The Eastern Company designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally. It offers turnkey returnable packaging solutions that are used in the assembly process of vehicles, aircraft, and durable goods, as well as in the production process of plastic packaging products, packaged consumer goods, and pharmaceuticals; designs and manufactures blow mold tools and injection blow mold tooling products, and 2-step stretch blow molds and related components; and supplies blow molds and change parts to the food, beverage, healthcare, and chemical industry. It also offers rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles, as well as development and program management services for custom electromechanical and mechanical systems; designs and manufactures proprietary vision technology for original equipment manufacturers (OEMs) and aftermarket applications; and provides aftermarket components to the heavy-duty truck market. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.
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1. A smaller, more focused Illinois Tool Works (ITW).
2. Like the industrial hardware and security solutions division of Stanley Black & Decker (SWK).
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Industrial Hardware: Manufactures a wide range of locks, latches, hinges, and other access control and security hardware for industrial and commercial use.
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Vehicle Vision Systems and Components: Produces mirror and camera systems, along with custom wire harnesses, primarily for commercial and recreational vehicles.
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Precision Manufacturing Services: Provides plastic injection molds, custom automation equipment, and precision machined components for various industries.
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Company: Eastern Company (EML)
Primary Sales Model: Eastern Company primarily sells to other businesses (Business-to-Business, or B2B).
Major Customers:
Based on Eastern Company's public filings, including its 2023 10-K, no single customer accounted for 10% or more of its consolidated net sales in 2023, 2022, or 2021. Public companies are generally only required to disclose the names of customers that individually account for 10% or more of their gross revenues. As such, no specific major customers are individually identified by name in public disclosures.
However, Eastern Company serves a diverse range of customers primarily operating within the following sectors, based on its product offerings and market descriptions:
- Industrial & Commercial Businesses: This category encompasses manufacturers of industrial equipment, machinery, and various commercial products that require engineered components and systems such as latches, locks, hinges, and handles for their products and operations.
- Transportation Industry: Companies involved in the manufacturing and operation of vehicles in the truck, trailer, bus, and rail sectors utilize Eastern Company's industrial hardware products.
- Security Markets: This includes commercial enterprises, financial institutions, and government entities that require advanced electronic and mechanical security solutions, such as intelligent key systems and various security devices.
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Ryan Schroeder, President & Chief Executive Officer
Ryan Schroeder joined The Eastern Company in 2024 as President and Chief Executive Officer. Prior to his current role, he served as CEO of Plaskolite LLC, a manufacturer of engineering thermoplastics, from 2020 through 2023. During his time at Plaskolite, the company was backed by private equity firm Pritzker Private Capital. Before Plaskolite, Mr. Schroeder was President, Americas for IMI Norgren from 2016 to 2020. He also held various leadership positions at Parker Hannifin from 2004 to 2016, including general manager of the hydraulic valve division, general manager of the hydraulic pump motor division, business unit manager, plant manager, and supply chain manager of the hydraulic cylinder division.
Nicholas Vlahos, Vice President and Chief Financial Officer
Nicholas Vlahos has served as The Eastern Company's Chief Financial Officer since February 2023, having joined the company in 2017. Previously, Mr. Vlahos held the role of Vice President of Finance, Treasurer, and Secretary, where he oversaw financial reporting, tax, insurance, and benefit plans. He also supported the company's Mergers, Acquisitions, and Divestitures activities.
Emilio Ruffolo, President of Big 3 Precision Products
Emilio Ruffolo became President of Big 3 Precision Products in January 2025. He brings extensive manufacturing leadership experience from previous roles at CNHIndustrial, Metalex, and Eberhard Manufacturing, and began his professional career with DaimlerChrysler.
Zachary Gorny, President of Eberhard Manufacturing
Zachary Gorny has been President of Eberhard Manufacturing since December 2024. Before joining The Eastern Company, he was Vice President & General Manager at IMI Plc from 2017, where he led the Americas region and Global Operations and Supply Chain for the Transportation Sector.
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The Eastern Company (EML) faces several key risks to its business, primarily stemming from its global operations, reliance on raw materials, and exposure to specific industrial markets.
Here are the key risks in order of significance:
- Risks Associated with Global Operations and Geopolitical Factors: The Eastern Company conducts business overseas, exposing it to risks such as fluctuations in exchange rates, potential inability to repatriate foreign cash, and the impact of actual or threatened increases in trade tariffs. Furthermore, political, economic, and social instability in the regions where it operates, as well as military conflicts and geopolitical events, can adversely affect its cost structure and economic conditions.
- Volatility in Raw Material Costs and Supply Chain Disruptions: The company is susceptible to the impact of higher raw material and component costs, including but not limited to steel, plastics, scrap iron, zinc, copper, and electronic components. Supply chain disruptions and shortages of these materials can lead to increased expenses and hinder the company's ability to meet customer demand, thereby negatively affecting its financial condition and results of operations.
- Dependence on Key Industrial Market Conditions: The Eastern Company's performance is significantly influenced by conditions in the industrial markets it serves, particularly the commercial transportation and logistics markets. Softness in specific segments, such as the medium and heavy-duty truck markets, coupled with broader global economic downturns and rising interest rates, can lead to reduced demand for its products and adversely impact its revenue and profitability.
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The accelerated global transition to electric vehicles (EVs) poses a clear emerging threat, particularly to Eastern's Metal Powders segment. This segment manufactures various iron and steel powders primarily used in the production of powdered metal components for internal combustion engine (ICE) vehicles, including critical parts for transmissions and engines. As automakers worldwide increase their EV production and phase out ICE vehicles, the long-term demand for these traditional powertrain components is expected to decline significantly. This shift fundamentally alters the market landscape for materials suppliers catering to ICE vehicle manufacturing, similar to how new digital technologies disrupted traditional industries like video rental or physical media.
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Eastern Company (EML) operates in several industrial markets, with one key addressable market identified for its products.
The addressable market for Eastern Company's returnable packaging products in North America is approximately $4 billion. This market includes primary end-markets such as automotive, commercial vehicles, other industrial applications, and aerospace. The custom-engineered portion of this market is estimated to be around $1.0 billion to $1.5 billion.
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The Eastern Company (EML) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market recoveries:
- Recovery in Heavy-Duty Truck and Automotive Markets: The company has been significantly impacted by a downturn in the heavy-duty truck and automotive sectors, and management anticipates a gradual improvement in heavy-duty truck sales into fiscal year 2026. A rebound in these markets would directly contribute to increased demand for Eastern's vehicular and industrial hardware, mirrors, and mirror-cameras.
- Product Innovation and Market Diversification: Eastern is focused on driving product innovation and diversifying its customer base. This includes efforts to expand into new sectors such as military and heavy equipment, aiming to reduce volatility and support sustainable growth. This strategic expansion beyond traditional markets is crucial for capturing new revenue streams.
- Growth in the U.S. Postal Service (USPS) Vehicle Replacement Program: The ramp-up of the USPS vehicle replacement program within the Eberhard division is identified as a specific opportunity that could boost Eastern's future results. This program represents a significant new contract or expanding business within an existing product line.
- Strategic Acquisitions and External Growth Opportunities: The Eastern Company's management actively analyzes and pursues prudent organic growth strategies, and also looks to execute attractive external growth and acquisition opportunities. Such acquisitions could lead to expanded market presence, new product lines, or increased customer bases, thereby driving revenue growth.
- Strategic Price Increases: While the company has faced increased raw material costs, it has also implemented price increases, which partially offset these costs in the first quarter of 2025. Continued strategic pricing adjustments in response to market conditions and cost structures could contribute to revenue growth.
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Share Repurchases
- The Eastern Company authorized a new 400,000 share repurchase program in May 2025, doubling the size of the previously completed 200,000-share program. This new program is set to extend through May 2030.
- Year-to-date through Q3 2025, the company repurchased 118,000 shares for approximately $3.0 million.
- In the third quarter of 2025, 36,413 shares of common stock were repurchased under the April 2025 authorized program.
Share Issuance
- The number of issued shares increased from 9,146,996 in 2024 to 9,170,470 in 2025.
Inbound Investments
- Subsequent to the third quarter of 2025, Eastern secured a new $100 million revolving credit facility with Citizens Bank to enhance financial flexibility and support long-term growth initiatives.
- As of the Q3 2025 filing, $64 million was available from this new $100 million revolving credit facility.
Capital Expenditures
- Total capital expenditures for the first half of 2024 (fiscal year) were reported at $1.6 million.
- The company has been revamping Big 3 Precision's geographic footprint to improve focus, production, and cost-efficiency, a process expected to be completed in the second quarter of 2025.
- Restructuring efforts undertaken in the second and third quarters of 2025 are anticipated to generate approximately $4 million in annual cost savings starting in 2026, by optimizing the workforce and aligning resources with market conditions.
