EASTERN CO 8K

The Eastern Company filed a Form 8-K to announce second quarter 2026 results, including the acquisition of Sungear and Crown Precision, higher backlog, a bargain purchase gain, increased debt to fund the deal, and continued share repurchases amid weaker year-over-year sales and adjusted earnings.

On August 11, 2026, The Eastern Company reported its second quarter 2026 results, highlighting the June 1, 2026 acquisition of Sungear, LLC and Sinecera, LLC (dba Crown Precision) that expanded its presence into aerospace and defense markets, a 45% year-over-year increase in backlog to $126.2 million, and a one-time $6.5 million non-cash bargain purchase gain associated with the acquisition. The company posted a 12% decline in quarterly net sales to $61.8 million versus the prior year, while net income from continuing operations rose to $5.6 million, or $0.94 per diluted share, largely driven by the bargain purchase gain; adjusted net income from continuing operations fell to $0.9 million and adjusted EBITDA decreased to $3.4 million as margins contracted versus 2025. Eastern also disclosed that total debt increased by $8.8 million during the quarter to $41.7 million to finance the acquisitions, and it repurchased 19,529 shares under its existing share repurchase program, leaving 256,275 shares still available for repurchase. Management noted improving demand in core commercial transportation markets, the completion of unfavorably priced contracts in the returnable transport packaging business, and anticipated benefits from integrating the acquired operations, positioning the company for improved underlying profitability in the second half of 2026.

Filing Facts

CIK

31107

Ticker

-

Form

8K

Source Type

sec

Accession

0001654954-26-007476

Alert Tier

7