olivLaw · US equity research
The Eastern Company EML
Cutlery, Handtools & General Hardware · SIC 3420 · Vertical: Cutlery, Handtools & General Hardware (SIC 3420)
The Eastern Company (EML) designs and manufactures engineered solutions for industrial markets, mainly commercial transportation and logistics, through three operating platforms plus a newly acquired fourth. Sales fell to 249.0 million USD in 2025 and dropped 12% to 61.8 million USD in the second quarter of 2026, while backlog rose 45% on acquired aerospace and defense orders.
At the close of 05 Nov 2026, The Eastern Company (EML) stock was 27.21 USD (−5.55% on the day), with market capitalisation 163.7 m USD, P/E 20.3 on diluted EPS of 1.34 USD over the last 12 months, dividend yield 1.62%, beta 0.61, 52-week range 17.79–29.39 USD. Latest reported quarter (Q2 2027): revenue of 61.8 m USD (−11.9% YoY), net income of 5.6 m USD (+64.2% YoY), diluted EPS 0.94 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 57.9
- strong (55–70)
- Bollinger (20, 2)
- 22.13 – 29.24
- in the upper half of the band · %B 0.71 · band width 27.6%
- SMA 50 / 200
- 25.54 / 22.84
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.90 / 0.53
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.7% | −1.1% | +9.8 pp | — |
| 3 months | +8.5% | −0.5% | +8.9 pp | — |
| 6 months | +20.6% | +4.4% | +16.2 pp | — |
| Year to date | +38.2% | +12.3% | +25.9 pp | — |
| 1 year | +31.6% | +13.5% | +18.0 pp | +40.0% |
| 3 years | +54.3% | +76.4% | −22.1 pp | +26.8% |
| 5 years | +12.2% | +63.7% | −51.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 71.3 m | 66.7 m | 63.3 m | 70.2 m | 55.3 m | 57.5 m | 59.7 m | 61.8 m |
| Cost of revenue | 53.1 m | 51.3 m | 49.1 m | 53.8 m | 43.0 m | 44.4 m | 47.7 m | 49.1 m |
| Gross profit | 18.2 m | 15.4 m | 14.2 m | 16.4 m | 12.4 m | 13.1 m | 11.9 m | 12.8 m |
| Research & development | 1.1 m | 1.1 m | 1.1 m | 1.0 m | 995.8 k | 927.8 k | 1.0 m | 1.0 m |
| SG&A | 10.3 m | 11.2 m | 9.8 m | 12.2 m | 9.6 m | 10.0 m | 9.6 m | 10.1 m |
| Operating income | 6.8 m | 3.0 m | 3.2 m | 3.1 m | 1.7 m | 2.2 m | 1.3 m | 1.7 m |
| Depreciation & amortisation | 524.1 k ≈ | 1.6 m | 1.5 m | 1.7 m ≈ | 1.7 m ≈ | 1.7 m | 1.7 m | 1.6 m ≈ |
| Interest expense | 709.7 k | 671.7 k | 617.5 k | 636.3 k | 688.4 k | 665.2 k | 527.5 k | 581.3 k |
| Pre-tax income | 6.0 m | 2.1 m | 2.4 m | 2.6 m | 876.6 k | 1.3 m | 810.4 k | 7.5 m |
| Income tax | 1.3 m | 523.3 k | 507.2 k | 546.4 k | 297.7 k | 99.9 k | 170.3 k | 1.9 m |
| Net income | -15.3 m | 1.3 m | 1.9 m | 3.4 m | 578.9 k | 1.2 m | 640.1 k | 5.6 m |
| Diluted EPS | -2.46 | 0.21 ≈ | 0.32 | 0.56 | 0.10 | 0.19 ≈ | 0.11 | 0.94 |
| Operating cash flow | -2.9 m ≈ | 11.0 m | -1.8 m | 3.8 m ≈ | 3.1 m ≈ | 3.8 m | 3.5 m | 8.6 m ≈ |
| Capex | 4.8 m ≈ | 2.1 m | 849.4 k | 750.4 k ≈ | 44.1 k ≈ | 2.3 m | 867.3 k | 615.0 k ≈ |
| Dividends paid | 682.0 k ≈ | 679.3 k | 675.1 k | 672.9 k ≈ | 668.3 k ≈ | 664.8 k | 664.8 k | 662.3 k ≈ |
| Share repurchases | 1.4 m ≈ | 1.1 m | 1.4 m | 722.9 k ≈ | 851.4 k ≈ | 754.3 k | 422.4 k | 405.5 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 27-quarter history (min 7.8, median 15.7, max 33.1; quarters with earnings only).
Fiscal years
| Fiscal year | ⚠ 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 204.2 m | 234.3 m | 251.7 m | 246.5 m | 279.3 m | 258.9 m | 272.8 m | 249.0 m |
| Revenue YoY | — | +14.7% | +7.5% | unavailable | +13.3% | −7.3% | +5.4% | unavailable |
| Net income | 5.0 m | 14.5 m | 13.3 m | 9.3 m | 12.3 m | 8.6 m | -8.5 m | 7.1 m |
| Net income YoY | — | +187.5% | −8.5% | unavailable | +31.6% | −30.2% | −199.4% | unavailable |
| Diluted EPS | 0.80 | 2.31 | 2.12 | 1.49 | 1.97 | 1.37 | -1.37 | 1.17 |
| Diluted EPS YoY | — | +188.7% | −8.2% | unavailable | +32.2% | −30.5% | −200.0% | unavailable |
| net % | 2.5% | 6.2% | 5.3% | 3.8% | 4.4% | 3.3% | -3.1% | 2.9% |
| Free cash flow | 8.4 m | 9.3 m | 17.5 m | -11.5 m | 4.1 m | 20.0 m | 9.7 m | 4.9 m |
The series breaks before 2017: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2026 · 03 Jan 2026
- Cash
- 7.4 m USD
- Financial debt
- 33.9 m USD
- Net debt
- 26.5 m USD
- Equity
- 124.6 m USD
- Total assets
- 216.7 m USD
- Debt / equity
- 0.27x
- Current ratio
- 3.59x
- ROE
- unavailable
- ROA
- 3.3%
- FCF margin
- 2.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 251.7 m | 246.5 m | 279.3 m | 258.9 m | 272.8 m | 249.0 m | SEC (XBRL)· 03 Mar 2026verified |
| Cost of revenue | 189.9 m | 189.8 m | 220.6 m | 197.1 m | 205.5 m | 192.0 m | SEC (XBRL)· 03 Mar 2026verified |
| Gross profit | 61.9 m | 56.8 m | 58.6 m | 61.8 m | 67.3 m | 57.0 m | SEC (XBRL)· 03 Mar 2026verified |
| Research & development | 6.0 m | 4.1 m | 4.2 m | 5.6 m | 4.9 m | 4.1 m | SEC (XBRL)· 03 Mar 2026verified |
| SG&A | 35.7 m | 35.2 m | 39.5 m | 39.1 m | 42.2 m | 42.2 m | SEC (XBRL)· 03 Mar 2026verified |
| Operating income | 17.5 m | 17.4 m | 14.2 m | 17.0 m | 20.1 m | 10.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Depreciation & amortisation | 6.5 m | 7.2 m | 7.2 m | 7.5 m | 5.9 m | 6.6 m | SEC (XBRL)· 03 Mar 2026verified |
| EBITDA | 23.9 m ≈ | 24.7 m ≈ | 21.4 m ≈ | 24.5 m ≈ | 26.0 m ≈ | 17.3 m ≈ | SEC (XBRL)· 03 Mar 2026derived |
| Interest expense | 1.9 m | 1.7 m | 2.3 m | 2.8 m | 2.7 m | 2.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Pre-tax income | 16.2 m | 19.1 m | 14.4 m | 15.1 m | 17.1 m | 7.5 m | SEC (XBRL)· 03 Mar 2026verified |
| Income tax | 2.9 m | -2.1 m | -3.4 m | 3.3 m | 3.9 m | 1.5 m | SEC (XBRL)· 03 Mar 2026verified |
| Net income | 13.3 m | 9.3 m | 12.3 m | 8.6 m | -8.5 m | 7.1 m | SEC (XBRL)· 03 Mar 2026verified |
| Diluted EPS | 2.12 | 1.49 | 1.97 | 1.37 | -1.37 | 1.17 | SEC (XBRL)· 03 Mar 2026verified |
| Weighted average diluted shares | 6.3 m | 6.3 m | 6.2 m | 6.3 m | 6.2 m | 6.1 m | SEC (XBRL)· 03 Mar 2026verified |
| Dividend per share | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | SEC (XBRL)· 03 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 18.0 m | 6.2 m | 10.2 m | 8.0 m | 14.0 m | 7.4 m | SEC (XBRL)· 03 Mar 2026verified |
| Receivables | 37.9 m | 43.2 m | 42.9 m | 34.2 m | 35.5 m | 30.1 m | SEC (XBRL)· 03 Mar 2026verified |
| Inventories | 54.6 m | 62.9 m | 64.6 m | 58.4 m | 55.2 m | 56.3 m | SEC (XBRL)· 03 Mar 2026verified |
| Current assets | 115.9 m | 123.7 m | 125.3 m | 112.2 m | 115.6 m | 99.3 m | SEC (XBRL)· 03 Mar 2026verified |
| Property, plant & equipment, net | 41.0 m | 28.3 m | 26.1 m | 23.5 m | 27.5 m | 26.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Goodwill | 79.5 m | 72.2 m | 70.8 m | 58.6 m | 58.5 m | 58.6 m | SEC (XBRL)· 03 Mar 2026verified |
| Intangibles (excl. goodwill) | 26.5 m | 22.9 m | 18.8 m | 15.3 m | 8.8 m | 5.3 m | SEC (XBRL)· 11 Aug 2026verified |
| Total assets | 280.7 m | 266.3 m | 261.5 m | 252.0 m | 235.3 m | 216.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Accounts payable | 20.0 m | 29.6 m | 27.6 m | 24.6 m | 19.7 m | 16.4 m | SEC (XBRL)· 03 Mar 2026verified |
| Short-term debt | 5.2 m | 7.5 m | 9.0 m | 2.9 m | 3.6 m | 0 | SEC (XBRL)· 03 Mar 2026verified |
| Long-term debt | 93.6 m | 63.8 m | 55.1 m | 41.1 m | 38.6 m | 33.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Current liabilities | 34.9 m | 49.6 m | 47.0 m | 42.7 m | 44.8 m | 27.6 m | SEC (XBRL)· 03 Mar 2026verified |
| Total liabilities | 175.2 m | 151.7 m | 134.9 m | 119.6 m | 114.6 m | 92.0 m | SEC (XBRL)· 03 Mar 2026verified |
| Equity | 105.4 m † | 114.6 m † | 126.6 m † | 132.5 m † | 120.7 m † | 124.6 m † | SEC (XBRL)· 03 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 23.0 m | -7.8 m | 7.5 m | 25.5 m | 19.4 m | 8.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Capex | 5.4 m | 3.7 m | 3.4 m | 5.5 m | 9.7 m | 4.0 m | SEC (XBRL)· 03 Mar 2026verified |
| Free cash flow | 17.5 m ≈ | -11.5 m ≈ | 4.1 m ≈ | 20.0 m ≈ | 9.7 m ≈ | 4.9 m ≈ | SEC (XBRL)· 03 Mar 2026derived |
| Investing cash flow | -85.8 m | 13.6 m | 5.1 m | -4.6 m | -7.9 m | -508.9 k | SEC (XBRL)· 03 Mar 2026verified |
| Financing cash flow | 67.0 m | -20.3 m | -11.9 m | -22.9 m | -4.8 m | -16.3 m | SEC (XBRL)· 03 Mar 2026verified |
| Dividends paid | 2.7 m | 2.8 m | 2.7 m | 2.8 m | 2.7 m | 2.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Share repurchases | 0 | 369.7 k | 1.6 m | 735.8 k | 3.1 m | 3.7 m | SEC (XBRL)· 03 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 36 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 163.7 m USD
Key indicators
Coverage and freshness
Score by group
- Returns67
- Growth0
- Balance sheet34
- Valuation51
- Quality31
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.78 – 55.50 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)32.35 – 55.50 (Mid 40.98)WACC 8.3% · starting FCFF 17.0 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -15.7%
- Peers: EV/EBITDA8.70 – 24.62 (Mid 21.57)6 companies used · median multiple 11.6x · quartiles 5.9x – 13.0xACU, HLMN, LCUT, RECT, SNA, SSD
- Peers: P/E17.37 – 29.92 (Mid 27.70)7 companies used · median multiple 20.6x · quartiles 12.9x – 22.3xACU, CIX, LCUT, RECT, SNA, SSD, SWK
- Dividend discount (DDM)5.78 – 7.78 (Mid 6.63)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 36/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 3.4% | 0 (vs peers) | 10% |
| Net margin · Quality | 3.4% | 13 (vs peers) | 6% |
| FCF conversion · Quality | 188.3% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | -1.3% | 0 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -5.1% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 2.0x | 17 (vs peers) | 10% |
| Interest coverage · Balance sheet | 2.8x | 20 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.8x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 20.3x | 63 (vs peers) | 10% |
| EV/EBITDA · Valuation | 14.1x | 0 (vs peers) | 10% |
| FCF yield · Valuation | 9.2% | 100 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 3.1% | 44 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 17.6% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet34/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality31/100 · 3/3 factors with a value
- Returns67/100 · 2/2 factors with a value
- Valuation51/100 · 3/3 factors with a value
Memo
THE EASTERN COMPANY (EML). Latest full fiscal year: 2026; data up to 2026-07-04.
Figures computed from the financial statements: revenue 249.0 m USD in 2026; net margin 3.4%; ROE 6.3%; net debt/EBITDA 2.0x.
The estimated value range is 13.04–27.27 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 24.63 USD, the price of 27.21 USD leaves a potential of -9.5% (value / price − 1) and a margin of safety of -10.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 36/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 188.3%
- Current ratio: 2.8x
- FCF yield: 9.2%
- Payout ratio (FCF): 17.6%
What contradicts it
- ROIC: 3.4%
- Net margin: 3.4%
- Revenue CAGR 3Y: -1.3%
- EPS CAGR 3Y: -5.1%
- Net debt / EBITDA: 2.0x
- Interest coverage: 2.8x
- EV/EBITDA: 14.1x
Versus the vertical median
Cutlery, Handtools & General Hardware (SIC 3420) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNASnap-on Inc | 19.0 bn | 19.2 | 17.0% | 19.2% | unavailable | +8% / +34% |
| SWKStanley Black & Decker, Inc. | 17.1 bn | 20.6 | 9.4% | 5.5% | unavailable | +61% / +27% |
| SSDSimpson Manufacturing Co., Inc. | 8.1 bn | 21.7 | 18.7% | 15.6% | +4.5% | +19% / +19% |
| HLMNHillman Solutions Corp. | 1.7 bn | 66.6 | 2.0% | 1.5% | +5.4% | −3% / +17% |
| CIXCompx International Inc | 451.8 m | 22.8 | 16.3% | 14.0% | +8.5% | +63% / +56% |
| ACUAcme United Corp | 263.9 m | 28.9 | 8.4% | 4.6% | +1.1% | +86% / +91% |
| LCUTLifetime Brands, Inc. | 178.6 m | 5.4 | 15.8% | 4.8% | −5.1% | +104% / +21% |
| EMLThe Eastern Company | 163.7 m | 20.3 | 6.3% | 3.4% | unavailable | +32% / +54% |
| RECTRectitude Holdings Ltd | 18.4 m | 6.7 | 13.9% | 7.0% | +22.0% | −37% / unavailable |
1- and 3-year price returns: for EML from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 15.06 Total return -43% · Per year -43% | 26.71 Total return -0% · Per year -0% | 40.34 Total return 50% · Per year 50% |
| 3 years | 12.97 Total return -49% · Per year -20% | 26.03 Total return 0% · Per year 0% | 43.39 Total return 65% · Per year 18% |
| 5 years | 11.16 Total return -54% · Per year -14% | 25.36 Total return 1% · Per year 0% | 46.67 Total return 82% · Per year 13% |
- Exit P/E± 6.51
- Net margin± 4.55
- Annual revenue growth± 3.96
- Annual dilution± 0.38
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
The Eastern Company (EML) designs and manufactures engineered solutions for industrial markets, mainly commercial transportation and logistics, through three operating platforms plus a newly acquired fourth. Sales fell to 249.0 million USD in 2025 and dropped 12% to 61.8 million USD in the second quarter of 2026, while backlog rose 45% on acquired aerospace and defense orders.
SWOT
Strengths
- A diversified range of engineered products with broad customers and no excessive dependence on a single client.
- Asian production capacity through wholly owned subsidiaries that lowers costs and supports fast delivery.
- A decentralized holding-company model that allows acquisitions and integration of new operating platforms.
Weaknesses
- Sales declined in 2025 and the first half of 2026, and gross margins were below the prior year.
- Debt rose in the second quarter of 2026 to fund the acquisition, which limits financial flexibility.
- Reliance on returnable packaging orders has exposed the company to sharp volume swings.
Opportunities
- A recovery in heavy-truck production and in large customers could support backlog growth and a better product mix.
- Aerospace and defense programs with long cycles could reduce dependence on commercial transportation.
- Further acquisitions in industrial segments could widen the portfolio if integration succeeds.
Threats
- Tariffs on steel, aluminum and nickel could raise costs and reduce margins if not passed on to customers.
- Aggressively priced imports from Asia and Latin America could keep pressure on prices.
- Integrating recent acquisitions could delay progress or divert resources from core operations.
Risks
- Tariffs and raw material costshigh
Metal tariffs and sanctions can raise production costs and reduce margins if they cannot be fully passed on to customers 1.
- Competitive pressure from importshigh
Low-priced imports could force price cuts and loss of market share, affecting profitability 1.
- Acquisition integrationmedium
The recent acquisition may not reach expected results or may carry unforeseen liabilities, and the bargain purchase gain could be revisited when values are finalized 23.
- Currency exposuremedium
International operations are exposed to exchange rate swings and to restrictions on repatriating earnings, which affect earnings and asset values 1.
- Dependence on packaging ordersmedium
Lower orders for returnable packaging have reduced sales, and if the trend persists revenue could stay below earlier levels 13.
Investment thesis
What would need to be true (bull case)
- A rise in backlog and a recovery in heavy-truck production could support better profitability in the second half of the year 3.
- Entry into aerospace and defense could bring long-cycle programs and a more diversified revenue base 23.
- If new contracts book at better margins, the company could gradually recover the margin pressure seen in 2025 3.
What would break the thesis
- Sales continue to fall year over year, and gross margin and adjusted EBITDA dropped significantly in the second quarter of 2026 3.
- Debt rose after the acquisition, which could limit investment capacity and share repurchases 3.
- Import pressure and metal tariffs could keep compressing margins in the near term 1.
What to watch
- Gross margin and adjusted EBITDA trajectory after integrating Sungear and Crown PrecisionQ3 2026
- Conversion of backlog into sales, especially for aerospace programsQ4 2026
- Total debt level and repayment capacity after the acquisitionnext 10-K
- Effects of steel and aluminum tariffs on cost in the annual report2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Incorporated in Connecticut in 1912, the company manages industrial businesses that design, manufacture and sell unique engineered solutions, with fourteen locations across North America and Asia 1. It has one reportable segment, Engineered Solutions, which includes Big 3 Precision, Eberhard Manufacturing (access and security hardware), Velvac (vision technology and heavy-truck aftermarket components) and Hallink Moulds, the latter reported within the Big 3 Mold business that was partly sold 1. On June 1, 2026 it acquired Sungear and Sinecera (Crown Precision), California makers of aerospace and defense components, creating a fourth platform 23.
Segments
Engineered Solutions
The single reportable segment supplies customized products for commercial transportation and logistics, including turnkey returnable packaging, access and security hardware, truck mirrors and latch and handle assemblies 1. In fiscal 2025 it accounted for all continuing operations, and the customer base is broad without high concentration 1.
Market context
The company serves industrial and transportation markets, where demand depends on heavy-truck production rates and logistics investment 13. US tariffs on steel and aluminum have raised raw material costs, and imports from Asia and Latin America with favorable currency rates and low-cost labor have put pressure on prices 1.
Trends
- Heavy-truck production ratestailwind
Rising heavy-truck build rates could support Eberhard and Velvac, and the return of Eberhard's largest customer for mechanical access systems contributed to backlog growth 3. If the recovery holds, margins could benefit from a better product mix.
- Metal tariffsheadwind
US tariffs on steel and aluminum and sanctions affecting nickel supply can raise raw material costs and reduce availability, directly affecting margins if not passed on to customers 1.
- Demand for returnable packagingmixed
Lower shipments of returnable transport packaging were the main driver of sales declines in 2025 and the first half of 2026, and the company says the unfavorably priced contracts are now behind it 13.
- Expansion into aerospace and defensetailwind
The Sungear and Crown Precision acquisition opens access to long-cycle aerospace and defense programs, which could diversify the revenue base if integration proceeds as planned 23.
Competitive position
The company faces global competition, notably from imports from Asia and Latin America that have created pricing pressure 1. It responds with high-quality custom products, internal engineering, cost-effective Asian subsidiaries and inventory for fast turnaround 1. The sources provided do not name specific competitors.
- Importers from Asia and Latin America
Competitors importing products with favorable exchange rates and low-cost labor put downward pressure on the company's prices 1.
- Companies offering comparable products
Firms offering comparable products or products for the same uses are described in the filing without being named 1.
- Suppliers of new or updated products
Competitors introducing new or updated products may force the company to adapt its range, according to its disclosed risk factors 1.
- Returnable packaging and automotive component makers
In packaging and vehicle component markets, competition and price cuts have affected volumes, according to company reports 13.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Saudi-led coalition intercepts, destroys drone over eastern Saudi ArabiaAnadolu Agency (TR, EN) · 05 Nov 2026 · EN
- Israeli occupiers seize 8 Palestinian homes in eastern West BankAnadolu Agency (TR, EN) · 04 Nov 2026 · EN
- Saudi-led coalition says it intercepted drone in eastern kingdomAnadolu Agency (TR, EN) · 03 Nov 2026 · EN
- Экс-глава China Eastern Airlines получил 14 лет тюрьмы за взяткиRBC News (RU business+politics) · 03 Nov 2026 · RU
- Heavy Rain to Persist in Eastern Bulgaria as Orange Alerts Remain in ForceNovinite — Sofia News Agency (BG, EN) · 03 Nov 2026 · EN
- Cyclone Murasu makes landfall on India’s eastern coastAl Jazeera English · 03 Nov 2026 · EN
- Cyclone Murasu makes landfall on India's eastern coastThe Straits Times — Asia · 03 Nov 2026 · EN
- Cyclone Murasu wreaks havoc along eastern coast of IndiaAnadolu Agency (TR, EN) · 03 Nov 2026 · EN
- Houthi rebels claim strikes on airports in eastern, southern Saudi ArabiaTASS (RU, EN) · 02 Nov 2026 · EN
- 🇺🇸 🇮🇱 ⚡ Diplomats from Middle Eastern countries have expressed concerns that the…Telegram — Intel Slava Z (pro-RU OSINT EN) · 02 Nov 2026 · EN
- Drone attacks hit 2 power stations in eastern Sudan, trigger widespread outageAnadolu Agency (TR, EN) · 02 Nov 2026 · EN
- Coal India Unit South Eastern Coalfields Files for India IPOBloomberg Markets · 02 Nov 2026 · EN
- Drones attack oil, energy infrastructure in eastern Sudan — newspaperTASS (RU, EN) · 01 Nov 2026 · EN
- Coach brings skiing to schoolyards in eastern TürkiyeHürriyet Daily News — Türkiye (TR, EN) · 01 Nov 2026 · EN
- PHOTOS: New fast boat service connects Split with eastern BračCroatia Week (HR, EN) · 31 Oct 2026 · EN
- The Pentagon wants NATO’s eastern flank to be quiet about Russia while Washington courts MoscowEuromaidan Press (UA, EN) · 30 Oct 2026 · EN
- The outer rim: on closer collaboration between Eastern Europe and East AsiaNew Eastern Europe (PL, EN) · 30 Oct 2026 · EN
- Highliners take on deep canyon in eastern TürkiyeHürriyet Daily News — Türkiye (TR, EN) · 30 Oct 2026 · EN
- Trans-Arctic Transport Corridor's eastern part may develop cargo traffic to APAC marketsTASS (RU, EN) · 29 Oct 2026 · EN
- Six killed in cyclone off India's eastern coastCNA (Channel NewsAsia) · 29 Oct 2026 · EN
SEC filings
- Quarterly report11 Aug 2026
- Current report11 Aug 2026Results of operations · Financial statements and exhibits
- Current report02 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report12 May 2026
- Current report12 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report08 May 2026Other events · Financial statements and exhibits
- Current report08 May 2026Shareholder vote · Financial statements and exhibits
- Proxy statement23 Mar 2026
- Annual report03 Mar 2026
- Current report (amendment)03 Mar 2026Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-03 · SEC / The Eastern Company · 03 Mar 2026
- [2] Form 10-Q, quarter ended 2026-07-04 · SEC / The Eastern Company · 11 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Eastern Company · 11 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.