The Eastern Company Reports Strong 2024 Financial Performance

Eastern Company ( (EML) ) has released its Q4 earnings. Here is a breakdown of the information Eastern Company presented to its investors.

The Eastern Company is an industrial manufacturer that provides unique engineered solutions primarily serving the commercial transportation, logistics, and other industrial markets. The company operates across the U.S., Canada, Mexico, Taiwan, and China.

In its latest earnings report, The Eastern Company announced a 5% increase in net sales for the fiscal year 2024, reaching $272.8 million, compared to $258.9 million in 2023. The company also reported a 12% increase in net income from continuing operations, amounting to $13.2 million, or $2.13 per diluted share, up from $11.8 million, or $1.88 per diluted share, in the previous year.

Key financial highlights include a backlog increase to $89.2 million by the end of 2024, compared to $77.1 million at the end of 2023. Adjusted EBITDA from continuing operations also saw an increase, reaching $27.1 million in 2024, up from $25.4 million in 2023. However, the gross margin for the fourth quarter of 2024 decreased to 23.0% from 26.8% in the same period of the previous year, primarily due to higher material costs.

Despite challenges in the macroeconomic environment, The Eastern Company is focusing on enhancing its operational efficiency and expanding its market share. The company has appointed new leadership for its operating businesses to drive revenue growth and profitability, and it is committed to executing its business strategy more effectively in 2025.

Looking ahead, The Eastern Company is preparing to navigate a challenging business environment with a focus on developing nimble supply chains and enhancing its competitiveness. The management is optimistic about the company’s potential for continued success under its new leadership team.