Here are a couple of brief analogies to describe Compx International (CIX):

• Like a smaller, diversified industrial components manufacturer, similar to a specialized Honeywell (HON), but focused on locks for various industries and parts for recreational boats.
• Imagine Allegion (Schlage locks) for industrial and furniture security, combined with a key component supplier for boat manufacturers like Brunswick (Sea Ray, Mercury).

• Mechanical and Electronic Locks: Manufactures and markets a variety of mechanical and electronic locks and security hardware for different applications.
• Stainless Steel Exhaust Components: Produces stainless steel exhaust systems and components primarily for the recreational marine industry.
• Fabricated and Machined Parts: Provides custom fabricated and machined metal parts for original equipment manufacturers (OEMs).

Compx International (CIX) primarily sells its products to other companies (B2B) rather than directly to individuals. Its major customers, based on recent financial filings (such as its 2023 10-K), include:

• Brunswick Corporation (Symbol: BC) - A leading global recreational marine company, Brunswick is a significant customer for Compx International's Marine Components segment, purchasing stainless steel propellers and exhaust systems for installation in new boats. Brunswick Corporation accounted for approximately 38% of Compx International's consolidated net sales in 2023.
• Malibu Boats, Inc. (Symbol: MBUU) - A designer, manufacturer, and marketer of performance sport boats, Malibu Boats is another key customer for Compx International's Marine Components segment, purchasing propellers and related accessories. Malibu Boats accounted for approximately 11% of Compx International's consolidated net sales in 2023.

Compx International also serves other significant customers in both its Marine Components and Security Products segments, including a major marine aftermarket customer, a significant security products distributor, and a large office furniture manufacturer. However, these customers are not publicly traded companies and are not explicitly named in Compx International's public filings.

Scott C. James, Director and Chief Executive Officer; President of the Company, CompX Security Products and CompX Marine

Mr. James possesses extensive experience in leadership and strategic management, having been instrumental in guiding CompX International's growth and operational efficiency. His tenure as CEO is characterized by a commitment to innovation, market expansion, and fostering a strong corporate culture, demonstrating a deep understanding of the industry and a proven track record of delivering value to shareholders.

Amy Allbach Samford, Executive Vice President and Chief Financial Officer

Ms. Samford holds a key financial leadership role, overseeing the company's financial operations, planning, and strategy. Her responsibilities include critical functions such as financial reporting, budgeting, forecasting, treasury, and investor relations, ensuring the financial health and stability of CompX International.

Amy E. Ruf, Vice President, Controller and Principal Accounting Officer

Ms. Ruf serves as the Vice President and Controller, and also holds the position of Principal Accounting Officer for CompX International.

Michael S. Simmons, Director and Executive Vice President; Vice Chairman of the Board

Mr. Simmons is a Director and Executive Vice President, and also serves as the Vice Chairman of the Board. In a previous or concurrent capacity as CFO, he was involved in financial strategy, planning, management, and reporting, including budgeting, treasury operations, and investor relations. His role as Vice Chairman indicates a broader strategic involvement in the company's direction and governance.

Bart W. Reichert, Vice President, Internal Audit

Mr. Reichert holds the position of Vice President, Internal Audit at CompX International Inc.

One clear emerging threat for Compx International (CIX) is the growing adoption of smart lock and keyless entry systems across various markets, including residential, commercial, and recreational vehicles. As technology advances, consumers and businesses are increasingly opting for electronic access solutions that offer enhanced features like remote access, biometric authentication, and integration with smart home/office ecosystems. This trend directly challenges CIX's core security products segment, which primarily manufactures traditional mechanical locks and locking mechanisms, potentially leading to a decline in demand for their conventional products.

Another clear emerging threat stems from the ongoing technological transformation within the marine industry. The increasing trend towards the electrification of recreational boats and the widespread adoption of fully integrated digital dashboards (often referred to as "glass cockpits") pose a challenge to CIX's marine components segment. As electric propulsion systems gain traction, and as more boat manufacturers incorporate consolidated digital displays for navigation, engine data, and boat systems, the demand for traditional analog gauges, instruments, and separate mechanical controls designed for internal combustion engines may diminish. This could necessitate significant investment in new product development for electric marine applications and digital integration, or risk obsolescence of existing product lines.

Compx International (CIX) operates primarily in two business segments: Security Products and Marine Components.

Security Products

Compx International's Security Products segment includes mechanical and electromechanical locks, latches, hinges, key control products, key cabinets, key reels, key tags, and key management software. These products serve diverse markets such as office furniture, cabinetry, motorcycles, postal boxes, medical carts, vending machines, gas stations, and government security.

• The global locks market was valued at approximately USD 5.8 billion in 2024 and is estimated to grow to USD 11.15 billion by 2035.
• The U.S. locks market alone was valued at USD 1.1 billion in 2024.
• The global mechanical locks market was valued at USD 7.75 billion in 2025 and is projected to reach USD 11.15 billion by 2035.
• The global padlock market size is valued at USD 2.83 billion in 2025 and is forecasted to reach USD 5.93 billion by 2035.
• The global locker locks market was worth around USD 2.38 billion in 2024 and is predicted to grow to approximately USD 9.20 billion by 2034.

Marine Components

The Marine Components segment manufactures high-end products for the recreational boating, military, and industrial markets. This includes items such as exhaust headers, exhaust pipes, wake shaping devices, gauges, throttles, trim tabs, and various accessories for marine vessels.

• The global marine equipment market is projected to grow from USD 13.9 billion in 2024 to USD 19.7 billion by 2031.
• The global recreational boat parts and accessories market was valued at USD 16.67 billion in 2024 and is projected to reach USD 24.27 billion by 2035.

• Increased Sales in the Security Products Segment to Government and Real Estate Markets: Compx International has recently experienced higher sales in its Security Products segment, particularly to the government security market. This growth is anticipated to continue, with further potential for a broader recovery in this end-market tied to new real estate development and renovation activities.
• Expansion of Marine Components Sales in Towboat, Government, and Industrial Markets: The Marine Components segment has demonstrated significant growth due to increased sales to the towboat, government, and industrial markets. The company projects sustained growth in both revenues and margins for this division, driven by anticipated demand from these markets.
• Impact of Potential Interest Rate Cuts on Discretionary Spending and Real Estate: The prospect of falling interest rates is expected to stimulate both capital project spending in the real estate sector, which would benefit the Security Products business, and increase discretionary spending on recreational marine products, thereby supporting the Marine Components segment.
• Favorable Product Mix and Higher Volumes in the Marine Components Segment: The Marine Components segment is benefiting from higher volumes and a more favorable product mix, which contributes to improved gross and operating margins. This trend, aided by better coverage of fixed costs, is expected to continue enhancing profitability and revenue.

Share Repurchases

• Prior to 2022, CompX's board of directors authorized various repurchases of Class A common stock in open market or privately-negotiated transactions. The program does not have specific price targets or timetables and may be suspended at any time.
• As of March 31, 2021, CompX had 627,547 shares available for repurchase under a board-authorized stock repurchase program. During the first quarter of 2021, the company purchased 50,000 shares of its Class A common stock.
• As of March 31, 2023, 523,647 shares were available for repurchase under a stock repurchase program.

Capital Expenditures

• Capital expenditures were $3.7 million in 2022, $1.1 million in 2023, and $1.4 million in 2024.
• In 2022, capital expenditures were higher due to accelerated projects aimed at increasing capacity and improving capabilities in response to strong customer demand.
• Expected capital expenditures for 2025 are approximately $3.2 million, primarily focused on meeting expected customer demand and maintaining facilities and technology infrastructure.