---
schema_version: "secwatch.filing_event.v1"
accession: "0001654954-26-004737"
form_type: "8-K"
ticker: "EML"
cik: "0000031107"
company_name: "EASTERN CO"
filed_at: "2026-05-12T20:26:43+00:00"
generated_at: "2026-05-12T20:31:18.823325+00:00"
event_type: "earnings"
sentiment: "negative"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# Eastern Co. Q1 net sales $59.7M, net income $0.6M; racks business drag contained to H1 2026

## Summary
- Net sales $59.7M (-5.7% YoY); net income $0.6M ($0.11 diluted EPS) vs $1.9M ($0.31) YoY.
- Adjusted EBITDA $3.0M, down ~35% YoY on lower volume, pricing pressures, and labor inefficiencies.
- Gross margin 20.0% vs 22.4% YoY; unfavorable rack contracts impacted results, expected to resolve by Q2 2026.
- Backlog $82.2M; sequential revenue growth from Q4 2025; demand recovery intact per CEO.
- Balance sheet: $1.0M debt reduction, $422K share repurchases, ~$67M revolver available.

## SEC filing metadata
- accession: 0001654954-26-004737
- form_type: 8-K
- ticker: EML
- cik: 0000031107
- company_name: EASTERN CO
- filed_at: 2026-05-12T20:26:43+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 2.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/31107/000165495426004737/0001654954-26-004737-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/31107/000165495426004737/eml_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001654954-26-004737
- JSON: https://secwatch.observer/filing/0001654954-26-004737.json
- Plain text: https://secwatch.observer/filing/0001654954-26-004737.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.