EASTERN CO — Form 8-K
Filed August 11, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 52/100
What the filing says
Eastern Company acquired Sungear LLC and Crown Precision (dba Sinecera LLC), California-based precision manufacturers, on June 1, 2026, for an undisclosed price funded by $8.0M new debt (total debt rose to $41.7M). The acquisition added $1.7M aerospace revenue in Q2 2026. Backlog increased 45% YoY to $126.2M. However, Q2 2026 net sales fell 12% to $61.8M (vs. $70.2M prior year); adjusted net income fell 73% to $0.9M ($0.15/share) from $3.5M ($0.57/share); adjusted EBITDA fell 49% to $3.4M from $6.7M. Gross margin declined to 20.6% from 23.3% YoY. Company repurchased 19,529 shares.
Why this rating
Acquisition expands into growth markets but near-term operational performance deteriorated sharply; adjusted earnings down 73%, EBITDA down 49% on 12% sales decline. Backlog growth offers future upside, but current profitability weakness is material for a ~$111M market-cap company.
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