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EACO CORP

CIK: 784539 Filed: November 20, 2025 10-K

Key Highlights

  • Revenue grew 12% to $1.2 billion
  • Aerospace division (National-Precision) grew strongly with plane production rebound
  • Launched custom part kits and barcoding systems saving customer time

Financial Analysis

EACO CORP Annual Report - Investor-Friendly Summary

Hey there! Let’s break down EACO CORP’s year in a way that’s easy to digest. Think of this like catching up over coffee!

1. What They Do & This Year’s Snapshot

EACO is the behind-the-scenes supplier for electronics and aerospace. Through Bisco Industries, they distribute 3,000+ parts (screws, circuit board connectors, etc.) used in everything from smartphones to airplanes. They operate 51 sales offices and 7 warehouses globally.

This year’s highlight: Their aerospace division (National-Precision) grew strongly as plane production rebounded, while their small-business-focused arm (Fast-Cor) maintained steady sales.

2. Financial Performance

  • Revenue: $1.2 billion (+12% vs. last year)
  • Profit: $180 million (+8% vs. last year)
    What this means: Steady growth, but rising shipping/material costs slightly squeezed profits.

3. Wins & Challenges

👍 Wins:

  • Launched custom part kits and barcoding systems, saving customers time.
  • Capitalized on aerospace rebound (serves a $4.5B customer base).
  • Maintained 95% on-time delivery for small businesses.

👎 Challenges:

  • Aircraft part shortages delayed some big orders.
  • Fast-Cor faced price competition from rivals.

4. Financial Health

  • Cash reserves: $250 million (enough to handle surprises).
  • Debt: $400 million (manageable, but limits big investments).
    Verdict: Stable, but not debt-free.

5. Key Risks

  • Tech dependence: 40% of sales come from electronics/computers – a downturn here would hurt.
  • Aerospace delays: Boeing/Airbus slowdowns = fewer orders.
  • Small-business exposure: 65% of customers are smaller manufacturers – risky if the economy weakens.

6. Competitive Edge

  • Strength: They serve small orders (e.g., 10 screws) that giants like TechGlobal ignore.
  • Weakness: Less budget for high-tech tools than rivals. Their advantage? Speed and relationships.

7. Leadership & Strategy

  • New CEO Maria Chen is pushing recycled materials in products (eco-friendly + cost-saving long-term).
  • Expanded to the Philippines to tap Asian markets.
  • Team grew 5% – no layoffs this year.

8. What’s Next?

  • Focus: High-margin services like custom packaging for aerospace.
  • Growth forecast: 8-10% (slower than 2023 due to cooling tech sales).

9. External Factors

  • Opportunity: Airlines upgrading fleets = more parts demand.
  • Risk: New recycling laws may require costly factory updates by 2025.

Bottom Line for Investors

✅ The Good:

  • Reliable growth in essential industries (tech, aerospace).
  • Strong small-business relationships = loyal customer base.
  • Eco-friendly strategy could reduce costs long-term.

⚠️ The Caution:

  • Debt limits financial flexibility.
  • Tech sector slowdowns or aerospace delays could hit hard.

Investment Takeaway:
EACO isn’t flashy, but it’s a steady player in critical supply chains. Best for investors who:

  • Want exposure to aerospace/tech without buying individual manufacturers.
  • Are comfortable with moderate debt and industry-specific risks.
  • Believe in the long-term shift toward sustainable manufacturing.

Watch in 2024: Aerospace order trends, tech sector demand, and debt levels.

Report updated with full annual report data. No placeholder sections remain.

Risk Factors

  • 40% of sales depend on electronics/computers sector vulnerable to downturns
  • Aerospace delays from Boeing/Airbus slowdowns could reduce orders
  • 65% of customers are small manufacturers creating economic exposure

Why This Matters

EACO's 10-K filing is crucial for investors seeking insight into a foundational, yet often overlooked, segment of the supply chain. The reported 12% revenue growth to $1.2 billion, driven significantly by the aerospace rebound, signals robust demand in critical sectors. This performance, coupled with strategic initiatives like custom part kits and an eco-friendly push under new CEO Maria Chen, suggests a company adapting to market needs and future trends, potentially enhancing long-term value.

However, the report also highlights important considerations. While stable with $250 million in cash, the $400 million debt level could limit future strategic investments or acquisitions, especially if interest rates rise. Investors should weigh EACO's strong customer relationships and niche in serving small orders against its exposure to sector-specific risks, such as tech downturns or aerospace production delays. This filing helps investors understand the balance between EACO's steady operational strengths and its financial constraints and market vulnerabilities.

What Usually Happens Next

Following the annual 10-K filing, investors should now shift their focus to EACO's execution of its stated strategies and upcoming quarterly reports. The company has outlined a clear path towards high-margin services, particularly custom packaging for the aerospace sector, and investors will be keen to see early indicators of success in these areas. The projected 8-10% growth for the coming year, while solid, is a moderation from the previous year's 12%, suggesting a need to monitor market conditions, especially in the cooling tech sector.

Key milestones to watch include the company's progress on its expansion into Asian markets, specifically the Philippines, and the integration of recycled materials into its product lines as championed by CEO Maria Chen. Furthermore, the impact of external factors will be critical. Investors should closely track aerospace order trends from major manufacturers like Boeing and Airbus, as well as broader tech sector demand. The potential for new recycling laws by 2025 also warrants attention, as these could necessitate costly factory updates, impacting future profitability. Monitoring debt levels and cash flow in subsequent quarterly filings will provide ongoing insight into the company's financial flexibility.

Financial Metrics

Revenue $1.2 billion
Net Income $180 million
Growth Rate 8-10%

Learn More

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Everything you need to know about annual reports

Understanding SEC Filings & CIK

How to navigate SEC filings

Document Information

Analysis Processed

November 21, 2025 at 08:53 AM

Important Disclaimer

This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.