EML EASTERN CO

Overview and Growth

Fiscal 2026 results for EASTERN CO combined $248.97M of revenue with net income of $7.13M and an operating cash inflow of $8.87M. At $248.97M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $272.75M in fiscal 2025, revenue decreased 8.7%, a top-line contraction that reduced operating scale. Diluted earnings per share were $1.17, translating the period’s attributable earnings into the amount reported for each diluted share. Revenue equaled 1.15x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $56.96M as gross profit before recognizing operating expenses and other items. Gross margin was 22.9%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $10.67M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 4.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $7.13M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 2.9% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $7.49M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 3.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $1.52M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 20.3%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $216.68M of assets against $92.03M of liabilities and $124.65M of equity, revealing how the asset base was financed. Current assets were $99.27M against $27.62M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 3.59x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $7.41M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 26.8%, excluding receivables and other current assets. Total debt was $33.90M, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.27x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 15.6% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 42.5% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 3.4%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

The company reported $8.87M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.24x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $3.97M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 44.8% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $4.90M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 2.0%, showing how much sales converted into cash after investment. Free cash flow equaled 2.3% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Jan 3, 2026. Analysis generated Sep 24, 2026.