东方公司2025年季度报告

OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number001-35383 THE EASTERN COMPANY (Exact name of registrant as specified in its charter) (203)-729-2255(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submittedpursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smallerreporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ PART IFINANCIAL INFORMATION 1includes cash from assets held for sale of $1.2 million as of March 29, 2025 and $0.4 million as ofMarch 30, 2024See accompanying notes Table of Contents Note A – Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions toForm 10-Q and Rule 8-03 of Regulation S-X and do not include all the information and footnotes required by generally acceptedaccounting principles in the United States (“GAAP”) for complete financial statements. Refer to the consolidated financial statements The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, alladjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim The condensed consolidated balance sheet as of December 28, 2024 has been derived from the audited consolidated balance sheet atthat date. The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31. References in this QuarterlyReport on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-weekperiod ending on January 3, 2026. In a 52-week fiscal year, each quarter has 13 weeks. References to the first quarter of 2024, the firstfiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period fromDecember 31, 2023 to March 30, 2024. References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of Certain amounts in the 2024 financial statements have been reclassified to conform with the 2025 presentation with no impact orchange to previously reported net income or shareholders’ equity. See Note B,Discontinued Operations, for additional information. Note B – Discontinued Operations In the third quarter of 2024, we determined that the business of Big 3 Mold Services, Inc. (“Big 3 Mold”) meets the criteria to be heldfor sale and that the assets held for sale qualify for discontinued operations. As such, the financial results of the Big 3 Mold businessare reflected in our unaudited condensed consolidated statements of operations as discontinued operations for all periods presented. On April 30, 2025, the Company sold the equipment, workforce and customer list of the ISBM division of Big 3 Precision MoldService, Inc.ISBM, which is located in Centralia, Illinois, is an injection stretch blow mold toolmaker. Table of Contents Summarized Financial Information of Discontinued Operations The following table represents income (loss) from discontinued operations, net of tax: Table of Contents Table of Contents Note C – Earnings Per Share Note D – Fair Value of Instruments and Fair Value Measurements The Company incurs certain manufacturing, marketing, and selling costs in international markets in local currency. Accordingly,earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. dollar, theCompany’s reporting currency. The Company has a program in place that is designed to mitigate the exposure to changes in foreigncurrency exchange rates. The program includes the use of derivative financial instruments to minimize, for a period of time, the impacton its financial results from changes in foreign exchange rates. The Company util