The Eastern Company (NASDAQ: EML) reported its third quarter 2026 financial results for the period ended October 3, 2026. The company announced net sales of $75.0 million for the quarter, representing a 36% increase year-over-year and a 21% increase sequentially. This growth was driven by higher shipments of truck mirror assemblies, returnable transport packaging, and latch and handle assemblies, as well as the first full-quarter contribution from the recently acquired Sungear and Crown Precision businesses.
Gross margin for the quarter expanded to 23.9% from 22.3% in the prior year. Operating profit more than tripled to $5.6 million, or 7.4% of net sales, compared to $1.7 million, or 3.1% of net sales, in the prior-year quarter. Net income from continuing operations was $3.4 million, or $0.57 per diluted share, compared to $0.6 million, or $0.10 per diluted share, in the prior-year quarter. Adjusted EBITDA from continuing operations increased to $7.6 million, more than doubling from the $3.5 million reported in the same period last year.
During the quarter, the company repaid $2 million of debt, leaving $61 million of revolver availability at the quarter end. The company’s backlog increased 70% year-over-year to $126.1 million. The company will host a conference call to discuss the results on Wednesday, November 11, 2026, at 9:00 AM Eastern Time.
