Eastern Reports 9% Annual Revenue Drop; Q4 Sales Up 4% Sequentially
Eastern reported fiscal 2025 revenue of $249M (-9% YoY) and adjusted EBITDA of $19.4M (7.8% margin), with Q4 net sales at $57.5M (-13.7% YoY) but up 4% sequentially. Restructuring saved $4M; refinanced with $100M five-year facility ($66M avail), cut net debt by $8.7M and neutralized $10M of tariff exposure.
1. Fiscal 2025 Financial Performance
Eastern's fiscal 2025 revenue totaled $249 million, a 9% decline from $272.8 million in fiscal 2024, with adjusted EBITDA falling 26% to $19.4 million and margin contracting to 7.8% from 9.6%.
2. Fourth-Quarter Trends
In the fourth quarter, net sales reached $57.5 million, down 13.7% year-over-year but up 4% sequentially from $55.3 million, while adjusted EBITDA increased by approximately $1.1 million on incremental 50% margin.
3. Restructuring, Tariffs and Refinancing
Restructuring and footprint optimization delivered about $4 million in annual savings, and management neutralized $10 million of tariff exposure; the company refinanced its debt with a new $100 million five-year revolving credit facility (with $66 million available) and reduced net debt by $8.7 million.
4. Outlook and Operational Changes
Leadership described Q3 as a trough, citing stabilization in heavy truck and automotive end markets from November; governance changes, disciplined M&A, portfolio divestiture of Centralia Mold and board reductions aim to enhance agility and shareholder alignment.