EACO Corporation
EACO
$74.00 0.00%
Exchange: OTC | Sector: Technology | Industry: Technology Distributors
Q1 2025
Published: Jan 13, 2025

Earnings Highlights

  • Revenue of $93.92M up 17% year-over-year
  • EPS of $1.40 increased by 291.7% from previous year
  • Gross margin of 29.6%
  • Net income of 6.87M
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EACO
Company EACO

Executive Summary

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.

Key Performance Indicators

Revenue
Increasing
93.92M
QoQ: -2.69% | YoY: 17.03%
Gross Profit
Increasing
27.78M
29.58% margin
QoQ: -6.41% | YoY: 17.86%
Operating Income
Increasing
8.84M
QoQ: -10.16% | YoY: 261.09%
Net Income
Increasing
6.87M
QoQ: 5.84% | YoY: 286.12%
EPS
Increasing
1.41
QoQ: 181.50% | YoY: 291.67%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 100.13 1.38 +20.2% View
Q1 2025 93.92 1.40 +17.0% View
Q4 2024 96.52 -1.71 +12.4% View
Q3 2024 96.12 0.24 +19.8% View
Q2 2024 83.34 1.12 +8.3% View