The Eastern Company Reports Third Quarter 2026 Results
Nine-month operating cash flow increased to $8,884,288 from $5,021,314 despite additional working capital needed to support higher sales.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
The Eastern Company (NASDAQ:EML) reported third-quarter 2026 sales of $75.0 million, reflecting higher shipments and contributions from acquired businesses. Sales rose 36% year over year for the quarter ended October 3, 2026. Net income from continuing operations increased to $3.4 million, or $0.57 per diluted share, from $0.6 million, or $0.10. Gross margin rose to 23.9% from 22.3%, and Sungear and Crown Precision contributed $5.4 million in sales.
Quarter-end backlog reached $126.1 million, up 70% year over year. Nine-month sales increased 3% to $196.5 million, but adjusted net income from continuing operations fell to $5.3 million from $6.5 million. Nine-month reported continuing earnings included a $6.5 million non-cash acquisition gain. Eastern reduced debt during the quarter, although long-term debt remained above its January 3, 2026 level. The company said rising input and logistics costs remain pressures.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter sales increased 36% to $75.0 million from $55.3 million a year earlier.
- Moderate pointThird-quarter continuing earnings rose to $0.57 per diluted share from $0.10; net income reached $3.4 million.
- Moderate pointQuarter-end backlog reached $126.1 million, up 70% year over year.
- Moderate pointNine-month sales increased 3% to $196.5 million from $191.4 million a year earlier.
- Moderate pointNine-month continuing earnings rose to $1.61 per diluted share from $0.78; net income reached $9.7 million.
- Moderate pointNine-month operating cash flow increased to $8,884,288 from $5,021,314 a year earlier.
11 minor points
- Minor pointThird-quarter gross margin increased to 23.9% from 22.3% a year earlier.
- Minor pointThird-quarter operating profit increased to $5,553,724 from $1,722,713 a year earlier.
- Minor pointSungear and Crown Precision contributed $5.4 million in third-quarter aerospace and defense sales.
- Minor pointThird-quarter truck mirror assembly shipments increased by $7.4 million year over year.
- Minor pointThird-quarter returnable transport packaging shipments increased by $5.7 million year over year.
- Minor pointThird-quarter latch and handle assembly shipments increased by $1.1 million year over year.
- Minor pointThird-quarter adjusted continuing earnings rose to $0.60 per diluted share from $0.13; adjusted net income reached $3.6 million.
- Minor pointThird-quarter adjusted EBITDA, a non-GAAP earnings measure, increased to $7.6 million from $3.5 million.
- Minor pointNine-month selling and administrative expenses decreased 4.0%, or $1.3 million, year over year.
- Minor pointQuarterly debt reduction accompanied higher sales and additional working capital requirements.
- Minor pointCash and cash equivalents increased to $7,902,609 on October 3, 2026, from $7,412,019 on January 3, 2026.
Negative
- Moderate pointNine-month adjusted continuing earnings fell to $0.88 per diluted share from $1.06; adjusted net income declined to $5.3 million.
- Moderate pointThird-quarter selling and administrative expenses increased 16.9%, or $1.6 million, primarily reflecting higher compensation costs.
- Moderate pointLong-term debt, less current portion, rose to $39,689,088 from $33,902,353 between January 3 and October 3, 2026.
- Moderate pointNine-month acquisition cash outflow was $8,041,927, compared with $421,039 a year earlier. 4.5% of market cap
- Minor pointNine-month adjusted EBITDA declined to $14.0 million from $15.2 million a year earlier.
3 minor points
- Minor pointNine-month gross margin declined to 21.7% from 22.9% a year earlier.
- Minor pointNine-month returnable transport packaging shipments declined by $5.2 million year over year.
- Minor pointRising input and logistics costs are pressures Eastern said it is addressing through customer commercial discussions.
Key Figures
- Q3 net sales
- $75.0 million, up 36% from $55.3 million
- Third quarter 2026 versus third quarter 2025
- Q3 gross margin
- 23.9% versus 22.3%
- Third quarter 2026 versus third quarter 2025
- Q3 net income from continuing operations
- $3.4 million; $0.57 per diluted share, versus $0.6 million; $0.10 per diluted share
- Third quarter 2026 versus third quarter 2025
- Q3 adjusted EBITDA
- $7.6 million versus $3.5 million
- Third quarter 2026 versus third quarter 2025
- Backlog
- $126.1 million, up 70% from a year ago
- At third-quarter 2026 quarter end
- Nine-month adjusted net income from continuing operations
- $5.3 million versus $6.5 million
- Nine months ended October 3, 2026 versus the comparable 2025 period
- Nine-month gross margin
- 21.7% versus 22.9%
- First nine months of 2026 versus the corresponding 2025 period
Previous Earnings Reports
-
Q2 sales and gross margin declined; the quarter's reported income included an acquisition-related bargain purchase gain.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
non-gaap financial
bargain purchase gain financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SHELTON, CT / ACCESS Newswire / November 10, 2026 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial holding company with a portfolio of businesses serving commercial transportation, logistics, aerospace, defense, and other industrial markets, today announced its results of operations for the third fiscal quarter of 2026 ended October 3, 2026.
"The third quarter showed what Eastern can deliver when the benefits of our restructuring initiatives implemented over the past year are combined with improving demand," stated Ryan Schroeder, Eastern's President and CEO. "Net sales, gross margin and operating profit as a percentage of sales each reached their highest level in five quarters, with net sales increasing
"Looking ahead to the fourth quarter and its historical seasonality, we are starting from a higher base than a year ago and are better positioned to pursue the opportunities we see across our markets. A full automotive launch calendar and the customer base we have broadened over the past 24 months give our returnable transport packaging business a wider pool of demand to draw upon. Increasing truck production and fleet replacement are favorable for demand for mirror assemblies and other commercial vehicle products. A pipeline of customer-driven and internally developed products positions us well in our industrial hardware markets. Our first full quarter operating Sungear and Crown Precision reinforced our rationale for entering the aerospace and defense market, where demand is strong and there is room for a disciplined operator to grow. At the same time, we are navigating industry-wide macro pressures, including rising input and logistics costs, which we are addressing through the normal commercial process with our customers. Our job from here is execution: convert the backlog, protect our margins, and stay disciplined on capital, including acquisitions that complement our core strengths and enhance long-term value," concluded Mr. Schroeder.
Third Quarter 2026 Financial Results
The following analysis excludes discontinued operations.
Net sales for the third quarter of 2026 increased
Gross margin as a percentage of sales was
Selling and administrative expenses increased by
Net income from continuing operations for the third quarter of fiscal 2026 was
Net income from continuing operations for the first nine months of 2026 included a non-cash bargain purchase gain of
Adjusted net income from continuing operations for the third quarter of fiscal 2026 was
Adjusted EBITDA from continuing operations (a non-GAAP measure) for the third quarter of 2026 was
Conference Call and Webcast
The Eastern Company will host a conference call to discuss its results for the third quarter of 2026 and related matters on Wednesday, November 11, 2026, at 9:00AM Eastern Time. Participants can access the conference call by phone at 888-506-0062 (toll-free in the US and Canada) or 973-528-0011 (international), using access code 651667. Participants can also join via the web at https://www.webcaster5.com/Webcast/Page/1757/54722.
About The Eastern Company
The Eastern Company manages a portfolio of businesses that design, manufacture and sell engineered products and solutions for commercial transportation, logistics, aerospace, defense and other industrial markets. The Company's businesses operate from locations in the U.S., Canada, Mexico, Taiwan and China. More information on the Company can be found at www.easterncompany.com.
Safe Harbor for Forward-Looking Statements
Statements contained in this press release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "would," "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," "plan," "potential," "opportunities," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include:
- risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on our cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic, and social instability;
- the impact of tariffs, trade sanctions or political instability on the availability or cost of raw materials;
- the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper, and electronic components;
- delays in delivery of our products to our customers;
- the impact of global economic conditions and interest rates, and more specifically conditions in the automotive, construction, aerospace and defense, energy, oil and gas, transportation, electronic, and general industrial markets, including the impact, length and degree of economic downturns on the customers and markets we serve and demand for our products, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, and the impact of market conditions on pension plan funded status;
- restrictions on operating flexibility imposed by the agreement governing our credit facility;
- the inability to achieve the savings expected from global sourcing of materials;
- lower cost competition;
- our ability to design, introduce and sell new or updated products and related components;
- market acceptance of our products;
- the inability to attain expected benefits from acquisitions or dispositions or the inability to effectively integrate acquired businesses and achieve expected synergies;
- our ability to successfully integrate Sinecera and Sungear, including their operations, personnel, systems and internal control and the possibility that Sinecera and Sungear do not perform as expected or that we do not realize the anticipated benefits of the acquisition;
- costs and liabilities associated with environmental compliance;
- the impact of climate change, natural disasters, geopolitical events, and public health crises, including pandemics and epidemics, and any related Company or government policies or actions, including any potential adverse economic impacts resulting from a U.S. federal government shutdown;
- military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S. and foreign governments;
- failure to protect our intellectual property;
- cyberattacks, data breaches or interruptions or failures of our information technology systems; and
- materially adverse or unanticipated legal judgments, fines, penalties, or settlements.
The Company is also subject to other risks identified and discussed in Part I, Item 1A, Risk Factors, and in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of the 2025 Form 10-K/A which was filed with the Securities and Exchange Commission (the "SEC") on March 19, 2026, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC.
Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted, and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.
Non-GAAP Financial Measures
The non-GAAP financial measures we provide in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. generally accepted accounting principles ("GAAP").
To supplement the condensed consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Adjusted net income from continuing operations, adjusted earnings per share from continuing operations, and adjusted EBITDA from continuing operations, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net income from continuing operations, diluted earnings per share from continuing operations, net income from discontinued operations, net income (loss) or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.
Adjusted net income from continuing operations is defined as net income from continuing operations excluding, when incurred, gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, bargain purchase gains, acquired inventory step-up adjustments, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. Adjusted net income from continuing operations is a tool that can assist management and investors in comparing our performance on a consistent basis across periods by removing the impact of certain items that management believes do not directly reflect our underlying operating performance.
Adjusted earnings per share from continuing operations is defined as earnings per share from continuing operations excluding, when incurred, certain per share gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, bargain purchase gains, acquired inventory step-up adjustments, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. We believe that Adjusted earnings per share from continuing operations provides important comparability of underlying operational results, allowing investors and management to assess operating performance on a consistent basis from period to period.
Adjusted EBITDA from continuing operations is defined as net income from continuing operations before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, bargain purchase gains, acquired inventory step-up adjustments, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. Adjusted EBITDA from continuing operations is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
Management uses such measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors, and to establish operational goals and forecasts that are used in allocating resources. These financial measures should not be considered in isolation from, or as a replacement for, GAAP financial measures.
We believe that presenting non-GAAP financial measures in addition to GAAP financial measures provides investors greater transparency to the information used by our management for its financial and operational decision-making. We further believe that providing this information enables our investors to better understand our operating performance and to evaluate the methodology used by management to evaluate and measure such performance.
Investor Relations Contacts
The Eastern Company
Ryan Schroeder or Nicholas Vlahos
203-729-2255
THE EASTERN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||
Net sales | $ | 74,975,749 | $ | 55,336,452 | $ | 196,474,045 | $ | 191,437,750 | ||||||||
Cost of products sold | (57,052,940 | ) | (42,971,012 | ) | (153,869,415 | ) | (147,613,222 | ) | ||||||||
Gross margin | 17,922,809 | 12,365,440 | 42,604,630 | 43,824,528 | ||||||||||||
Product development expense | (1,096,208 | ) | (995,771 | ) | (3,174,208 | ) | (3,136,673 | ) | ||||||||
Selling and administrative expenses | (11,272,877 | ) | (9,646,956 | ) | (30,894,183 | ) | (32,181,886 | ) | ||||||||
Operating profit | 5,553,724 | 1,722,713 | 8,536,239 | 8,505,969 | ||||||||||||
Interest expense | (666,477 | ) | (688,425 | ) | (1,775,309 | ) | (2,019,365 | ) | ||||||||
Bargain purchase gain | - | - | 6,529,299 | - | ||||||||||||
Other expense | (56,963 | ) | (157,640 | ) | (145,012 | ) | (282,136 | ) | ||||||||
Income before income taxes from continuing operations | 4,830,284 | 876,648 | 13,145,217 | 6,204,468 | ||||||||||||
Income tax expense | (1,384,351 | ) | (297,712 | ) | (3,409,869 | ) | (1,422,414 | ) | ||||||||
Net income from continuing operations | $ | 3,445,933 | $ | 578,936 | $ | 9,735,348 | $ | 4,782,054 | ||||||||
Discontinued Operations | ||||||||||||||||
Loss from operations of discontinued unit | $ | - | $ | - | $ | - | $ | (520,006 | ) | |||||||
Income from disposal of discontinued unit | - | - | - | 2,016,696 | ||||||||||||
Income tax expense | - | - | - | (315,951 | ) | |||||||||||
Net income from discontinued operations | - | - | - | 1,180,739 | ||||||||||||
Net Income | $ | 3,445,933 | $ | 578,936 | $ | 9,735,348 | $ | 5,962,793 | ||||||||
Earnings per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.57 | $ | 0.10 | $ | 1.62 | $ | 0.78 | ||||||||
Diluted | $ | 0.57 | $ | 0.10 | $ | 1.61 | $ | 0.78 | ||||||||
Earnings per share from discontinued operations: | ||||||||||||||||
Basic | $ | - | $ | - | $ | - | $ | 0.19 | ||||||||
Diluted | $ | - | $ | - | $ | - | $ | 0.19 | ||||||||
Total earnings per share: | ||||||||||||||||
Basic | $ | 0.57 | $ | 0.10 | $ | 1.62 | $ | 0.97 | ||||||||
Diluted | $ | 0.57 | $ | 0.10 | $ | 1.61 | $ | 0.97 | ||||||||
Cash dividends per share: | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.33 | ||||||||
THE EASTERN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
| October 3, 2026 | January 3, 2026 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 7,902,609 | $ | 7,412,019 | ||||
Marketable securities | 244,321 | - | ||||||
Accounts receivable, less allowances: 2026 - | 42,502,239 | 30,128,669 | ||||||
Inventories | 66,723,244 | 56,343,756 | ||||||
Current portion of notes receivable | 28,844 | 33,844 | ||||||
Prepaid expenses and other current assets | 8,892,013 | 5,349,486 | ||||||
Total Current Assets | 126,293,270 | 99,267,774 | ||||||
Property, Plant and Equipment | 67,155,498 | 60,163,556 | ||||||
Accumulated depreciation | (36,610,940 | ) | (33,246,213 | ) | ||||
Property, Plant and Equipment, Net | 30,544,558 | 26,917,343 | ||||||
Goodwill | 58,666,199 | 58,631,336 | ||||||
Trademarks | 5,075,556 | 5,082,767 | ||||||
Patents and other intangibles, net of accumulated amortization | 3,512,349 | 5,269,204 | ||||||
Deferred income taxes | 5,528,496 | 5,528,496 | ||||||
Right of use assets | 17,473,339 | 15,979,696 | ||||||
Total Other Assets | 90,255,939 | 90,491,499 | ||||||
TOTAL ASSETS | $ | 247,093,767 | $ | 216,676,616 | ||||
THE EASTERN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
| October 3, 2026 | January 3, 2026 | |||||||
| (unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 29,939,918 | $ | 16,426,259 | ||||
Accrued compensation | 6,578,091 | 4,203,720 | ||||||
Other accrued expenses | 4,147,054 | 2,349,400 | ||||||
Current portion of operating lease liability | 4,589,270 | 3,729,769 | ||||||
Current portion of finance lease liability | 937,386 | 908,332 | ||||||
Total Current Liabilities | 46,191,719 | 27,617,480 | ||||||
Other long-term liabilities | 486,278 | 464,902 | ||||||
Operating lease liability, less current portion | 12,884,069 | 12,235,188 | ||||||
Finance lease liability, less current portion | 2,562,728 | 3,080,446 | ||||||
Long-term debt, less current portion | 39,689,088 | 33,902,353 | ||||||
Accrued postretirement benefits | 332,475 | 332,165 | ||||||
Accrued pension cost | 12,265,711 | 14,398,753 | ||||||
Total Liabilities | 114,412,068 | 92,031,287 | ||||||
Shareholders' Equity | ||||||||
Voting Preferred Stock, no par value: | ||||||||
Authorized and unissued: 1,000,000 shares | ||||||||
Nonvoting Preferred Stock, no par value: | ||||||||
Authorized and unissued: 1,000,000 shares | ||||||||
Common Stock, no par value, Authorized: 50,000,000 shares | 36,855,017 | 36,337,100 | ||||||
Issued: 9,201,306 shares as of October 3, 2026 and 9,179,288 shares as of January 3, 2026 | - | - | ||||||
Outstanding: 6,023,136 shares as of October 3, 2026 and 6,041,767 shares as of January 3, 2026 | - | - | ||||||
Treasury Stock: 3,178,170 shares as of October 3, 2026 and 3,137,521 shares as of January 3, 2026 | (30,895,650 | ) | (30,067,777 | ) | ||||
Retained earnings | 145,743,674 | 137,997,382 | ||||||
Accumulated other comprehensive loss: | ||||||||
Foreign currency translation | (831,474 | ) | (1,437,363 | ) | ||||
Unrealized (loss) gain on foreign currency swap, net of tax | (69,661 | ) | 570,097 | |||||
Unrecognized net pension and postretirement benefit costs, net of tax | (18,120,207 | ) | (18,754,110 | ) | ||||
Accumulated other comprehensive loss | (19,021,342 | ) | (19,621,376 | ) | ||||
Total Shareholders' Equity | 132,681,699 | 124,645,329 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 247,093,767 | $ | 216,676,616 | ||||
THE EASTERN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Nine Months Ended | ||||||||
| October 3, 2026 | September 27, 2025 | |||||||
Operating Activities | ||||||||
Net income | $ | 9,735,348 | $ | 5,962,793 | ||||
Less: Income from discontinued operations | - | 1,180,739 | ||||||
Income from continuing operations | $ | 9,735,348 | $ | 4,782,054 | ||||
Adjustments to reconcile net income to net cash provided | ||||||||
Depreciation and amortization | 5,107,307 | 4,846,679 | ||||||
Bargain purchase gain | (6,529,299 | ) | - | |||||
Reduction in carrying amount of ROU assets | 1,508,382 | 2,200,274 | ||||||
Unrecognized pension and postretirement benefit | (1,312,423 | ) | (689,806 | ) | ||||
(Gain) loss on sale of equipment | (40,278 | ) | 176,254 | |||||
Provision for doubtful accounts | 100,512 | 17,000 | ||||||
Stock compensation expense | 517,917 | 599,372 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (10,664,033 | ) | 8,050,261 | |||||
Inventories | 239,037 | (722,705 | ) | |||||
Prepaid expenses and other | (3,823,040 | ) | (387,479 | ) | ||||
Other assets | (193,514 | ) | 214,725 | |||||
Accounts payable | 11,656,678 | (3,274,997 | ) | |||||
Accrued compensation | 1,594,761 | (906,067 | ) | |||||
Operating lease liability | (1,508,382 | ) | (2,200,274 | ) | ||||
Other accrued expenses | 2,495,315 | (7,683,977 | ) | |||||
Net cash provided by operating activities | 8,884,288 | 5,021,314 | ||||||
Investing Activities | ||||||||
Marketable securities | (239,650 | ) | 2,222,059 | |||||
Acquisition | (8,041,927 | ) | (421,039 | ) | ||||
Payments received from notes receivable | 5,000 | 14,545 | ||||||
Proceeds from sale of equipment | 4,000 | 800 | ||||||
Proceeds from sale of discontinued operations | - | 1,593,646 | ||||||
Purchases of property, plant, and equipment | (2,373,431 | ) | (1,643,885 | ) | ||||
Net cash (used in) provided by investing activities | (10,646,008 | ) | 1,766,126 | |||||
Financing Activities | ||||||||
Proceeds from long-term debt | 8,000,000 | - | ||||||
Proceeds from promissory note | 785,000 | - | ||||||
Principal payments on long-term debt | (3,015,894 | ) | (7,044,065 | ) | ||||
Financing leases, net | (676,126 | ) | (592,699 | ) | ||||
Purchase common stock for treasury | (827,873 | ) | (2,975,152 | ) | ||||
Dividends paid | (1,989,055 | ) | (2,016,239 | ) | ||||
Net cash provided by (used in) financing activities | 2,276,052 | (12,628,155 | ) | |||||
Effect of exchange rate changes on cash | (23,742 | ) | 225,126 | |||||
Net change in cash and cash equivalents | 490,590 | (5,615,589 | ) | |||||
Cash and cash equivalents at beginning of period | 7,412,019 | 14,843,529 | ||||||
Cash and cash equivalents at end of period | $ | 7,902,609 | $ | 9,227,940 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest | $ | 1,836,971 | $ | 2,110,688 | ||||
Income taxes | 2,350,764 | 2,078,175 | ||||||
Non-cash investing and financing activities | ||||||||
Right of use asset | 3,824,571 | 4,552,886 | ||||||
Lease liability | 3,708,022 | 4,016,861 | ||||||
Reconciliation of Non-GAAP Measures
Adjusted Net Income from Continuing
Operations and Adjusted Earnings per Share
from Continuing Operations Calculation
For the Three and Nine Months ended October 3, 2026 and September 27, 2025
(
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 3,446 | $ | 579 | $ | 9,735 | $ | 4,782 | ||||||||
Earnings per share from continuing operations as reported under generally accepted accounting principles (GAAP): | ||||||||||||||||
Basic | $ | 0.57 | $ | 0.10 | $ | 1.62 | $ | 0.78 | ||||||||
Diluted | $ | 0.57 | $ | 0.10 | $ | 1.61 | $ | 0.78 | ||||||||
Adjustments: | ||||||||||||||||
Restructuring (a) | - | 285 | - | 2,172 | ||||||||||||
Bargain purchase gain | - | - | (6,529 | ) | - | |||||||||||
Acquisition related transaction costs | 3 | - | 195 | - | ||||||||||||
Acquired inventory step-up adjustment | 239 | - | 331 | - | ||||||||||||
Non-GAAP tax impact of adjustments (1) | (63 | ) | (60 | ) | 1,557 | (459 | ) | |||||||||
Total adjustments (Non-GAAP) | 179 | 225 | (4,446 | ) | 1,713 | |||||||||||
Adjusted net income from continuing operations (Non-GAAP) | $ | 3,625 | $ | 804 | $ | 5,289 | $ | 6,495 | ||||||||
Adjusted earnings per share from continuing operations (Non-GAAP): | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.13 | $ | 0.88 | $ | 1.06 | ||||||||
Diluted | $ | 0.60 | $ | 0.13 | $ | 0.88 | $ | 1.06 | ||||||||
(1) We estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pre-tax amount in order to calculate the non-GAAP provision for income taxes.
(a) consists of personnel-related and facility costs
Reconciliation of Non-GAAP Measures
Adjusted EBITDA from Continuing Operations Calculation
For the Three and Nine Months ended October 3, 2026 and September 27, 2025
(
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 3,446 | $ | 579 | $ | 9,735 | $ | 4,782 | ||||||||
Interest expense | 666 | 688 | 1,775 | 2,019 | ||||||||||||
Provision for income taxes | 1,384 | 298 | 3,410 | 1,422 | ||||||||||||
Depreciation and amortization | 1,898 | 1,633 | 5,107 | 4,847 | ||||||||||||
Restructuring (a) | - | 285 | - | 2,172 | ||||||||||||
Bargain purchase gain | - | - | (6,529 | ) | - | |||||||||||
Acquisition related transaction costs | 3 | - | 195 | - | ||||||||||||
Acquired inventory step up adjustment | 239 | - | 331 | - | ||||||||||||
Adjusted EBITDA from continuing operations (non-GAAP) | $ | 7,636 | $ | 3,483 | $ | 14,024 | $ | 15,242 | ||||||||
(a) consists of personnel-related and facility costs
SOURCE: The Eastern Company
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Eastern Company's third-quarter 2026 sales and earnings?
Eastern reported $75.0 million in sales and net income from continuing operations of $3.4 million, or $0.57 per diluted share. Sales increased 36% from the comparable 2025 quarter, when continuing net income was $0.6 million, or $0.10 per diluted share.
How much backlog did Eastern Company report for the third quarter of 2026?
Eastern's quarter-end backlog was $126.1 million, up 70% from a year earlier. The company said new orders replaced the quarter's shipments, providing visibility through the balance of 2026 and into 2027.
How did accounts receivable affect Eastern Company's nine-month 2026 cash flow?
Changes in accounts receivable used $10,664,033 of operating cash in the first nine months of 2026, compared with providing $8,050,261 in the comparable 2025 period. Changes in accounts payable provided $11,656,678, compared with using $3,274,997 a year earlier.