EACO Corporation reported a solid QQ1 2025 performance characterized by resilient top-line momentum and margin resilience in a cautious macro environment. Revenue for the quarter stood at $93.92 million, up 17.03% year over year, while sequential metrics showed a modest deceleration with revenue down 2.69% versus the immediately preceding quarter. The company delivered a gross margin of approximately 29.6% (gross profit of $27.78 million) and an EBITDA of $8.84 million, translating to an EBITDA margin of about 9.4% and an operating margin of 9.42%. Net income reached $6.87 million, translating to a net margin of 7.31% and diluted EPS of $1.40.
From a cash flow perspective, EACO generated operating cash flow of roughly $2.01 million and free cash flow of about $1.88 million for the quarter, with capital expenditures of only $0.13 million. The company ended the period with cash and short-term investments totaling ~$21.1 million and total debt of ~$11.3 million, yielding a net debt position of ~$10.7 million. The balance sheet remains robust, with total equity of ~$130.5 million and a conservative debt profile (total debt to capitalization ~8.0%). Inventory remained elevated at $75.7 million, contributing to a healthy current ratio (~2.56) but a modest quick ratio (~1.30), highlighting the working-capital-intensive nature of a component distributor.
Overall, the QQ1 2025 results reinforce EACO’s competitive positioning as a distributor with a scalable services platform (including packaging, kitting, and integrated supply programs) and a favorable gross margin profile relative to many peers. Absent explicit management forward guidance in the provided data, the near-term thesis rests on continued volume resilience in electronics components, disciplined cost control, and the ability to convert revenue into steady free cash flow given working-capital dynamics.