EACO Corporation reported a solid QQ2 2025 with meaningful top-line growth and expanding margins, underpinned by continued demand for electronic components and fasteners distributed through its Bisco Industries subsidiary. Revenue reached $100.132 million, up 20.16% year over year and 6.61% quarter over quarter, while gross profit rose to $29.508 million and gross margin stood at 29.47%. Operating income was $9.094 million with an EBITDA of $9.549 million, translating to an EBITDA margin of 9.54% and an operating margin of 9.08%. Net income of $6.763 million produced an EPS of $1.39 (diluted $1.38), up about 23% year over year but flat to slightly down versus the prior quarter on a per-share basis driven by mix and non-operating items.
From a balance-sheet perspective, total assets of $199.76 million support a durable equity base of $137.11 million, with modest leverage (total debt $11.65 million; debt ratio 0.0583; debt to equity 0.085). Cash at period-end was a modest $0.509 million, yielding a negative free cash flow of $3.271 million as operating cash flow was negative by $3.076 million, largely due to working-capital movements (notably increases in receivables and inventory during the quarter). The company continues to trade at a reasonable valuation for a distributor with elevated gross margins: P/E about 8.6x and P/B around 1.70x, with a neutral to slightly constructive investment stance given improving profitability metrics and a solid margin profile despite the cash-flow dynamics.
Overall, EACO demonstrates a resilient operation with an attractive margin structure in a competitive technology-distribution landscape. The stock’s appeal will hinge on execution in working-capital normalization, the realization of value-added services, and sustained end-market demand, alongside liquidity considerations for a small OTC name.