Eastern Company ( (EML) ) has released its Q3 earnings. Here is a breakdown of the information Eastern Company presented to its investors.
The Eastern Company is an industrial manufacturer offering unique engineered solutions across sectors like commercial transportation and logistics, with operations spanning the U.S., Canada, Mexico, Taiwan, and China. In its latest financial report, Eastern Company showcased a positive third quarter with net sales climbing to $71.3 million, reflecting a 15% increase compared to the previous year, alongside a gross margin improvement from 24.9% to 25.5%. The company also announced a strategic leadership change with Ryan Schroeder stepping in as the new CEO, succeeding Mark Hernandez.
Key financial highlights include a 36% rise in earnings per diluted share from continuing operations, reaching $0.75, and an adjusted EBITDA from continuing operations of $8.7 million, marking a notable increase from the previous year. The company also initiated steps to divest its Big 3 Mold business, aligning with its strategic focus on its core manufacturing capabilities. Furthermore, backlog orders increased by 13% year-over-year, supporting Eastern’s growth trajectory.
Additionally, there was a significant rise in selling, general, and administrative expenses by 22.1% due to increased payroll and legal expenses. Despite these increases, the company’s operating profit rose to $6.8 million from $5.6 million in the prior year, demonstrating effective management of operational costs.
Looking forward, Eastern Company is optimistic about its strategic direction under the new leadership and its “One Eastern” strategy, positioning itself strongly to capitalize on market demands and continue delivering solid shareholder value in the upcoming quarters.
