartered in Naugatuck, Connecticut and currently employs 1,191 full-time employees. The Company’s Engineered Solutions segment consists of Big 3 Precision, Eberhard Manufacturing Company and Velvac. These businesses designs, manufactures, and markets a diverse product line of custom and standard vehicular and industrial hardware, including turnkey returnable packaging solutions, access and security hardware, mirrors, and mirror-cameras. Big 3 Products and Big 3 Mold’s turnkey returnable packaging solutions are used in the assembly processes of vehicles, aircraft, and durable goods and in the production processes of plastic packaging products, packaged consumer goods and pharmaceuticals. Eberhard offers rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles among other products, as well as comprehensive development and program management services for custom electromechanical and mechanical systems.
The Eastern Co. engages in the design, manufacture and sale of industrial hardware, security products and metal products. The company is headquartered in Naugatuck, Connecticut and currently employs 1,191 full-time employees. The Company’s Engineered Solutions segment consists of Big 3 Precision, Eberhard Manufacturing Company and Velvac. These businesses designs, manufactures, and markets a diverse product line of custom and standard vehicular and industrial hardware, including turnkey returnable packaging solutions, access and security hardware, mirrors, and mirror-cameras. Big 3 Products and Big 3 Mold’s turnkey returnable packaging solutions are used in the assembly processes of vehicles, aircraft, and durable goods and in the production processes of plastic packaging products, packaged consumer goods and pharmaceuticals. Eberhard offers rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles among other products, as well as comprehensive development and program management services for custom electromechanical and mechanical systems.
Revenue Drop: Q3 revenue fell 22% year-over-year to $55.3 million, mainly due to weakness in Class 8 truck and automotive markets.
Profit Hit: Net income from continuing operations dropped sharply to $0.6 million ($0.10 per diluted share), down from $4.7 million ($0.75 per share) last year.
Gross Margin Pressure: Gross margin declined to 22.3% from 25.5% last year, driven by higher raw material costs and lower volumes.
Cost Actions: The company saved $1.8 million in the quarter through cost cuts, restructuring, and the sale of an underperforming business.
Share Buyback & Debt Reduction: Eastern repurchased about 2% of outstanding shares and reduced debt by $7 million; also secured a new $100 million credit facility.
Mixed Outlook: Management sees some Q4 improvement but expects a slow first half of 2026, with possible recovery later in the year.
USPS Program: The USPS vehicle contract is performing well and offsetting truck market weakness for the Eberhard division.
