Cash flow generation remains highly volatile, with free cash flow margins swinging from a negative 8.8% in 2024Q3 to a positive 14.6% in 2024Q4, complicating earnings quality assessments.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 13.8M | 8.87M | 20.55M | 26.48M | 10.46M | -2.02M | 20.69M | 22.96M | 12.88M | 11.18M | 12.42M | 9.13M | 9.35M | 11.32M | 13.65M | 1.45M | 9.5M | 13.34M | 7.61M | 8.76M | 7.86M | 5.2M | 4.85M | 6.37M | 11.37M | 6.96M | 10.41M | 6.4M | 8.3M | 6.2M | 2.5M |
| Operating CF Margin % | - | 3.56% | 7.53% | 10.23% | 3.75% | -0.82% | 10.47% | 9.12% | 5.5% | 5.47% | 9.02% | 6.32% | 6.64% | 7.94% | 8.66% | 1.01% | 7.3% | 11.84% | 5.6% | 5.61% | 5.68% | 4.76% | 4.85% | 7.21% | 13.98% | 8.4% | 11.8% | 8.57% | 11.74% | 9.21% | 4.32% |
| Operating CF Growth % | 522.57% | -56.86% | -22.4% | 153.07% | 617.12% | -109.78% | -9.88% | 78.3% | 15.17% | -9.95% | 35.93% | -2.29% | -17.41% | -17.07% | 843.4% | -84.78% | -28.8% | 75.27% | -13.09% | 11.41% | 51.26% | 7.1% | -23.8% | -43.96% | 63.3% | -33.13% | 62.65% | -22.89% | 33.87% | 148% | -56.14% |
| Net Income | 3.81M | 5.97M | 13.22M | 8.59M | 11.05M | 16.18M | 5.41M | 13.27M | 14.51M | 5.05M | 7.79M | 5.73M | 7.66M | 6.9M | 8.63M | 5.5M | 5.54M | 1.04M | 4.5M | 10.08M | 9.66M | 4.37M | 4.76M | 3.36M | 3.29M | 3.91M | 7.06M | 6.5M | 5.4M | 3.7M | 900K |
| Depreciation & Amortization | 6.41M | 3.69M | 5.89M | 7.47M | 7.21M | 7.24M | 8.48M | 6.45M | 5.33M | 4.72M | 3.81M | 3.92M | 3.49M | 3.83M | 3.44M | 3.71M | 3.94M | 4.1M | 4.13M | 4.37M | 3.75M | 3.46M | 3.46M | 3.62M | 3.57M | 4.46M | 3.64M | 2.7M | 2.9M | 3M | 3M |
| Stock-Based Compensation | 312.2K | 0 | 1.49M | 364.69K | 0 | 1.12M | 849.23K | 656.92K | 493.77K | 354.5K | 149.57K | 64.99K | 29.99K | 22.5K | 24.61K | 1.15B | 0 | -634.71M | -549.64M | 1.31B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 1.08M | -4.7M | -1.12M | -3.05M | -3.01M | -2.12M | -2.09M | 947.85K | 1.2M | -27.3M | -184.28M | 229.23K | 531.02K | 1.1M | 1.86M | 526.17K | 235.79K | 286.05K | -404.62K | -119.41K | -27.29K | -8.09K | 390.79K | 454.2K | 461.2K | 659.3K | 400K | -100K | -100K | 0 |
| Other Non-Cash Items | -3.86M | 684.59K | -3.17M | 1.48M | 482.87K | -696.27K | 6.05M | 3.98M | -2.45M | 12.86K | 149.57K | 64.99K | 626.52M | -439.29M | -14.63M | -1.15B | 201.78K | 128.06M | 549.77M | -1.31B | 135.62K | 114.63K | 260.81K | 146.54K | 191.69K | -626.9K | -3.54K | 100K | 500K | 600K | 400K |
| Working Capital Changes | 7.43M | -2.55M | 7.82M | 9.72M | -5.23M | -22.86M | 2.02M | 692.56K | -5.95M | -149.64K | -459.16K | -2.02M | -2.17M | -186.51K | 308.11K | -9.69M | -825.35K | 7.61M | -1.43M | -5.46M | -5.56M | -2.72M | -3.62M | -1.15M | 3.86M | -1.25M | -940.95K | -3.4M | -400K | -1M | -1.8M |
| Change in Receivables | 3.42M | 7.86M | -1.32M | 5.77M | -1.08M | -11.28M | -488.16K | 5.98M | -3.48M | -2.57M | -1.06M | -852.17K | -207.63K | 1.78M | 307.52K | -2.47M | -1.05M | 1.57M | 6.13B | -8.84B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 3.2M | -268.52K | 3.13M | 6.02M | -5.3M | -19.61M | 767.8K | 1.46M | -5.36M | 152.13K | 2.51M | -3.1M | -2.83M | -1.4M | 586.58K | -1.83M | -3.4M | 6.67M | -1.1M | -1.92M | -5.6M | -88.15K | -3.3M | -270.87K | 2.19M | -1.49M | 69.86K | -1.2M | -500K | -1.6M | 900K |
| Change in Payables | -4.02M | -4.5M | -4M | -2.19M | -1.74M | 8.83M | 3.16M | -2.34M | 4.11M | 892.44K | -1.76M | 1.18M | 998.5K | -253.99K | -889.66K | 2.06B | 3.76M | -1.86B | -5.19B | 6.52B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 197.52K | -508.92K | -8.47M | -5.43M | 5.09M | 12.62M | -9.11M | -85.77M | -10.41M | -42.8M | -2.86M | -2.51M | -8.64M | -5.52M | -4.17M | -3.39M | -4.73M | -2.23M | -2.45M | -2.84M | -14.24M | -1.75M | -2.05M | -1.85M | -1.86M | -1.89M | -32.51M | -3.7M | -4.1M | -2.2M | -2.9M |
| Capital Expenditures | -3.99M | -3.97M | -9.71M | -6.43M | -3.37M | -3.72M | -3.1M | -5.44M | -5.41M | -2.76M | -2.86M | -2.54M | -3.63M | -5.52M | -4.22M | -3.39M | -4.73M | -2.23M | -2.33M | -2.87M | -6.72M | -1.75M | -2.06M | -2.76M | -1.56M | -1.89M | -5.07M | -3.7M | -4.4M | -2.2M | -2.9M |
| CapEx % of Revenue | 1.64% | 1.59% | 3.56% | 2.49% | 1.21% | 1.51% | 1.57% | 2.16% | 2.31% | 1.35% | 2.08% | 1.76% | 2.58% | 3.88% | 2.68% | 2.38% | 3.64% | 1.98% | 1.72% | 1.84% | 4.85% | 1.6% | 2.06% | 3.13% | 1.92% | 2.29% | 5.74% | 4.95% | 6.22% | 3.27% | 5.01% |
| Acquisitions | 55.23K | 1.22M | 0 | -444.84K | 7.99M | 17.03M | -4.39M | -81.16M | -4.99M | -40.08M | 8.35K | -5.03B | -5.03M | 0 | 0 | 0 | 0 | -128.32M | -128.32K | -7.54B | -7.54M | 0 | 0 | 0 | -303.75K | 0 | -27.55M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.13M | 14.54K | 1.24M | 1.45M | 470.77K | -690.71K | -1.63M | 857.97K | -1.81M | 44.1K | 8.35K | 5.03B | 22.5K | 2.84K | 44.18K | 4K | 275 | 13.25M | 13.25K | 7.54B | 19.37K | 750 | 13.37K | 0 | 0 | 0 | 98.87K | 0 | 300K | -100K | 0 |
| Cash from Financing | -15.68M | -16.3M | -4.82M | -22.9M | -11.78M | -20.27M | -13.18M | 66.97M | -10.37M | 30.68M | -4.18M | -3.88M | -4.49M | -4.03M | -2.3M | 819.39K | -9.42M | -3.41M | -4.17M | -1.09M | 3.23M | -1.6M | -3.42M | -5.64M | -8.51M | -4.63M | 20.7M | -1.6M | -1.4M | -4.1M | 1.2M |
| Debt Issued (Net) | -10.26M | -9.89M | 964.23K | -19.4M | -7.4M | -17.15M | -10.06M | 69.71M | -13.55M | 33.44M | -1.43M | -1.07M | -1.79M | -1.43M | 750K | 2.29M | -6.96M | -2.24M | -3.84M | -3.11M | 4.74M | -9.81K | -2.01M | -3.73M | -6.85M | -3.03M | 22.61M | 200K | 4.9M | -100K | 2.4M |
| Equity Issued (Net) | -2.75M | -3.73M | -3.06M | -735.78K | -1.64M | -369.65K | -368.86K | 0 | -1.06M | 0 | 0 | 0 | 271.6K | 13.58K | 61.11K | 651.39K | 618.28K | 786.71K | 1.25M | 2.25M | 203.7K | 6.4K | 182.61K | -317.73K | -55.85K | 0 | -311.77K | -300K | -4.9M | -2.7M | 0 |
| Dividends Paid | -2.67M | -2.68M | -2.73M | -2.77M | -2.74M | -2.76M | -2.75M | -2.74M | -2.76M | -2.75M | -2.75M | -2.81M | -2.99M | -2.61M | -3.11M | -2.22M | -3.18M | -2.16M | -1.94M | -1.8M | -1.72M | -1.6M | -1.6M | -1.59M | -1.6M | -1.6M | -1.6M | -1.6M | -1.4M | -1.3M | -1.2M |
| Share Repurchases | -2.75M | -3.73M | -3.06M | -735.78K | -1.64M | -369.65K | -368.86K | 0 | -1.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -730.31K | -797.33K | -610.53K | -312.52K | 0 | 0 | -142.19K | -317.73K | -55.85K | -23.43K | -416.44K | -800K | -5.5M | -3.4M | 0 |
| Other Financing | 6.35K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7M | 0 | 0 | 0 | 8.88K | 0 | 0 | 106.47K | 107.66K | 202.77K | 355.8K | 1.58M | -1.63K | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 0 |
| Net Change in Cash | -1.46M | -6.6M | 6.54M | -1.89M | 4.02M | -9.5M | -1.89M | 4.07M | -8.35M | -449.9K | 4.91M | 1.98M | -4.15M | 1.51M | 7.33M | -1.08M | -4.52M | 7.78M | 757.9K | 5.11M | -3.24M | 1.93M | -476.31K | -1.04M | 984.21K | 413.31K | -1.4M | 1.1M | 2.8M | -200K | 800K |
| Free Cash Flow | 9.82M | 4.9M | 10.84M | 20.05M | 7.1M | -5.74M | 17.59M | 17.52M | 7.47M | 8.42M | 9.55M | 6.6M | 5.71M | 5.79M | 9.43M | -1.95M | 4.77M | 11.12M | 5.28M | 5.89M | 1.14M | 3.45M | 2.79M | 3.61M | 9.81M | 5.07M | 5.34M | 2.7M | 3.9M | 4M | -400K |
| FCF Margin % | 4.04% | 1.97% | 3.97% | 7.74% | 2.54% | -2.33% | 8.9% | 6.96% | 3.19% | 4.12% | 6.94% | 4.56% | 4.06% | 4.07% | 5.99% | -1.36% | 3.66% | 9.87% | 3.89% | 3.77% | 0.82% | 3.16% | 2.79% | 4.08% | 12.06% | 6.12% | 6.06% | 3.61% | 5.52% | 5.94% | -0.69% |
| FCF Growth % | -9.32% | -54.84% | -45.92% | 182.42% | 223.6% | -132.65% | 0.41% | 134.65% | -11.31% | -11.88% | 44.83% | 15.42% | -1.37% | -38.56% | 583.96% | -140.86% | -57.11% | 110.48% | -10.36% | 416.24% | -66.9% | 23.52% | -22.61% | -63.22% | 93.59% | -5.2% | 97.94% | -30.77% | -2.5% | 1100% | -116.67% |
| FCF per Share | 1.61 | 0.80 | 1.74 | 3.20 | 1.14 | -0.92 | 2.81 | 2.79 | 1.78 | 1.34 | 1.53 | 1.06 | 0.92 | 0.93 | 1.51 | -0.31 | 0.77 | 1.78 | 0.86 | 0.98 | 0.20 | 0.59 | 0.50 | 0.65 | 1.77 | 0.92 | 0.97 | 0.48 | 0.69 | 0.66 | -0.07 |
| FCF Conversion (FCF/Net Income) | 2.57x | 1.73x | -2.41x | 3.08x | 0.85x | -0.22x | 3.83x | 1.73x | 0.89x | 2.22x | 1.59x | 1.59x | 1.22x | 1.64x | 1.58x | 0.26x | 1.71x | 12.87x | 1.69x | 0.87x | 0.81x | 1.19x | 1.02x | 1.89x | 3.45x | 1.78x | 1.48x | 0.98x | 1.54x | 1.68x | 2.78x |
| Interest Paid | 1.01M | 2.89M | 3.22M | 3.39M | 0 | 2.27M | 2.75M | 1.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.25M | 1.92M | 5.17M | 6.61M | 0 | 2.32M | 3.76M | 3.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical industrial demand contraction
According to quarterly financial data, EML's OCF/NI ratio has exhibited extreme volatility, ranging from a negative 0.75 in 2025Q1 to a high of 8.98 in 2024Q4, suggesting that reported net income is a poor proxy for the company's actual ability to generate cash from operations.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital swings are significantly distorting the bottom line. Investors should monitor this disconnect, as it implies that earnings quality is currently low and highly sensitive to accounting adjustments rather than core operational performance.
As reported in recent filings, EML's free cash flow margins have fluctuated wildly between a negative 8.8% in 2024Q3 and a positive 14.6% in 2024Q4, reflecting the underlying instability of the company's cash generation profile during this period of cyclical revenue contraction.
The inability to maintain consistent positive free cash flow suggests that the company's high-fixed-cost manufacturing model struggles to absorb volume declines. This erratic trajectory warrants further investigation into whether the business can achieve a sustainable cash-generative state without a meaningful recovery in industrial end-market demand.
Based on the provided cash flow statements, working capital changes have been a major source of volatility, with a significant $16.0M inflow in 2024Q4 followed by a $9.0M outflow in 2025Q1, indicating that inventory and receivables management remains a primary driver of short-term liquidity.
These sharp swings suggest that the company may be aggressively managing its working capital to offset operational weakness. Such tactics may provide temporary relief, but they do not address the fundamental challenge of generating cash through organic sales growth.
As evidenced by the cash flow statements, EML has continued to prioritize shareholder returns, with dividend payments and share repurchases totaling over $1.3M in 2026Q1, despite the company facing a challenging environment characterized by declining revenues and narrow net margins.
While the company's low debt levels provide a buffer, the decision to maintain capital returns during a period of operational contraction may limit the resources available for strategic reinvestment. Investors should monitor whether this allocation strategy remains prudent if the current industrial downturn persists.
Quick answers to the most common questions about buying EML stock.
The Eastern Company (EML) generated $8.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Eastern Company (EML) generated $4.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Eastern Company (EML) spent $4.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Eastern Company (EML) returned $2.7M to shareholders via cash dividends and spent $3.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.