Burnham Holdings, Inc. Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Burnham Holdings (OTC-Pink: BURCA) reported third quarter 2025 results showing top-line growth and portfolio restructuring to focus on core boilers and commercial services. Q3 net sales were $58.3M, up 5.3% year-over-year; YTD net sales were $167.0M versus $153.2M a year earlier. Q3 net income was $1.6M ($0.34 diluted); YTD net income rose to $9.9M ($2.10 diluted). The company reclassified Thermo Pride and Norwood as discontinued operations and recorded a $7.03M gain on their sale. BHI purchased an annuity to transfer approximately $90.0M of pension obligations and expects an estimated non-cash pre-tax pension settlement charge of $20.8M in Q4 2025.

Positive

• Q3 net sales +5.3% to $58.3M
• YTD net sales rose to $167.0M from $153.2M
• YTD net income doubled to $9.9M
• Annuity transfer removes ~$90.0M pension obligations
• Gain on sale of discontinued operations $7.03M

Negative

• Estimated Q4 non-cash pre-tax pension settlement charge ~$20.8M
• Recorded impairment charges of $3.3M during 2025
• YTD SG&A increased 13.7% to support initiatives

Strategic Portfolio Adjustments Drive Strong Growth and Enhanced Focus for Long-Term Value Creation

LANCASTER, Pa., Oct. 23, 2025 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the third quarter of 2025, demonstrating robust growth driven by strategic portfolio adjustments aimed at strengthening its core boiler business and expanding high-growth commercial and industrial service offerings. The financial statement presentation has been adjusted to reflect the previously announced divestiture of its subsidiaries Thermo Pride, LLC (TP) and Norwood Manufacturing, Inc. (NMI) as discontinued operations.

• Strong Top-Line Growth: Net sales for the third quarter of 2025 reached $58.3 million, a 5.3% increase ($2.9 million) compared to the third quarter of 2024. Year-to-date net sales climbed to $167.0 million, up from $153.2 million for the first nine months of 2024.
• Solid Gross Profit Margins: Gross profit margin increased to 19.6% in the third quarter of 2025 from 18.2% in the third quarter of 2024, reflecting continued operational efficiencies in the Commercial businesses. Year-to-date gross margin was 21.9%, up from 21.4% for the first nine months of 2024.
• Strategic SG&A Investment: Selling, general, and administrative expenses (SG&A) increased by 5.7% in the third quarter and 13.7% in the first nine months of 2025, aligning with planned initiative spending to support long-term growth.
• Robust Earnings: Net Income was $1.6 million ($0.35 per basic share and $0.34 per diluted share), up from $0.6 million ($0.12 per basic and diluted share) in the third quarter of 2025. Year-to-date net income was $9.9 million ($2.12 per basic share and $2.10 per diluted share), more than double from $4.4 million ($0.94 per basic share and $0.93 per diluted share) for the first nine months of 2024.
• Enhanced Profitability Metrics: Adjusted EBITDA for the third quarter of 2025 was $2.9 million (4.9% of net sales), an increase from $2.7 million (4.2% of net sales) in third quarter of 2024. Adjusted EBITDA for first nine months of 2025 rose to $11.9 million (6.6% of net sales) from $11.3 million (6.4% of net sales) for the first nine months of 2024. These adjusted figures exclude the gain from the sale of TP and NMI, as well as impairment losses from the previously announced wind down of production activities at Crown Boiler.
• Increased Shareholder Value: Adjusted diluted earnings per share for the third quarter of 2025 improved to $0.20, up from $0.12 in 2024. Year-to-date adjusted diluted earnings per share were $1.15, compared to $0.93 for the first nine months of 2024.

On October 7, 2025, the Company announced that it purchased a group annuity contract and will transfer a portion of its pension payment obligations under the Retirement Plan for Employees of the Burnham Group (pension) to a third-party insurance company.  Under the contract, the Company will transfer approximately $90.0 million of its defined benefit pension obligations and related plan assets for approximately 1,000 retirees and beneficiaries to the insurance company.  The contract was purchased using assets from the pension trust and no additional funding contribution was required as part of this transaction.

On January 1, 2026, the third-party insurer will begin paying and administering the retirement benefits of the retirees and beneficiaries included in this annuity transfer. This change will not affect the amount of individuals' monthly benefit payments.  This decision does not impact current employees.  Retirees and beneficiaries who are included in this annuity transfer will be notified in the coming weeks.

In connection with this transaction, the company expects to recognize an estimated non-cash pre-tax non-operating pension settlement charge of approximately $20.8 million in the fourth quarter.  The actual settlement charge will depend on finalization of actuarial assumptions, including discount rate, as well as the fair value of plan assets as of the measurement date.  This charge represents and acceleration of deferred charges currently on the consolidated balance sheet in accumulated other comprehensive loss.

"We achieved solid net sales and profitability growth in the third quarter highlighted by the continued strong execution of our operating subsidiaries and broader unified strategy," stated Chris Drew, President and CEO of Burnham Holdings. "In addition to our positive results, we significantly de-risked our pension obligations that will provide us with greater financial flexibility and support our future operations. With the promising early returns of our strategic portfolio adjustments combined with a more efficient operating structure, we believe we are well-positioned to drive long-term shareholder value."

As previously announced on April 7, 2025, BHI initiated a plan to strategically wind down operations at Crown Boiler. This forward-looking decision is integral to driving manufacturing efficiency, improving production flexibility, and directly supports the Company's long-term growth objectives. This further enables BHI and its subsidiaries to enhance product integration, streamline operations, and standardize offerings across its portfolio. While this strategic realignment involved recorded impairment charges totaling $3.3 million during 2025, it was a necessary step to optimize BHI's operational footprint and focus resources towards its most promising growth avenues. These charges included $1.5 million of goodwill relating to the acquisition of Crown in 2003, $0.4 million of accelerated depreciation and $1.4 million of inventory reserves.

Subsidiary Litigation Update
On October 21, 2025, the New York Court of Appeals denied Burnham LLC's, a wholly owned subsidiary of BHI, petition for leave to appeal the verdict that was entered against the company in Maffei v. A.O. Smith Water Prods. Co. (In re N.Y.C. Asbestos Litigation) matter. The gross verdict (without regard to setoff or apportionment reductions) equated to $31.5 million of compensatory damages and $6.5 million of punitive damages. Prior to this appeal, Burnham LLC filed an appeal to the Appellate Division, First Judicial Department who affirmed the trial's verdict. Because Burnham believes its arguments on appeal are meritorious, Burnham plans to investigate all further appeal options including the possibility of filing an emergency petition for certiori to the United States Supreme Court. Although the verdict was rendered at trial, Burnham LLC had a reasonable belief that there was a high probability of post-verdict relief on the damages in the appeals process based on advice of third-party experts and their analysis of prior case law. The compensatory portion of damages are insured by applicable policies, and Burnham LLC will be vigorously pursuing coverage from its applicable insurance policies to pay for cost of the awarded punitive damages. In the event the coverage is unavailable or denied, Burnham LLC will be required to pay only the punitive damages directly. As previously disclosed, in the normal course of business, certain subsidiaries of BHI have been named, and may in the future be named, as defendants in various legal actions, including claims for damages alleging exposure to asbestos from products of the company's subsidiaries or their predecessors.

About Burnham Holdings, Inc.: BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers for residential applications. Additionally, through its various subsidiaries it serves the commercial / industrial boiler markets with a variety of boiler products, rental trailers and boiler room services.  BHI is listed on the OTC Exchange under the ticker symbol "BURCA". For more information, please visit www.burnhamholdings.com.

Safe Harbor Statement: This Press Release contains forward-looking statements. Other reports, letters, press releases and investor presentations distributed or made available by the Company may also contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and you should therefore not place undue reliance on them.  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.  Forward-looking statements involve inherent risks and uncertainties.  We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, variations in weather, changes in the regulatory environment, litigation, customer preferences, general economic conditions, technology, product performance, raw material costs, and increased competition.

Non-GAAP Financial Information: This press release may contain certain non-GAAP financial measures, including, but not limited to, adjusted SG&A, EBITDA, Adjusted EBITDA, Adjusted Net Income and adjusted diluted earnings per share.  These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States ("GAAP").  The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company's overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company.  The Company acknowledges that there are many items that impact a company's reported results, and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.  In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

Burnham Holdings, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended				Nine Months Ended
		September 28,		September 29,		September 28,		September 29,
		2025		2024		2025		2024
Net sales		$        58,327		$        55,411		$      167,035		$      153,157
Cost of goods sold		46,901		45,350		130,523		120,452
Gross profit		11,426		10,061		36,512		32,705
Selling, general and administrative expenses		10,472		9,911		31,380		27,599
Impairment loss		181		-		3,318		-
Operating income		773		150		1,814		5,106
Other (expense) / income:
Non-service related pension credit		50		124		150		374
Interest and investment gain		372		423		864		912
Interest expense		(121)		(697)		(465)		(1,526)
Other income (expense)		301		(150)		549		(240)
Income from continuing operations before income tax		1,074		-		2,363		4,866
Income tax expense		247		-		542		1,119
Income from continuing operations		827		-		1,821		3,747
Income from discontinued operations, net of tax		-		552		1,066		637
Gain on sale of discontinued operations, net of tax		801		-		7,028		-
Income from discontinued operations, net of tax		801		552		8,094		637
Net income		$          1,628		$             552		$          9,915		$          4,384
Earnings per share (EPS):
Basic
Income from continuing operations		$            0.18		$                  -		$            0.39		$            0.80
Income from discontinued operations		0.17		0.12		1.73		0.14
Basic EPS		$            0.35		$            0.12		$            2.12		$            0.94
Diluted
Income from continuing operations		$            0.17		$                  -		$            0.38		$            0.79
Income from discontinued operations		0.17		0.12		1.72		0.14
Diluted EPS		$            0.34		$            0.12		$            2.10		$            0.93
Cash dividends per share		$            0.23		$            0.23		$            0.69		$            0.69

 

Burnham Holdings, Inc.
Consolidated Balance Sheets
(In thousands)
				(Unaudited)				(Unaudited)
				September 28,		December 31,		September 29,
ASSETS				2025		2024		2024
Current Assets
	Cash and cash equivalents			$              7,154		$              6,329		$              6,256
	Trade accounts receivable, net			22,839		23,858		25,570
	Inventories, net			54,768		46,962		60,082
	Costs in excess of billings			563		141		1,425
	Prepaid expenses and other current assets			3,539		4,394		3,012
	Current assets of discontinued operations			-		12,747		14,129
		Total Current Assets		88,863		94,431		110,474
Property, plant and equipment, net				70,183		65,972		65,614
Lease assets				5,559		6,005		6,410
Other long-term assets				20,497		22,261		17,097
Long-term assets of discontinued operations				-		5,667		5,921
		Total Assets		$          185,102		$          194,336		$          205,516
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable & accrued expenses			$            29,631		$            32,264		$            27,845
	Billings in excess of costs			602		1,698		3,497
	Current liabilities of discontinued operations			-		3,245		1,818
	Current portion of:
	Long-term liabilities			72		772		71
	Lease liabilities			1,426		1,348		1,175
	Long-term debt			184		184		184
		Total Current Liabilities		31,915		39,511		34,590
Long-term debt				14,540		22,273		48,390
Lease liabilities				4,133		4,657		5,235
Other long-term liabilities				5,051		4,823		5,847
Deferred income taxes				9,659		9,352		8,371
Long-term liabilities of discontinued operations				-		441		668
Shareholders' Equity
	Preferred Stock			530		530		530
	Class A Common Stock			3,654		3,633		3,633
	Class B Convertible Common Stock			1,293		1,311		1,311
	Additional paid-in capital			9,929		10,799		10,625
	Retained earnings			135,491		128,884		122,397
	Accumulated other comprehensive loss			(21,320)		(20,820)		(25,023)
	Treasury stock, at cost			(9,773)		(11,058)		(11,058)
		Total Shareholders' Equity		119,804		113,279		102,415
		Total Liabilities and Shareholders' Equity		$          185,102		$          194,336		$          205,516

 

Burnham Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Nine Months Ended
		September 28,		September 29,
		2025		2024
Cash flows from operating activities:
Net income		$              9,915		$              4,384
Income from discontinued operations, net of tax		8,094		637
Income from continuing operations		$              1,821		$              3,747
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization		3,790		3,658
Investment impairment loss		3,318		-
Deferred income taxes		44		50
Provision for long-term employee benefits		(171)		(375)
Share-based compensation expense		474		300
Other reserves and allowances		(1,995)		(32)
Changes in current assets and liabilities:
Decrease in accounts receivable, net		979		481
Increase in inventories, net		(9,255)		(10,767)
(Increase) decrease in other current assets		(172)		1,956
Decrease in accounts payable and accrued expenses		(2,217)		(7,042)
Net cash used by operating activities of continuing operations		(3,384)		(8,024)
Net cash (used) provided by operating activities of discontinued operations		(30)		251
Net cash used by operating activities		(3,414)		(7,773)
Cash flows from investing activities:
Capital expenditures		(8,358)		(9,388)
Proceeds from sale of discontinued operations		23,687		-
Net cash provided (used) by investing activities of continuing operations		15,329		(9,388)
Net cash provided (used) by investing activities of discontinued operations		7		(250)
Net cash provided (used) by investing activities		15,336		(9,638)
Cash flows from financing activities:
Net activity from revolving credit facility		(7,641)		21,251
Repayment of term loan		(92)		(92)
Share-based compensation activity		(56)		(71)
Dividends paid		(3,308)		(3,278)
Net cash (used) provided by financing activities		(11,097)		17,810
Net increase in cash and cash equivalents		$                 825		$                 399
Cash and cash equivalents, beginning of period		$              6,329		$              5,857
Net increase in cash and cash equivalents		825		399
Cash and cash equivalents, end of period		$              7,154		$              6,256

 

Burnham Holdings, Inc.
Consolidated Statements of Shareholders' Equity
(In thousands)
(Unaudited)
						Class B						Accumulated
				Class A		Convertible		Additional				Other		Treasury
		Preferred		Common		Common		Paid-in		Retained		Comprehensive		Stock,		Shareholders'
		Stock		Stock		Stock		Capital		Earnings		Loss		at Cost		Equity
Balance at December 31, 2023		$        530		$      3,633		$      1,311		$    11,769		$  121,291		$           (24,668)		$  (12,431)		$       101,435
Net income		-		-		-		-		2,991		-		-		2,991
Other comprehensive income,
net of tax		-		-		-		-		-		253		-		253
Cash dividends declared:
Common stock - ($0.23 per share)		-		-		-		-		(1,065)		-		-		(1,065)
Share-based compensation:
Expense recognition		-		-		-		100		-		-		-		100
Balance at March 31, 2024		$        530		$      3,633		$      1,311		$    11,869		$  123,217		$           (24,415)		$  (12,431)		$       103,714
Net income		-		-		-		-		841		-		-		841
Other comprehensive loss,
net of tax		-		-		-		-		-		(27)		-		(27)
Cash dividends declared:
Preferred stock - 6%		-		-		-		-		(9)		-		-		(9)
Common stock - ($0.23 per share)		-		-		-		-		(1,132)		-		-		(1,132)
Share-based compensation:
Expense recognition		-		-		-		100		-		-		-		100
Issuance of vested shares		-		-		-		(1,444)		-		-		1,373		(71)
Balance at June 30, 2024		$        530		$      3,633		$      1,311		$    10,525		$  122,917		$           (24,442)		$  (11,058)		$       103,416
Net income		-		-		-		-		552		-		-		552
Other comprehensive loss,
net of tax		-		-		-		-		-		(581)		-		(581)
Cash dividends declared:
Common stock - ($0.23 per share)		-		-		-		-		(1,072)		-		-		(1,072)
Share-based compensation:
Expense recognition		-		-		-		100		-		-		-		100
Balance at September 29, 2024		$        530		$      3,633		$      1,311		$    10,625		$  122,397		$           (25,023)		$  (11,058)		$       102,415
						Class B						Accumulated
				Class A		Convertible		Additional				Other		Treasury
		Preferred		Common		Common		Paid-in		Retained		Comprehensive		Stock,		Shareholders'
		Stock		Stock		Stock		Capital		Earnings		Loss		at Cost		Equity
Balance at December 31, 2024		$        530		$      3,633		$      1,311		$    10,799		$  128,884		$           (20,820)		$  (11,058)		$       113,279
Net income		-		-		-		-		3,371		-		-		3,371
Other comprehensive loss,
net of tax		-		-		-		-		-		(208)		-		(208)
Cash dividends declared:
Common stock - ($0.22 per share)		-		-		-		-		(1,072)		-		-		(1,072)
Share-based compensation:
Expense recognition		-		-		-		119		-		-		-		119
Conversion of common stock		-		9		(9)		-		-		-		-		-
Balance at March 30, 2025		$        530		$      3,642		$      1,302		$    10,918		$  131,183		$           (21,028)		$  (11,058)		$       115,489
Net income		-		-		-		-		4,916		-		-		4,916
Other comprehensive loss,
net of tax		-		-		-		-		-		(209)		-		(209)
Cash dividends declared:
Preferred stock - 6%		-		-		-		-		(9)		-		-		(9)
Common stock - ($0.22 per share)		-		-		-		-		(1,147)		-		-		(1,147)
Share-based compensation:
Expense recognition		-		-		-		160		-		-		-		160
Issuance of vested shares		-		-		-		(1,393)		-		-		1,285		(108)
Balance at June 29, 2025		$        530		$      3,642		$      1,302		$      9,685		$  134,943		$           (21,237)		$    (9,773)		$       119,092
Net income		-		-		-		-		1,628		-		-		1,628
Other comprehensive loss,
net of tax		-		-		-		-		-		(83)		-		(83)
Cash dividends declared:
Common stock - ($0.22 per share)		-		-		-		-		(1,080)		-		-		(1,080)
Share-based compensation:
Expense recognition		-		-		-		195		-		-		-		195
Issuance of vested shares		-		3		-		49		-		-		-		52
Conversion of common stock		-		9		(9)		-		-		-		-		-
Balance at September 28, 2025		$        530		$      3,654		$      1,293		$      9,929		$  135,491		$           (21,320)		$    (9,773)		$       119,804

 

Burnham Holdings, Inc.
Non-GAAP Reconciliation
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended				Nine Months Ended
		September 28,		September 29,		September 28,		September 29,
		2025		2024		2025		2024
Net sales of continuing operations		$        58,327		$        55,411		$      167,035		$      153,157
Net sales of discontinued operations		-		9,278		11,518		22,926
Total net sales		$        58,327		$        64,689		$      178,553		$      176,083
Net income		$          1,628		$             552		$          9,915		$          4,384
Exclude:
Income tax expense		486		165		2,959		1,309
Interest expense		121		697		465		1,526
Depreciation and amortization		1,499		1,322		4,325		4,031
EBITDA		$          3,734		$          2,736		$        17,664		$        11,250
EBITDA as a percent of net sales		6.4 %		4.2 %		9.9 %		6.4 %
EBITDA		$          3,734		$          2,736		$        17,664		$        11,250
Adjustments:
Gain on sale of discontinued operation		(1,040)		-		(9,127)		-
Impairment loss		181		-		3,318		-
Adjusted EBITDA		$          2,875		$          2,736		$        11,855		$        11,250
Adjusted EBITDA as a percent of net sales		4.9 %		4.2 %		6.6 %		6.4 %
		Three Months Ended				Nine Months Ended
		September 28,		September 29,		September 28,		September 29,
		2025		2024		2025		2024
Net income		$          1,628		$             552		$          9,915		$          4,384
Adjustments, net of tax		(661)		-		(4,473)		-
Adjusted net income		$             967		$             552		$          5,442		$          4,384
Diluted weighted-average shares outstanding		4,731		4,718		4,722		4,713
Diluted earnings per share		$            0.34		$            0.12		$            2.10		$            0.93
Adjusted diluted earnings per share		$            0.20		$            0.12		$            1.15		$            0.93

 

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SOURCE Burnham Holdings, Inc.

FAQ

What were Burnham Holdings (BURCA) third quarter 2025 net sales?

Burnham reported Q3 2025 net sales of $58.3 million, a 5.3% increase year-over-year.

How much net income did BURCA report for the first nine months of 2025?

Burnham reported YTD net income of $9.9 million for the nine months ended September 28, 2025.

What pension action did Burnham Holdings announce on October 7, 2025?

The company purchased an annuity to transfer approximately $90.0 million of defined benefit pension obligations to an insurer.

Will the pension annuity transfer affect retiree benefit payments from BURCA?

No; the change will not affect the amount of individuals' monthly benefit payments for affected retirees.

How large is the expected pension-related charge for Burnham in Q4 2025?

Burnham expects an estimated $20.8 million non-cash pre-tax pension settlement charge in Q4 2025.

Did Burnham record any gains or losses from discontinued operations in 2025?

Yes; Burnham recorded a $7.03 million gain on the sale of discontinued operations in 2025.

What legal update did BURCA disclose on October 21, 2025 regarding asbestos litigation?

The New York Court of Appeals denied the subsidiary's petition for leave to appeal a verdict that included a gross $31.5M compensatory award and $6.5M punitive award.