The call presents a balanced view: material near-term financial deterioration (notably a 9% revenue decline, 57% drop in net income, and lower adjusted EBITDA margin) contrasted with decisive operational actions that improved cost structure, neutralized ~$10M of tariff exposure, delivered $4M of annualized savings, showed sequential improvement in Q4, and strengthened liquidity with a $100M credit facility. Management emphasized cautious optimism for 2026 given a strengthening commercial pipeline and specific growth in Asia (+25%). While the company made meaningful progress to position itself for recovery, the magnitude of year-over-year declines in profit and sales tempers the outlook in the near term.

Company Guidance

Management's guidance for 2026 was cautiously optimistic: they enter the year with a leaner cost base, a strengthening commercial pipeline, and early demand stabilization signals (order flow, OEM production and a deeper opportunity funnel), while remaining disciplined on M&A and execution. Key metrics cited: FY2025 revenue $249.0M (‑9% YoY), adjusted EBITDA $19.4M (7.8% margin vs $26.3M/9.6% prior year), Q4 revenue $57.5M (+4% sequential from $55.3M) with adjusted EBITDA up $1.1M sequentially (≈50% margin on incremental revenue), Q4 gross margin 22.8% (vs 23.0%), FY gross margin 22.9% (vs 24.7%), backlog $81.1M (down from $89.1M), Asia growth +25% YoY, ~$4M annualized cost savings, ~$10M of tariff exposure neutralized, debt reduction $8.7M, $2.7M returned to shareholders and ~153k shares repurchased (~2.5% / ~$3.7M), new $100M five‑year revolver with $66.0M availability, and senior net leverage of 1.35x.

Sequential Revenue and EBITDA Improvement

Fourth quarter revenue increased 4% sequentially to $57.5M (Q3 $55.3M) and adjusted EBITDA improved by $1.1M sequentially; company noted a ~50% margin on the incremental Q4 revenue, indicating operating leverage as volumes stabilized.

Full-Year Operational Cost Savings

Company implemented restructuring and footprint optimization that generated approximately $4.0M in annualized cost savings during 2025.

Tariff Exposure Neutralized

Management neutralized roughly $10.0M of tariff exposure through pricing actions and supply chain cost reductions, improving margin resilience despite trade uncertainty.

Asia Business Growth

Asia region delivered 25% year-over-year revenue growth after deployment of dedicated sales resources, identified as a high-conviction area for incremental profitable growth.

Balance Sheet Strengthening and Liquidity

Refinanced into a new $100M five-year revolving credit facility with $66.0M of availability as of 03/03/2026, enhancing financial flexibility to support growth and M&A; senior net leverage improved to 1.35x from 1.64x in Q3.

Capital Return and Debt Reduction

Returned $2.7M to shareholders via dividends and repurchased ~153,000 shares (~2.5% of shares outstanding, ~$3.7M) while reducing debt by $8.7M during the year, demonstrating capital discipline.

Maintained R&D Investment and Commercial Realignment

Product development spend remained disciplined (~1.6% of sales in FY 2025) while the company executed a commercial realignment to expand customer relationships and target new end markets for 2026 revenue opportunities.

Gross Margin Resilience on Reduced Scale

Despite a 9% full-year revenue decline, management highlighted only a ~20 basis point gross margin erosion in Q4 versus prior year quarter, reflecting some margin stability amid lower volumes.

Eastern Company (EML) Earnings, Revenues Date & History

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EML Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 11, 2026	2026 (Q1)	- / -	0.32	―	―	―
Mar 03, 2026	2025 (Q4)	- / 0.31	0.42	-26.19% (-0.11)	―
Nov 04, 2025	2025 (Q3)	0.77 / 0.13	1.251	-89.61% (-1.12)	―
Aug 05, 2025	2025 (Q2)	0.54 / 0.57	0.56	1.79% (<+0.01)	―
May 06, 2025	2025 (Q1)	0.41 / 0.32	0.313	2.24% (<+0.01)	―
Mar 11, 2025	2024 (Q4)	- / 0.42	0.56	-25.00% (-0.14)	―
Nov 06, 2024	2024 (Q3)	- / 1.25	0.488	156.35% (+0.76)	―
Aug 06, 2024	2024 (Q2)	- / 0.56	0.223	151.12% (+0.34)	―
May 06, 2024	2024 (Q1)	- / 0.31	0.097	222.68% (+0.22)	―
Mar 12, 2024	2023 (Q4)	- / 0.56	0.011	4990.91% (+0.55)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

EML Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Mar 03, 2026	$18.62	―	―
Nov 04, 2025	$20.85	$20.44	-1.94%
Aug 05, 2025	$22.15	$21.93	-0.98%
May 06, 2025	$22.47	$22.97	+2.23%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Eastern Company (EML) report earnings?

Eastern Company (EML) is schdueled to report earning on May 11, 2026, After Close (Confirmed).

What is Eastern Company (EML) earnings time?

Eastern Company (EML) earnings time is at May 11, 2026, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

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What is EML EPS forecast?

Currently, no data Available