EACO Corporation Reports Record Annual & Quarterly Net Sales and Record Annual & Quarterly Net Income

Annual net income grew 49.2%, while operating cash flow reached $17.500 million compared with $17.169 million a year earlier.

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ANAHEIM, Calif.--(BUSINESS WIRE)-- EACO Corporation (OTCID:EACO) today reported financial results for its fiscal year ended August 31, 2026.

Net sales, net income and earnings per share were as follows for the fiscal year ended August 31, 2026 (dollars in thousands, except per share information):

	Three Months Ended August 31,				%
	2026		2025		Change
	(unaudited)		(unaudited)
Net sales	$163,890		$122,469		33.8%
Net income	$15,511		$9,128		69.9%
Basic earnings per common share	$3.19		$1.87		70.6%

	Year Ended August 31,				%
	2026		2025*		Change
	(unaudited)
Net sales	$535,029		$427,931		25.0%
Net income	$48,193		$32,294		49.2%
Basic earnings per common share	$9.90		$6.63		49.3%
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

The Company had 500 sales employees at August 31, 2026, an increase of 43 or 9.4% from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 124 SFT’s as of August 31, 2026, an increase of 8 from the prior year quarter. Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2027. The Company believes it continues to gain market share through its local presence business model.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955, as amended. These forward-looking statements include, without limitation, statements related to our headcount expansion, growth in market share, and other statement that is not historical information. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The potential risks and uncertainties include, but are not limited to, our ability to hire and retain additional qualified employees, our ability to open additional sales offices, and to gain market acceptance for our products, the pricing and availability of our products, the success of our sales and marketing programs, the impact of products offered by our competitors from time to time, and as well as uncertainty pertaining to economic uncertainty, international tariffs, and international conflicts. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in EACO’s most recent Form 10-K and all subsequent Form 10-Q reports filed by us with the SEC. The forward-looking statements included in this release speak only as of the date hereof, and EACO does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.

EACO Corporation and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except share information) (unaudited)
		August 31,			August 31,
		2026			2025*
ASSETS
Current Assets:
Cash and cash equivalents	$	647		$	728
Restricted cash		10			10
Trade accounts receivable, net		86,650			65,863
Inventory, net		96,898			83,980
Marketable securities, trading		44,940			30,375
Prepaid expenses and other current assets		6,977			5,009
Total current assets		236,122			185,965
Non-current Assets:
Property, equipment and leasehold improvements, net		36,178			34,670
Operating lease right-of-use assets		9,302			6,814
Other assets, net		2,378			2,704
Total assets	$	283,980		$	230,153
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable	$	47,471		$	33,179
Accrued expenses and other current liabilities		18,647			29,762
Current portion of operating lease liabilities		4,079			2,843
Current portion of long-term debt		3,693			135
Total current liabilities		73,890			65,919
Non-current Liabilities:
Long-term debt		–			4,079
Operating lease liabilities		6,171			4,305
Total liabilities		80,061			74,303
Commitments and Contingencies
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)		1			1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding		49			49
Additional paid-in capital		12,378			12,378
Accumulated other comprehensive income		26			74
Retained earnings		191,465			143,348
Total shareholders’ equity		203,919			155,850
Total liabilities and shareholders’ equity	$	283,980		$	230,153
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

EACO Corporation and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except for share and per share information) (unaudited)
		Three Months Ended August 31,						Year Ended August 31,
		2026			2025			2026			2025*
Revenues	$	163,888		$	122,469		$	535,027		$	427,931
Cost of revenues		110,874			85,125			366,985			299,225
Gross margin		53,014			37,344			168,042			128,706
Operating expenses:
Selling, general and administrative expenses		31,770			25,884			103,500			86,863
Income from operations		21,244			11,460			64,542			41,843
Other (expense) income:
Net gain on trading securities		605			512			1,315			1,273
Interest and other expense		(45)			(61)			(175)			(204)
Other income (expense), net		560			451			1,140			1,069
Income before income taxes		21,804			11,911			65,682			42,912
Provision for income taxes		6,293			2,783			17,489			10,618
Net income		15,511			9,128			48,193			32,294
Cumulative preferred stock dividend		(19)			(19)			(76)			(76)
Net income attributable to common shareholders	$	15,492		$	9,109		$	48,117		$	32,218
Basic earnings per common share:	$	3.19		$	1.87		$	9.90		$	6.63
Diluted earnings per common share	$	3.16		$	1.86		$	9.83		$	6.59
Basic weighted average common shares outstanding		4,861,590			4,861,590			4,861,590			4,861,590
Diluted weighted average common shares outstanding		4,901,590			4,901,590			4,901,590			4,901,590
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

EACO Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Year Ended August 31,
		2026			2025*
Operating activities:
Net income		$	48,193		$	32,294
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			1,826			1,675
Bad debt expense			1,092			359
Unrealized (gain) on trading securities			(237)			(469)
Deferred tax provision			511			1,281
Increase (decrease) in cash flow from change in:
Trade accounts receivable			(21,879)			(12,950)
Inventory			(12,918)			(14,378)
Prepaid expenses and other assets			(2,153)			(1,505)
Operating lease right-of-use assets			(2,488)			699
Trade accounts payable			13,952			5,763
Accrued expenses and other current liabilities			(11,115)			4,852
Operating lease liabilities			2,716			(452)
Net cash provided by operating activities			17,500			17,169
Investing activities:
Additions to property, equipment, and leasehold improvements			(3,334)			(1,284)
(Purchase) of marketable securities, trading			(40,055)			(24,233)
Sale of marketable securities, trading			25,727			9,075
Net cash used in investing activities			(17,662)			(16,442)
Financing activities:
Repayments on long-term debt			(135)			(129)
Preferred stock dividend			(76)			(76)
Bank overdraft			340			(638)
Net cash provided by (used in) financing activities			129			(843)
Effect of foreign currency exchange rate changes on cash and cash equivalents			(48)			1
Net (decrease) in cash, cash equivalents, and restricted cash			(81)			(115)
Cash, cash equivalents, and restricted cash - beginning of period			738			853
Cash, cash equivalents, and restricted cash - end of period		$	657		$	738
Supplemental disclosures of cash flow information:
Cash paid for interest		$	175		$	204
Cash paid for income taxes		$	26,629		$	11,995
* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261028975657/en/

Michael Narikawa
EACO Corporation
(714) 876-2490

Source: EACO Corporation