The Eastern (EML) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 4, 2026 astatine 9:01 AM CST 13 min read

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Wednesday, March 4, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Ryan Schroeder

• Chief Financial Officer — Nicholas Vlahos

• Director of Investor Relations — Marianne Barr

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Marianne Barr: Good morning, and convey you, everyone, for joining america this greeting for a reappraisal of The Eastern Company's results for the 4th fourth and afloat twelvemonth 2025. With maine connected the telephone are Ryan Schroeder, Chief Executive Officer, and Nicholas Vlahos, Chief Financial Officer. The institution issued its net property merchandise yesterday aft marketplace close. If anyone has not yet seen the release, delight sojourn the Investors Information conception of the company's website astatine www.easterncompany.com, wherever you volition find the merchandise nether Financial News.

Please enactment that immoderate of the accusation you volition perceive during today's telephone volition dwell of forward-looking statements astir the company's aboriginal fiscal show and concern prospects, including, without limitation, statements regarding revenue, gross margins, operating expenses, different income and expenses, taxes, and concern outlook. These forward-looking statements are taxable to risks and uncertainties that could origin existent results oregon trends to disagree importantly from those projected successful these forward-looking statements. We undertake nary work to reappraisal oregon update immoderate forward-looking statements to bespeak events oregon circumstances that hap aft the call.

For much accusation regarding these risks and uncertainties, delight notation to hazard factors discussed successful our SEC filings, including Form 10-Ks filed with the SEC connected 03/03/2026, for the fiscal twelvemonth 2025. In addition, during today's call, we volition sermon non-GAAP fiscal measures that we judge are utile supplemental measures of The Eastern Company's performance. These non-GAAP measures should beryllium considered successful summation to, and not arsenic a substitute for, oregon successful isolation from, GAAP results. A reconciliation of each of the non-GAAP measures discussed during today's telephone to the astir straight comparable GAAP measurement tin beryllium recovered successful the net property release. I volition present crook the telephone implicit to Ryan Schroeder.

Ryan Schroeder: Thanks, Marianne. 2025 is simply a twelvemonth defined by 2 things: challenging extremity markets, peculiarly dense motortruck and automotive, and important operational advancement that positions america good for the future. Our superior extremity markets remained nether unit passim astir of the year, though we began to spot aboriginal signs of stabilization successful November and December. At the aforesaid time, we were navigating tariff impacts and broader macro uncertainties. As a result, our fiscal show reflects some the hard situation and the actions we took to respond decisively. For the afloat year, gross was $249 million, down 9% twelvemonth implicit year. Adjusted EBITDA was $19.4 million, representing a 7.8% margin, compared to $26.3 million, oregon a 9.6% borderline past year.