Eastern Reports $0.57 a Share as Backlog Rises 70%
Key Facts
Eastern reported fiscal third-quarter results on November 10, 2026, for the period ended October 3, posting net income from continuing operations of $3.4 million, or $0.57 a diluted share. That compared with net income of $0.6 million and earnings of $0.10 a share in the same period of 2025. The comparison shows year-over-year increases in income and earnings per share for the quarter. Chief Executive Ryan Schroeder said sales, gross margin and operating profit as a percentage of sales all reached their highest levels in five quarters. Operating profit as a percentage of sales was 7.4%, the company said.
Schroeder said operating profit as a percentage of sales more than doubled from its previous level to 7.4% in the third quarter. He said sales and gross margin, along with that ratio, each reached their highest level in five quarters. The indicators reflect improved quarterly performance compared with the previous four quarters, according to management. The company attributed the strong results to higher sales, wider margins and improved operating profitability. Available evidence did not provide separate figures for sales or gross margin, but it specified the indicators' ranking across the five-quarter period.
Backlog stood at $126.1 million at the end of the quarter, up 70% year over year. The company said new orders offset strong shipments during the period, supporting the backlog despite product deliveries to customers. It said those orders provided business visibility through the end of 2026 and into 2027. That puts backlog growth alongside improved sales and profitability in the quarter's performance, with the order schedule extending into next year, according to the company. The company did not disclose the value of new orders or shipments separately in its statement.
Earnings from continuing operations for the first nine months of 2026 included a noncash bargain purchase gain of $6.5 million related to the acquisitions of Sungear and Crown Precision. The company said the gain is excluded from adjusted financial measures. That figure covers the first nine months, while the net income and earnings-per-share comparison in the results refers to the third quarter alone. The distinction between the periods and measurement methods shows that the acquisition-related gain is part of reported earnings for the nine months, but is not included in adjusted measures. The company also said the two acquisitions were associated with a noncash bargain purchase gain, without providing evidence of each one's separate contribution to quarterly results.
The company's EML shares closed at $27.25 in the November 9, 2026, session, according to EL7 data. That close preceded the November 10 results announcement, so it reflects a price recorded in the session before the release. Verified evidence did not include the stock's trading range during that session, and the information contains no figure for its move after the results. The close is dated November 9 and is separate from the financial performance figures for the period ended October 3. A management call scheduled for the day after the results announcement will provide an opportunity to discuss the figures with investors.
The company said management will hold a call and webcast to discuss third-quarter results on November 11, 2026, at 9:00 a.m. Eastern time. The event is scheduled for the day after the results announcement, according to the call timing notice published on Nasdaq. Management is set to discuss results for the period ended October 3, which the company reported on November 10. The call provides a specific time to discuss quarterly performance with management, while the backlog visibility the company announced extends through 2027. Available evidence did not provide further details about the call's topics or future financial expectations.