Core Viewpoint - CompX International Inc. has demonstrated strong financial performance in Q2 2025, with significant stock price appreciation and positive investor sentiment, contrasting with the broader market decline [1][2]. Financial Performance - For Q2 2025, CompX reported net sales of $40.4 million, a 12.4% increase from $35.9 million in Q2 2024 [2]. - Net income rose 12.2% to $5.5 million, or 44 cents per diluted share, compared to $4.9 million, or 39 cents per share, in the previous year [2]. - Operating income improved 23.5% to $6.3 million from $5.1 million year-over-year [2]. - Gross margin increased to 31.9% from 31.1% year-over-year [2]. Segment Performance - **Security Products**: Net sales reached $30.7 million, up 9% year-over-year, driven by a $3.3 million increase in government security market sales and a $0.5 million boost from healthcare [3]. Operating income increased 6% to $5.8 million, although gross margin slightly declined to 31.1% from 31.7% [3]. - **Marine Components**: This segment saw a 26% year-over-year increase in net sales to $9.7 million, supported by strong demand from government and towboat markets [4]. Gross margin expanded from 28.8% to 34.5%, and operating income surged 73% to $2.4 million [4]. Management Commentary - Management highlighted robust demand across both segments, particularly in Marine Components, which benefited from a one-time stocking order and consistent government demand [5]. - There are concerns regarding margin pressure due to rising employee-related costs, which affected Security Products but were offset in Marine Components by increased volumes [6]. Market Influences - The improved performance was supported by favorable macroeconomic trends and government spending, which bolstered order volumes [7]. - Challenges include ongoing cost inflation in raw materials, particularly electronic components, which began in Q3 2024 and intensified in Q2 2025 [8]. Guidance - CompX expects elevated revenues in Security Products for the remainder of 2025, driven by government and healthcare demand, but anticipates margin challenges due to increased inventory costs and tariffs [10][11]. - For Marine Components, continued growth in revenues and margins is projected, supported by higher demand from industrial and government markets [11]. Shareholder Returns - The board declared a special dividend of $1 per share, payable on August 27, 2025, in addition to a regular quarterly dividend of 30 cents per share [13]. - The company's strong balance sheet and cash flow generation facilitated this distribution, reflecting a strategic return of excess capital [13]. Capital Expenditure and Financial Health - No acquisitions or restructuring activities were reported, with a focus on organic growth and capital discipline, alongside an expected capital expenditure of $3.4 million for 2025 and no debt on the balance sheet as of June 30, 2025 [14].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of Registrant as specified in its charter) DELAWARE 57-0981653 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition p ...

[CompX Q2 2025 Earnings Release](index=1&type=section&id=CompX%20Q2%202025%20Earnings%20Release) [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) CompX International Inc. reported significant year-over-year growth for the second quarter and first six months of 2025 [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) Net sales, operating income, and net income all showed significant year-over-year growth in the second quarter of 2025 Q2 Financial Performance (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $40.3M | $35.9M | +12.3% | | Operating Income | $6.3M | $5.1M | +23.5% | | Net Income | $5.5M | $4.9M | +12.2% | | EPS (basic and diluted) | $0.44 | $0.39 | +12.8% | [Year-to-Date 2025 Performance](index=1&type=section&id=Year-to-Date%202025%20Performance) The first six months of 2025 saw continued positive momentum with notable increases in sales, operating income, and net income First Half (H1) Financial Performance (YoY Comparison) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $80.6M | $73.9M | +9.1% | | Operating Income | $12.2M | $8.8M | +38.6% | | Net Income | $10.6M | $8.6M | +23.3% | | EPS (basic and diluted) | $0.86 | $0.70 | +22.9% | [Business and Operational Overview](index=1&type=section&id=Business%20and%20Operational%20Overview) Revenue growth was driven by strong performance in both the Security Products and Marine Components segments - Sales growth was driven by higher **Security Products sales** to the government security market[3](index=3&type=chunk) - Increased **Marine Components sales** to the government and towboat markets also contributed to revenue growth[3](index=3&type=chunk) - Operating income improvement was a result of both **higher sales and better gross margins** across both business segments[3](index=3&type=chunk) - CompX is a leading manufacturer of security products and recreational marine components, operating from three U.S. locations with approximately **570 employees**[4](index=4&type=chunk) [Risk Factors and Forward-Looking Statements](index=1&type=section&id=Risk%20Factors%20and%20Forward-Looking%20Statements) The company's forward-looking statements are subject to risks from supply and demand, raw material costs, competition, and global conditions - Future **supply and demand** for the company's products[6](index=6&type=chunk) - Changes in **raw material costs** (such as zinc, brass, steel) and the ability to pass these costs to customers[6](index=6&type=chunk)[8](index=8&type=chunk) - Price and product **competition from low-cost manufacturing sources**, such as China[8](index=8&type=chunk) - Potential disruptions from general **global economic and political conditions**, including supply chain issues, trade disputes, and global conflicts[8](index=8&type=chunk) - Technology-related disruptions, including **cyber attacks** that could impact operations or the supply chain[8](index=8&type=chunk) [Summary of Consolidated Operations](index=5&type=section&id=SUMMARY%20OF%20CONSOLIDATED%20OPERATIONS) The report provides a detailed unaudited consolidated income statement for the second quarter and first half of 2025 and 2024 Consolidated Operations (In millions, except per share amounts) | | **Three months ended June 30,** | **Six months ended June 30,** | | :--- | :--- | :--- | | | **2024** | **2025** | **2024** | **2025** | | **Net sales** | $35.9 | $40.3 | $73.9 | $80.6 | | Cost of sales | 24.8 | 27.4 | 53.1 | 55.5 | | **Gross margin** | 11.1 | 12.9 | 20.8 | 25.1 | | SG&A expense | 6.0 | 6.6 | 12.0 | 12.9 | | **Operating income** | 5.1 | 6.3 | 8.8 | 12.2 | | Interest income | 1.3 | 0.9 | 2.5 | 1.7 | | **Income before income taxes** | 6.4 | 7.2 | 11.3 | 13.9 | | Income tax expense | 1.5 | 1.7 | 2.7 | 3.3 | | **Net income** | $4.9 | $5.5 | $8.6 | $10.6 | | **EPS (basic and diluted)** | $0.39 | $0.44 | $0.70 | $0.86 |

Group 1 - CompX International Inc. declared a special cash dividend of $1.00 per share and a regular quarterly dividend of $0.30 per share on its class A common stock [1] - The special cash dividend is payable on August 27, 2025, to stockholders of record at the close of business on August 18, 2025 [1] - The regular quarterly dividend of $0.30 per share is payable on September 16, 2025, to stockholders of record at the close of business on September 5, 2025 [1] Group 2 - CompX is focused on balancing investment in business growth with stockholder distributions [2] - The company's strategy emphasizes generating consistent healthy cash flow and maintaining a strong balance sheet, allowing for additional cash returns to stockholders while ensuring long-term investment capability [2] Group 3 - CompX is recognized as a leading manufacturer of security products and recreational marine components [3]

Core Insights - CompX International Inc. reported net sales of $40.3 million for Q2 2025, an increase from $35.9 million in Q2 2024, indicating a growth of approximately 12.2% year-over-year [1] - The company's operating income rose to $6.3 million in Q2 2025 from $5.1 million in Q2 2024, reflecting a growth of about 23.5% [1] - Net income for Q2 2025 was $5.5 million, or $0.44 per share, compared to $4.9 million, or $0.39 per share, in the same period of 2024, marking an increase of approximately 12.2% in net income [1] Financial Performance - For the six months ended June 30, 2025, net sales reached $80.6 million, up from $73.9 million in the previous year, representing a growth of about 10.1% [2] - Operating income for the first half of 2025 was $12.2 million, compared to $8.8 million for the same period in 2024, indicating a significant increase of approximately 38.6% [2] - Net income for the six months ended June 30, 2025, was $10.6 million, or $0.86 per share, compared to $8.6 million, or $0.70 per share, in 2024, reflecting an increase of approximately 23.3% [2] Sales Drivers - The increase in net sales for both the second quarter and year-to-date 2025 was attributed to higher sales in Security Products, primarily to the government security market, and increased Marine Components sales to government and towboat markets [3] - Operating income growth in both the second quarter and the first six months of 2025 was driven by higher sales and improved gross margins in the Security Products and Marine Components segments [3] Company Overview - CompX International Inc. is a leading manufacturer of security products and recreational marine components, operating from three locations in the U.S. and employing approximately 570 people [4]

Core Viewpoint - CompX International Inc. is set to announce its second quarter 2025 earnings on August 5, 2025, after market close, pending the completion of quarter-end closing procedures [1] Company Overview - CompX International Inc. is a prominent manufacturer specializing in security products and recreational marine components [1] Financial Reporting - The company will release its earnings report following the conclusion of quarter-end closing procedures, indicating a structured approach to financial transparency [1]

Core Viewpoint - CompX International Inc. (CIX) has experienced a 2.2% decline in share price following the release of its first-quarter 2025 results, contrasting with a 0.4% rise in the S&P 500 index, although it has gained 18% over the past month, indicating a divergence between short-term investor caution and long-term optimism [1]. Earnings & Sales Performance - For Q1 2025, CompX reported net sales of $40.3 million, a 6.1% increase from $38 million in the same period last year. Net income rose 38.6% year over year to $5.1 million, or 42 cents per share, up from $3.7 million, or 31 cents per share. Gross margin improved to $12.2 million from $9.7 million, reflecting a margin increase of 470 basis points from 25.5% to 30.2%. Operating income surged 58% year over year to $5.9 million, driven by strong performance in Marine Components [2]. Segment Performance & Key Business Metrics - The Security Products segment, the largest for the company, saw a 1% year-over-year increase in net sales to $30.2 million, primarily due to higher sales in government security and healthcare markets, which offset declines in other sectors. Operating income for this segment increased slightly to $5.5 million, maintaining an operating margin of 18.3% [3]. - The Marine Components segment experienced significant growth, with sales rising 24% year over year to $10 million, driven by increased demand from towboat and government markets. Gross margin jumped from $895,000 to $3.2 million, and operating income soared from $34,000 to $2.2 million, resulting in an operating margin increase to 22.3% from 0.4% [4]. Management Commentary - Management attributed the strong quarterly performance to rising sales volumes in Marine Components, particularly for towboat-related products, aided by a one-time stocking event. Modest sales growth was also noted in the Security Products segment, especially in the government channel. Despite rising raw material costs, margin improvements were achieved through better product mix and selective price increases [6]. - CIX highlighted its adaptability to tariff-related cost pressures through proactive raw material sourcing and price adjustments, viewing the current supply-chain environment as stable with minimal disruptions [7]. Drivers Behind Financial Upside - The increase in profitability was largely driven by the Marine Components segment, with the towboat market contributing $1.7 million in incremental sales and the government market adding $1.2 million. This surge in demand improved cost absorption across manufacturing operations [8]. - Security Products sales benefited from $1.6 million in increased government demand, although this was nearly offset by softness in transportation and vending markets. Margins remained stable due to effective cost controls and pricing discipline [9]. Outlook & Guidance - Management expects modest sales growth in Security Products for 2025, supported by a stronger product mix and price adjustments. Marine Components sales are anticipated to benefit from ongoing government demand and improved industrial sector activity, although towboat sales may normalize after the first-quarter stocking event [11]. - CIX anticipates gross margin and operating income percentages in both segments to remain slightly above 2024 levels, assuming stable market conditions and continued pricing power, while acknowledging potential headwinds from raw material cost increases and tariff surcharges [12]. Other Developments - CIX maintained a steady capital expenditure rhythm, spending $0.8 million in Q1, with full-year guidance set at $3.4 million. The company reiterated its commitment to returning capital to shareholders through dividends, paying out 30 cents per share in Q1, consistent with prior distributions [13]. - Overall, CompX's first-quarter results reflect solid execution, particularly in Marine Components, indicating a firm footing for growth despite near-term stock underperformance following earnings [14].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) CompX reported strong growth in Q1 2025, with net sales increasing 6.1% year-over-year to $40.3 million, operating income rising 59.5% to $5.9 million, and net income growing 37.8% to $5.1 million, resulting in a diluted EPS of $0.42 compared to $0.31 in Q1 2024 Key Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $40.3M | $38.0M | +6.1% | | Operating Income | $5.9M | $3.7M | +59.5% | | Net Income | $5.1M | $3.7M | +37.8% | | Diluted EPS | $0.42 | $0.31 | +35.5% | [Business Performance Analysis](index=1&type=section&id=Business%20Performance%20Analysis) The increase in Q1 2025 net sales and operating income was primarily driven by higher sales and gross margin in the Marine Components segment, particularly to the towboat and government markets, with the Security Products segment also contributing to growth - The primary driver for increased sales and operating income was the **Marine Components segment**, which saw higher sales to towboat and government markets and improved gross margins[2](index=2&type=chunk) - **Security Products sales** also contributed to the growth, with higher sales directed towards the government security market[2](index=2&type=chunk) - CompX operates as a **leading manufacturer** of security products and recreational marine components from three U.S. locations, employing approximately 550 people[3](index=3&type=chunk) [Risk Factors and Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) The company outlines numerous forward-looking statements and associated risks that could materially affect future results, including supply and demand fluctuations, raw material cost changes, competition, supply chain disruptions, and global economic and political conditions - The company faces risks related to **supply and demand**, **raw material costs** (e.g., zinc, brass, steel), and **competition** from low-cost manufacturing sources like China[5](index=5&type=chunk) - Potential risks also include **litigation**, **intellectual property defense**, and challenges with **new product development**[8](index=8&type=chunk) - Broader economic and geopolitical risks that could impact operations include **supply chain disruptions**, **tariffs**, **cyber-attacks**, and **global conflicts**[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=SUMMARY%20OF%20CONSOLIDATED%20OPERATIONS) The summary of consolidated operations provides a detailed comparison of financial performance for the three months ended March 31, 2025, versus the same period in 2024, highlighting improvements in gross margin and operating income Summary of Consolidated Operations | (In millions, except per share amounts) | **2024** | **2025** | | :--- | :--- | :--- | | **Net sales** | $38.0 | $40.3 | | Cost of sales | $28.3 | $28.1 | | **Gross margin** | $9.7 | $12.2 | | Selling, general and administrative expense | $6.0 | $6.3 | | **Operating income** | $3.7 | $5.9 | | Interest income | $1.2 | $0.8 | | Income before income taxes | $4.9 | $6.7 | | Income tax expense | $1.2 | $1.6 | | **Net income** | $3.7 | $5.1 | | **Basic and diluted net income per common share** | $0.31 | $0.42 |

Part I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements present the company's financial position as of March 31, 2025, and December 31, 2024, and its results of operations and cash flows for the three months ended March 31, 2025, and 2024. Total assets slightly decreased to **$162.2 million**. For Q1 2025, the company reported a **6%** increase in net sales to **$40.3 million** and a **36.7%** increase in net income to **$5.1 million** compared to Q1 2024. Cash from operations was negative, a reversal from the prior year, primarily due to changes in working capital [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$162.2 million**, a slight decrease from **$163.0 million** at year-end 2024. The change was driven by a **$4.7 million** decrease in cash and cash equivalents, partially offset by a **$3.9 million** increase in accounts receivable. Total stockholders' equity increased to **$147.6 million** from **$146.1 million** Condensed Consolidated Balance Sheets (In thousands) | | December 31, 2024 | March 31, 2025 (unaudited) | | :--- | :--- | :--- | | **Total current assets** | $105,296 | $104,954 | | Cash and cash equivalents | $60,782 | $56,128 | | Accounts receivable, net | $14,113 | $18,030 | | Inventories, net | $28,366 | $29,158 | | **Net property and equipment** | $24,026 | $23,552 | | **Total assets** | **$163,044** | **$162,206** | | **Total current liabilities** | $15,775 | $13,604 | | **Total stockholders' equity** | $146,145 | $147,581 | | **Total liabilities and stockholders' equity** | **$163,044** | **$162,206** | [Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For the first quarter of 2025, net sales increased by **6.1%** to **$40.3 million** compared to **$38.0 million** in the same period of 2024. Gross margin improved significantly to **30.2%** from **25.5%**, leading to a **58.0%** increase in operating income to **$5.9 million**. Net income rose **36.7%** to **$5.1 million**, with diluted EPS increasing to **$0.42** from **$0.31** Q1 2025 vs Q1 2024 Income Statement (In thousands, except per share data) | | Three months ended March 31, 2024 | Three months ended March 31, 2025 | | :--- | :--- | :--- | | **Net sales** | $37,971 | $40,272 | | **Gross margin** | $9,667 | $12,163 | | **Operating income** | $3,715 | $5,869 | | **Net income** | $3,754 | $5,131 | | **Basic and diluted net income per common share** | $0.31 | $0.42 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from **$146.1 million** at the end of 2024 to **$147.6 million** at the end of Q1 2025. The increase was driven by **$5.1 million** in net income, partially offset by **$3.7 million** in cash dividends paid at a rate of **$0.30 per share** - During Q1 2025, the company generated net income of **$5.131 million** and paid cash dividends of **$3.695 million** (**$0.30 per share**)[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities was **$0.1 million**, a significant decrease from **$1.7 million** provided in Q1 2024, mainly due to changes in working capital. Net cash used in investing activities was **$0.8 million**. After paying **$3.7 million** in dividends, the cash balance decreased by **$4.7 million** during the quarter to **$56.1 million** Q1 2025 vs Q1 2024 Cash Flows (In thousands) | | Three months ended March 31, 2024 | Three months ended March 31, 2025 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $1,672 | $(137) | | **Net cash provided by (used in) investing activities** | $12,495 | $(822) | | **Dividends paid** | $(3,694) | $(3,695) | | **Cash and cash equivalents - net change** | $10,473 | $(4,654) | | **Balance at end of period** | $51,866 | $56,128 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's ownership structure, with NL Industries holding an **87%** stake. Segment data reveals that the Marine Components segment was the primary driver of growth in Q1 2025, with a **24%** sales increase and a dramatic rise in operating income from **$34 thousand** to **$2.2 million**. Security Products sales were nearly flat. The company also has a **$9.3 million** note receivable from its affiliate, Valhi, Inc - As of March 31, 2025, the company was approximately **87%** owned by NL Industries, Inc[22](index=22&type=chunk) Segment Performance - Q1 2025 vs Q1 2024 (In thousands) | Segment | Metric | Q1 2024 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | :--- | | **Security Products** | Net Sales | $29,887 | $30,230 | +1.1% | | | Operating Income | $5,450 | $5,521 | +1.3% | | **Marine Components** | Net Sales | $8,084 | $10,042 | +24.2% | | | Operating Income | $34 | $2,241 | +6,491% | - The company has an outstanding note receivable of **$9.3 million** from its affiliate Valhi, Inc as of March 31, 2025[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong Q1 2025 performance, with operating income rising to **$5.9 million** from **$3.7 million** year-over-year, primarily to higher sales and significantly improved gross margins in the Marine Components segment. The company expects modest sales improvement for Security Products and continued growth for Marine Components in 2025, though it remains cautious about raw material price increases and tariffs. Liquidity remains strong with **$56.1 million** in cash, despite a net cash use from operations in Q1 - The increase in operating income in Q1 2025 to **$5.9 million** from **$3.7 million** in Q1 2024 is primarily due to higher Marine Components sales and gross margin[43](index=43&type=chunk) - The company expects Security Products net sales to improve modestly in 2025 and Marine Components net sales to increase, driven by government and industrial markets[57](index=57&type=chunk) - The company is monitoring raw material price increases and tariffs, believing it can increase selling prices to recoup costs, though the extent of recovery is uncertain[56](index=56&type=chunk)[58](index=58&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) In Q1 2025, net sales rose by **$2.3 million** (**6%**) year-over-year, driven by higher sales in both the Marine Components and Security Products segments. Gross margin as a percentage of sales increased from **25.5%** to **30.2%**, primarily due to improved performance at Marine Components. Operating expenses increased by **$0.3 million** due to higher employee salaries and benefits Overall Operations - Q1 2025 vs Q1 2024 | Metric | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Net Sales | $37,971 | $40,272 | | Gross Margin % | 25.5% | 30.2% | | Operating Income | $3,715 | $5,869 | | Operating Income % | 9.8% | 14.6% | - The increase in net sales was due to higher Marine Components sales (to towboat and government markets) and, to a lesser extent, higher Security Products sales (to the government security market)[45](index=45&type=chunk) [Segment Results](index=18&type=section&id=Segment%20Results) The Marine Components segment was the standout performer in Q1 2025, with a **24%** increase in net sales and operating income surging to **$2.2 million** from just **$34 thousand** in Q1 2024. This was driven by higher sales to the towboat and government markets and improved cost absorption. The Security Products segment saw a modest **1%** sales increase, with higher government sales offsetting declines in other OEM markets - Security Products net sales increased **1%** in Q1 2025, with gross margin and operating income percentages remaining comparable to Q1 2024[53](index=53&type=chunk) - Marine Components net sales increased **24%** in Q1 2025, driven by a **$1.7 million** increase in sales to the towboat market and **$1.2 million** to the government market. Gross margin percentage increased significantly due to lower cost inventory and better fixed cost coverage[54](index=54&type=chunk) [Outlook](index=20&type=section&id=Outlook) The company anticipates modest sales growth for Security Products in 2025 with slightly improved margins. For Marine Components, sales are expected to increase for the full year, driven by government and industrial markets, although Q1 results were boosted by a one-time stocking event at a towboat OEM. Management is actively monitoring raw material price increases and tariffs, which began in late 2024 and continued into Q1 2025 - A one-time stocking event at a towboat OEM customer boosted Marine Components sales in Q1; demand from this market is expected to be consistent with 2024 for the rest of the year[57](index=57&type=chunk) - Raw material price increases experienced since Q3 2024 have continued through Q1 2025, and the company is seeing surcharges related to tariffs[56](index=56&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity source is cash from operations, which was a net use of **$0.1 million** in Q1 2025, a decrease of **$1.8 million** from the prior year due to working capital changes. The company ended the quarter with **$56.1 million** in cash. Capital expenditures for 2025 are projected to be approximately **$3.4 million**. A regular quarterly dividend of **$0.30 per share** was paid - Net cash from operating activities decreased by **$1.8 million** YoY, primarily due to a **$5.1 million** negative change in working capital (inventories, receivables, payables)[61](index=61&type=chunk)[62](index=62&type=chunk) - The company ended Q1 2025 with **$56.1 million** in cash and cash equivalents, all held in the U.S[72](index=72&type=chunk) - Projected capital expenditures for 2025 are approximately **$3.4 million**. The board declared a regular quarterly dividend of **$0.30 per share** in Q1 2025[67](index=67&type=chunk)[73](index=73&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company states that there have been no material changes in its exposure to market risks, such as changes in interest rates and raw material prices, since the filing of its 2024 Annual Report - The company is exposed to market risk from changes in interest rates and raw material prices, but there have been no material changes in these risks since the 2024 Annual Report[77](index=77&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. Additionally, no changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting - The President and CEO, along with the Executive VP and CFO, concluded that the company's disclosure controls and procedures are effective as of March 31, 2025[78](index=78&type=chunk) - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected or are likely to materially affect these controls[81](index=81&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 7 of the Condensed Consolidated Financial Statements and its 2024 Annual Report for information on legal proceedings. Note 7 indicates that management does not expect current claims and disputes to have a material adverse effect on its financial statements - For information on legal proceedings, the report refers to Note 7 of the financial statements and the 2024 Annual Report[83](index=83&type=chunk) - Based on Note 7, management believes the disposition of all claims and disputes should not have a material adverse effect on the company's financial condition[32](index=32&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The report directs readers to the 2024 Annual Report for a comprehensive discussion of risk factors related to the company's businesses. No new or updated risk factors are presented in this quarterly report - The report references the 2024 Annual Report for a discussion of risk factors related to the business[84](index=84&type=chunk) [Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL data files (Exhibit 101 series) - Filed exhibits include officer certifications and Inline XBRL documents[85](index=85&type=chunk)

Core Viewpoint - CompX International Inc. reported a positive financial performance for the first quarter of 2025, with increases in net sales, operating income, and net income compared to the same period in 2024 [1][2]. Financial Performance - Net sales for Q1 2025 were $40.3 million, up from $38.0 million in Q1 2024, representing a growth of approximately 6.05% [1][9]. - Operating income increased to $5.9 million in Q1 2025 from $3.7 million in Q1 2024, marking a rise of about 59.46% [1][9]. - Net income for Q1 2025 was $5.1 million, or $0.42 per share, compared to $3.7 million, or $0.31 per share, in Q1 2024, indicating an increase of approximately 37.84% in net income [1][9]. Sales Drivers - The increase in net sales was primarily driven by higher sales of Marine Components, particularly to the towboat and government markets, along with increased sales of Security Products to the government security market [2]. - The improvement in operating income was attributed to the higher sales of Marine Components and an increase in gross margin [2]. Company Overview - CompX is recognized as a leading manufacturer of security products and recreational marine components, operating from three locations in the U.S. and employing around 550 people [3].