# EDGAR Filing Document

**Accession Number:** 0000031107
**File Stem:** 0001654954-25-012584
**Filing Date:** 2025-11
**Character Count:** 39579
**Document Hash:** 96d52a9da4da04bc7ec2aac22f007dc4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-25-012584.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001654954-25-012584

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20251104

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EASTERN CO
- **CENTRAL INDEX KEY:** 0000031107
- **STANDARD INDUSTRIAL CLASSIFICATION:** CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 060330020
- **STATE OF INCORPORATION:** CT
- **FISCAL YEAR END:** 0103

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35383
- **FILM NUMBER:** 251450566

**BUSINESS ADDRESS:**
- **STREET 1:** 3 ENTERPRISE DRIVE
- **STREET 2:** SUITE 408
- **CITY:** SHELTON
- **STATE:** CT
- **ZIP:** 06484
- **BUSINESS PHONE:** 203-729-2255

**MAIL ADDRESS:**
- **STREET 1:** 3 ENTERPRISE DRIVE
- **STREET 2:** SUITE 408
- **CITY:** SHELTON
- **STATE:** CT
- **ZIP:** 06484

?xml version='1.0' encoding='ASCII'? eml_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the** 

**Securities Exchange Act of 1934**

**<u>Date of Report:</u> <u>November 4, 2025</u>**

(Date of earliest event reported)

---

| |
|:---|
| **The Eastern Company**  |
| (Exact name of Registrant as specified in its charter) |

---

---

| | | |
|:---|:---|:---|
| **Connecticut** | **001-35383** | **06-0330020** |
| (State or other jurisdiction | (Commission  | (IRS Employer |
| of incorporation) | File Number) | identification No.) |

---

---

| | |
|:---|:---|
| **3 Enterprise Drive, Suite 408, Shelton, Connecticut** | **06484** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(203) 729-2255</u>**

(Registrant's telephone number, including area code)

____________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2)

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, No Par Value | EML | NASDAQ Global Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 – Results of Operations and Financial Condition

Press Release dated November 4, 2025 announcing the third quarter earnings for 2025 is attached hereto.

ITEM 7.01 – Regulation FD Disclosure

On November 4, 2025, The Eastern Company released the third quarter earnings of 2025. A copy of the Press Release dated November 4, 2025, announcing the third quarter earnings for 2025 is attached hereto.

ITEM 9.01 – Financial Statements and Exhibits

(d) Exhibits

---

| | |
|:---|:---|
| Exhibit No. | Title |
| [99.1](eml_ex991.htm) | [Press Release dated November 4, 2025 announcing the third quarter earnings for 2025.](eml_ex991.htm) |
| 104 | Cover Page Interactive Data File (cover page XBRL tags are embedded within the Inline XBRL document) |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **The Eastern Company** | **The Eastern Company** |
| Date: November 4, 2025&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | By: | /s/Nicholas Vlahos  |
|  |  | Nicholas Vlahos<br>Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](eml_ex991img1.jpg)

FOR IMMEDIATE RELEASE

**THE EASTERN COMPANY REPORTS THIRD QUARTER 2025 RESULTS**

· *Sales declined in the third quarter by 22% compared to the third quarter of 2024* 

· *New $100M Credit Facility to support long-term growth* 

· *Capital allocation focus drove year-to-date debt reduction of $7.0 million and stock repurchases of approximately $3.0 million or 118,000 shares* 

**SHELTON, CT – November 4, 2025** - The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced its results of operations for the third fiscal quarter ended September 27, 2025.

Mr. Schroeder continued, "Across our businesses, we remain laser focused on driving commercial execution to capitalize on the eventual recovery in market demand. Our teams are implementing targeted initiatives to enhance product innovation, diversify our customer base, expand into new end markets, and unlock greater operational efficiencies to reduce volatility and support sustainable, long-term performance. Ongoing investment in product development remains a key pillar of our growth strategy, to enable us to meet evolving customer needs and stay ahead of market trends. Simultaneously, we are deepening relationships across a broader set of customers to strengthen our resilience and position us to capture emerging opportunities. Furthermore, following the close of the quarter, we successfully secured a new $100 million revolving credit facility that enhances our financial flexibility to advance our strategic priorities, including continued investment in long-term growth initiatives."

"In response to the evolving macroeconomic landscape and ongoing shifts in global policy, we have sharpened our focus on operational agility and efficiency. This proactive approach has helped us navigate current uncertainties while maintaining solid performance across our operations. Leveraging our diversified international footprint, we have been successful in reducing the impact of tariffs and trade-related pressures. At the same time, we will continue to evaluate strategic opportunities that complement our core strengths and align with our long-term growth objectives. As we assess select opportunities, we remain committed to deploying capital responsibly and creating sustainable, long-term value for our shareholders."

Chairman of the Board James Mitarotonda added, "Despite significant market volatility which provides important context for our performance this quarter, we recognize that these results fall short of our objectives. We are pleased, however, with the many actions taken by our leadership team to mitigate the full impact of market conditions and believe we are well positioned for a market rebound. Eastern has maintained its historically strong balance sheet and we believe is well equipped to weather the cyclical market downturn and deliver meaningful value for shareholders as conditions improve."

3 ENTERPRISE DRIVE, SUITE 408, SHELTON, CONNECTICUT 06484

PHONE (203) 729 - 2255 \* FAX (203) 723 - 8653 \* WWW.EASTERNCOMPANY.COM

**Third Quarter and Nine Months 2025 Financial Results** 

The following analysis excludes discontinued operations.

Net sales for the third quarter of 2025 decreased 22% to $55.3 million from $71.3 million in the third quarter of 2024. Net sales for the first nine months of 2025 decreased 7% to $191.4 million from $206.1 million in the corresponding period in 2024. Sales decreased in the third quarter of 2025 primarily due to decreased shipments of returnable transport packaging products and truck mirror assemblies of $9.9 million and $6.4 million, respectively. Sales decreased in the first nine months of 2025 primarily due to decreased shipments of truck mirror assemblies and returnable transport packaging products of $13.4 million and $1.0 million, respectively.

Gross margin as a percentage of sales was 22.3% for the third quarter of 2025 and 22.9% for the first nine months of 2025 compared to 25.5% for the third quarter of 2024 and 25.2% for the first nine months of 2024. This decrease was primarily due to an increase in raw material costs incurred as we transitioned from customer-provided material to in-house sourcing on a mirror project, as well as the impact of reduced volumes.

Selling, general and administrative expenses decreased $0.7 million, or 6.5%, for the third quarter of 2025 compared to the corresponding period in 2024 due to $1.1 million of lower compensation charges, offset by $0.3 million of restructuring charges. In connection with a reduction in workforce completed in the second quarter of 2025, the Company incurred aggregate charges of $2.2 million related to contract termination costs, severance payments and other employee-related costs. Selling, general and administrative expenses increased $1.2 million in the first nine months of 2025 due to $2.2 million of restructuring charges and $0.6 million of commissions, offset by lower compensation costs of $1.5 million.

Net income for the third quarter of fiscal 2025 was $0.6 million, or $0.10 per diluted share, compared to net income of $4.7 million, or $0.75 per diluted share, for the comparable period in 2024. For the first nine months of 2025, net income was $4.8 million, or $0.78 per diluted share, compared to $11.7 million, or $1.87 per diluted share, for the comparable period in 2024.

Adjusted net income from continuing operations (a non-GAAP measure) for the third quarter of fiscal 2025 was $0.8 million, or $0.13 per diluted share, compared to adjusted net income of $4.7 million, or $0.75 per diluted share, for the comparable period in 2024. For the nine months ended September 27, 2025, adjusted net income was $6.5 million, or $1.06 per diluted share, compared to $11.7 million, or $1.87 per diluted share, for the comparable 2024 period.

Adjusted EBITDA from continuing operations (a non-GAAP measure) for the third quarter of fiscal 2025 was $3.5 million compared to Adjusted EBITDA from continuing operations of $8.7 million for the comparable 2024 period. For the nine months ended September 27, 2025, adjusted EBITDA was $15.2 million compared to $21.3 million for the comparable period in 2024. See "Non-GAAP Financial Measures" below and the reconciliation table accompanying this release.

During the third quarter of fiscal 2025, the Company repurchased 36,413 shares of common stock under its share repurchase program authorized in April 2025, and has repurchased 118,000 shares year-to-date (constituting approximately 2% of our outstanding shares of common stock).

**Conference Call and Webcast**

The Eastern Company will host a conference call to discuss its results for the third quarter of 2025 and related matters on Wednesday, November 5, 2025 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 614923. Participants can also join via the web at <u>https://www.webcaster4.com/Webcast/Page/1757/53095</u>.

**About The Eastern Company**

The Eastern Company manages businesses that design, manufacture and sell engineered solutions for industrial markets. Eastern's businesses operate in industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, Taiwan, and China. More information on the Company can be found at <u>www.easterncompany.com</u>.

**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 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, 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, the potential impact of bank failures on our ability to access financing or capital markets, 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 the inability to effectively integrate acquired businesses and achieve expected synergies;

· 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;

· 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; and

· materially adverse or unanticipated legal judgments, fines, penalties, or settlements.

The Company is also subject to other risks identified and discussed in this Management's Discussion and Analysis of Financial Condition and Results of Operations, 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 2024 Form 10-K, 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. 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, Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations and Adjusted EBITDA, 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 U.S. GAAP financial measures, such as net sales, net income, diluted earnings per share, or other measures prescribed by U.S. 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, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. 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, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. We believe that Adjusted Earnings Per Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to access 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, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. 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.

Adjusted EBITDA from Discontinued Operations is defined as net income from discontinued 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, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. Adjusted EBITDA from Discontinued 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.

Adjusted EBITDA is defined as net income 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, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. Adjusted EBITDA 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, U.S. GAAP financial measures.

We believe that presenting non-GAAP financial measures in addition to U.S. 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 better enables our investors to 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 AND SUBSIDIARIES** | **THE EASTERN COMPANY AND SUBSIDIARIES** | **THE EASTERN COMPANY AND SUBSIDIARIES** | **THE EASTERN COMPANY AND SUBSIDIARIES** | **THE EASTERN COMPANY AND SUBSIDIARIES** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 27,** <br> **2025** | September 28, <br> 2024 | **September 27,** <br> **2025** | September 28, <br> 2024 |
| **Net sales** | $**55336452** | $71274757 | $**191437750** | $206068490 |
| Cost of products sold | **(42971012)** | (53085087) | **(147613222)** | (154161980) |
| Gross margin | **12365440** | 18189670 | **43824528** | 51906510 |
| Product development expense | **(995771)** | (1077930) | **(3136673)** | (3739214) |
| Selling and administrative expenses | **(9646956)** | (10316788) | **(32181886)** | (31014022) |
| Operating profit | **1722713** | 6794952 | **8505969** | 17153274 |
| Interest expense | **(688425)** | (709680) | **(2019365)** | (2049655) |
| Other expenses, net  | **(157640)** | (82703) | **(282136)** | (92415) |
| **Income from continuing operations before income taxes** | **876648** | 6002569 | **6204468** | 15011204 |
| Income tax expense | **(297712)** | (1333771) | **(1422414)** | (3335489) |
| **Net income from continuing operations** | $**578936** | $4668798 | $**4782054** | $11675715 |
| **Discontinued Operations (see Note B)** |  |  |  |  |
| Loss from operations of discontinued unit | $**-** | $(766990) | $**(520006)** | $(2750844) |
| (Loss) gain on classification as held for sale | **-** | (23087775) | **2016696** | (23087775) |
| Income tax benefit (expense) | **-** | 3888522 | **(315951)** | 4320904 |
| **Net (Loss) income on discontinued operations** | $**-** | $(19966243) | $**1180739** | $(21517715) |
| **Net income (loss)** | $**578936** | $(15297445) | $**5962793** | $(9842000) |
| **Earnings per share from continuing operations:** |  |  |  |  |
| Basic | $**0.10** | $0.75 | $**0.78** | $1.88 |
| Diluted | $**0.10** | $0.75 | $**0.78** | $1.87 |
| **(Loss) earnings per share from discontinued operations:** |  |  |  |  |
| Basic | $**-** | $(3.22) | $**0.19** | $(3.46) |
| Diluted | $**-** | $(3.21) | $**0.19** | $(3.45) |
| **Total earnings (loss) per share:** |  |  |  |  |
| Basic | $**0.10** | $(2.47) | $**0.97** | $(1.58) |
| Diluted | $**0.10** | $(2.46) | $**0.97** | $(1.58) |
| **Cash dividends per share:** | $**0.11** | $0.11 | $**0.33** | $0.33 |

---

**THE EASTERN COMPANY AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 27,** <br> **2025** | December 28, <br> 2024 |
|  | **(unaudited)** |  |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $**9227940** | $14010388 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketable securities | **-** | 2051301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, less allowances: 2025 - **$584,372**; 2024 - $530,560 | **30008422** | 35515632 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | **56766191** | 55209598 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of notes receivable | **100643** | 286287 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | **4468683** | 3477717 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current assets held for sale | **-** | 5071828 |
| **Total Current Assets** | **100571879** | 115622751 |
| **Property, Plant and Equipment** | **59040146** | 56320688 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated depreciation | **(32510699)** | (28810628) |
| **Property, Plant and Equipment, Net** | **26529447** | 27510060 |
| **Goodwill** | **58596177** | 58509384 |
| **Trademarks** | **3816720** | 3946455 |
| **Patents and other intangibles net of accumulated amortization** | **7165804** | 8765612 |
| **Long term notes receivable, less current portion** | **33201** | 162102 |
| **Deferred Income Taxes** | **6611518** | 6611518 |
| **Right of Use Assets** | **16649014** | 14180865 |
| **Other Long Term Assets** | **75980** | - |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Other Assets** | **92948414** | 92175936 |
| **TOTAL ASSETS** | $**220049740** | $235308747 |

---

**THE EASTERN COMPANY AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)**

---

| | | |
|:---|:---|:---|
|  | **September 27,**<br> **2025** | December 28,<br> 2024 |
|  | **(unaudited)** |  |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $**17359215** | $19650970 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | **4597276** | 5478581 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other accrued expenses | **2856321** | 9577019 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of operating lease liability | **3782516** | 3072668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of finance lease liability | **737032** | 761669 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt | **4297585** | 3603935 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | **-** | 505376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liabilities held for sale | **-** | 2144573 |
| **Total Current Liabilities** | **33629945** | 44794791 |
| **Operating lease liability, less current portion** | **12869598** | 11108197 |
| **Finance lease liability, less current portion** | **2691010** | 3052073 |
| **Long-term debt, less current portion** | **31044907** | 38640576 |
| **Accrued postretirement benefits** | **420157** | 410476 |
| **Accrued pension cost** | **14565285** | 16064840 |
| **Other long-term liabilities** | **546395** | 546395 |
| **Total Liabilities** | **95767297** | 114617348 |
| **Shareholders' Equity** |  |  |
| Voting Preferred Stock, no par value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Authorized and unissued: 1,000,000 shares |  |  |
| Nonvoting Preferred Stock, no par value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Authorized and unissued: 1,000,000 shares |  |  |
| Common Stock, no par value, Authorized: 50,000,000 shares | **36042381** | 35443009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued: 9,170,470 shares as of 2025 and 9,146,996 shares as of 2024 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outstanding: 6,068,650 shares as of 2025 and 6,163,138 shares as of 2024 |  |  |
| Treasury Stock: 3,101,820 shares as of 2025 and 2,983,858 shares as of 2024 | **(29313460)** | (26338309) |
| Retained earnings | **137492223** | 133545670 |
| Accumulated other comprehensive loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation | **(1859218)** | (2276590) |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain (loss) on foreign currency swap, net of tax | **480342** | (505376) |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrecognized net pension and postretirement benefit costs, net of tax | **(18559825)** | (19177005) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | **(19938701)** | (21958971) |
| **Total Shareholders' Equity** | **124282443** | 120691399 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**220049740** | $235308747 |

---

**THE EASTERN COMPANY AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 27,** <br> **2025** | September 28, <br> 2024 |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income | $**5962793** | $(9842000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Gain (Loss) from discontinued operations | **1180739** | (21517715) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations | $**4782054** | $11675715 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | **4846679** | 4266038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reduction in carrying amount of ROU assets | **2200274** | 2418801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrecognized pension and postretirement benefits | **(689806)** | (353257) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of equipment and other assets | **176254** | 53311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for doubtful accounts | **17000** | (24570) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense | **599372** | 913775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | **8050261** | (11739823) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | **(722705)** | 300720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other | **(387479)** | 2874825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | **214725** | (236934) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | **(3274997)** | 693653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | **(906067)** | (190904) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in operating lease liability | **(2200274)** | (2418801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued expenses | **(7683977)** | 115403 |
| **Net cash provided by operating activities** | **5021314** | 8347952 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketable securities | **2222059** | (999960) |
| &nbsp;&nbsp;&nbsp;&nbsp; Business Acquisition | **(421039)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments received from notes receivable | **14545** | 470937 |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of discontinued operations | **1593646** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of equipment | **800** | 18925 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of property, plant, and equipment | **(1643885)** | (7634265) |
| **Net cash used in investing activities** | **1766126** | (8144363) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal payments on long-term debt | **(7044065)** | (2365500) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds(payments) on short term borrowings (revolver) | **-** | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Financing leases, net | **(592699)** | 2819262 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase common stock for treasury | **(2975152)** | (1916130) |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | **(2016239)** | (2050933) |
| **Net cash used in financing activities** | **(12628155)** | (513301) |
| **Discontinued Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash provided by operating activities | **-** | 411778 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash used in investing activities | **-** | (217101) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Cash provided by discontinued operations** | **-** | 194677 |
| **Effect of exchange rate changes on cash** | **225126** | (67874) |
| **Net change in cash and cash equivalents** | **(5615589)** | (182909) |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents at beginning of period | **14843529** | 8299453 |
| **Cash and cash equivalents at end of period**  | $**9227940** | $8116544 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $**2110688** | $2443448 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes | **2078175** | 3945295 |
| **Non-cash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Right of use asset | **4552886** | 2418801 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liability | **(4016861)** | (462004) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Non-GAAP Measures** | **Reconciliation of Non-GAAP Measures** | **Reconciliation of Non-GAAP Measures** |  |  |
| **Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share**  | **Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share**  | **Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share**  | **Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share**  |  |
| **from Continuing Operations Calculation** | **from Continuing Operations Calculation** | **from Continuing Operations Calculation** |  |  |
| **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** |  |
| ($000's) |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 27,** <br> **2025** | September 28, <br> 2024 | **September 27,** <br> **2025** | September 28, <br> 2024 |
| Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $**579** | $4669 | $**4782** | $11676 |
| Earnings per share from continuing operations as reported under GAAP: |  |  |  |  |
| Basic  | $**0.10** | $0.75 | $**0.78** | $1.88 |
| Diluted | $**0.10** | $0.75 | $**0.78** | $1.87 |
| Adjustments:  |  |  |  |  |
| Restructuring | **285** **(a)** |  | **2172** **(a)** | **-** |
| Non-GAAP tax impact of adjustments (b) | **(60)** | - | **(459)** | **-** |
| Total adjustments (Non-GAAP) | $**225** | $**-** | $**1713** | $- |
| Adjusted net income from continuing operations (Non-GAAP) | $**804** | $4669 | $**6495** | $11676 |
| Adjusted earnings per share from continuing operations (Non-GAAP): |  |  |  |  |
| Basic | $**0.13** | $0.75 | $**1.06** | $1.88 |
| Diluted | $**0.13** | $0.75 | $**1.06** | $1.87 |

---

(a) Consists of personnel related and facility costs

(b) 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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Non-GAAP Measures** | **Reconciliation of Non-GAAP Measures** | **Reconciliation of Non-GAAP Measures** |  |  |
| **Adjusted EBITDA from Continuing Operations Calculation** | **Adjusted EBITDA from Continuing Operations Calculation** | **Adjusted EBITDA from Continuing Operations Calculation** |  |  |
| **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** | **For the Three and Nine Months ended September 27, 2025 and September 28, 2024** |  |
| **($000's)** |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 27,** <br> **2025** | September 28, <br> 2024 | **September 27,** <br> **2025** | September 28, <br> 2024 |
| Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $**579** | $4669 | $**4782** | $11676 |
| Interest expense | **688** | 710 | **2019** | 2050 |
| Provision for income taxes | **298** | 1334 | **1422** | 3335 |
| Depreciation and amortization | **1633** | 2033 | **4847** | 4266 |
| Severance and accrued compensation | **285** **(a)** | - | **2172** **(a)** | - |
| Adjusted EBITDA from continuing operations (Non-GAAP) | $**3483** | $8745 | $**15242** | $21327 |

---

(a) Consists of personnel related and facility costs