The Eastern Company

And welcome to the Eastern Company's second quarter fiscal year 2025 earnings call. At this time, all participants are on a listen-only mode, and a question and answer session will follow the form of presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the conference over to your host, Marianne Barr, Treasurer and Corporate Secretary. Mom, you may begin.

Good morning, and thank you everyone for joining us this morning for a review of the Eastern Company's results for the second quarter of 2025. With me on the call are Ryan Schroeder, Chief Executive Officer, and Nicholas Vallejos, Chief Financial Officer. The company issued an earnings press release yesterday after the market closed. If anyone has not yet seen the release, please visit the Investors section of the company's website, www.easterncompany.com, where you will find the release under Financial News. Please note that some of the information you will hear during today's call will consist of forward-looking statements about the company's future financial performance and business prospects, including, without limitation, statements regarding revenue, gross margin, operating expenses, other income and expenses, taxes, and business outlook. These forward-looking statements are subject to risks and uncertainties that could cause actual results or trends to differ significantly from those projected in these forward-looking statements. We undertake no obligation to review or update any forward-looking statements to reflect events or circumstances that occur after the call. For more information regarding these risks and uncertainties, please refer to risk factors discussed in our SEC filings, including our Form 10-K for the fiscal year 2024, filed with the SEC on March 11, 2025, and our Form 10-Q filed with the SEC on August 5, 2025. In addition, during today's call, we will discuss non-GAAP financial measures that we believe are useful as supplemental measures of Eastern's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. A reconciliation of each of the non-GAAP measures discussed during today's call to the most directly comparable GAAP measure can be found in the earnings press release. With that introduction, I'll turn the call over to Ryan.

Thanks, Mary Ann. Good morning, and thank you all for joining us today. We do appreciate your interest in the Eastern Company. Revenue for the quarter was $70.2 million. That's down 3% from prior year. Adjusted earnings per share was 56 cents, which was very similar to our Q2 2024 results. We have made great strides improving and reducing costs in each of our three companies, as well as our corporate overhead this last quarter. We overhauled Big Three's operating footprint with the closure of our Dearborn, Michigan facility, as well as a warehouse, while opening a smaller facility in Sterling Heights, Michigan, purpose fit for our design and prototyping businesses, as well as strategically placed among our largest customers. Salary headcount reductions occurred at Eberhard, Belvac, as well as at our corporate offices. All in, there were 60 jobs impacted with an annual savings of $4 million. We updated and refreshed our strategies within each of the companies, And I'm thrilled to report Eberhard has been ramping up its participation in the all-new United States Postal Service delivery vehicle. The government awarded this program to our longtime partner and customer, Oshkosh. This is the first major replacement vehicle for the United States Postal Service in almost 30 years. Eberhard is supplying a multitude of custom-designed products and systems on each vehicle. The ramp-up is continuing for the remainder of the year. And this is a perfect example of how Eberhard excels. Custom engineered fit for purpose access control solutions. Additional updates from the quarter include a share buyback program we purchased that completed with 400,000 shares purchased. 82,000 of those shares were purchased in the quarter. We completed the sale of our Centralia mold assets and have rolled the other two mold businesses back into continued operations. And our teams have been very effective at managing tariffs. The Valdeck and Everhard teams have been able to virtually neutralize the impact on their P&Ls thus far. And Big Three Precision is unusually well-positioned to benefit for being made in America. At this point, I'd like to hand it over to Nick for some more details on the quarter itself. Nick, over to you.