secwatch.observer — SEC 8-K summary
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Issuer:     EASTERN CO (EML)
CIK:        0000031107
Form:       8-K
Filed at:   2026-05-12T20:26:43+00:00
Accession:  0001654954-26-004737
Event type: earnings
Sentiment:  negative
Materiality: 0.65
Item codes: 2.02, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/31107/000165495426004737/0001654954-26-004737-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/31107/000165495426004737/eml_8k.htm
  HTML page:      https://secwatch.observer/filing/0001654954-26-004737

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer