Eastern Navigates Challenging 2025, Sees Signs of Stabilization

Company makes operational changes, positions for improved performance as demand stabilizes

Published on Mar. 4, 2026

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Eastern (NASDAQ:EML) executives told investors the company navigated a difficult fiscal 2025 marked by pressure in heavy truck and automotive markets, while making significant structural and operational changes to position the business for improved performance as demand stabilizes. The company reported a 9% year-over-year decline in revenue to $249 million and a 57% drop in net income from continuing operations to $6 million for the full year.

Why it matters

Eastern's results reflect the broader challenges facing industrial manufacturers serving the heavy truck and automotive sectors, which have seen demand pressures in recent years. The company's efforts to restructure its operations and reduce costs aim to position it for better performance as market conditions stabilize.

The details

In the fourth quarter, Eastern's revenue decreased 13.7% year-over-year to $57.5 million, driven by lower shipments of returnable transport packaging products and truck mirror assemblies. However, the company reported sequential improvement, with revenue rising 4% from the third quarter. Gross margin in the fourth quarter was 22.8% of sales compared to 23% a year earlier, primarily due to higher material costs on lower sales volumes. Selling and administrative expenses fell 10.5% in the quarter due to lower commissions, legal fees, and personnel-related costs.

  • Eastern's fiscal 2025 was a 53-week year, with the fourth quarter spanning 14 weeks versus 13 weeks in the prior-year period.
  • As of January 3, 2026, Eastern's backlog was $81.1 million, down 10% from $89.1 million as of December 28, 2024.

The players

Ryan Schroeder

Chief Executive Officer of Eastern.

Nicholas Vlahos

Chief Financial Officer of Eastern.

Zach Gorny

Hired to lead Eberhard, one of Eastern's divisions.

Emilio Ruffolo

Promoted to lead Big 3, one of Eastern's divisions.

Chan Galbato

Joined Eastern's board in 2025.

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What they’re saying

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What’s next

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The takeaway

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