Operating margins have deteriorated to 1.9% in 2026Q1 from a 9.5% peak in 2024Q3, indicating significant deleveraging as revenue continues to contract.
| 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 |
|---|
| Sales/Revenue | 242.71M | 248.97M | 272.75M | 258.86M | 279.27M | 246.52M | 197.61M | 251.74M | 234.28M | 204.24M | 137.61M | 144.57M | 140.83M | 142.46M | 157.51M | 142.86M | 130.13M | 112.67M | 135.88M | 156.28M | 138.47M | 109.11M | 100.13M | 88.31M | 81.34M | 82.83M | 88.19M | 74.7M | 70.7M | 67.3M | 57.9M |
| Revenue Growth % | -9.42% | -8.72% | 5.37% | -7.31% | 13.28% | 24.75% | -21.5% | 7.46% | 14.71% | 48.42% | -4.81% | 2.66% | -1.15% | -9.56% | 10.26% | 9.78% | 15.5% | -17.08% | -13.06% | 12.87% | 26.91% | 8.97% | 13.39% | 8.57% | -1.8% | -6.09% | 18.06% | 5.66% | 5.05% | 16.23% | -2.53% |
| Cost of Goods Sold | 189.97M | 192.58M | 205.48M | 197.09M | 220.65M | 189.76M | 149.53M | 189.89M | 175.55M | 154.38M | 101.26M | 110.32M | 108.34M | 112.31M | 124.16M | 115.5M | 103.46M | 92.03M | 110.42M | 120.34M | 103.88M | 84.37M | 75M | 66.72M | 60.64M | 60.78M | 58.55M | 49.8M | 46.6M | 45.8M | 42.2M |
| COGS % of Revenue | - | 77.35% | 75.34% | 76.14% | 79.01% | 76.97% | 75.67% | 75.43% | 74.93% | 75.59% | 73.59% | 76.31% | 76.93% | 78.84% | 78.83% | 80.85% | 79.5% | 81.69% | 81.26% | 77% | 75.02% | 77.33% | 74.9% | 75.55% | 74.55% | 73.39% | 66.39% | 66.67% | 65.91% | 68.05% | 72.88% |
| Gross Profit | 52.74M | 56.39M | 67.27M | 61.77M | 58.62M | 56.77M | 48.09M | 61.85M | 58.73M | 49.86M | 36.35M | 34.25M | 32.49M | 30.15M | 33.35M | 27.35M | 26.67M | 20.63M | 25.46M | 35.94M | 34.58M | 24.73M | 25.13M | 21.59M | 20.7M | 22.04M | 29.64M | 24.9M | 24.1M | 21.5M | 15.7M |
| Gross Margin % | 21.73% | 22.65% | 24.66% | 23.86% | 20.99% | 23.03% | 24.33% | 24.57% | 25.07% | 24.41% | 26.41% | 23.69% | 23.07% | 21.16% | 21.17% | 19.15% | 20.5% | 18.31% | 18.74% | 23% | 24.98% | 22.67% | 25.1% | 24.45% | 25.45% | 26.61% | 33.61% | 33.33% | 34.09% | 31.95% | 27.12% |
| Gross Profit Growth % | - | -16.17% | 8.9% | 5.38% | 3.26% | 18.05% | -22.26% | 5.33% | 17.79% | 37.17% | 6.12% | 5.43% | 7.76% | -9.61% | 21.94% | 2.55% | 29.26% | -18.96% | -29.15% | 3.92% | 39.83% | -1.58% | 16.41% | 4.29% | -6.09% | -25.63% | 19.04% | 3.32% | 12.09% | 36.94% | -6.55% |
| Operating Expenses | 45.43M | 46.29M | 47.12M | 44.74M | 44.45M | 39.32M | 34.58M | 44.39M | 40.87M | 37.77M | 25.21M | 26.22M | 20.77M | 19.76M | 19.8M | 18.64M | 18.16M | 17.06M | 18.43M | 20.01M | 18.79M | 16.78M | 17.28M | 15.1M | 14.32M | 14.56M | 17.42M | 14.7M | 15.1M | 15.6M | 14M |
| OpEx % of Revenue | - | 18.59% | 17.28% | 17.28% | 15.92% | 15.95% | 17.5% | 17.64% | 17.44% | 18.5% | 18.32% | 18.14% | 14.75% | 13.87% | 12.57% | 13.05% | 13.96% | 15.14% | 13.57% | 12.8% | 13.57% | 15.38% | 17.26% | 17.1% | 17.6% | 17.58% | 19.76% | 19.68% | 21.36% | 23.18% | 24.18% |
| Selling, General & Admin | 41.44M | 42.22M | 42.23M | 39.15M | 39.51M | 35.22M | 30.19M | 35.72M | 33.91M | 32.15M | 22.64M | 23.76M | 20.77M | 19.76M | 19.8M | 18.64M | 18.16M | 17.06M | 18.43M | 20.01M | 18.79M | 16.78M | 17.28M | 15.1M | 14.32M | 14.56M | 13.78M | 12M | 12.2M | 12.6M | 11M |
| SG&A % of Revenue | - | 16.96% | 15.48% | 15.12% | 14.15% | 14.29% | 15.28% | 14.19% | 14.48% | 15.74% | 16.45% | 16.44% | 14.75% | 13.87% | 12.57% | 13.05% | 13.96% | 15.14% | 13.57% | 12.8% | 13.57% | 15.38% | 17.26% | 17.1% | 17.6% | 17.58% | 15.63% | 16.06% | 17.26% | 18.72% | 19% |
| Research & Development | 3.99M | 4.06M | 4.89M | 5.59M | 4.24M | 4.1M | 2.75M | 6.02M | 6.95M | 5.62M | 2.57M | 2.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.63% | 1.79% | 2.16% | 1.52% | 1.66% | 1.39% | 2.39% | 2.97% | 2.75% | 1.87% | 1.7% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 699.87K | 0 | 1.64M | 2.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.64M | 2.7M | 2.9M | 3M | 3M |
| Operating Income | 7.31M | 10.1M | 20.15M | 17.03M | 14.17M | 17.45M | 13.51M | 17.46M | 17.86M | 12.08M | 11.14M | 8.03M | 11.72M | 10.39M | 13.55M | 8.71M | 8.51M | 3.58M | 7.03M | 15.93M | 15.79M | 7.96M | 7.85M | 6.48M | 6.38M | 7.48M | 12.22M | 10.2M | 9M | 5.9M | 1.7M |
| Operating Margin % | 3.01% | 4.06% | 7.39% | 6.58% | 5.07% | 7.08% | 6.83% | 6.93% | 7.62% | 5.92% | 8.09% | 5.55% | 8.32% | 7.29% | 8.6% | 6.1% | 6.54% | 3.18% | 5.17% | 10.19% | 11.41% | 7.29% | 7.84% | 7.34% | 7.85% | 9.03% | 13.85% | 13.65% | 12.73% | 8.77% | 2.94% |
| Operating Income Growth % | - | -49.86% | 18.29% | 20.24% | -18.8% | 29.19% | -22.64% | -2.25% | 47.81% | 8.5% | 38.72% | -31.5% | 12.83% | -23.36% | 55.55% | 2.36% | 137.84% | -49.1% | -55.86% | 0.85% | 98.51% | 1.35% | 21.07% | 1.59% | -14.65% | -38.78% | 19.76% | 13.33% | 52.54% | 247.06% | -59.52% |
| EBITDA | 12.06M | 13.79M | 26.04M | 22.4M | 21.4M | 24.69M | 20.32M | 23.91M | 23.19M | 16.8M | 14.95M | 11.95M | 15.2M | 14.21M | 16.99M | 12.42M | 12.45M | 7.68M | 11.16M | 20.3M | 19.54M | 11.42M | 11.31M | 10.1M | 9.95M | 11.94M | 15.86M | 12.9M | 11.9M | 8.9M | 4.7M |
| EBITDA Margin % | 4.97% | 5.54% | 9.55% | 8.65% | 7.66% | 10.01% | 10.28% | 9.5% | 9.9% | 8.23% | 10.86% | 8.27% | 10.8% | 9.98% | 10.79% | 8.69% | 9.57% | 6.82% | 8.21% | 12.99% | 14.11% | 10.46% | 11.3% | 11.44% | 12.23% | 14.42% | 17.98% | 17.27% | 16.83% | 13.22% | 8.12% |
| EBITDA Growth % | -52.49% | -47.04% | 16.23% | 4.67% | -13.31% | 21.49% | -15.02% | 3.12% | 38.01% | 12.39% | 25.12% | -21.41% | 6.99% | -16.36% | 36.81% | -0.28% | 62.12% | -31.16% | -45.03% | 3.88% | 71.16% | 0.92% | 11.96% | 1.56% | -16.68% | -24.7% | 22.91% | 8.4% | 33.71% | 89.36% | -30.88% |
| D&A (Non-Cash Add-back) | 4.75M | 3.69M | 5.89M | 5.37M | 7.24M | 7.24M | 6.82M | 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 |
| EBIT | 7.31M | 10.1M | 19.8M | 17.89M | 16.68M | 20.82M | 15.28M | 18.06M | 18.79M | 12.43M | 11.34M | 8.21M | 11.78M | 10.44M | 13.59M | 8.74M | 8.51M | 3.63M | 7.11M | 15.93M | 15.79M | 7.96M | 7.85M | 6.48M | 6.38M | 7.48M | 12.22M | 10.2M | 9M | 5.9M | 1.7M |
| Net Interest Income | -2.52M | -2.68M | -2.72M | -2.81M | -2.28M | -1.75M | -2.06M | -1.86M | -1.2M | -976.51K | -121.5K | -185.47K | -254.58K | -322.73K | -369.36K | -231.48K | -266.3K | -1.73M | -1.06M | -1.29M | -1.1M | -1.01M | -1.04M | -1.3M | -1.72M | -2.26M | -1.79M | 0 | -500K | 0 | -200K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.52M | 2.68M | 2.72M | 2.81M | 2.28M | 1.75M | 2.06M | 1.86M | 1.2M | 976.51K | 121.5K | 185.47K | 254.58K | 322.73K | 369.36K | 231.48K | 266.3K | 1.73M | 1.06M | 1.29M | 1.1M | 1.01M | 1.04M | 1.3M | 1.72M | 2.26M | 1.79M | 0 | 500K | 0 | 200K |
| Other Income/Expense | -1.76M | -2.61M | -3.07M | -1.95M | 236.6K | 1.62M | -288.44K | -1.25M | -269.01K | -627.82K | 87.54K | -6.75K | -189.88K | -272.43K | -326.9K | -205.25K | -263.3K | -1.68M | -987.55K | -1.08M | -948.19K | -936.23K | -1.02M | -1.09M | -1.65M | -1.39M | -1.56M | -300K | -300K | -100K | -200K |
| Pretax Income | 5.55M | 7.49M | 17.07M | 15.08M | 14.4M | 19.07M | 13.22M | 16.21M | 17.59M | 11.45M | 11.22M | 8.02M | 11.53M | 10.11M | 13.22M | 8.51M | 8.25M | 1.9M | 6.04M | 14.85M | 14.85M | 7.02M | 6.83M | 5.39M | 4.73M | 6.09M | 10.66M | 9.9M | 8.7M | 5.8M | 1.5M |
| Pretax Margin % | 2.29% | 3.01% | 6.26% | 5.83% | 5.16% | 7.74% | 6.69% | 6.44% | 7.51% | 5.61% | 8.16% | 5.55% | 8.19% | 7.1% | 8.4% | 5.95% | 6.34% | 1.69% | 4.45% | 9.5% | 10.72% | 6.43% | 6.82% | 6.1% | 5.82% | 7.35% | 12.08% | 13.25% | 12.31% | 8.62% | 2.59% |
| Income Tax | 1.11M | 1.52M | 3.86M | 3.3M | 3.35M | 2.89M | 2.18M | 2.94M | 3.08M | 6.41M | 3.44M | 2.29M | 3.87M | 3.21M | 4.6M | 3M | 2.71M | 865.12K | 1.54M | 4.76M | 5.19M | 2.65M | 2.07M | 2.03M | 1.44M | 2.17M | 3.6M | 3.4M | 3.3M | 2.1M | 600K |
| Effective Tax Rate % | 20.07% | 20.33% | 22.6% | 21.9% | 23.28% | 15.14% | 16.51% | 18.14% | 17.53% | 55.96% | 30.63% | 28.6% | 33.54% | 31.76% | 34.77% | 35.29% | 32.8% | 45.5% | 25.46% | 32.1% | 34.94% | 37.79% | 30.33% | 37.64% | 30.47% | 35.7% | 33.79% | 34.34% | 37.93% | 36.21% | 40% |
| Net Income | 3.81M | 5.12M | -8.53M | 8.59M | 12.3M | 9.35M | 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 |
| Net Margin % | 1.57% | 2.05% | -3.13% | 3.32% | 4.41% | 3.79% | 2.74% | 5.27% | 6.19% | 2.47% | 5.66% | 3.96% | 5.44% | 4.84% | 5.48% | 3.85% | 4.26% | 0.92% | 3.32% | 6.45% | 6.98% | 4% | 4.75% | 3.81% | 4.05% | 4.72% | 8% | 8.7% | 7.64% | 5.5% | 1.55% |
| Net Income Growth % | 135.54% | 159.98% | -199.35% | -30.21% | 31.58% | 72.96% | -59.25% | -8.55% | 187.52% | -35.2% | 35.94% | -25.25% | 11% | -19.99% | 56.69% | -0.69% | 434.83% | -76.99% | -55.31% | 4.37% | 121.17% | -8.21% | 41.53% | 2.12% | -15.87% | -44.54% | 8.55% | 20.37% | 45.95% | 311.11% | -62.5% |
| Net Income (Continuing) | 4.44M | 5.97M | 13.22M | 11.78M | 11.05M | 16.18M | 11.03M | 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 |
| Discontinued Operations | -626.58K | -851.01K | -21.74M | -3.2M | 1.25M | -6.83M | -5.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 83.69K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.63 | 0.84 | -1.37 | 1.37 | 1.97 | 1.49 | 0.86 | 2.12 | 2.31 | 0.80 | 1.25 | 0.92 | 1.23 | 1.11 | 1.38 | 0.89 | 0.90 | 0.17 | 0.73 | 1.68 | 1.67 | 0.75 | 0.85 | 0.61 | 0.59 | 0.71 | 1.29 | 1.17 | 0.95 | 0.61 | 0.15 |
| EPS Growth % | 155.21% | 161.31% | -200% | -30.46% | 32.21% | 73.26% | -59.43% | -8.23% | 188.75% | -36% | 35.87% | -25.2% | 10.81% | -19.57% | 55.06% | -1.11% | 429.41% | -76.71% | -56.55% | 0.6% | 122.67% | -11.76% | 39.34% | 3.39% | -16.9% | -44.96% | 10.26% | 23.16% | 55.74% | 306.67% | -62.5% |
| EPS (Basic) | - | 0.84 | -1.37 | 1.38 | 1.98 | 1.49 | 0.87 | 2.13 | 2.32 | 0.81 | 1.25 | 0.92 | 1.23 | 1.11 | 1.39 | 0.89 | 0.91 | 0.17 | 0.77 | 1.79 | 1.76 | 0.80 | 0.87 | 0.62 | 0.61 | 0.72 | 1.30 | 1.20 | 0.99 | 0.62 | 0.15 |
| Diluted Shares Outstanding | 6.08M | 6.08M | 6.23M | 6.27M | 6.24M | 6.26M | 6.26M | 6.27M | 4.18M | 6.29M | 6.25M | 6.25M | 6.24M | 6.24M | 6.23M | 6.22M | 6.19M | 6.24M | 6.16M | 6M | 5.78M | 5.85M | 5.6M | 5.51M | 5.55M | 5.49M | 5.48M | 5.57M | 5.66M | 6.03M | 6.13M |
| Basic Shares Outstanding | 6.08M | 6.08M | 6.23M | 6.23M | 6.21M | 6.26M | 6.24M | 6.24M | 4.17M | 6.26M | 6.25M | 6.25M | 6.23M | 6.22M | 6.22M | 6.18M | 6.1M | 5.99M | 5.88M | 5.63M | 5.49M | 5.46M | 5.47M | 5.42M | 5.43M | 5.43M | 5.43M | 5.42M | 5.44M | 5.96M | 6.13M |
| Dividend Payout Ratio | - | 52.4% | - | 32.22% | 22.26% | 29.48% | 50.96% | 20.68% | 19% | 54.6% | 35.34% | 49.08% | 38.99% | 37.86% | 36.04% | 40.4% | 57.4% | 207.94% | 43.03% | 17.87% | 17.76% | 36.64% | 33.55% | 47.39% | 48.54% | 40.86% | 22.68% | 24.62% | 25.93% | 35.14% | 133.33% |
Cyclical industrial demand contraction
As indicated by recent quarterly filings, EML has experienced a sustained period of top-line erosion, with revenue declining to $59.7M in 2026Q1, representing a significant contraction from the $72.6M peak observed in 2024Q2 as the company struggles against broader industrial and commercial vehicle market headwinds.
The consistent negative growth trajectory suggests that the company's core end-markets are currently in a cyclical trough. Investors should monitor whether this decline reflects a structural loss of market share or merely the anticipated volatility inherent in the heavy-duty truck and industrial hardware sectors.
Based on the provided financial data, EML's gross margin has compressed to 19.7% in 2026Q1, down from the 26.8% levels seen in 2023Q4, highlighting the company's limited ability to offset rising input costs or maintain pricing power amidst a shrinking volume environment.
The narrowing gross margin appears to be a direct consequence of the company's high-fixed-cost manufacturing model, which struggles to achieve adequate absorption during periods of declining production. This trend warrants further investigation into whether management can successfully pivot toward higher-value electronic components to stabilize profitability.
According to the income statement, operating margins have deteriorated to 1.9% in 2026Q1, a sharp decline from the 9.5% peak in 2024Q3, demonstrating that the company is currently experiencing significant operating deleveraging as fixed costs remain sticky despite the ongoing revenue contraction.
The inability to scale SG&A expenses in proportion to falling revenue suggests that the company's current cost structure may be too rigid for the prevailing market environment. This lack of operating flexibility implies that any further revenue weakness could rapidly erode the remaining thin operating income.
Financial statements reveal that EML's net income has become increasingly volatile, with a net margin of only 1.1% in 2026Q1, raising concerns about the long-term sustainability of earnings if the company cannot successfully transition its product mix toward higher-margin, proprietary vision technology solutions.
Short-term earnings appear highly sensitive to non-operating items and potential inventory obsolescence, which may mask the underlying weakness in core manufacturing operations. Investors should be cautious, as the current thin profitability leaves virtually no margin for error regarding unexpected supply chain disruptions or further cyclical downturns.
Quick answers to the most common questions about buying EML stock.
For fiscal year 2025, The Eastern Company (EML) reported total revenue of $249.0M. This represents a 330.0% increase compared to $57.9M in 1996.
The Eastern Company (EML) is profitable, generating $5.1M in net income for the fiscal year ending 2025 with a net profit margin of 2.1%.
The Eastern Company (EML) reported an operating income of $10.1M, resulting in an operating profit margin of 4.1%. This margin reflects the operational efficiency of the business before interest and taxes.
The Eastern Company (EML) generated $56.4M in gross profit for the year, representing a gross profit margin of 22.6%. This demonstrates the company's core pricing power and production efficiency.